Southeast Asia’s financial hub offers its community various lending options when needing financial assistance. Among the easiest and fastest loan products borrowers may apply for are no collateral loans in Singapore.
Collateral loans are also popular in the country. However, obtaining such a loan product is rather complicated and time-consuming. These loans are incredibly distinct as the process is far more straightforward and specifically faster for those requiring monetary aid.
This article uncovers the world of loans without needing collateral in Singapore. Find out the country’s top five fast and easy no collateral loans, how to request them, and the advantages to gain.
What are No Collateral Loans?
No collateral loans are also acknowledged as unsecured loans in Singapore. These are the types of loans that don’t necessitate borrowers to present or produce any form of valuable possessions or collateral as a debt guarantee.
It’s the complete opposite of secured loans in Singapore. Borrowers must supply private and business properties, cars, and assets.
The primary basis of unsecured loans is the debtor’s creditworthiness, income, and further financial factors. It implies that borrowers no longer have to worry about their valuables to secure a loan.
If this loan fits you best, it’s time to discover the country’s top five no collateral loans.
Top 5 No Collateral Loans in Singapore
Every person has different needs that require a solution. It’s the same with selecting a loan to send an application for. People who don’t have or do not desire to surrender their valuable possessions for debt can opt for unsecured loans in Singapore.
Although these debts have no collateral requirements, they still differ a lot from one another. Thus, to assist you in resolving your monetary needs, these are the five no-collateral loans below:
Personal Loans
Singapore has a lot of loan products to offer its borrowers. Among the most common and popular borrower choices are personal loans.
These are unsecured debts which don’t necessitate collateral like a car or home. Borrowers may apply for it for various purposes such as debt consolidation, home renovations, paying medical bills, education expenses, or personal necessities.
Due to its flexible payment terms and astounding benefits, borrowers seek it as a primary loan product to help resolve their monetary needs.
Here’s a closer look at what to expect from a no-collateral personal loan in Singapore:
- Interest Rates and Fees:
The estimated interest rates for unsecured loans in Singapore often range between 3.5% to 10% per annum from banks or financial institutions. If you request this particular debt from a licensed moneylender, anticipate a higher interest rate per annum as they’re allowed to impose a maximum of 4% monthly interest rate.
Lenders may charge prepayment fees, processing and late payment fees as well.
- Repayment Period and Method:
The repayment period may range between twelve to sixty months, which most likely depends on the loan amount and the lender’s policies. Borrowers have the option to make repayments GIRO or bank transfer.
- Nationality:
Borrowers who are either Singaporean, permanent residents or foreigners in the country may appeal for it. Also, they have to provide upfront proof of identification and a valid work pass or employment letter.
- Minimum Income Requirement:
There’s also a minimum income requirement to fulfil. Singaporean Citizens and Permanent Residents must have a minimum annual income of less than $10,000 for licensed moneylenders but could reach $20,000 and up.
- Application Process:
Borrowers could request an unsecured loan by visiting the lender’s office to better discuss the terms and conditions. But for, individuals who prefer online applications, they may do so.
Moreover, borrowers must first check eligibility and paperwork requirements such as income statements, bank statements, and proof of address and identification. Upon providing these documents, the application process is faster and smoother.
- Top Lenders Granting Personal Loans:
The top lenders in Singapore to apply for a personal loan from are OCBC, DBS, UOB, HSBC, and Citibank. On the Ministry of Law’s website, you can also search for the best-licensed moneylender nearest your location via the Registry of Moneylenders.
Payday Loans
Another unsecured and short-term debt particularly well-known in Singapore is the payday loan. It assists an individual in resolving personal expenses or financial gaps until the next salary date. The amounts that lenders grant from this loan are smaller compared to other financial products, which would range from $100 to $1,500.
Because it’s a short-term and small loan, there’s no need to supply any collateral. Here are more helpful features of payday loans in Singapore:
- Interest Rates and Fees:
The interest rates you can expect from payday loans may be as high as 4% per month. Thus, the annual interest rate could reach as high as 48%. But, considering it’s a short-term loan, you won’t need to pay that much interest unless you request to adjunct the loan.
Fees associated with payday loans are processing fees, late payment fees, and loan extensions.
- Repayment Period and Method:
Borrowers may repay this loan in one lump sum upon the borrower’s upcoming payday. Borrowers can reimburse through bank transfer or personally to the lender’s branch.
- Nationality:
In Singapore, payday loans prioritise Singapore Citizens and Permanent Residents. On the other hand, foreigners cannot request payday loans and should choose personal loans instead.
- Minimum Income Requirement:
Borrowers must be employed and earn at least $1,500 monthly income, to become eligible for a payday loan in Singapore,
- Application Process:
Requesting a payday loan is easy and hassle-free because borrowers may apply online or in person by visiting the lender’s branch—also present proof of address, income, and bank statements upfront to ensure quicker processing time.
- Top Lenders Granting Payday Loans:
The top lenders in Singapore that grant payday loans are Accredit, Credit 21, Cash Mart, and Moneymax. Be sure to visit the Ministry of Law’s website to verify a licensed moneylender’s accreditation and obtain their licence number and website for loan application.
Credit Card No Collateral Loans
An unsecured loan in Singapore that’s notable because it lacks collateral requirements is the credit card loan. It’s the ideal loan product for individuals who already have credit cards ready. What borrowers can expect from a personal loan like this is it’s usually taken out versus the credit card’s available and existing credit limit.
Borrowers may withdraw funds from an ATM or utilise their credit card for purchasing, which all expenses be considered a loan. If you get a credit card loan, you must repay it during the agreed-upon repayment period.
