How Much Personal Loan Can I Take in Singapore?

The common myth that you can’t be approved for a personal loan if you already have a loan. Well, that’s a lie because you’re always free to apply for a personal loan whether you have any debts or not.

The question of how much personal loan can I take, the answer is you can take a personal loan of up to six times your monthly salary.

The specific amount depends on factors like your credit score record, as stated by the Monetary Authority of Singapore, lending company, etc.

Personal loans can be used for almost any need, from medical expenses to credit debts. To understand more about how much personal loan can I take, let’s look at the following:

• What you can use a personal loan for
• Requirements for a personal loan qualification
• What you should consider before taking a personal loan

How Much Personal Loan Can I Take?

You can take as much as six times your monthly salary. The number of times depends on your needs.

For example, if your monthly salary is $6000, your credit score is good, and you don’t have any previous debt, you can borrow up to $36,000 as your loan.

You can decide to get one personal loan, the whole amount, or two loans worth S$18000. The important thing is to ensure you stay within your limit.

What Can a Personal Be Used For?

There are several reasons you can take a personal loan when in Singapore. Here is a list of the uses:

Family and Medical Emergencies

When you need a personal loan for personal emergencies. A personal loan also helps you get through financial difficulties until you can return to your life.

Accidents, hospital issues, or other emergencies are primarily random, making them very difficult to plan for. At times you usually even have the money, but then more is needed.

Vacations And Weddings

You can use personal loans to pay for special events in your life. Whether it’s your wedding you want to fund, a holiday with your partner, or a gathering with the special people in your life.

Making Credit Card Payments

You can also use a personal loan to pay credit card bills. You should use a credit card wisely, though avoid paying off credit card debts with a personal loan.

Student Expenses

When you’re a student, you can take a personal loan to pay for your college tuition or any books you need. A personal loan is a great way to support your college education.

Do You Qualify For A Personal Loan?

As you continue to understand how much a personal loan can I take, you should also understand the qualifications for a personal loan. You can get a personal loan in Singapore if:

1. You’re a Singapore citizen, Singaporean, or foreigner in Singapore. Though each individual’s requirements differ.
2. You can’t get a personal loan if you usually get an annual salary of less than $20,000. You should at least earn a yearly income of around $20,000 to $30,000, but the risk is you’re likely to get a loan of higher interest than a personal loan of a person earning more than $30,000.

The point, though, on qualification is to have a good credit score built up by paying your loans diligently.

Can You Take Multiple Personal Loans?

Yes, it’s possible to take multiple personal loans. However, it depends a lot on your lending company. Also unsecured credit borrowing limit can be a factor in your borrowing.

You can’t take more unsecured debts if you exceed the borrowing limit for almost three continuous months.

As long as you’re a Singapore resident and have the required minimum annual income, you can always apply for a personal loan.

Let’s look at a table that will showcase Singapore’s requirements for a personal loan.

How Do You Manage Multiple Personal Loans?

Managing multiple loans can be challenging. One trick is if your monthly income utilities are manageable and your debts are low, it can be easy to manage your loans.

Here are some strategies to manage multiple personal loans

• Evaluate how much debt and assets you have. This will help you manage your finances better
• Consolidate personal loans with high interest. Also, you can consolidate them with credit loans to manage your loans better
• Build a budget. So to maximise your financial resources
• Approach a bank or a financial institution to consolidate your loans to make your payment plans easier

What To Consider

Still understanding how much a personal loan can I take, you also need to understand what it entails before you apply for a loan. For example, it comes with high interest rates even though it’s a quick cash loan.

For instance, consider the benefits of a personal loan.

Benefits Of A Personal Loan

• You don’t need any collateral to take a personal loan. A personal loan is primarily for emergencies, so it’s not tied to any assets. Personal loans are not like mortgage loans, which, when you default, you’re at risk of losing your home.
• Fast processing period. Personal loans are fast to apply for and approve. You can quickly get your loan within a day or a week as long as you’ve submitted all the essential documents, which are typically less than other loans.
• Fixed interest rates. Personal loans don’t increase or lower your interest rates as the repayment continues. Unlike other loans like credit card loans that place their interest rates according to your due loan balance.

Also, you can consider the disadvantages of taking a personal loan.

Disadvantages Of A Personal Loan

• High interest rates. A personal loan comes with higher interest rates than a secured loan. Sometimes, a personal loan can gather more interest rates than credit card loans
• Age and annual income. Typically in Singapore, you should be at least 21 years but not more than 65 years old.

Also, there is a minimum salary limit of at least $30,000 every year. Though there is still the option of taking a loan, even at that minimum, the downside is that the loan will be at a higher interest than usual

For a foreigner, you need to earn at least $40,000 per year or $60,000, especially if you’re taking a loan from a bank.

Other things to consider:

1. Ensure you plan for the loan. Before taking a personal loan, ensure you can pay it back. Understand that a personal loan is not just the amount you borrow but also the interest and additional fees that are part of it.

Remember paying debt early improves your credit score. Your credit score clearly shows your financial situation and the possible risks of lending you cash. The better your credit score is, the more a borrower trusts you to pay.

Remember, when you miss your loan repayments, it negatively affects your credit score. When it happens, you have a lower chance of having your loan application approved.

2. Manage your money wisely. Budget wisely your finances to your ability. Select a repayment plan that you can follow diligently. It doesn’t matter if your finances are limited, it helps you repay your loan on time.

3. Explore other alternatives. Personal loans might be a great choice, but you can always find other options. You can tell your family or friends about your plans and make them understand you can pay back the loan.

Take Multiple Personal Loans To Satisfy Your Needs

Now that you know how much a personal loan can I take, go ahead and apply but don’t forget to check first all the important stuff.

For example:

• Don’t forget to choose the right loan amount. Take whatever you need according to your financial ability.
• Check a repayment schedule that’s flexible for you. Understand the terms of your loan interests and repayment charges.
• Consider the loan repayment period. You have to consider the shortest periods to repay. Understand the loan repayment plans with the best interest rates for you.
• Choose a lending company’s interest rate that’s low. For example, a lending company should at least have a 4% interest monthly. Always ensure you drain your choices for the best interest rates before you choose a loan.

For the best licenced money lender in Singapore, you should contact 1AP Capital. We have the best loan interests, fast approvals, and immediate disbursement.

We’re also a reliable financial company that offers open-process loans and ensures you understand our terms before applying.

Frequently Asked Questions

What Is a Normal Credit Limit Singapore?

According to the Money Authority Singapore, your credit limit is based on your salary. Mostly when you’re a credit user, the maximum you can get is four times your monthly salary. However, this can go low according to your credit score.

How To Check Your Credit Score In Singapore?

The Credit Bureau Singapore does this for you. To see your credit score, you can ask for your file online at the branch that’s near you.

Can I Take A Personal Loan If I Have A Bad Credit Score?

Yes, you can. Most money lenders have specific offers when you have a bad credit score. You can still have your application loan approved even with a bad credit score. Though it’s best you start with low loan offers as you climb up to improve your credit score.