Is It Possible To Get A Personal Loan With No Income Proof In Singapore?

If you’re facing a financial emergency, you need a quick personal loan. What happens when you don’t have an income proof? These documentations are often needed in loan applications in Singapore.

Don’t worry, there’s still a way out.

You can find a reliable lender and add alternative documentation in your loan application. We’ll tell you how to do that in the article below.

How Much Can A Salaried Person Receive From A Personal Loan In Singapore?

The principal amount you can borrow varies according to your earnings and the lender, who will also set your interest rates and repayment schedule.

Bank Loan

Banks in Singapore offer lower rates compared to licensed money lenders as well as more substantial principal amounts.

Here’s the disadvantage:

Banks have more rigid eligibility requirements. Some banks only extend loans to people who earn at least $30,000, while others have age restrictions in place too.

Plus, if you’re a foreigner, your yearly salary has to be at least $40,000, if not $60,000 at some banks.

But every rule has exceptions:

You can get a substantial loan even if your income is smaller if you have a stellar credit score. Your interest rates may still be higher, though.

Personal Loans From Licensed Moneylenders

If you don’t qualify for a bank loan, it’s best to consider a licensed moneylender.

You probably know the disadvantages:

Banks practice lower interest rates. For example, the loans above have interests of around 7-8% per year, whereas moneylenders’ rates are 1-4% per month.

Besides, the banks above offer tenures that usually go up to five years, although with HSBC, you can go up to seven years. Licensed moneylenders’ terms are generally up to three years for smaller principal amounts.

So, why should you even consider applying with a moneylender?

• You need money urgently, and you don’t qualify for a bank loan. In that case, a 4% interest per month is a meagre sacrifice.
• The best moneylenders know how to tailor affordable loans. Affordable loans do exist. It’s just whether you are working with the right company. So, with their expert assistance, your loan will be convenient and easy to repay. Expert loan agents know how much to lend you, plus they’ll set a manageable repayment schedule and loan installments.

What Are The Documents Required To Apply For A Loan?

Some banks in Singapore ask for more paperwork than licensed moneylenders. Most of them will need the documents below from you.

• Proof of identity: Your NRIC number for citizens and PRs, or driver’s license/ passport number for foreign citizens
• Proof of residence: Documents such as:
  • Bank statement
  • Utility bill
  • Received letters on your address and with your name
  • A tenancy agreement in your name
• Proof of income:
  • CPF contribution.
  • Payslip.
  • Employment or confirmation letter.

How Is It Possible To Get A Personal Loan Without Income Proof & Alternative Documents Required

This guide might be helpful if you need money urgently but faced the bank’s rejection. You can get a personal loan without income proof in Singapore if you have these alternative documents:

Income Tax Statements

If you don’t have regular payslips, you can still prove to your financial institution that you benefit from a steady income for which you pay taxes.

In general, lenders don’t care where your money comes from as long as you have it. Add anything taxable apart from your employment income in your loan application to get a more substantial loan:

• Equity compensation
• Freelancing or contractor-based business ventures
• Rental income from properties you leased

But here’s the catch: Some sources of income aren’t taxable in Singapore.

You should still include proofs to these earnings in your loan application to obtain a more affordable loan. If you forget to add the right paperwork for alternative sources of income, your principal loan amount will be smaller and your interest rates higher.

Otherwise, the lender can reject your application altogether.

Here are the non-taxable income sources in Singapore:

• Housing allowance from your company
• Alimony
• Earnings from clients abroad
• Interest income
• Retrenchment benefits
• Annuities
• Windfalls

Notice of Assessment (NOA)

The Notice of Assessment aka your tax bill is the document you receive after you submit your income tax.

This paper has all the necessary info about the chargeable income and how much you’re paying in taxes.

Find your NOA through the IRAS myTax Portal!

Once you log in using your SingPass, or through the Taxpayer and Business Service Centre. However, this second option entails making an appointment.

Here’s what you should consider first:

• NOA includes only info about your chargeable income. Remember to add non-taxable sources of income in your application.
• If you’re a new employee and haven’t paid any taxes yet, you won’t have an NOA. If the year is almost up, you can include your tax statements.

Employment Contract 

If you’re a first-time employee in Singapore and don’t have your standard income paperwork, include your employment contract to obtain a better loan.

This option is also best if you’re returning to work after a prolonged period of being unemployed.

Remember that lenders might reject your application if your employment contract lacks:

• The company’s letterhead
• The beginning date of your employment
• Your full name and NRIC
• Your salary information
• The correct date
• Your signature
• Your employer’s signature
• The company stamp

Bank Statements

Including your bank statement is a good alternative if:

• You’re a freelancer
• You have non-taxable income
• You get your salary in cash

The disadvantage is that bank statements are only accurate if you deposit all your income in your bank account.

And the reality is that you might not do that all the time if you’re paid in cash.

Here’s the solution: Add your payment vouchers along with these bank statements in your loan application.

Importance of Keeping A Good Credit Score 

Keeping a good credit score is essential because you’re showing financial institutions that you’re a reliable client.

Therefore, a better score can lend you more substantial loan amounts, a shorter tenure, and lower interest rates.

What lowers your credit score?

• No credit history
• Missed or late payments to utility bills or loans
• Too much debt compared to your income
• Multiple open credit accounts
• Sending too many loan applications at once

Luckily, there are solutions to all these problems. Below you can read some tips on improving your credit score:

• Contest any errors on your credit report. Of course, the first step is to obtain your credit report from CBS and check its accuracy.
• Apply for a credit card if you don’t have any. CBS is not able to assess your credit score if you have no credit history. If you have the time, it’s best to show your lender that you’re a trustworthy client who makes timely repayments. But, if you need an urgent loan, most moneylenders in Singapore will understand your situation.
• Start making timely payments. If you can’t prioritise your expenses, get the help of a counselling agency.
• Don’t go over your credit card limit. In fact, it’s best to use your credit cards as little as possible to improve your credit score.
• Keep your debt-to-income ratio under 40%. Otherwise, the chances of defaulting on your loans are higher. Besides, too much debt indicates poor financial management.
• Reconsolidate your loans. If you have multiple loans that are becoming hard to pay, amass them into a single loan. The advantage is that you’ll have a more convenient repayment schedule and lower interest.
• Limit your loan applications. Research the best moneylenders in Singapore by listing their pros and cons. Then, choose the one where you have the most chances of getting a suitable loan approved quickly.

In Conclusion 

Getting a personal loan without income proof in Singapore is tough, but not impossible. However, another rejected application will ruin your credit score and prolong your financial distress.

That’s why you need a reliable lender that understands your situation.

A reliable lender should be empathetic to your situation and create solutions for you. Lending Bee is one of the best licensed moneylenders in Singapore with more than 1,900 positive Google reviews. We are known for our speedy loan process and crystal clear transparency.

Get the right loan for your needs here. It takes just minutes to approve your application.

About Lending Bee

In a volatile, uncertain, complex and ambiguous world, you can count on one thing – your partner in credit, Lending Bee. Just like an industrious bee, we are committed to helping each and every customer access credit – quickly, easily and seamlessly.