Are you looking for a personal loan for low-income Singapore? This article will provide different personal loan options with all the requirements to help you get loans. Personal loans are flexible and convenient options for meeting financial requirements. They can be used for unanticipated or urgent events, to meet your education needs, to improve the quality of life, and many more. But many are not aware of how to get personal loans for low-income. Therefore, they should check out these aspects for further details.

• POSB Personal Loan 

This personal loan option comes with friendly eligible requirements. It is suitable for people earning a minimum amount of S$20,000 every year. Foreigners, PRs, and Singaporeans are invited to apply for POSB personal loans, and the minimum age requirement is 21 years. It is available at a lower interest rate of 2.88%, and people can borrow four times their monthly income.

• OCBC Extracash Loan 

It is another suitable option for people with a yearly income lower than S$30,000. The requirement for OCBC Extracash Loan is S$20,000 for PR and Singaporean. Foreigners can qualify for this loan provided their income is S$45,000 every year. It is a higher interest rate of 12.31%, and a processing fee of S$100 needs to be paid. The tenure of this particular loan can vary from one to five years.

• Standard Chartered CashOne

People with the best savings account in Singapore without salary credit can opt for a loan from Standard Chartered CashOne. The minimum income requirement to opt for a loan from Standard Chartered CashOne is S$60,000 for foreigners and S$20,000 for Singaporeans. The interest rate for every year is 3.48%, and the tenure can be up to five years. The entire process can be completed within 15 minutes, which indicates people do not have to wait for a long time to get the finances. While applying for this loan, the authorities will check the credit score. Therefore, maintaining a good credit score is necessary.

• Citi Quick Cash Personal Loan 

If you need an urgent cash loan Singapore, Citi Quick Cash Personal Loan can fulfill your needs. The minimum salary a person should earn to apply for a loan is S$30,000. Foreigners should earn at least S$42,000 making it easier to get one. The interest rate of the loan can vary from 3.45 to 6.5% every year. The tenure of the loan is one to five years.

Important Factors To Consider While Applying For A Personal Loan 

When applying for a personal loan, a few parameters are to consider before signing the papers. They are:

• Watch Your TDSR

While planning to opt for a personal loan, checking the Total Debt Servicing Ratio is a necessity. It measures total debt payments, including personal mortgages and loans. When applying for a mortgage, this parameter will play a significant role. But if your loan repayments consume more than your 55% limit, you have to speak to professionals.

• Looking For The Rate Of Interest

When applying for a personal loan, finding out the details of the rate of interest and tenure is important. The price you need to repay can vary based on the interest rate. It is always recommended to choose a company charging a lower rate of interest from you.

• Finding Out Details About The Effective Interest Rate 

Two sets of rates are there; the Flat Interest Rate or the Advertised Interest Rate and the Effective Interest Rate. While applying for personal loans, pay attention to how the EIR is calculated. The calculation can vary from one financial institution to another. The banks take into account charges associated with personal loans and the effect of fees.

• Checkout For A Well-Known Financial Institution 

Make sure to opt for a loan from a well-known financial institution with a good market repo. That way, you can trust the company and find details about them. In addition, you should check their review section to find details like the customers’ perspective, details of their work, etc.

• Looking For The Company’s Credential 

The next step is to look for the company’s credentials to find the crucial details. Look for a company with years of experience in this sector that can offer you a loan at a minimum interest rate.

Signing Off 

Many companies offer personal loans in Singapore, which will be helpful for people of low income. With this loan amount, people can meet their financial needs and improve their life. People with better credit score are better positioned to enjoy more benefits while applying for personal loans. That’s why you should try to maintain a better credit score if you have taken any loan. For further details, the professionals in Singapore will provide all the details.