Category: Personal Loan

There may be a point in your life where ‘savings for a rainy day’ might not be enough to tide you through a tough financial situation. Be it to pay for an unforeseen medical bill, or urgent home renovation, considering an urgent loan could be a solution to your problems. But what if I am currently unemployed? Can I still apply for an urgent loan for unemployed in Singapore?

Why unemployment can negatively affect your loan application

Contrary to popular belief, you can still successfully obtain an urgent loan even though you are unemployed. To apply for any type of loan, you must first find out if you are eligible for it. Loan eligibility requirements include minimum salary, proof of employment etc. Most banks and financial institutions require loan applicants to be gainfully employed and show proof of income when applying for a loan. This enables lenders to assess your loan repayment capabilities.

However, for those who need an urgent loan for unemployed in Singapore, this may prove to be a challenge. But don’t be discouraged, as you can still get your loan application approved. Here are five essential tips for the unemployed to be successful in getting an urgent loan:

5 Essential tips to get a successful urgent loan for unemployed

1. Maintain good credit history

Your credit score determines how financial institutions such as banks and authorised money lenders in Singapore view you as a borrower. A good credit score indicates that you have been diligently paying off your credit card debts or other loans on time, and the chances of your loans getting approved is higher. In Singapore, your credit payment history is recorded by the Credit Bureau Singapore (CBS), where you can check your credit history with banks in Singapore.

If you’re looking to apply for a loan with a licensed money lender, they will check your details such as your existing outstanding loan principal amount with other moneylenders, total payable amount, repayment records and borrower’s current borrowing limits with the Money Lenders Credit Bureau (MLCB).

While money lenders don’t usually consider your credit score with CBS, a good credit score can most definitely help you get your loan application approved, especially if you are unemployed. So ensure that you maintain a good credit history by repaying your loans on time and not defaulting on them.

2. Get alternative sources of incomes

The good news is you don’t have to be employed full-time to successfully apply for a personal loan. Alternative sources of incomes i.e. part-time jobs, freelance, contract jobs, and passive incomes from rental payments or investments are considered as “proof of income”. As long as there’s funds coming in and you’re able to prove to the lenders that you can effectively pay off your loans, you can apply for an urgent loan for unemployed in Singapore.

3. Consider taking up secured loans

A secured loan is a type of loan that is backed by your assets such as car, property, or jewellery as collateral to the lender in case you are unable to repay your loans. In the event you can’t pay off your loans, the lender has the right to sell the asset you pledged to pay them off. This provides more security for lenders, lowers the risk of not getting their money back and in turn grants you a higher probability of getting a loan, even if you are unemployed.

4. Negotiate and commit to a repayment schedule you can adhere to

To effectively pay off your loans, you will need to first ensure you can afford the repayments. While it is tempting, don’t borrow more than what you need. The more money you borrow, the more you’ll have to pay back.

Lay out your monthly finances e.g., bills, mortgages, groceries. Then, add the potential loan installments you must pay into the above expenses and see if you can afford to pay them all in a timely manner. Note that if you’re late in repaying your loans, you will incur late payment interest of maximum 4% per month for each month the loan is repaid late.

Hence, don’t commit to a repayment schedule and frequency you’re not confident of adhering to. Inability to pay off your loans on time can also negatively affect your credit history.

5. Choose interest rates with your financial situation in mind

Interest rates are probably one of the first things borrowers consider when applying for a loan. Depending on your current financial situation, sometimes engaging money lenders with low interest rates might not be the best option for you as it might come with a shorter repayment period. This means you need to pay higher monthly installments, which can be a challenge if you are unemployed or don’t have a regular stream of income.

Many licensed moneylenders in Singapore offer affordable and flexible repayment on a case-by-case basis. Do your research before committing to a lender. Find one that can provide what you need – good interest rates, a flexible repayment schedule, and reasonable repayment conditions you can work with even if you’re unemployed.

Also, keep in mind other considerations when getting a loan such as processing and late payment fees, should you not be able to pay off your loan on time.

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Nurintan Syafinaz

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Building brands by day, crafting narratives by night. I leverage my dual expertise to create compelling and effective content.

Recently incurred an emergency expense and don’t know where to get enough funds to tie you through this difficult time?  An instant loan could be a lifesaver in such circumstances and the best part is, instant loan approval in Singapore is really not that hard to achieve.

Before we get into the details of how to get fast loan approval in Singapore, let’s first define what an instant loan is.  Essentially, such loans are short-term loans that are provided by a legal money lender.  The flexibility lies in the simple approval process, fast funds deposited straight to the borrower’s bank account, and the short repayment period.  It is suitable for those who need to manage unexpected financial obligations such as a repair bill or medical expenses.  Some examples of instant loans include credit card consolidation loans, personal loans, and wedding loans.

Features and Benefits of An Instant Loan

As the name suggests, an instant loan is fast and convenient.  There is also a myriad of features that make such loans more attractive than others. Here are some key features and benefits that pique the interest of most borrowers:

• Instant loan approval in Singapore is simple and straightforward.

There is no need to queue up at the money lender’s office because the application can be done online.  There is also no need for a guarantor or collateral.

• Fast approval loan in Singapore that is regardless of borrower’s credit scores

Instant loans are available to individuals with good or poor credit history because the loan amounts are relatively small and the repayment period is usually within six months.  As such, the legal money lender is more confident about issuing the loan since the chance of recovering the borrowed funds is relatively high.