Additional features that’ll assist you in preparing for the credit card loans application are:
- Interest Rates and Fees:
The annual interest rate for credit card loans varies extensively and will mostly range between 15% and 25%.
Lenders’ policies differ, so expecting a processing fee is possible.
- Repayment Period and Method:
The primary repayment option for credit card loans is via monthly instalments. The minimum payment that borrowers have to accomplish starts at 3% to 5% of the current outstanding balance.
- Nationality:
Most credit card providers in Singapore allow Singapore Citizens and Permanent Residents to request it. Foreigners living and working in the country can generally bid for credit card loans.
- Minimum Income Requirement:
Borrowers must also present proof of earning an annual income of S$30,000.
- Application Process:
Application processes for credit card loans are relatively easy to attain by visiting their credit card provider’s website or obtaining assistance from customer service.
Lenders may request proof regarding the length of stay in the country and a valid work permit or employment pass.
- Top Credit Card Providers Granting Credit Card Loans:
If you’re interested in acquiring this particular no collateral loan in the country, the lenders to seek to include Standard Chartered Bank, DBS Bank, Citibank, and UOB Bank, among others.
Balance Transfer Loans
Another no-collateral loan that can assist in solving monetary troubles is the balance transfer loan. It’s also an unsecured debt that grants borrowers access to transfer their existing credit card balance to another credit card. In addition, it then transfers the outstanding credit card balance c to another loan account with a much lower interest rate.
Because its specific feature makes it a promising financial option that can help borrowers save money regarding interest charges. It is also a practical choice when opting to reduce debt faster.
Here are a few details you must know about balance transfer loans:
- Interest Rates and Fees:
The interest rates for balance transfer loans may range from 0% to 6% per annum. It can be within this scope due to the promotional period of getting a new credit card.
The promotional period can last from six to twelve months. After that particular time frame, the interest rates will increase from 15% to 25% per annum.
An important note for foreign borrowers when appealing for a balance transfer is that they are subject to higher interest rates and fees than Singapore Citizens and Permanent Residents.
- Repayment Period and Method:
Balance transfer loans are like credit card loans that you must repay via monthly instalments. A minimum required payment is usually between 3% to 5% of the outstanding balance.
- Nationality:
Singapore Citizens and Permanent Residents may request the balance transfer loan from their chosen provider.
Foreigners residing in the country can appeal balance transfer loans by meeting specific eligibility criteria such as minimum income requirements or length of stay.
- Minimum Income Requirement:
Singapore Citizens, Permanent Residents, and foreigners in Singapore have to provide proof that they’re acquiring at least S$30,000 yearly salary.
- Application Process:
They must seek the credit card provider’s online portal to apply for the balance transfer loan. Or acquire additional assistance via customer service.
- Top Credit Card Providers Granting Balance Transfer Loans:
Are you ready to apply for the balance transfer loans? Obtain the best assistance and services from the top credit card providers granting the loan: Citibank, DBS Bank, Standard Chartered Bank, UOB Bank, etc.
Licensed moneylenders in Singapore, like Accredit, can assist you with your balance transfer loan requirements.
Peer-to-Peer No Collateral Loans
A notable no collateral loan option in Singapore is peer-to-peer loans, more commonly called P2P. It’s becoming increasingly recognised in the country as it offers an alternative loan to traditional banks. P2P lending primarily connects borrowers directly to investors, eliminating intermediaries like other financial institutions.
P2P is legitimate, and the Monetary Authority of Singapore (MAS) regulates it. Those operating the P2P lending platforms should provide proof of licence accredited by MAS and comply diligently with regulations and guidelines that protect borrowers and investors.
Here are critical P2P features borrowers must learn about:
- Interest Rates and Fees:
The interest rates associated with P2P loans can range between 6% to 18% per annum. The interest rate and fee calculation will take the borrower’s creditworthiness and lender’s risk appetite before finalising the charges.
There’s an origination fee to consider that may reach 3% of the loan amount.
- Repayment Period and Method:
The usual repayment method for P2P loans is monthly instalments fixed during a six to thirty-six months term.
- Nationality:
Singapore Citizens and Permanent Residents can apply for P2P with ease. Foreigners in the country must first explore which P2P lending platforms may offer them the P2P loan.
- Minimum Income Requirement:
Borrowers who are Singaporean Citizens and Permanent Residents should have proof of earning an annual income of S$20,000 and up. Foreigners need at least S$30,000 to be granted the no collateral loan.
- Application Process:
The P2P loan will require borrowers to register for an account on their websites and accurately fill out the online application form. Also, You should provide the necessary documents, such as FIN/NRIC. In addition, include the latest three months’ payslip and the most recent twelve months CPF contribution history.
- Top Licensed Lending Platforms Granting P2P Loans:
The popularly known and licensed P2P lending platforms in Singapore are Funding Societies, Validus, Capital Match, Crowdo, etc.
No Need for Collaterals With These Top 5 Loans
Some assume that having no collateral means borrowers cannot acquire the best loans for their financial needs. But it’s a misconception because no collateral loans in Singapore are among the excellent options for individuals requiring fast, easy, hassle-free funding access.
Personal loans, payday loans, credit card loans, balance transfer loans, and peer-to-peer loans are just a few fantastic no collateral loan products in the country. Each is exceptionally unique, particularly its requirements and features. Thus, understand and research terms and conditions before applying for one.
So, even if you don’t have collateral to offer or are not interested in providing your valuables to secure a loan, you have these loans to assist you in times of need.
Click here to apply for your no collater loan today with Accredit.
