When we’re in a rush to secure some much-needed financial funds, we may tend to forget one very important question: am I eligible for a loan? Well, the answer isn’t one that’s one size fits all. Every financial institution has its own rules that determine eligibility, and this is apart from the rules set by Singapore’s Ministry Of Law.
So in order to be eligible for a legal loan in Singapore you need to check for it on their websites. But most financial institutions have the same requirements for eligibility which we will discuss in this article. You might have heard it that banks and reliable money lenders are providing the loans in Singapore and both of these institution types have their own set of requirements.
Eligibility Requirements For Banks
Banks are a common option for many who are looking to loan a sum of money. The only drawback that many are discovering, however, is that banks tend to have stricter eligibility requirements when it comes to taking out loans.
Unlike authorised money lenders, banks look at your minimum credit, even if you have proof of income. These more stringent eligibility requirements do also end up lengthening the approval process. Banks can take up to 2 weeks to process an application of the loan, so if you are in need of urgent cash, a loan from a bank may not be the most appropriate option.
Eligibility Requirements for Licensed Moneylenders
Compared to banks, licensed money lenders tend to have simpler eligibility requirements, which are listed below:
- You must be a Singapore national or a foreigner with valid Singapore employment pass
- Above the age of 18
- Must have full-time employment
- Remove this. No minimum income required
These are the basic requirements for all licensed money lenders operating in Singapore, so be sure to prepare proof of all these things before meeting with your chosen money lender to get your loan. If you are planning to get a business loan however, your business must have been registered for at least one year before you apply for your loan.
One thing to note as well is that different money lenders might require different documents to process approval of your loans. But typically speaking, despite these different requirements, the duration taken to process your loan application takes only approximately 1 to 2 working days! If you want to be absolutely certain of the documents you may require, you may contact your money lender to verify before you go down to meet them.
Documents required
Both Singapore national and foreigners require a different set of documents to be eligible for the loans. Here is a list of all the average documents required when applying for your loans.
For Singapore national
- Passport number or NRIC copy
- Telephone bill or Singapore power company bill
- For full time employed personnel: Salary slip for at least 3 months or income tax statement of the last 15 months.
- For self-employed individuals: income tax statement for the last 2 years.
A foreigner residing in Singapore
- Original copy of the valid Singapore employment pass
- Original copy of the passport of their country of origin
- Tenant agreement for your rental space or phone bill
- Appointment letter from the company you’re working right now
- Salary slip of the last 3 months
- Bank statement of the last 3 months to confirm that you are getting the salary in your bank account
These are few of the documents you have to produce in order to determine if you are eligible for a loan from the legal money lender in Singapore. The good thing is that foreigners can easily apply for foreigner loans in Singapore as well.
Loan Eligibility Requirements in Singapore
In order to get your loan ASAP, just use this helpful little article as a checklist before visiting your chosen licensed money lenders in Singapore. If you want to be extra sure before taking out a loan, you could also drop a comment below this article or reach us on our hotlines at (+65) 62244746 (Yishun) and (+65) 62244749 (Tampines).