Even though average median incomes are high, there is still a great disparity in income gaps based on class in Singapore. So, what do you do in the lower class, or if you are self employed and would like to borrow from licensed moneylenders? Well, there are a few options available to you as a borrower, and there is more than one way you can go about taking out the cash you need as a borrower. With an average annual salary of $30K, this means only those earning about $2,500 month can borrow from licensed moneylenders.
Eligibility for personal loans
So, what is required? For salaried employees, a copy of the front and back of NRIC, and a photo ID is required when you are applying for the loan, The latest income tax notice assessment may also be required, and proof of 12 months of income, which is going to show you are capable of paying back the loan which you are borrowing with licensed moneylenders in Singapore. If you are self employed, you are also required to provide NRIC copy with the front and back, as well as a copy of the last 2 years’ tax assessment. And, you are going to have to provide proof of the last 3 months bank statements, simply to show you have cash coming in regularly, and to show you are going to be able to repay the funds which you are taking out with the lender.
For those who are self employed, the criteria is more stringent, and it is going to be harder for you to be approved for the higher spectrum of the limit, when the time comes for you to take out a cash or personal loan. So, with more Singaporeans going to the self employed spectrum, what can you do to hold yourself over, if you are in need of cash for a short period of time? Well, there are a few options which you can rely on for that cash you need.
Moneylenders are one option
Even if you earn $20K per year, you are likely to be approved with a licensed moneylender when the time comes for you to apply locally. Unlike banks, they are far less stringent in terms of income, and the type of employment you do. Although you might not be approved for exactly the amount you are requesting, it is still a viable option for you to have cash in hand, so you can do your work and survive, when you are self employed.
You are going to find there are quite a few licensed lenders who are willing to work with you, even if you are on a lower earning spectrum as a borrower. Due to the fact that you do have options when it comes to this type of lender, you can also shop around so you can find the best rates. Do keep in mind the rates are higher than banks, and you won’t get as much, but they are far less stringent in terms of who is going to be approved for a loan when they do apply.
Fixed deposit accounts are one such route you can turn if you need some money to hold you over for a short period of time. This way you are going to receive instant approval when you apply, and you are going to know instantly how much you are approved for when you apply as well. If you can provide some form of collateral or if you do have a guarantor who is willing to sign with you as a cosigner on the loan, this is also an option in which you can apply for loans, and will be approved, for higher lending limits wen you do apply. Because there are so many Singaporeans who are going this self employed or work from home route today, more and more lenders are becoming more willing to approve these individuals for a loan. Although it is not as high of a lending limit as they would get with a traditional form of employment and higher salary, it is at least a way for them to have cash in hand, for a short period of time, when they do have to apply for a loan.
Of course there are personal loan money lenders you can turn to as well if you are in need of cash. Again, like the money lender, they are not as stringent as banks; but, you are going to pay a higher rate when the time comes to borrow, and the repayment period is usually going to be shorter in duration as well. So, you will have to repay the loan rather quickly if this is the route you are going to go when the time comes for you to apply for the loans and instant cash you need. You do have options when it comes to instant approval and cash loans, even if you do not make the traditional income levels, or if you do not have the traditional job outside of the home. It is important for you to do your research, for you to shop around for loans, and for you to be informed as a borrower, so you do not get into a situation where you can’t repay the loans which you are taking out. Regardless of the route you do choose to go, when you need instant cash, you have a few options from which you can choose from.
When the time comes for you to apply, it is important to remember your options, and to know your rights as a borrower. The more time you take to compare lenders, terms, and the amounts you can borrow, the easier it will be to find the right one, and also to find the lowest rates when you borrow. As an entrepreneur in Singapore, these are a few ways in which you can be approved for a cash loan, when you need it most, even if you do not make a higher income bracket which a traditional lender or bank would require you to fall into.