If you look at most loan deals in Singapore, they are targeted at employed persons, but what about the unemployed? Well, it does not mean that since you are not employed, it is impossible to get a loan. In this post, we take a closer look at personal loans for the unemployed to help you answer the main question, “How do you secure a loan?”
A Brief about Personal Loans
A personal loan is a type of credit given by a lender to a borrower in a lump sum and repaid in installments. It is a form of unsecured loan, implying that you will not be required to put forward collateral to get the loan approved. In Singapore, personal loans are offered by a wide range of lenders, from banks to licensed moneylenders and online lenders.
Therefore, whether you want cash to fund a major purchase or to further your education, do not hesitate to apply for a personal loan. The best way to do it is through Lendela, a licensed lenders comparison site.
Tips to Help You Secure a Personal Loan as an Unemployed Singaporean
Now that you know what a personal loan in Singapore is, here are some useful tips to help you secure it as an unemployed person:
#1: Make Sure to Have a Good Credit Score
As we mentioned earlier, personal loans in Singapore are unsecured. Therefore, lenders put a lot of focus on credit score to determine the creditworthiness of applicants. As an unemployed person, lenders will give the credit score more weight and are likely to approve your loan if your credit score is high. Therefore, you might want to start by improving your score using these methods:
- Get your credit report and have errors, if any, fixed.
- Clear outstanding debts.
- Get a good credit mix.
#2: Demonstrate You Have a Reliable Income
In addition to a good credit score, lenders also put a lot of weight on your ability to repay. Like an employed person who can attach copies of payslips from the employer, you also need to provide proof of income. For example, if you run a business and get monthly income or you rely on rental income, it is what the lender wants to know. So, provide the necessary documentation so that the lender can make the decision about your application.
#3: Use an Employed Person to Serve as Your Guarantor
If lenders are still not convinced to give you a personal loan, consider using an employed person with a good credit score to help you secure a loan. This implies that although it is you who will get the money from the personal loan in Singapore, the guarantor commits to shoulder the burden if you default or become unable to pay. Therefore, you better stick to the agreed loan payment plan to avoid getting the guarantor into trouble.
#4: Apply Through Lendela
Different lenders in Singapore have varying conditions, and it will be a good idea to try several. For example, many online moneylenders might be willing to approve a personal loan, where conventional banks are likely to decline. Instead of working on tens or twenties of applications, you should consider working with Lendela.
With Lendela, you only make a short application, and they will forward it to different lenders. This means you are likely to get many lenders willing to work with you. Within a short time, you will be notified of the offers, have a look at them, and select the best personal loan for your situation. Finally, start repaying the personal loan until it is completed.
If you are unemployed, you can get a personal loan in Singapore just like other employed persons. Just make sure that you have a reliable source of income, and the credit history is excellent.