How To Get Your Personal Loan Approved In The Quickest Time
Some people are very certain that their applications will get approved. However, they get rejected eventually for some unclear reason. You need to realize that licensed moneylenders are in business. Hence they have parameters put in place. This helps reduce the risk involved with lending to clients who are defaulters. Below are some ways to help increase the possibility of getting an approval.
Online Loans Requirements
With this loan, you are able to process online. Although you usually will need to visit the lender’s office. This is for the purpose of signing the loan agreement. The online loan normally gets quick approval. This can take from an hour to 24 hours. As your application will get reviewed instantly by loan managers.
Licensed lenders that provide online personal loans require minimal qualifications:
- A Singaporean or a Permanent Resident
- Applicant should be at least above 21 years
- Recent 3-month payslips or the CPF contribution
- Valid ID Card (NRIC) as well as SingPass Login
- Employment Letter
- Recent billing proof
Below are 6 qualifying requirements that you have to pass:
Citizenship
Generally, banks only authorize personal loans to Singaporeans or Permanent Residents. Accredited moneylenders provide foreigner with personal loans. Provided they present the necessary requirements. However, personal loans offered to foreigners might have additional qualifications. Please contact your legal moneylender on the foreigner loan requirements.
Age
Usually, the age limit is the thing you see first on the eligibility list. It shows the age range that lenders are ready to offer loans to. Many moneylenders often offer loans to individuals aged between 21 years to 65 years. Those borrowers aged below 21 normally do not hold enough credit record.
Since most are starting to make their first wages and charges to their credit cards. Additionally, few money lenders acknowledge that those aged below 21. They sometimes may not be financially responsible.
Income
The fact is that lenders avoid lending money to individuals who have no income source. This is because the person does not have to prove being able to repay the loan (inclusive of interest). More so when they do not have the means to make enough cash to meet their daily necessities. When you are out of a job. You can expect that many lenders will turn down your application.
Most moneylenders and banks require the minimum wages of about $20,000 to $30,000 each year. Naturally, the range could increase for the self-employed borrowers. Also for those who make commission based salaries or foreigners.
Credit Score
Your credit score will take some time to rebuild. This is the record of managing funds given by your past lenders. Several Singaporeans might be asking why they were declined. This is despite having high salaries and high ranks in their place of work.
One thing that borrowers need to keep in mind is; moneylenders and banks check their score. They do so through the Credit Bureau that maintains each person’s records. From this, lenders are able to tell your past and current loans. They also are able to see your behaviour throughout the repayment periods. From there, they know how you handled past credit card debts and loans.
It is for this reason that you should avoid defaulting on your loans. This is because they will lower your credit score. Borrowers need to remember that any debt that is written off will be reflected in their records. Therefore, it is recommended that you repay all your loans. Also, make sure to do so in time to avoid late payment costs.
Employment duration
Most lending institutions will have some requirements for borrowers. They should have been employed in their company for at least 3-4. Other financial institutions will not define the minimum employment period they need. However, this will certainly impact the approval of your loan. Thus, confirm with your lender about their required duration.
Co-borrower Details
Normally, all co-borrower have to be Singaporeans or Permanent Residents. Most banking institutions need that your co-borrower be a relative. The challenge is when you do not have someone who is ready to take such risk for you. The good news is that there are licensed moneylenders. These lenders do not require that you have a co-borrower.
Debt
Other than your credit score, moneylenders will also look at your debt status. They will also consider your current financial standing. When you have multiple loans at a go can be hard to keep track.
When you are asked whether you have existing loans, the best advice here is that you be honest and open with your lender. This is because they will most likely find out through your records. Some borrowers make this one common mistake today.
Borrowers need to recognize that. Moneylenders might still lend to individuals with existing loans. This can include loans like a home or car loans. Even then, you will need to show that you will manage all the regular payments.
Remember that:
By using the qualification list, you could do a self-assessment. This will help you know the part that you have a weakness. That is as a borrower. Also before applying for a personal loan. It is advisable that you ensure that you check the requirements and eligibility. This will vary from one lender to the next. Therefore, check the requirements of the lender you choose. This way you will know whether you will have your loan approval.
When you know you have a poor credit rating. You could either locate a licensed moneylender who can work with you. There are some lenders who cater to individuals with low scores. Alternatively, you could work towards improving your score before applying.
Submit all the necessary documents to ensure faster processing. Make certain that all the copies needed are clear. Also, ensure the details needed are consistent.
As a borrower, you need to take it upon yourself to show that you are creditworthy. One ideal way to accomplish this is by being diligent with all the loans.
