How to Get Approved for a Personal Loan From a Licensed Lender

There are many instances in life when one might need a loan, be it starting a business, paying for higher education, or tiding over a financial emergency.

To cover these types of needs, a personal loan from a licensed money lender can come in handy. As it stands, it is typically an unsecured loan hence does not require collateral. It can be a great option to help you meet your financial needs swiftly.

Want practical tips on how to get approved for a personal loan? This guide spotlights the things you can do and ways to get a loan approved—minus all the confusion. Read on to find out more, pronto!

5 Tips on How to Get Approved for a Personal Loan

Tip 1: Maintain a Good Credit Score

Your credit score can make or break your loan application—a good credit score is one of the best ways to get a loan approved. It is a number ranging from 1,000 to 2,000 that a financial institution or bank in Singapore would consider during the application process. It is, however, not so crucial if you’re borrowing from a licensed money lender or moneylending company in Singapore.

Anyhow, a Credit Bureau Singapore credit score reflects your financial health and indicates the likelihood of you repaying or defaulting on your bank loans. The higher your credit score, the better your chance for loan approval!

To maintain a good credit score, be disciplined about making timely payments for all your debts. As far as possible, make the full monthly payment due, instead of paying just the minimum monthly sum. Consistently making payments and not defaulting on your loans will reflect well on your payment history, thus boosting your chances of getting your future loans approved.

Tip 2: Have a Steady Employment Profile

Moneylending companies in Singapore, such as licensed money lenders, need some kind of assurance that you can pay back your loans. For this, they will check your income history and MLCB loan information report to determine your loan suitability.

How to get approved for a personal loan from a licensed lender? Aim to have a steady employment profile and avoid frequent job changes whether you are a full-time or part-time employee. Even if you are self-employed, the chances of getting your loans approved should not be affected if you can provide proof of steady income.

As a bonus, money lenders in Singapore don’t impose stringent minimum income requirements at all!

Tip 3: Start With a Small Loan and Pay It Off Promptly

If you are new to personal loans or aren’t in a favourable place to apply for a large loan, start by applying for a small one. Seeking a bigger loan amount than your capacity to service the loan can seem risky to licensed money lenders, and it can also impact your ability to meet other financial obligations.

In any case, starting small might not be a bad thing if you can pay off the loan on time. This will improve your credit score and build trust between you and the Singapore moneylending company, thus boosting your chances of getting loans for higher amounts approved in the future.

Tip 4: Find a Guarantor

If you don’t meet the licensed money lender’s requirements to apply for a loan, getting a guarantor may help. This could be a close friend or a family member who’s willing to help you and who has a good credit rating and steady income.

Essentially, being a loan guarantor means promising to repay the debt on your behalf if you default. It’s a big commitment that comes with serious obligations. Therefore, you must ensure you can repay the loan on time and in full, so you won’t jeopardize your relationship with your guarantor.

Tip 5: Ensure Your Documents Are in Order

One of the advantages of getting a loan from a licensed moneylender is also that fewer documents are required for assessment. However, the few documents that are required, should be in good order.

These include:

• Your identification document (such as NRIC for Singaporeans and PRs)
• Proof of employment (salary slips)
• For self-employed individuals, your tax returns
• For Singaporeans and PRs, proof of CPF contributions

As long as these check out, your loan approval process should be hassle-free and quick.

Can I Get Approved for a Loan No Matter What?

As much as you want to get approved for a loan no matter what, licensed money lenders have to do their due diligence and individual assessment in the name of responsible lending. This means loan approval is never guaranteed!

Related read: Moneylenders Act Singapore: Rules, Rates & Limits Guide

Conclusion: Borrow Responsibly & Always Repay on Time

Here at R2D Credit, our goal is to be the go-to moneylending company in Singapore. We are committed to providing our customers with tailored, fast and reliable service to meet their needs. You can also review past customer testimonials to get a clearer sense of our service quality before you decide.

No matter what your circumstances are, contact our expert team of financial consultants who can assess your financial needs and provide a suitable solution. If you’re ready to kickstart your loan journey with us, apply securely online—we’ll review your loan application and get back to you in no time!

About the Author

Apart from helping borrowers with their cash needs swiftly, as one of the top-rated licensed money lenders since 2009, it is only natural that R2D Credit endeavours to share the knowledge we’ve amassed to assist borrowers in better managing their finances.