Best Personal Loan (Singapore)

A personal loan is money you borrow for any personal reason. It’s a financial buffer ideal for paying medical expenses, vacations, and other emergency purposes. It is also known as a foreigner loan that is available for Singapore expatriates.

Personal loans Singapore can also be used for debt consolidation to combine multiple debts into a single, lower-cost monthly repayment. These are also deemed to be unsecured loans wherein borrowers don’t need to put up any collateral. Instead, A1 Credit approves loans by evaluating your ability to repay the loan.

Priorities are an important factor. If you are taking out a loan so you can enjoy a vacation while other more urgent bills are unpaid, it is a direct path to being further indebted.

When taking out a loan in Singapore, you should always consider your capability to repay the loan, the terms and conditions of the loan, and interest rates and if taking the loan leaves you enough for all your needs when making your monthly loan repayment.

It is also important to consider which is the best money lending company to borrow from and what loans are best suited for your needs. A1 Credit is licensed and regulated by the Ministry of Law and is fully compliant with the Moneylender’s Act. We offer a variety of loans, such as personal, payday, bridging, business, and foreigner loans.

A1 Credit will ask for proof of income. It can be your payslip, recent invoice from a freelance client, an average income per month in your business, and other forms of proof. We’ll only ask for identification documents after we’ve deliberated and given you the amount you can borrow from us.

For citizens and permanent residents:

• Identity card / NRIC
• Proof of residence
• Proof of employment
• SingPass (to log in to CPF, HDB, IRAS websites)

For foreigners in Singapore:

• Passport
• Work permit
• Proof of residence
• Proof of employment
• Proof of income
• SingPass (to log in to IRAS websites)

The amount of money you can loan varies depending on the legal requirement and qualification. Here’s the list of loanable amount A1 Credit offers:

• Foreigner Loan – Up to SGD30,000
• Payday Loan – Up to one month worth of income
• Personal Loan – SGD $500 to $50,000
• Business Loan – SGD $10,000 to $200,000
• Bridging Loan – SGD $5,000 to $200,000

According to the Ministry of Law Moneylenders’ Act, the maximum rate of interest a licensed money lender can charge is 4% per month. If a borrower fails to repay the loan on time, the maximum late interest rate a money lender can charge is 4% per month for each month the loan is repaid late.

Legitimate money lenders are licensed by the Registry of Moneylenders. Licensed money lenders must never use abusive language, ask for delicate or sensitive customer information, retain the original copies of important documents, ask you to sign incomplete contracts or ill-explained contract terms and conditions, and more. You can verify if a money lender is licensed by checking this list by the Ministry of Law.

Under the advertising rules, licensed money lenders are permitted to advertise only through these three channels:

• Business or consumer directories (in print or online media)
• Websites belonging to the money lender
• Advertisements placed within or on the exterior of the money lender’s business premises

All other channels are prohibited. If you’ve received flyers, SMSes, emails or other forms of advertisements, these would be from either licensed money lenders operating in violation of the rules, or unlicensed money lenders.

Licensed money lenders can only charge up to S$60 or penalty fees for each late repayment per month. In addition, there are other fees such as loan application approval and processing fees that can only take up to 10% of the principal loan. Lastly, money lenders can charge you for successful money lender legal claims for loan recovery.

Sureties are guarantors that the borrower will pay for the loan on time and in full. Sureties must receive their Note of Contract upon the borrower’s successful application.

Yes, this type of loan can be used for any personal reasons, such as home renovation, weddings, among others.

Yes. For debt consolidation, you need a bigger amount than an unsecured loan can provide. The goal is to pay off all your existing debt with one single but big amount from a money lender. This way, the amount will allow you to pay off your debts and help you take your first steps to recover financially.

You are eligible for loans if you are capable of repaying your debts with your current income. Money lenders have the right to refuse your application if your income is incapable of shouldering 100% of your monthly scheduled repayments. For example, if you plan to take out $100,000 but your monthly net income only gets you $4,000 left for debt repayments, you won’t get approved.

