Personal loans for Self-employed Applicants
Personal loans are a great way to meet any expenses that may crop up. Personal loans offer borrowers the much needed influx of cash when any emergency expense crops up. These loans allow the borrower to meet such expenses either when they are short on cash or when they do not want to break into their hard earned savings.
But acquiring a personal loan is easier said than done. While most personal loans are given out based on the applicant's’ credit rating, their source of income and the amount they earn are also major contenders when it comes to qualifying criteria. Acquiring a personal loan, especially for borrowers who are self-employed or earn on a commission basis can be a hassle.
This is due to the uncertain nature of their income. Demand and economy play a major role in how much a self-employed applicant can earn at any given point and as such become a cause for concern to lenders who have to ensure the borrower is capable of paying back the loan. This usually results in either rejection of the loan or approval for a loan that has higher rates of interest, or lower loan amounts and sometimes even a combination of the above. The below personal loans provide self-employed applicants, the best terms and ensure that they get the required loan amounts to meet their expenses.
Best Personal Loans for Self-employed Applicants
HSBC Personal Loans
- The HSBC personal loans offer loan amounts that range up to 4 times the monthly salary of an applicant.
- If the applicant earns above S$40,000 but less than S$120,000, they can get a loan amount of 4 times their monthly salary subject to a maximum loan amount of S$100,000.
- If the applicant earns more than S$120,000 they can get a loan amount of 4 times their monthly salary subject to a maximum loan amount of S$200,000.
- The minimum loan amount that an applicant can borrow is S$5,000.
- The minimum tenure available is 1 year and the maximum tenure available for self-employed applicants is 5 years.
- Applicants who apply for the loan online get a promotional cashback offer of S$50 and HSBC Premier Customers can get a waiver on the processing fee worth S$88.
- The minimum age of the borrower must be 21 years and the borrower cannot exceed the maximum age of 65 years.
- Self-employed applicants need to provide certain supporting documents at the time of submitting their application which are a copy of the applicant’s NRIC (both sides), a copy of the latest notice of assessment dating back at least 2 years, and a copy of the business registration certificate.
Standard Chartered CashOne
- This loan offers a promotional offer for online applications offering applicants approval and disbursal within one working day and a cashback on the approved loan amounts.
- The applicant can receive a cashback of 1% of the loan amount for amounts under S$50,000 and a cashback of 1.5% for loan amounts exceeding S$50,000. The maximum cashback available is S$1088.
- The promotional period is valid till 31st March 2017.
- The effective interest rates offered on the CashOne loan starts from 12.75% p.a.
- The loan amounts offered allow applicants with lower salaries to get a sizeable loan amount. For applicants whose annual salary is above S$30,000, the maximum loan amount available is 4 times the monthly salary.
- For applicants whose minimum annual income ranges from S$20,000 to S$29,999, the maximum loan amount available is 2 times the monthly salary.
- The minimum tenure of the loan is 1 year and the maximum available tenure is 5 years.
- The loan offers flexible terms making repayment easier. If the borrower cannot make the payment on time twice in 6 consecutive months, then a default EIR of 4% will be added to existing EIR but the tenure will be extended so that instalment amount remains the same.
- The loan charges an early repayment fee which the higher of S$250 or 3% of the outstanding principal.
- The applicant must have attained the age of 21 years and cannot exceed the age of 65 years and must earn a minimum annual salary of S$20,000 if the applicant is a Singaporean Citizen or Permanent Resident or a minimum annual salary of S$60,000 if the applicant is a foreign national holding a valid employment pass.
DBS Cashline loan is available to Singaporeans and Permanent Residents who earn salaries starting from S$20,000. The EIR offered is higher for people with lower salaries and starts from 29% for applicants earning S$20,000 to S$29,999 annually. The EIR offered for applicants whose annual salary exceeds S$30,000 is 19.8%
- The maximum loan amount available is 4 times the monthly salary and for applicants whose salary exceeds S$120,000, the maximum loan amount available is 10 times the monthly salary.
- Self-employed applicants need to provide a copy of their NRIC (both sides), a copy of the latest notice of assessment dating back at least 2 years, a copy of their CPF contribution statement dating back 12 months, and a copy of the business registration certificate
The above personal loans offer flexible terms to self-employed applicants even when their minimum annual salary is on the lower side allowing them to get the most out of their loan amount.