Singapore takes pride in being a country that does not leave anybody behind, especially in the realm of financial access. As a matter of fact, financial access is available to all classes of people - from salaried individuals to self-employed individuals, students, single mothers and senior citizens.
Emergency financial access in the form of personal loans is a necessity in any society, especially weighing in the fact that life can be hard at times and things might not always transpire as intended. Getting access to the right financial product is extremely important if one has to tackle or deal with an uninvited or unforeseen situation. There are multiple classes of vulnerable people in Singapore’s societal structure and single mothers are amongst them.
Single mothers can sometimes be exposed to certain demanding situations like education fees or medical emergencies that require immediate access to funds. This is mostly true in the case of unemployed single mothers in Singapore. There are banks financial institutions that help Singaporean mothers with access to emergency funds in the form of loans. These institutions lend money at an interest rate that can sometimes be lower than prevailing market interest rates offered by top banks in Singapore. Let us look at some options that are available to single mothers in Singapore:
Personal loans are the most common types of loans in Singapore and usually attract a higher interest rate than other types of loans (the other types of loans being car loans and home loans). The interest rate on personal loans can vary from one bank to another. As a matter of fact, it isn’t just banks that offer personal loans in Singapore, there are established, licensed institutions that offer them as well.
One of the options open to single mothers seeking immediate financial access is taking the direct route - applying for a personal loan with a bank or financial institution in Singapore.
If you are a single mother and wish to apply for a personal loan, you can visit the website of the bank that you wish to apply for your loan from and fill in your details in the online loan application form. You will also be required to submit your relevant documents to the bank, following which an executive from the bank will contact you and ask you to confirm your application details. The executive might also seek to obtain additional details in order to complete your loan application form.
You can also apply for your loan by visiting the nearest branch of the bank and physically filling out the application form. You will also be required to submit the relevant documents as requested for by the bank, following which the bank will process and review your application. the amount you’ve requested for will usually be sanctioned and subsequently reach your account in 3-4 working days.
There are certain factors that influence your loan application during the stage when your application is reviewed by the bank. These include:
Your credit score:
Your credit score is the most fundamental parameter that banks evaluate while reviewing your loan application. A good credit score will most likely result in the approval of your application, if other eligibility parameters are met. A bad credit score, however, can lead to rejection, for it gives banks and financial institutions an understanding that you haven’t been consistent or prompt in making repayments towards existing loans or credit card debts, and the probability of a default on your loan repayment is high.
Your credit score is calculated by taking into account your credit history (instances of late payments and defaults), total credit utilised against your total allocated credit limit (this is particularly in the case of credit cards), and the amount of debt already existing in your name.
Income as an eligibility parameter:
All banks/financial institutions have a specific income eligibility criterion that needs to be met. Also, the amount you’ve requested for will be sanctioned only if your income is satisfactory. Income criteria can vary from one bank to another.
Other aspects that banks factor in while reviewing your loan application include your total years of work experience (this is in the case of salaried individuals), an existing relationship with the bank (in the form of a credit card or savings bank account), and the authenticity of your documents.
A report published by the Ministry of Manpower states that unemployment rates in Singapore have seen a steep rise over the last few years. Also, an inevitable economic slowdown owing to global economic uncertainty has slowed hiring in crucial sectors including Services, Manufacturing and Industry, creating an unsettling unemployment scenario.
The situation can be extremely burdening for the unemployed, and more so for single mothers who are unemployed. Getting urgent access to credit, as much as it might be necessary, becomes difficult. Unemployed single mothers face the difficult task of bringing up their children, besides giving them a decent standard of living, education, and access to other basic needs. However, the economic or social situation does not imply that everything is lost. There are ways by which single mothers who are unemployed can get access to funds.
Single mothers, both employed and unemployed, can approach moneylenders for loans – only those who are licensed. Singapore has many licensed moneylenders operating under the aegis of the law – so there isn’t any room for being exploited. Moreover, moneylenders allow for quick access to funds and flexible repayments - an aspect that works well for single mothers.
The only important thing is to choose the right moneylender. Doing extensive research on active moneylenders in Singapore and also taking note of references provided by friends or relatives will be extremely helpful in picking the right moneylender for your needs.