Loans with low interest rates depend on whether you have a secure or unsecured loan. A1 Credit will approve unsecured loans provided if customers have enough income to pay for their financing. Secured loans have lower interest rates and even unlock higher amounts for customers.

Having collateral such as properties, real estate, bonds, collections and other items and objects of value can help lower your interest rates. In addition, if you have good credit scores and decide to work with A1 Credit, you can have lower interest rates too.

Here is the break down of how much can you borrow set by The Registry of Moneylenders Singapore to void over-borrowing and potentially getting yourself in dangerous debt:

You can get approval for your loan within 30 minutes. However, it’s possible that we may ask for additional documents or information from you, which can affect the length of your loan approval time.

• Make sure you always pay your loan on time and in full to avoid late interest payments and fees.
• Check if your money lender always sends you your statement of accounts every six months ending 30th June and 31st Dec. Please retain them for future documentation and claims if necessary.

If you have bad credit, it’s not a problem when it comes to borrowing money from money lenders. At all times, they’ll always consider your income first before your credit scores. Banks prioritize credit scores in determining your qualification to take out financing. This isn’t a problem you need to deal with when it comes to money lenders.

Personal loans aren’t automatically secured. Instead, customers have to present items and properties of value that can help secure the loan. For example, listing part of a borrower’s fully-paid property as collateral is a way to secure a loan. In doing so, customers lower their interest rate and can unlock higher borrowing amount. Unsecured loans come with higher interest rates all the time.

Here are some of the advantages:

• Fast processing time – It’s the best option to borrow money quickly, particularly in the case of an emergency.
• Collateral is not required to secure a loan – It is an unsecured loan and it’s not tied to an asset.
• Fixed Interest Rates – The repayment amount is fixed each month
• Early Repayment – You can make a full or early repayment and even receive a discount on the interest rate
• Bad Credit – You will be able to secure a loan even with bad credit history in Singapore

Disadvantage:

Most personal loans are unsecured, therefore the interest rate is in fact relatively higher than that of secured loans.

Upon receiving your income, you deduct it for utilities, budgets, and debt payments. If your debt payments put your income in the red, then you have a bad income ratio. This is A1 Credit’s basis for granting hassle-free loan amounts to loan applications.

Definitely. If you need money for emergencies or anything at all for a fair price, is worth considering and in case you do not have enough income to pay for an emergency, education, food, or utility bills, personal loans are great to have.

Your income might not have been sufficient to pay for your desired loan. In addition, you might have failed to submit related documents within the time limit our personnel have set. However, you’re always welcome to re-apply for a loan once again.

Debt consolidation services from A1 Credit will help you build credit by allowing you to pay off all your existing debts as much as personal loans can permit. If this pays off your total debt, it will restore your credit score, and you’ll only need to pay a single repayment with a fixed rate regularly.

If your budget does not permit you to take any more financial commitment, then personal loan repayments can affect your car loans negatively.

Yes. If you’re currently paying for an HDB loan, we will reduce your HDB repayments against your net income value, which will affect the available loan amount you can borrow.

Debt consolidation through personal loans can help your credit scores recover and turn positive once again.

If you can use collateral to secure your loan in Singapore, you can drive down the interest rates easily.

Yes, you are still eligible for a personal loan in Singapore. However, A1 Credit may deduct your regular bank loan repayments against your net income value, which will lower the maximum loan amount you can borrow as well.

Yes. This will accelerate the immediate closure of your pending loan and interest discount will be given. If you have the lump-sum value of your loan amount on hand, you can deposit it straight to A1 Credit immediately. We will consider it as fully-paid — but make sure to inform our personnel about your transaction.

A1 Credit is an award-winning and trusted money lender in Singapore that can provide you with protected and dependable loan services and has one of the fastest and most convenient online loan application platforms. Upon confirmation, you will need to visit our office to sign the application forms and loan contract. Do remember to carefully read through the terms and conditions before signing. Click here to get started today!