How Much Personal Loan Can I Take In Singapore?
March 2, 2023
Are you looking for the best personal loan Singapore offers? If this is not the first personal loan you are taking, then you might be wondering ‘how much personal loan can I take?’
Accessing extra funds can be a great way to cover unexpected bills or make long-term investments. However, how much personal loan you can take depends on your financial situation, how much the bank is willing to lend, and how you will use it.
So, if you are planning to get best personal loans, then knowing how much a personal loan can I take is highly important to plan how you will pay it back and how long the loan will last.
In this article, we discuss how much personal loan you can take in Singapore and how to decide how much is right for you.
How Much Personal Loan Can I Take?
A personal loan is a type of loan that you can obtain from a bank or financial institution in order to cover any type of personal expenses.
The amount of personal loan you can take depends on how much the lender is willing to offer you based on your credit score, income, and other factors. Generally speaking, most personal loans offered in Singapore range from $1,000 to $100,000.
Singapore personal loan interest rate may vary depending on the amount of loan you are taking and how long it will be for. It is important to understand how the interest rate affects how much you need to pay back and how long the loan will last.
As per the Monetary Authority of Singapore (MAS) guidelines, the maximum amount you can get as unsecured loans is up to 12 times your monthly income.
Certain banks and financial institutions offer loans for only two to six times the monthly income depending on your credibility and employment status.
Apart from personal loans, credit cards, lines of credit, student loans, etc also come under the category of unsecured loans. So, how much personal loan can I take depends on all these unsecured debts you have.
For example, if your monthly salary is $30,000, then the maximum amount of loan you can take is $360,000, provided your credit score and other factors are good.
What Can A Personal Loan Be Used For?
Unlike general loans, personal loans are versatile and can be used for almost any purpose. When you take a lowest-interest personal loan, then this can be the best way to fund any type of personal expenses.
Here are a few things for which the best personal loans can be used for.
One of the most common reasons people take out personal loans is to make home improvements. Whether you’re looking to do a major renovation or just make some cosmetic changes, a personal loan can give you the funds you need to get the job done.
If you have multiple debts with high-interest rates, you may be able to save money by consolidating those debts into a single personal loan with a lower interest rate. This can help you to lower your monthly payments and pay off your debt more quickly.
While there are special debt consolidation loans available, taking personal loan low interest rate can also be useful.
Personal loans can also be used for major purchases, such as a new car or boat. While you could finance these purchases with a credit card, personal loans usually have lower interest rates, so you’ll save money in the long run by taking out a loan.
If you have unexpected medical expenses, a personal loan can help you to cover those costs. This can be especially helpful if you don’t have health insurance or if your insurance doesn’t cover all of your expenses.
Personal loans can also be used for vacations. Whether you’re looking to take a trip abroad or stay closer to home, the best personal loan Singapore can give you the funds you need for a relaxing and enjoyable vacation.
Weddings can be expensive, and many couples take out personal loans to help cover the cost of their big day. If you’re planning a wedding, a personal loan can give you the funds you need to make your dream wedding a reality.
Apart from these, personal loans can also be used for any other purpose, such as to cover moving costs, educational expenses, or to start a business.
Do You Qualify For A Personal Loan?
In order to take out the best personal loan Singapore offers you’ll need to meet certain requirements.
The basic eligibility criteria include:
- You can be Singaporean, Permanent Resident, or Foreigner with proper proof.
- Annual income must be a minimum of $20,000 for Singaporeans and PRs. For foreigners, if you are employed in a local company the income should be from $40,000 to $60,000 depending on the financial institution you are applying for.
- You should be at least 21 years of age and, generally, below 65 years of age.
Apart from these, there are also other factors that decide how much personal loan can I take and how much I will qualify for. Here are a few.
- Your credit score: A good credit score means you’re a low-risk borrower and more likely to qualify for a personal loan and get a lower interest rate.
- Your employment history: Lenders will want to see that you have a steady job and income before approving you for a loan.
- Your debt-to-income ratio: This is the amount of debt you have compared to how much money you make. Lenders may be unwilling to loan you more if your debt-to-income ratio is too high.
Can You Take Multiple Personal Loans?
Yes, it is certainly possible to take multiple personal loans at once. However, the total amount of money you can borrow will be limited depending on your income status, credit score and other factors.
In case, your monthly income is $40,000, and you already have a loan for $80,000, then you still have the limit to take $400,000 until you exploit your limit of 12 times the monthly income.
You can take this as one loan or multiple depending on your needs. Eventually, the point is that you need to stay within your credit limits.
Depending on your financial situation and income status, banks or financial institutions can reduce your credit limit to six times your monthly income or even less.
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What To Consider While Taking Multiple Personal Loans
At first look, the privilege to take multiple personal loans seem beneficial. However, it is worth considering how additional debt can affect your long-term goals and how much interest you’ll end up paying over the life of the loan.
Here are a few things to consider before taking out multiple personal loans Singapore.
The interest rate is the amount of money you’ll be charged for borrowing the money. The lower the interest rate for each loans, affordable will be the accumulated interest payment and the less you’ll have to pay in the long run. There are many lenders that offer the lowest interest rate for personal loan in Singapore. So, it is important to do a personal loan comparison Singapore before choosing the best personal loan.
The term length is the amount of time you have to repay the loan. While taking out multiple loans, it is important to choose a term length that you can realistically commit to. If you have a longer loan term, your monthly payment will be lower, but you’ll end up paying more interest over the life of the loan.
When taking out multiple personal loans in Singapore, make sure to check how much money you can borrow in total. It is important to calculate how much loan you can realistically repay with your income and other debt obligations.
With multiple loans come multiple processing fees, admin fees, and other charges. So, it is important to understand how much of your loan you’ll actually get in your pocket.
Analyse The Credit Increasing Possibility
Some personal loans have the option to increase your loan limit without taking out a separate loan. Check if the lender you are considering has this option and how much additional credit you can get with it.
By keeping all these factors in mind, you can be sure to make an informed decision about how much personal loan can I take for your financial needs.
Get The Best Personal Loan Singapore Now
If you are planning to take out multiple personal loan in Singapore, make sure to do your research and shop around for the best interest rate and terms.
Apply for loans through licensed moneylenders or banks and consider how much loan you can realistically afford with your income.
With proper planning, taking a personal loan can be helpful in achieving long-term financial goals provided you use credit responsibly and make timely payments.
If you are looking for the best personal loan for your financial needs, Credit Thirty3 can be your go-to option.
Being a licensed money lender in Singapore, we are trusted by many to get the best personal loans at competitive rates.
Apply for a personal loan today or contact us now to get affordable personal loans.