While it may seem impossible for low-income earners in Singapore to secure a personal loan, hope should be recovered. There are actionable steps one can take to bolster their chances of approval, giving them the financial boost they need to achieve their goals.
#1 Check Your Credit Score
Your credit score is the ultimate indicator of your financial reliability when borrowing money.
The good news is that checking your credit score in Singapore is a breeze. Just head over to the Credit Bureau Singapore (CBS) website to access all the relevant details. But don’t settle for simply knowing your score.
Before submitting your personal loan application, take a moment to scrutinize your score and make any essential adjustments to enhance it. For those aiming for loan approval, set your sights on a credit score closer to 2000, as this will heighten your chances of securing a personal loan with low income in Singapore.
#2 Research Lenders
It’s essential to research lenders who offer personal loans to low-income earners. Some lenders may be more willing to work with individuals who have a lower income or flexible eligibility criteria.
When comparing loan offers, look at the interest rates, fees, and repayment terms to find the best deal. Consider lenders like HSBC Bank, Standard Chartered Bank, DBS/POSB Bank, and Citibank, who are known for providing personal loans to individuals with low income. However, if you’re grappling with a poor credit score, opting for a licensed moneylender like Accredit may be the most appropriate decision.
#3 Consider a Co-Signer
Acquiring a personal loan in Singapore can be a journey filled with obstacles, but with a co-signer, you can significantly increase your chances of success. A co-signer is a common way for low-income earners in Singapore to bolster their chances of loan approval, but with great power comes great responsibility.
Before you seek a co-signer, make sure to select someone reliable and trustworthy, for they will be legally accountable for the loan should you falter. Choosing a co-signer who is financially stable can instill confidence in your lender and increase your chances of loan approval.
#4 Provide Additional Documentation
When it comes to securing a personal loan, displaying your creditworthiness is just the beginning. To give lenders a comprehensive view of your financial landscape, it’s important to provide additional documentation, such as tax returns and bank statements.
By furnishing this information, you can bestow upon lenders a deeper comprehension of your financial situation and enhance your likelihood of approval. Truthfulness and transparency are of utmost importance, so ensure you provide all the required documents to bypass any delays in the approval process.
#5 Consider Alternative Sources of Financing
When you encounter roadblocks in obtaining a personal loan, it’s time to get creative and consider alternative ways to achieve your financial goals. Consider whipping out your trusty credit card, taking out a payday loan, or even hitting up your loved ones.
But don’t be hasty; before you charge down any of these paths, weigh up the risks and expenses involved. High-interest rates and fees can take you by surprise, making credit cards and payday loans more expensive. Borrowing from friends and family can also strain relationships if you fall short on repayments.
Personal Loans in Singapore: Minimum Annual Income Requirements
Obtaining a personal loan in Singapore can be an uphill battle, particularly if you’re not earning a hefty income. The vast majority of banks mandate a minimum annual income of S$30,000 for loan applicants, but if you’re a foreigner residing in Singapore, you’ll be held to an even higher standard, with minimum annual income requirements of S$40,000 or S$60,000.
Thankfully, there are some loan providers who recognize the need to support those who earn less and offer loans to individuals earning as little as S$20,000 or S$10,000 per annum.
To simplify your pursuit of the ideal loan option for your financial circumstance, here is a list of these lenders and their minimum annual income requirements.
| Personal Loan Provider | Minimum Income for Singaporeans & PRs | Minimum Income for Foreigners | Best For |
| Accredit | S$10,000 or less | S$10,000 or less | Singaporeans, PRs, and Foreigners with low-income and bad credit |
| DBS/POSB | S$20,000 | S$45,000 | Singaporeans / PRs with low-income |
| Standard Chartered | S$20,000 | S$60,000 | Singaporeans / PRs with low-income |
| HSBC | S$30,000 | S$40,000 | Foreigners with low income or bad credit |
| Citibank | S$30,000 | S$42,000 | Foreigners with low-income |
Personal Loans in Singapore: Top Options for Low-Income Earners
| Personal Loan Provider | Interest Rate | Loan Amount | Processing Fee | Loan Tenure |
| Accredit Personal Loan | Up to 4% per month | $3,000 – 6x monthly income | 10% of the Principal Amount | 12 Months |
| DBS/POSB Personal Loan | 3.88% (EIR 7.9% p.a.) | S$500 – 10x your monthly salary | 1% processing fee | Up to 5 years |
| Standard Chartered CashOne | 3.48% (EIR 7.99% p.a.) | S$1,000 – 8x monthly salary | S$0 | Up to 5 years |
| HSBC Personal Loan | 4% (EIR 7.5% p.a.) | S$1,000 – 8x monthly salary | S$0 | Up to 7 years |
| Citibank Personal Loan | 4.55% (EIR 8.5% p.a.) | S$1,000 – 4x your monthly salary | S$0 | Up to 5 years |
Accredit Personal Loan
If banks have turned you away due to low income or poor credit history, fear not. Accredit, a licensed moneylender, provides a viable solution for such borrowers. Whether you’re a low-income earner or have a less-than-stellar credit score, Accredit assesses a borrower’s capacity to repay the loan, allowing for more flexibility in granting personal loans.
