Why Do I Get Rejected for a Personal Loan in Singapore?

Discovering the root cause of loan rejection can feel overwhelming. But giving up is never an option. To uncover the reason for the setback, you must embark on a two-part journey.

The first is to get over the negative feeling and clear your mind. The second is to identify the things that prevent your loan from getting accepted and address the issue.

Here Are 5 Reasons That Will Cause Your Personal Loan To Get Rejected

#1 Low Income

Your yearly earnings are a crucial factor in the loan approval process, and a lack of sufficient income can be the reason behind a loan denial. When seeking a loan, be prepared to have your income scrutinized by the lender. Having insufficient income shows that you don’t have to financial means to repay the debt. You might need to work on your salary to increase your chance of getting a loan.

#2  Inconsistent work history

Other than your yearly income, the lender will take a look at your work history when applying for a loan. This is to check whether you have a stable source of income that can cover the debt repayment. But let’s say you usually switch jobs from time to time.

An inconsistent work record may raise red flags and result in a loan denial. To increase the chances of loan approval, it’s advisable to remain with a single employer for a minimum of one to two years. Demonstrating job stability conveys financial stability and the ability to repay debt.

#3 Poor credit score

Your loan denial could stem from a lackluster credit score, a crucial factor lenders assess in evaluating your financial history. A credit score of 1000 to 1723 raises red flags for lenders, painting you as a risky borrower. On the other hand, a score between 1911 and 2000 positions you as a prime candidate, increasing the chances of loan approval and favorable terms.

#4 High ratio of debt to income

When it comes to personal loans, the burden of debt can weigh heavily on your approval chances. If your lender perceives a mismatch between your debts and earnings, your loan request may be rejected. The reality of managing new debt while already grappling with existing debt can be overwhelming. As debts accumulate, your income may need help to keep up. To increase your chances of securing a loan, it’s smart to prioritize paying off current debts before embarking on a new financial obligation. 

#5 Overborrowing

Borrowing more than you can handle raises a red flag for lenders and paints you as a high-risk borrower. With the aid of a loan calculator, you can sidestep this potential pitfall.

This instrument enables you to calculate the full expense of your loan and provides you with a lucid comprehension of the sum you can repay realistically. By utilizing a loan calculator, you can make a wise, informed choice regarding your loan request, thereby raising your chances of being approved.

5 Ways To Improve Your Chances Of Getting A Personal Loan In Singapore

#1 Build up your credit score

The journey to financial stability starts with taking control of your credit score. With intentional effort and determination, you can elevate your low credit score and secure the loan you need to achieve your goals. The path to a brighter financial future is within reach, and this can be done by doing the following methods:

  • Consistently pay your monthly installments 
  • Maintain a low credit balance 
  • Monitor your credit score 
  • Reduce your credit for unimportant things
  • Limit new credit requests.

#2 Make payments on other debts

Clearing your plate of any lingering debts should be your first priority before considering a personal loan. But if you’re juggling multiple debts and struggling to keep up, don’t fret. Your lender can be your ally in this situation. Enlisting their help can lead to restructuring your

#3 Stable source of income and employment 

To get a loan from a lending institution, you must have a stable job that shows you have the financial means to pay off your monthly installments. 

Most of the banks in Singapore have minimum income requirements. People who want to borrow money must meet the criteria below:

  • Minimum annual income for Singaporeans and PRs: S$30,000
  • Minimum annual income for foreigners: S$40,000 to S$60,000

#4 Look for a cosigner

A way to secure the chances of you getting a loan is to find a cosigner. A cosigner is someone who agrees to pay back the loan if the borrower is unable to. 

You can cosign a loan with your parents or a partner who has good credit and a good income. As a result, your lender will present you with a loan agreement that boasts favorable terms and conditions, a true win-win.

#5 Shop for the best lender

Getting a loan from a bank is great as they provide offers with a higher loan amount and longer loan tenure. But their standards are usually strict, which makes it harder to get a loan if you don’t meet them.

If you need money urgently and don’t have much time to build your credit and income might as well seek a licensed moneylender. They provide personal loans to people with bad credit and low salaries. 

Accredit Personal Loans

Bank rejections are a letdown. Improving your credit score or finding a better job to qualify is a long game. But don’t fret. Accredit, a licensed moneylender, can save the day.

Accredit offers personal loans that cater to both Singaporeans and foreigners, without any strict requirements for credit score or income. Approval is swift and straightforward, requiring only that you’re 21 or older with a yearly salary of S$20,000 or below.

Borrower’s annual incomeSingapore Citizens and Permanent Residents Foreigners residing in Singapore
Less than S$10,000S$3,000S$500
Between S$10,000 to S$20,000S$3,000S$3,000
Greater than S$20,0006 times the monthly income6 times the monthly income


You don’t have to shun yourself whenever your loan application gets rejected. To boost your loan prospects, focus on meeting the eligibility criteria, such as your credit score, income, work history, etc. Once you are financially built up for a loan, get started with Accredit. They offer personal loans that are affordable, available, and accessible for you. 

Apply now and reclaim your chance at loan approval.

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