Low-Interest

Low-Interest Personal Loans In Singapore

With the changing economic climate and increasing rates of inflation, cash flow for personal and business purposes is becoming more and more strained. What happens when you have a need for a boost in your cash flow for personal uses? That is where a personal loan comes in.

What Are Personal Loans In Singapore?

A personal loan is one that an individual takes from a lender, such as a bank or licensed moneylender, and pays the loan amount plus interest in installments over a pre-determined time period. In Singapore, personal loans do not need collateral, hence are accessible to a majority of the people. However, each financial institution has its own metrics to determine who qualifies for a personal loan

Personal loans are applicable for a number of uses, for example, debt consolidation, home renovations, and settling medical or educational bills among others. One of the advantages of a personal loan is that it does not require fixed collateral, and hence it is unsecured. There are certain tips you can follow when you want to access a personal loan

This means that it is accessible to the normal working Singaporean who does not have many fixed assets. However, one has to have a good credit history to qualify for a personal loan at a low interest. Apart from good credit history, one must have a minimum income that is maintained to access a personal loan.

SU Credit is one of the most reputable companies that offer loans such as personal loans, business loans, and unsecured loans.

What Are Some Things You Should Consider Before Applying For A Low-Interest Personal Loan?

1.     Your Credit Score.

For banking institutions, the credit score is stored by the Credit Bureau of Singapore. For licensed moneylenders, the credit score is stored under Money Lender Credit Bureau. Before applying for a loan, ensure you have your credit score with you.

Your credit score will determine how much credit you can access and how much interest you will pay for applicable loans. The higher your credit score, the higher your chances of qualifying for a low-interest rate personal loan.

2.     Plan your Finances.

Before applying for a personal loan, ensure that you have checked your cash flow and your needs, to ensure that once you apply for a personal loan, you will be able to meet the Loan Contract Agreement. This can be done by checking your income and spending needs, to ensure that if offered a personal loan, you will have enough income to service your loan.

Remember, if you take a personal loan from a financial institution or licensed moneylender, you are obligated to meet the repayment amounts as agreed.

Failure to which, you will be blacklisted, and this affects your credit score negatively. Additionally, this affects your future loan applications due to a lower credit score.

3.     Shop Around For the Best Loan Terms.

Singapore has numerous financial lending institutions and licensed moneylenders in operation. Before deciding on where to take a low-interest personal loan, ensure you have done your background research on the available offers.

We at SU Credit have been in the licensed money lending industry for some time and have developed a reputation for being dependable and customer-centric. Our products are tailor-made to meet the specialized needs of each customer.

How Interest Is Calculated For Personal Loans.

In Singapore, licensed moneylenders can charge a maximum interest rate of 4% per month. For banking institutions, this rate is different. In the eventuality, that a client is unable to make a repayment for their personal loan, the maximum late repayment interest a licensed moneylender can charge is 4% for each month the loan is repaid late.

The late repayment rate is only charged on the amount that is repaid late, and not on the whole loan amount.

Other Charges Applicable While Applying For A Personal Loan.

When applying for a personal loan from a financial institution, some other application fees are applicable. As of 1st October 2015, for Licensed Money Lender, a limit was placed on the additional charges. These charges are limited such that:

  • For each month of late repayment, the fees cannot exceed $60.
  • No more than 10% of the loan amount (principal) is charged as loan granting fees.
  • In the recovery of a defaulted loan, a Licensed Money Lender can only claim the legal costs ordered by the court.

Procedure Of Applying For Personal Loans In Singapore.

In this digital age, there are numerous ways to apply for Low-Interest Personal Loans. The first and oldest method is to physically apply by visiting financial institutions’ offices or branches.

Most banks and licensed moneylenders in Singapore have offices and branches that customers can visit to get the services needed.

The minimum requirements to apply for a Personal loan in Singapore are:

  • Must be between 21 and 65 years old.
  • Must be a Singaporean Citizen.
  • Be employed with an annual minimum salary of S$10,000 for most Licensed Money Lenders and an annual minimum salary of $30,000 for most banks.

For documentation, most lenders will require you to provide:

  • Proof of identity in terms of Singaporean Identification card or Employment permit for foreigners.
  • Proof of Address, which will validate the area you reside in. This may be in the form of utility bills with your name etc.
  • Proof of Income may be in the form of the latest tax notice assessments, payslips, or salary deposits to your savings accounts.

In this digital age, technology has evolved to allow for the online application of Low-Interest Personal loans. At SU Credit, we make it easy for you, by simply clicking on the Loan Application Page here, and you get started on your journey. Once your online application has been submitted, you will be contacted by our customer service team to guide you on the way forward with regard to your application.

SU Credit For Low-Interest Personal Loans In Singapore.

With the current economic uncertainties, saving money has become harder. With inflation and rising costs of living, cash flows are being affected globally. However, as a Singaporean, we have the right solution for you.

At SU Credit, we offer unsecured personal loans that meet your needs and offer you much-needed flexibility. With flexible interest rates determined by each customer’s personalized qualifications, there is something for everyone. Choose SU Credit as your reliable choice for online unsecured personal loans.

low income

Best Instant Low-Income Loan Options

When you earn so little and you are left with no other option but to top up your salary with a credit facility to cover the deficit, it’s hard to find a low-income loan in Singapore that will meet your financial needs without making your financial status worse.

And while you may find a lender willing to approve your loan with a low income, this comes with a cost. Therefore, it is important to pay attention to interest rates and payment terms.

What is a Low Income Loan?

Low income does not necessarily mean small pay, it depends on factors beyond your pay such as family size and where you live.

The lending criteria include proof of income and categorize the income from high to low depending on the clientele.

If you fall in the low-income category, then a low-income loan in Singapore is ideal for you.

In a nutshell, the low-income loan is a loan facility advanced to people with low income as categorized by the lending institutions.

Low-income Loan Options

When you have a low income and you are searching for a loan facility, you may think that your options are limited and the ones that are available are very expensive.

This is not the case, there are several low-income loans options that you can explore. Here are some of them:

Secured Personal Loan

As the name suggests, this loan is secured against an asset such as a vehicle or land, or any other property, where you lounge property ownership documents such as the logbook or title with the lender and it is jointly registered.

The security is meant to safeguard the interest of the lender in the event of default. Your property can be repossessed by the lender if you fail to honor the terms of the loan agreement and can be sold to clear your loan balances.

These loans are less risky to the lender and are easier to qualify and have high approval rates.

Unsecured Personal Loan

This type of loan does not require any collateral making it riskier for the lender hence stringent terms.

Due to the risky nature of the loan, it attracts high-interest rates, strict terms, and low approval rates.

Unlike in secured loans, a credit score is necessary here, to prove your creditworthiness. Approval rates depend on your credit rating.

Small Unsecured Personal Loan

This is an unsecured loan with a maximum limit. The limit is usually set by the lending institution, but in most cases, the limit is S$3,000

Payday Alternative Loan

This is a loan that you get to top up to your salary and payable on the next payday. The interest is usually high as it is an unsecured loan and the approval rates are dependent on your salary.

Finding a low-income loan in Singapore isn’t a tall order as there are a thousand lenders looking for that business. However, it may come with a high-interest rate and other costs.

Su Credit, 175 Bencoolen Street #01-36 Burlington Square, Singapore, 189649 Tel: +65 6636 5644