Applying for a personal loan could be a tricky choice. It is something you should think well about because of the financial obligations and conditions you need to commit yourself to. You must be aware of the commitment and the purpose of the said loan.
What is the Purpose of a Personal Loan?
The purpose of the personal loan is to act as a source of fund for any of your needs and wants. Whether it will be for your emergency fund, vacation, party fund, or any personal use, this type of loan can work. It should help you to have a safety net especially if you need to fund something personal but has a smaller value than a car, a business, or a house.
If you are already decided and want to have your application approved faster, here are some useful hacks that may come in handy:
Prepare Your Documents
Every financial institution and licensed money lender require documents to prove that you have an earning capacity and resources to pay your personal loan. They may also ask you the purpose of the loan like for party purposes, medication, vacation, new gadgets, or family emergency, you must declare.
Any bank or “money lender Singapore” searches, will require you to submit the documents to process your personal loan. You must assure:
– a copy of National Registration Identity Card (front and back)
– a copy of your digital pay slip
– Central Provident Fund (CPF) contribution for the last 12 months
– a duplicate of your most recent Income Tax Notice of Assessment for the salaried employee; or
– most recent two-year Income Tax Notice of Assessment for self-employed
Remember that submitting requirement will not guarantee your loan approval, but duly filled-out and proper materials you submit increases your chances of faster processing. These documents will showcase your current financial status and resources for the financial institution to assess if you can pay off the loan once granted.
Understand the Qualification
Money lenders like banks, financial companies, and cooperatives qualify for any of those who are interested in applying for a personal loan. If you want to get a faster approval, the licensed money lender Singapore has some criteria you must meet, like:
– Ages between 21 to 65 years old
– Singaporean/PR with a minimum income of S$20,000 annually; or
– Foreigners with a minimum income of S$40,000 annually
Your personal loan can be up to a minimum two to six times of your monthly salary or up to S$200,000 maximum. If you are qualified, the moneylender can stretch your loan term up to seven years. The longer the tenure, the less monthly payment amount it will require; but the higher interest rate can acquire.
Completing the requirements could be one thing but understanding the qualification could mean everything. Make sure that you meet all the given standards to guarantee your chances of approval. The bank or any moneylender Singapore shall review these criteria also to confirm if you can afford the monthly payment amount based on the value of the personal loan.
Find a Bank that Offers the Best Deals
Different banks have packages you can look over when you are applying for a personal loan. Make sure that you have all the suitable information to ensure that you will not be a victim of higher interest rates incurred in a staggered manner. You must research further to assure that you do not fall for any scams provided by various firms or wannabes.
Banks may vary depending on your current status. If you do not have the time to go to banks one by one, you can quickly read reviews of them in websites like https://moneylender-sg.com/ to see how they are performing and if there are success stories you can base your decision.
Reviews are the best way to unveil the most honest opinions and experiences of someone who already applied for a personal loan. Such comments will give you an overview of what is in it for you when you apply for a loan; thus, will give you an idea of the commitment you will have if and when your loan got approval from moneylender Singapore.
The most effective hack towards loan approval is your preparedness. Ensuring that you fulfill all documents needed will increase your chances for a faster process. Banks and other lending companies favor a borrower who shows no problems when it comes to his/her requirements; this is because assessment and endorsement will be easier for them.