Best Personal Loan for Low Income Earners in Singapore (2024)

It is a common misconception that borrowing money from a bank is a bad idea. If you borrow money wisely, it can be one of the best things you can do for your finances, especially if you are a low income earner.

This is where the best personal loan for low income earners in Singapore come into play.

With so many loan providers in Singapore, picking the best one can be stressful. That is why we have done the hard work for you and come up with this list of the best personal loan for low income that you can apply for. We’ve also included options for the best personal loan without income proof in Singapore.

Here, you can learn about different loan products that best fit your budget and needs.

• Personal Loans in Singapore
• What You Can Use Personal Loans for
• Remember These Things Before Applying for a Personal Loan
• The Best Personal Loans in Singapore for You
• Alternatives to Personal Loans for Low Income Earners
• Frequently Asked Questions

Because most personal loans for low income are unsecured, banks usually have a minimum income requirement to ensure that the loan will be paid back. After all, they will not be able to take away your possession as payment for it.

The minimum annual income for most personal loan options is usually S$30,000 for salaried employees. For foreigners, commission-based earners, and those who are self-employed, it can fall between S$40,000 to S$60,000.

But in reality, not everyone’s annual income can meet these requirements. Does that mean you should just give up and get a loan from an ah long?

The good news is there are tons of options for the best personal loan for low income earners in Singapore. Applying for a loan from a reputable institution is always a better choice than going for seemingly convenient unlicensed lenders that will charge you exorbitant interest rates.

Are you overwhelmed with your current bills? Or maybe the money you earned for this month just is not enough to cover your needs? If so, personal loan for low income can get you out of trouble. Here are other expenses you can cover with your loan.

Dealing with medical emergencies is unavoidable, but personal loans can help you pay your bills partially or fully. This will help you get your finances in order until you get your next paycheck.

Thanks to personal loan for low income earners in Singapore, you can finally get the chance to visit the place you have always wanted to go to. It can be a beach, a mountain, or an exotic location. Personal loans are truly an amazing option to help you see the world.

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There is nothing more important than celebrating the most memorable day of your life, especially if you are ready to commit to someone. Wedding planning is tiring, but when you apply for personal loan without income proof in Singapore, you can focus on planning this memorable day instead of getting stressed about your bills.

Home improvement projects can be expensive, but with a personal loan, you can get all the materials you need without worrying about your cash on hand. This loan is also great to cover home emergencies such as plumbing problems.

If you have several credit cards and your limit is already maxed out, you can use your personal loan to pay for expenses like grocery bills or petrol.

You can also use your loan to cover spiraling credit card bills since personal loan interest rates are better compared to credit cards.

Here are a few things you keep in mind to ensure you make the most out of your money.

When applying for personal loan for low income earners in Singapore, keep in mind that the advertised interest rates may not apply to you, especially if your income does not go above S$30,000. Banks also factor in your outstanding debts and credit rating when determining your interest rate. Considering this, expect to be charged higher than the published amount. This means that you may have to take care of more expensive instalment payments.

If you want to take out another loan in the future such as an auto or housing loan, you should check your TSDR or Total Debt Servicing Ratio. This refers to your monthly total debt payment that is capped at 55%. Considering this, your personal loan should not take up the majority of the 55% cap or you may have to wait until you pay back your personal loan to apply for another loan.

If you can put your needs off for a while and wait until your salary increases, do so. But if not, only borrow what you can afford to pay back. Even if you can qualify for a bigger amount, do not be tempted to max it out. If you are unable to pay it back in time, you may end up in a worse situation since you have to take care of late repayment fees.

If you have an existing account with any bank, consider getting a loan from them. Banks usually have laxer requirements to their current clients, and this will help you get a better deal. You also do not have to worry about getting tons of documents to qualify for the loan.

Before applying for a personal loan for low income, ensure that you check your credit score. See if there are any errors in your credit report. Getting these errors corrected can help your financial health.

