It is no doubt that Singaporeans work hard day in and day out to meet their financial obligations. But things change at one time or another, and chances of needing a financial boost arise. Let’s take an instance whereby a medical emergency faces one. What do you do when the bank account is at Zero? No need to worry. There are financial providers out there who can help to fill the gap.
But then what if one does not have income proof? Is there any possibility of getting a loan?Indeed, it is possible to get. But this will largely depend on the lending institutions one decides to work with. However, it is also paramount to know how these loans without proof of income work differently, and there are several requirements that one needs to fulfill before applying for them.
Can a Salaried Person Get a Personal Loan?
Yes, one can get a personal loan, though it depends on several factors, such as the financial institution, the interest rates, the loan repayment period, and the monthly income.
How to Access a Personal Loan for Traditional Banks
Any time a financial challenge hits us, our thoughtsswitch to running to the bank and making an application. This is a good idea because they will offer a big loan depending on one’s ability. But banks are stricter when it comes to meeting the eligibility criteria,soit takes longer to approve it.
On the same note, there is a benchmark to which n=banks apply- for one, people earning an annual income of $30,000 cannot apply for a personal loan in Singapore. But there are some exceptions if only the borrowers accept to pay back the loan at a higher interest rate.
Additionally, foreigners earning less than $40,000 do not qualify for a personal loan. This, however, depends on the bank. Now one may ask if there are that strict, what would be the next best alternative?
One of the available alternatives is getting a loan from Licensed Moneylender in Singapore.
How to Borrow Loans from Licensed Moneylenders
The word moneylenders might bring panic to borrowers with the thought that these are loan sharks in Singapore. Loan sharks indeedexist and aim to make money from unknowing borrowers. This one should be wary about. But there are licensed moneylenders who operate as per the laws and regulations of financial institutions in Singapore. One should be assured that dealing with the licensed ones is safe and secure.
Let’s see How Licensed Moneylenders Operate;
Interest rates
There is a specific interest rate for the new borrowers, possibly higher than that of the return borrowers, but lenient enough to cater to your financial obligations with peace. For instance, licensed moneylenders do not charge more thana 4% interest rate per month compared w to loan sharks, whose interest rates are not within reach of an average borrower.
Still, licensed moneylenders work within the rules and regulations that the Ministry of law has accorded them.
Amount of Loan
If you earn less than $20,000, the maximum amount of credit you can get from alicensed moneylender is $3,000. But if you make more than that, you can get six times your monthly salary as a loan.
Approval Process
Licensed moneylenders’ loan approval process can take less than a day compared to banks, which can take weeks. This is a good alternative if the borrower needs the money hurriedly.
What Documents are required to make a loan Application in Singapore?
With the knowledge that it is possible to get a loan in Singapore, it is crucial to know the documents required when making the loan Application. These include;
- Proof of Identity- NRCI or Passport
- Proof of Residence – One can submit bank statements with the address
- Proof of Income- Pay slips
Having reached there, we can only say that this is the qualification requirement for those with proof of income. How about those who do not have evidence of Income?
It is likely to get a personal loan even when you do not have standard income proof. Let’s take an example where one has just been employed and has not received any payslip. In such a case, one can provide the appointment letter, and the lender can decide based on the contract terms.
Another reason one may not get a payslip is that the company does not provide it. In this case, if the salary passes through the bank, one can give bank statements to show the frequency by which the income hits the account.
Who are Prone to Miss Pay slips in Singapore?
Several categories of people may not have pay slips, including;
- Taxi drivers
- Freelancers or
- Contract workers.
Which Alternatives Documents Can a Borrower Submit as a Proof of Income?
Because licensed moneylenders are great financiers in Singapore, they require proof to show that they are dealing with a legit borrower. Below are some alternative documents that one can submit.
Income Tax Statements are available from employment, rental payments, investments, or business enterprises.
Notice of Assessment(NOA)- This document Cleary shows the tax amounts you have been paying upon submitting your income tax.
Business Contracts– This refers to the employment contract letter, and it is only acceptable if the borrower has just started working and has not received any salary, people who are getting back to employment after being away for a while, or foreigners who have come into Singapore to start working there.
Where to Apply for a Personal Loan In Singapore
As aforementioned, banks and licensed moneylenders are popular for personal loans. One of the well-known licensed moneylenders is Tradition Credit PTE ltd.
If you need some funds, applying for a loan at Tradition credit will take less than 8 minutes for approval to take place.
You only need to submit the relevant documents online and get your loan on the same day. Remember that proof of income is not a must to submit since the system can download the same from CPF. Therefore, you no longer need to worry about getting a loan without income proof. Tradition credit is here for you.