Eligibility:
- Age: 21 to 65 years old
- Annual Income: S$10,000 or less
- Citizenship: Singaporean, Permanent Residents, and Foreigners
- Pass Type: E-Pass (foreigners)
DBS/POSB Personal Loan
DBS/POSB offers a personal loan worth considering, featuring a competitive low-interest rate of 3.88% (EIR 7.9% p.a.) and immediate loan approval, alongside fast cash disbursement for existing customers. This unique personal loan is ideal for low-income borrowers and stands out from other bank loans. DBS/POSB’s personal loan offers the flexibility to borrow smaller loan amounts, with a starting sum as low as S$500.
Eligibility:
- Age: 21 to 65 years old
- Annual Income: S$20,000 (Singaporeans & PRs), S$45,000 (foreigners)
- Citizenship: Singaporean, Permanent Residents, and Foreigners with Cashline or Credit Card Accounts
Standard Chartered CashOne Personal Loan
For those seeking a loan with a low-interest rate, the Standard Chartered CashOne Personal Loan is an excellent choice. Enjoy a highly competitive interest rate of 3.48% (EIR 7.99% p.a.) and quick loan approval and cash disbursement when you’re on the go. This loan is tailored to borrowers who need a substantial sum of money at a low-interest rate, making it an optimal solution for those looking to finance big-ticket expenses.
Eligibility:
- Age: 21 to 65 years old
- Annual Income: S$20,000 (Singaporean & PRs), S$60,000 (foreigners)
- Citizenship: Singaporean, Permanent Residents, and Foreigners
- Pass Type: E-Pass (for foreigners)
HSBC Personal Loan
For those seeking a top-tier personal loan, the HSBC Personal Loan is an excellent choice. With one of the lowest interest rates available at 4% (EIR 7.5% p.a.) and a lengthy loan tenure of up to seven years, this loan is perfect for borrowers seeking a larger loan with a more extended repayment period.
Eligibility:
- Age: 21 to 65 years old
- Annual Income: S$30,000 (Singaporean & PRs), S$40,000 (foreigners)
- Citizenship: Singaporean, Permanent Residents, and Foreigners
- Pass Type: E-Pass (for foreigners)
Citi Quick Cash Loan
Looking for a personal loan that fits your unique needs? Citibank offers a great option, featuring a slightly higher interest rate compared to the loans mentioned above, but still a competitive 4.55% (EIR 8.5% p.a.) for its existing loan customers. If you’re a new customer, you can take advantage of an even lower interest rate of 3.45% (EIR 6.5% p.a.). This loan is perfect for those who require a small loan amount for a short-term repayment period.
Eligibility:
- Age: 21 to 65 years
- Annual Income: S$30,000 (Singaporeans & PRs), S$42,000 (foreigners)
- Citizenship: Singaporean, Permanent Residents, and Foreigners
- Pass Type: E-Pass (foreigners)
The Bottom Line
While it may seem like an uphill battle, securing a personal loan in Singapore with a low income is not impossible. Your likelihood of success can be improved by taking a few steps, such as verifying your credit score and assessing numerous lenders.
Another tactic that may enhance your prospects of securing a personal loan is to seek the assistance of a co-signer or present supplementary documentation. It’s also worth investigating unconventional funding options. And, most importantly, before committing to any loan, make sure to thoroughly review and comprehend the loan agreement terms and conditions to borrow wisely.
The Ideal Personal Loan Solution for Low-Income Earners – Accredit Moneylender
For those on a tight budget, securing a personal loan can be a daunting task. However, with Accredit Moneylender, you can now breathe easily. Our goal is to make the loan process simple and accessible for everyone, particularly those with low incomes. We invite applications from individuals earning less than S$20,000, and even S$10,000 so that financial assistance is available to all.
At Accredit Moneylender, we understand the value of time. Therefore, we offer easy personal loans in Singapore with speedy approvals and fair interest rates, allowing you to access funds without any hassle. Don’t let financial limitations hold you back. Make Accredit Moneylender your reliable partner and experience a stress-free loan application process.
Take the first step towards achieving your goals by applying for a personal loan today.