Here is a look at some of the best personal loan for low income earners in Singapore you can apply for. We made sure to only include loans that have an eligibility requirement of at least S$20,000 minimum annual income.

Take a look at this personal loan comparison below to see how each loan measures up next to the other.

With a minimum income requirement of only S$20,000 a year, this personal loan for low income is one of the best options for you. One of the upsides of this loan is it offers quick cash disbursement in only 15 minutes, which makes it perfect for those who need cash urgently. This personal loan interest rate in Singapore starts at 3.48% per annum.

It is important to note that while this loan is worth considering by Singaporeans and PRs, it is not the wisest loan for Foreigners in Singapore since it has a S$60,000 minimum requirement for the said group. Your credit history also greatly affects your interest rate. For example, if you have a bad credit score, Standard Chartered may give you a higher interest rate since they will be taking on more risk.

• 21 to 65 years old
• S$20,000 minimum annual income requirement
• Singapore Employment Pass (for foreigners)

Apply here.

This is another personal loan for low income earners in Singapore with friendly eligibility requirements.

Everyone with a minimum annual income of at least S$20,000 can apply for this loan, although foreigners need to have a credit card or cashline with the bank to be eligible. This has the lowest interest rate personal loan in Singapore at only 2.88% per annum plus a 1% processing fee. When you apply online, you will instantly get the cash in your account.

This lowest personal loan allows low income earners to borrow up to 4 times their monthly salary. Only those with an annual income of over S$120,000 can borrow up to 10 times their monthly salary. The tenure for this loan is between 1 to 5 years. Borrowers can also receive up to 2% cashback by using the code “POSBPL” for loan amounts of S$10,000 and above. Promo is valid until 30 September 2022.

• 21 to 75 years old
• S$20,000 minimum annual income requirement
• Singapore or PR, and foreigners with existing credit card account and/or cashline

Apply here.

Although it does not have the most affordable interest rates which start at 5.43% per annum, it is still worth considering for existing OCBC customers who already have an OCBC EasiCredit or credit card. The tenure for this personal loan for low income earners in Singapore is up to 5 years, and those whose annual income falls between S$20,000 to S$29,000 can get 2 times their monthly salary.

Repayments can easily be made through mobile banking or online funds transfer. You can also pay through a cash deposit machine or cheque deposit. It is worth noting that the S$20,000 minimum annual requirement is only for Singaporeans and PRs. Foreigners must have an annual income of at least S$45,000 to qualify for this loan.

• At least 21 years old
• S$20,000 minimum annual income requirements for Singaporeans and PRs
• S$40,000 minimum annual income requirements for Foreigners

Apply here.

If any of the personal loans listed above do not look appealing to you or if you’re looking for personal loan without income proof in Singapore, here are some alternatives.

If you can’t qualify for a personal loan for low income earners in Singapore, you may use your credit card for a major purchase, or its cash advance option. However, keep in mind that it can get expensive due to the high interest rate. You can look for a credit card with current promotions such as a 0% annual percentage rate. Just be realistic since you cannot have a high credit limit if your income is low.

If you have any property, you can apply for a secured loan instead of an unsecured personal loan. Because there is collateral involved, these loans are less strict when it comes to minimum income requirements. Of course, you may lose your collateral if you are unable to pay your loan back.

Getting a personal loan from a money lender is another great option for low income earners. These are organisations that have been approved by the Singapore government to offer short-term loans to the public.

Unlike ah longs, their terms of personal loan without income proof in Singapore are restricted so you will not be taken advantage of. While the interest rates are higher compared to banks, you can still get a good deal from them. This may also be an option for those looking for personal loans for students with no income. Check out our guide on licensed moneylenders in Singapore for more information.

Moreover, it is a viable choice when you are looking for a fast cash loan. For instance, your personal loan application can get approved in just minutes.

Still got questions about personal loan for low income? We will answer them below.