Cash woes? A personal loan to the rescue!

    How to Get a Personal Loan in Singapore With Low Annual Income

    Are you interested in taking a personal loan here in Singapore? Do you earn a relatively low income? If you are wondering whether you will get a good personal loan with your income, you need not worry. Many banks in Singapore offer excellent personal loans with a low minimum income requirement.

    Personal Loans for Individuals With Annual Income in the Range of S$20,000 to S$30,000.

    Personal Loan for Annual Income of S$20000-30000

    Standard Chartered Bank Personal Loan (CashOne)

    • Interest rate – starting from 9.80% p.a. (EIR – 27.56% p.a.)
    • Tenures available – 1 to 5 years
    • Age requirement – 21 to 65 years
    • Get up to 2 times your monthly income
    • Annual fee – S$199
    • Late payment fee – S$80
    • Early payment fee – 3% of the principal outstanding or S$250, whichever is higher

    DBS Personal Loan

    •   Interest rate – starting from 3.88% p.a. (EIR – 7.56% p.a.)
    • Tenures available – 1 to 5 years
    • Age requirement – 21 to 65 years
    • Get up to 4 times your monthly income
    • Processing fee – 1% of approved amount
    • Late payment fee – S$100 (credit card loan) & S$105 (Cashline)
    • Early payment fee – S$150

    OCBC Personal Loan (ExtraCash)

    • Nominal interest rate – starting from 12.31% p.a. (EIR – 29.83% p.a.)
    • Tenures available – 1 to 5 years
    • Age requirement – 21 years and above
    • Get up to 2 times your monthly income
    • Processing fee – S$100
    • Late payment fee – S$80
    • Early payment fee – 3% of the outstanding amount or S$1,000, whichever is higher

    BOC MoneyPlus Term Loan

    • Applied interest rate – starting from 6.38% p.a. (EIR – 19.46% p.a.)
    • Tenures available – 1 to 3 years
    • Age requirement – 21 years and above
    • Processing fee – 5% of the loan amount or S$75, whichever is higher
    • Annual membership fee – S$100
    • Late payment fee – S$100 or 2% of the minimum payable sum, whichever is higher

    What if your annual income is less than S$20,000? There are other options that you can explore if you have minimum salary of S$12,000 p.a. or S$15,000p.a.

    Personal Loans for Incomes Lower Than S$20,000 p.a.

    Personal Loan for Annual Income of S$20000

    Payday Loans

    Payday loans are a great option if you urgently need a sum of money for a short period. They are available for people who have a minimum annual salary of S$12,000. The main criteria for payday loan eligibility in Singapore are:

    • You should be employed in your current company for at least one year or more.
    • You should get a fixed salary every month.

    You have to repay the loan once you get your next salary. This makes it a convenient “stop-gap” solution to your immediate financial problems.

    Personal Line of Credit

    Banks offer individuals with good credit history a line of credit that they can withdraw from whenever they need cash. The money is readily available and you can withdraw from it as many times as you want up to the set limit. You have to pay interest only when you actually borrow money. Every time you repay what you borrow, your line of credit gets restored to that extent. Banks usually charge an annual or monthly fee that applies whether or not you make use of the facility.


    They are similar to lines of credit, giving you a certain level of credit that you can withdraw from. Banks do not charge an annual fee for this facility. You have to pay interest on the amount you borrow. However, the withdrawals become payable on demand at the discretion of the bank.


    Moneylenders can be a good solution to your monetary shortcomings if you choose the right lender. Depending on your annual income, you can borrow up to a certain limit. For instance, if your annual income is less than S$20,000, you can borrow up to S$3,000 from a registered moneylenders. Make sure that you apply for a personal loan only from a licensed moneylender in Singapore. Unlicensed moneylenders charge high rates of interest. They are also known to harass borrowers for late repayment and use unethical means of loan payment collection.

    Cash Advances on Credit Cards

    You can get cash advances on your credit card if no other option seems feasible. But keep in mind that this is an expensive option since credit cards charge exorbitant interest rates.

    Friends and Family

    Asking your friends or family members to grant you a loan to help you pay for urgent purchases and expenses is a good option. They may not ask you to pay any interest either. But make sure you pay the money as soon as possible or relationships could get sour. As with any loan, remember that you need to repay the money you borrow as soon as possible. Most non-banking sources of finance charge high interest. If you fail to pay your instalments in time, you may end up paying a lot in the form of interest. Before applying for a loan, assess your need and borrow only to that extent. Make sure that you can pay the instalments on time. Keep in mind that defaulting on payments will adversely affect your credit score.

    When do you apply for a personal loan?

    A personal loan is taken to meet any financial need. You can apply for it to fund your higher education, your wedding expenses, your medical expenses, your vacation, or any kind of expenses. When you apply for a personal loan, you do not have to worry about mentioning your reason to your loan provider. You will not be required to give any collateral to obtain a personal loan as it is an unsecured loan.

    Let us take a look at some of the ways a personal loan will help you:

    • For clearing the dues of other debts: Do you have outstanding dues from other loans such as home loans or line of credit? You can take a personal loan to clear these dues and then be in peace.
    • To get money for emergency medical treatment: You can use a personal loan to finance your medical emergency treatments. If you have not taken medical insurance, you can use this personal loan to fund your treatments. It will also be helpful when your medical insurance is quite low for all your hospitalisation charges.
    • For funding your college fees: Want to join your dream college but worried about how you will pay the fees? If your college has not collaborated with any bank for education loans, you can take a personal loan and pursue your career happily. Banks usually offer education loans only for a few colleges.
    • To organise your or your family member’s wedding: Is your little brother going to get married in a few months? You need not fret about how you will organise his wedding. You can take a personal loan and then meet all the wedding expenses without any tension.
    • For clearing your credit card debts: Debts from a credit card constitute a separate category of debts. You can end this tension by taking a personal loan. A personal loan is offered at a relatively lower interest rate when compared to a credit card’s interest rate. You can apply for a personal loan and pay off your credit cards step by step.

    Points to be considered while applying for a personal loan

    You can focus on these points when you are taking a personal loan:

    • Analyse why you are taking a loan: You need not specify your reason to your bank. However, we advise you to be clear about why you are applying for this loan. If you are interested in earning very high returns, a personal loan may not be a very good idea. It will help you a lot when you are in need of instant funds for emergency requirements.
    • Type of interest rate: You will have to find out about the characteristics of your loan’s interest rate. Loan interest rates can be fixed or variable. If you go for a fixed interest rate, you will have to pay at the same rate for your full loan tenure. A loan with a variable interest rate will change according to fluctuations in the market.
    • Assess your credit score: If your credit score is high, you do not have to worry about your low income. When your credit score is good, your loan will get approved quite quickly.
    • Enquire about your late payment fees, processing fees, and all other fees: When you take a personal loan, you may have to pay certain fees mandatorily. You will have to pay a processing fee when you take a personal loan. This fee will be determined by your loan amount and loan tenure. When you fail to meet your due date for making repayment, you will be charged a late payment fee. Make sure you find out about all these fees so that you are not shocked later.
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