Banks and financial institutions want to grant you personal loans — the interest they charge on the loan is how they make money after all. However, lenders also need to ensure that you can pay back the loan in a timely manner, and have to evaluate every loan application according to strict criteria.
One common eligibility requirement is a minimum income level, which varies across lenders and according to your citizenship status. For banks, the minimum income required is S$20,000 or S$30,000 per annum for Singaporeans; for foreigners, this can go higher, up to S$42,000 in some cases. This means that if you attempt to apply for a personal loan that would cause your total unsecured debt to exceed 12 times your monthly income, your loan application may be rejected. Or, you may only be granted a smaller loan amount — up to your personal unsecured loan limit — which may not be suitable for your needs.
If you suspect your credit rating may be less than optimal, you can improve it by making timely payments for the next several months; this will show a pattern of fiscal responsibility that lenders look for.Some types of loans, such as renovation loans, allow two individuals to act as joint applicants. As only one applicant needs to fulfil the loan’s eligibility requirements, this can be a viable way to get a personal loan even if you do not qualify on your own.
This is because larger loans are inherently more risky to the lender, and thus more difficult to obtain. However, smaller loans may be assessed to have a lower, more acceptable level of risk, and may be easier to grant. Note that the loans are provided by licensed moneylenders, and not Lendela itself. As such, the interest charges will be higher than those charged on a bank loan.HSBC is the only bank that offers a loan tenure of up to seven years , which makes it the best option for those who prefer a long-term loan.