• Fast disbursement of cash and reliable instant loan interest rate in Singapore that is regulated by the Ministry of Law

Upon loan approval, borrowers can receive cash disbursement into their bank account immediately. This is extremely useful for those who are in urgent need of cash.  Furthermore, borrowers’ interests are protected by local governing bodies hence eliminating the chance of being scammed with escalating rates. 

Not sure if you should apply for a loan? Get 7 helpful tips that’ll help you determine if the loan is right for you.

Instant Loan Application Process

The entire loan application process with any legal money lender takes no more than 30 minutes.  Even the instant loan approval in Singapore is almost immediate if the supporting documents and information required are presented simultaneously.

Here’s how the application process looks like:

Step 1 – Fill up the online form on the legal money lender’s website, schedule an appointment in the office, and provide all the supporting documents and information required for loan processing

Step 2 – Once the loan is approved, sign the loan agreement to agree on the loan terms and conditions including the chargeable loan interest rate in Singapore

Step 3 – Get approval in as fast as 30 minutes and receive cash in your account immediately.

7 Requirements To Obtain an Instant Loan

Ready to apply for an instant loan?  Make sure to get the required supporting documents and information ready before you rush ahead with the application.  Providing essential data to the legal money lender is a must for getting instant loan approval in Singapore.  Don’t miss out on any details because they may disrupt your application process. 

Refer to the following table for the 7 requirements you need to meet before submitting your instant loan application:

About the Author

Constance Lee

Constance Lee is a freelance writer who is experienced in creating well-researched content for many industries. She has worked with many clients across the world and has produced over 500 articles.

With United States inflation soaring since 2021, economists fear that its trickledown effects may impact jobs figures around the world. Does that mean your job is at risk? Not necessarily.

Repeated nationwide lockdowns over the past 18 months have focused on restricting interpersonal contact. These social distancing regulations continue to bode ill for industries that rely on in-person service.

On the other hand, traditional businesses that have adopted an online-only or hybrid product and/or service delivery model have weathered the storm well. This trend will continue into the foreseeable future, based largely on the public’s growing preference for social distancing where possible. 

Companies based on the concept of interaction without physical contact have not only sustained their profitability but even seen it rise. The exponential growth of teleconferencing apps and social media use is proof of this.

Many businesses have even turned the lockdowns into opportunities with the help of many different personal loans in Singapore.

Industries Most Affected 

Agriculture

The bottom line is that people have to eat. Whether it is fresh food or processed, employment in any industry linked to agriculture has remained consistent and will foreseeably remain the same. 

The government has recently put considerable effort into encouraging food self-sufficiency and may also provide additional incentives for such a venture. Business-minded individuals may even consider a fast approval personal loan in Singapore to jump on the bandwagon.

This approach is not limited to physically engaging in agriculture but also research and development into new, more sustainable ways to expand production.

Food and Beverage Service

It is almost a contradiction that while food-oriented agriculture has remained immune to the effects of the pandemic, the F&B industry has tanked. This is a result not of lessening demand but rather the inevitable consequence of social distancing rules.

Countless dining outlets have had to apply for loans in Singapore just to keep their heads above water. While there was some relief in terms of Covid payments from the government, they have been stopped but the future of the industry remains on shaky ground.

The businesses that successfully navigated the crisis have been those that were quick to adopt the hybrid formula; they create their dishes as before but deliver instead of relying exclusively on dine-in customers.

Other Services

One of the services that thrived during the lockdowns is delivery. With delivery companies largely exempt from the movement restrictions imposed island-wide, applications for private car hire licenses have exploded.

Even legal money lenders offer unsecured loans like Gojek and Grab loans for private car hire drivers. Part of the reason for this popularity is that they are convenient part-time jobs in uncertain times.

Meanwhile, the customer service industry has seen both sides of the coin. Staff at reception desks and lobbies find themselves made almost redundant by the lack of foot traffic. By contrast, those manning phones and online CS desks are busier than ever.

If your business deals with a large volume of queries, you should consider a business loan in Singapore to expand these remote interaction alternatives. 

Additional Factors

While supply and demand are the crux of job stability, two other factors also have a profound impact on your prospects.

Education

Research shows that the effects of the pandemic are generally more pronounced on jobs with lower education requirements. 

This is partly due to the difference in how those with tertiary education are employed as compared to those without. The former usually work on employment contracts that ordinarily range between 1 to 5 years. The latter are more likely to be informally employed, usually as casual, part-time, or temp staff. 

Unless a business fails completely, contracted jobs are safe. Conversely, non-contracted jobs are the first to go when a business begins to struggle. 

As a worker, you can get a loan and still stay on budget by investing the money in your own education and training. An excellent option is fast approval loans in Singapore from licensed moneylenders.

Gender

Females tend to be employed in greater numbers in the service professions. They are ordinarily also the spouse that gives up employment when children need assistance. With mandated home-schooling, it was almost inevitable that females would leave the workforce (at least temporarily) in large numbers.

If a large proportion of your employees are female, there is a greater risk of negative impact during a pandemic or similar emergency.

Insulating Yourself

The intelligent approach today is to hitch your wagon to an industry that is impervious to external factors. 

If you apply for a loan in Singapore to start a business, explain clearly to the lender how that resilient industry ties in with your business model and improves its viability. It is much easier to get an unsecured loan in Singapore when a borrower can present such data. However, do consider getting loan quotes from different lenders so you can find the cheapest personal loan that’s within your financial means. Once you do, you can start funding your business with ease.

About the Author

Nikki T

Hello! I’m Nikki and I nitpick through all the boring financial data and jargon so you don’t have to!