Some unforeseen circumstances – such as a major medical bill, an unexpected car, or home repair – may require you to pay cash upfront. While ‘rainy day funds’ are best to cover these costs, some Singaporeans may not be fortunate to have the extra cash on hand – or even enough to cover the emergency.
This is where some may turn to unsecured urgent loans in Singapore.
Be it through banks or licensed moneylenders, this article details the documents you need to provide to get your (almost) instant loan approval in Singapore.
Personal Identification
- A copy of your passport or NRIC, or Employment Pass (both front and back)
You need to prove to lenders that you are who you say you are. Singapore loan application fraud is rather common, which is why lenders need to verify your identity.
Providing your proof of identity will also verify that you meet the basic age requirement for Singapore loan eligibility, such as you must be at least 18 years old (for licensed moneylenders) or 21 years old (for banks) and not older than 65 years.
Proof of Address
- A copy of your latest utility bill
- Lease or rental agreement
To be eligible for an urgent loan in Singapore, lenders would also want to verify if you have a valid address. There are times when they need you to furnish information such as bills, payment notices. Without an address in Singapore, lenders would not be comfortable extending loans to you.
Proof of Income
- For salaried employees, you can provide any of the following: latest income tax notice, latest payslip, or CPF contributions.
- Self-employed Singaporeans can provide copies of the most recent income tax notice or bank statements with income deposits. Include the documentation of any extra income you earn on the side (e.g. Freelance jobs etc.) – it could bring your income up to the required minimum amount.
Licensed moneylenders and banks are more likely to approve an urgent loan in Singapore to borrowers with a steady income. This gives them assurance that you will be able to make your monthly repayments timely.
Additionally, depending on the lenders, an urgent loan in Singapore may require a minimum salary. For banks, the minimum salary starts from $20,000. While licensed money lenders usually do not impose minimum salary requirements, your income would affect the maximum loan you’re eligible for.
Recurring Monthly Expenditures
- Mortgage or rent
- Utility bills
- Credit card and insurance payments
- Car loan payments
Aside from having a steady monthly income, lenders offering urgent loans in Singapore want to be assured that you can afford your loan repayments. Hence, you may need to provide documents detailing your current expenditures.
If you are diligent in settling your monthly payments, lenders are more likely to grant you approval for an instant loan in Singapore.
Credit Rating
Lenders will want to review your creditworthiness for your urgent loan application.
Banks would check your credit score via Credit Bureau Singapore (CBS). CBS collects and aggregates information to provide borrowers’ total credit risk profiles to financial institutions. Banks will refer to this report to determine if they would grant the loan to you, and at which term.
You can also purchase a copy of your credit report via eNets or Credit Card at $8.00 with prevailing GST.
If your credit score is bad, banks would most likely reject your application. If this happens to you, licensed moneylenders can be a great alternative as they do not practise credit score discrimination.
Instead, licensed moneylenders obtain a report from Moneylenders Credit Bureau (MLCB) which consolidates data on borrowers’ loans and repayment records with all licensed moneylenders in Singapore. The report would help licensed moneylenders assess the creditworthiness of the applicant and make informed decisions when granting loan applications, such as whether the maximum loan quota mandated by MinLaw has been breached.
Should you get an urgent loan in Singapore?
Borrowing money to pay off unexpected expenses is never easy, but urgent loans are a less expensive choice compared to other types of loans such as payday loans and credit card cash advances.
Urgent loan in Singapore standards vary by lender and are dealt with on a case-by-case basis. When weighing your options, consider how much you can borrow, fees, minimum credit scores, income requirements, and loan repayments.
Soon Seng Credit, a licensed moneylender registered with the Ministry of Law, offers personal loans with one of the most competitive interest rates in the market and flexible repayment terms.
Application for your urgent loan is easy and seamless; foreigners are eligible to apply, too. Our loan specialist will strive to ensure a fast and smooth application process so that you can receive your loan as quickly as possible.
