Taking out a personal loan can help fill the gap when you need to pay for emergency expenses. But before you start sending an application, it’s good to have an idea as to how much you can borrow. Applying for more than what you’re qualified for may lead to a rejected personal loan application.
Banks in Singapore consider different factors when deciding a borrower’s maximum loan amount. For instance, they will take into account your relationship with the bank, your credit score, and your monthly income.
How Much and the Qualifications for Personal Loan
Different banks in Singapore have different borrowing limits. On top of that, they will also evaluate each borrower’s case to determine how much they can borrow.
For instance, if you meet the minimum income requirement, you may borrow up to four times your monthly income. However, if you earn less than S$30,000 annually, you may only be able to borrow twice your monthly income. This applies to unsecured personal loans.
Secured personal loans, on the other hand, will usually depend on the value of your collateral.
So how do you qualify for a personal loan?
To apply for a personal loan in Singapore, you need to be between 21 to 65 years old. Different banks may also have different minimal annual requirements. Typically, Singapore Citizens or Permanent Residents must at least earn S$30,000 annually.
Foreigners, on the other hand, need to meet the minimum annual requirement of at least S$40,000 to S$60,000 to qualify.
Steps To Apply
- Log in to the bank’s digital banking website or visit the nearest branch.
- Fill out an application with the bank
- Choose your desired amount and tenure
- Submit the application online
Some banks may not require you to submit a document if you are an existing customer.
Where Can I Get a Personal Loan?
You can take out a personal loan from banks, credit unions, licensed moneylenders, or other financial institutions. With plenty of options in the market, choosing the right personal loan package can be a bit overwhelming. That said, it is best to compare your options before sending your application.
For instance, banks in Singapore like Citibank Quick Cash offer low EIR while POSB personal loans offer low interest rates. If you have a low income, you can consider taking out a personal loan from DBS.
Conclusion
How much you can borrow will depend on the salary you earn. Some banks will also take into account your credit history and credit score. A common limit to the loan amount you can borrow is four times your monthly salary. However, some banks in Singapore may have a limit of up to S$200,000 regardless of your income.
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