What Are The Alternatives To Personal Loans In Singapore For The Unemployed?

What Are The Alternatives To Personal Loans In Singapore For The Unemployed?

When we need cash, some of us consider taking personal loans to get through the tough period. Unfortunately, it can be difficult to get a personal loan in Singapore when you’re unemployed.

Don’t worry, though. There are alternatives to personal loans in Singapore that you can take up, even if you’re unemployed. This article is here to lend you a hand.

Main Things To Consider Before You Take A Personal Loan

When you need money urgently, getting a personal loan might be helpful. Before jumping into applying for a loan, here are a few important things you need to consider.

1. Your Credit Score

Credit scores are important numbers that banks and licensed moneylenders look at when approving a loan. They include various important information such as borrowing records, number of accounts across banks, as well as payment history on past and ongoing loans.

Your credit score affects your chances https://paydayloansmichigan.org/ of getting your personal loan approved. If your credit score is high, it will be easier for you to get a loan. Having a high credit score increases the likelihood of getting your loan approved.

This is because a good credit score assures lenders that you’re a responsible borrower who has the means to repay the loan. If your credit score is poor, there’s a high chance that your personal loan application will be rejected.

In Singapore, banks access their consumers’ credit scores from the Credit Bureau Singapore (CBS) , while licensed moneylenders get them from the Moneylenders Credit Bureau (MLCB) .

If you’ve been making your loan repayments on time and don’t have a lot of open credit facilities, you’re more likely to have a high credit score.

Let’s say that you have a high credit score of 1945; this means that your risk grade is “AA” and that your probability of default is low from 0.00% to 0.27%. With a lower chance of default, you’ll have a higher chance of getting your personal loan approved.

Another consideration you need to make before getting a personal loan in Singapore is to calculate the total cost of the loan. This includes interest rates as well as any administrative fees.

In general, banks and licensed moneylenders will have their own set of interest rates and administrative fees. These interest rates and fees will make a huge difference in your overall repayment amount, which can range from hundreds to thousands of dollars.

Be sure to do your calculations before signing the loan contract. If you’re unsure of the math, seek clarification from your loan officer.

3. Eligibility Criteria

Other than age, banks and licensed moneylenders will also look at your income. This is to ensure that you have the money to repay the loan.

For most banks in Singapore, they require borrowers to have an annual income of at least S$30,000. This can be a tough requirement to meet, especially when your income isn’t that high or when you’re unemployed.

However, licensed moneylenders such as Crawfort might be able to help. With Crawfort, you can take up a loan even if your annual income is less than S$20,000.

Unfortunately, if you are unemployed and aren’t able to produce a proof of income, your personal loan application in Singapore might be rejected. Not to worry, here’s how you can increase your chances of getting your loan approved.

Alternatives To Taking Up A Personal Loan In Singapore For When You’re Unemployed

Being unemployed can be tough. It’s even tougher when you have urgent bills to pay but can’t get a personal loan for it. However, it’s important to remember that all is not lost.

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