Have you ever found yourself in a financial crisis where you need money urgently? The first solution that comes to mind in such situations is borrowing money.
If your friends and family can lend you money, great! But if they are not in a situation where they can provide you with financial help, loaning money is the best next solution.
Financial institutions can provide you with personal loans at affordable interest rates. However, you need to meet the eligibility criteria and submit a handful of documents, such as identity, address proof, and income proof, to get the loan.
What do you do if you do not have a stable income?
Do you get no aid to meet your financial obligations and get pushed further down your financial girth?
Is there no way to get a low-income loan in Singapore?
In this blog, let’s find the answer to these questions.
Is It Possible to Loan with No Income?
To answer this question — yes; technically, it’s possible to get a low-income loan in Singapore.
You must be wondering how it is possible? Moneylenders define a borrower’s eligibility through a handful of income proofs, along with other documents. It’s true.
However, even though Singapore is a developed country, there is a substantially huge group of people who come under the low-wage income group. They work payday-to-payday and live by a strict budget. At times, their financial ability falls short of what is required to get them out of a particular fix. It could be anything — from medical emergencies and education fees to pending bills and travel expenses.
To help low-income groups, financial institutions provide them with low-income loans in Singapore.
Low-Income Loan in Singapore
There is a common notion that individuals need a regular source of income to avail of a personal loan. However, licensed moneylenders like OT Credit provide personal no-income or low-income loans in Singapore. One can use it to cover their financial needs, such as pursuing higher education or traveling to a destination.
Here are the features of low-income personal loans in Singapore.
1. Instant Approval
People often come to borrow personal loans when they are in an immediate financial fix. They need money instantly to cover their financial obligations. In such times, too much time in processing and approving the loan can cost a lot to the borrower.
The application process for a low-income personal loan is quite simple. Once you submit the required documents, the authorities will only take time to verify them. In most cases, you can get instant approval.
2. Credit Score is Unworthy
Every borrower knows that a high credit score is vital to receive a loan at a low-interest rate. It defines your creditworthiness and makes a lender confident to lend you money.
Low-income earners tend to have bad credit scores, especially because Singapore has a high cost of living. If you made a late payment on your utility bills or didn’t make the installments on time for your past loans, it would affect your credit report adversely. Mainstream financial institutions would turn you down due to your low creditworthiness.
However, several licensed moneylenders, such as OT Credit, do not use your credit score as a measure of your borrowing ability. With low-income loans in Singapore, we make it easier for you to make your ends meet within a hard living situation.
3. Immediate Disbursal
Licensed moneylenders only look at your repayment ability. As mentioned above, they do not care much about your credit score, especially when providing low-interest loans.
It makes the loan approval process more convenient and seamless. As a result, moneylenders provide fast approval on loans, and in most cases, the amount is disbursed to your account within 24 hours.
4. Flexible Repayment Tenure
Unlike mainstream financial institutions, licensed moneylenders do not adopt a strict approach toward loan and interest collection. They provide you with a flexible repayment tenure that does not put a lot of financial strain on your shoulders.
5. Unsecured Loan
In general cases, moneylenders require you to have good creditworthiness to borrow money. When borrowers cannot attest to a credible credit report, they usually have to pledge an asset as collateral to secure a loan.
Well, low-income groups may not have either. They cannot fulfil the general norms to get a loan. Hence, you can get a low-income loan in Singapore even when you do not own any assets, making a personal loan an ideal option.
6. No Red Tape
Low-income loans in Singapore do not require any collateral since they are unsecured loan facilities. You do not have to prove your creditworthiness using the usual means as long as you have a regular low- income. If you can prove it through your bank statement and letter of employment, it’s great. Even if you do not have regular income proof, licensed moneylenders find your way to borrow money with the document you have available.
7. No Hidden Charges
When low-income borrowers are turned down for loans by mainstream banks and financial institutions, they turn to loan sharks in desperation and worry. Loan sharks are not only illegal but dangerous as well. They lend a small amount of money and charge ridiculously high-interest rates, along with hidden charges or fees. When borrowers fail to pay the principal amount and interest back, they take to violence and harassment and even force borrower families to engage in illegal activities.
However, you can apply for a personal low-income loan without worrying about any of these with the help of licensed moneylenders in Singapore. You are informed about the complete terms and conditions of the loan well in advance, and you do not need to pay anything extra than you owe.
Borrowing a loan with no income on low-income in Singapore sounds unreal. However, it is very much possible! All you need to do is, find a licensed moneylender who has flexible borrowing options.
If you are currently on the lookout for such a licensed moneylender in Singapore, OT Credit can help you. We understand that emergencies are unpredictable and thus provide loans at flexible and realistic terms. Submit a loan application on our website today and apply for a loan.