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4 Simple Tricks to Repay Your Personal Loan in Singapore

Woman calculating amount she needs to repay monthly for her personal loan in Singapore

Your personal loan in Singapore was approved by a licensed moneylender – congratulations! Now comes the challenging part – sticking to the repayment schedule. There are two reasons why it is important to repay your loan as scheduled.

Firstly, there are monetary penalties every time you are late on a payment. This includes:

  • A one-off late payment penalty every time you fail to pay the monthly instalment by the set date. This fee is capped at $60 per month.
  • Interest on the amount due. This is calculated at up to 4% of the amount due for that month (not the outstanding loan balance).

Secondly, the cumulative debt that you incur as a result of these penalties makes it more likely that you will default on future payments. Remember, a failure to meet your financial obligations today can have catastrophic effects on your credit rating for years to come.

But not to worry, we have got your back! Here are 4 simple and proven ways you can use to adhere to your personal loan repayment plan.

1. Adjust the instalment due date

If you are employed full-time and have a constant monthly stream of income, it is important to keep your payday in mind when it comes to repaying your personal loan. Also consider last-minute purchases and emergency expenses, which will affect your repayment schedule.

Once you have a clear idea of when you receive your salary every month, approach your licensed moneylender and ask for a revised due date for your monthly instalments. As there may be administrative expenses involved with the amendment, it is best to be absolutely sure before informing your lender.

2. Know your finances

This method is all about how well you know your finances. Before you can even determine a feasible repayment plan for your personal loan in Singapore, you need to first assess your current income and expenses.

While there are many free apps today that can help ease the burden of recording your daily personal finances, you still need the discipline to keep this habit consistent. Just think of how invaluable this information will be in helping you see where your money is going and how you can cut back on unnecessary expenses in time for your next repayment.

3. Prioritise your debts

Now that you know where to cut back on expenses, the next step is to determine where your income will go. All debts are not created equal and you have to determine the order of which gets paid first and that depends on two factors:

  • Size of each debt
  • The interest rate on each debt

Together, they dictate the amount by which your debt increases if you do not pay them in full. The idea is to gradually climb out of the debt by ensuring that you either maintain or reduce the amount owed.

You can use either the debt snowball or debt avalanche strategy to accelerate debt repayment.

Debt snowball – List all your debts – from smallest to largest – and make the minimum payment every month to prevent further increase in debt. Pay off the smallest debt first as best you can, and make minimum payments to the remaining debts with any money left. Over time, you will pay off that debt, and you can apply the same strategy to the next smallest debt.

Debt avalanche – List all your debts and make the minimum payment on all debts every month. Pay off the debt with the highest interest using any money that remains. Over time, you will pay off that debt, and you can apply the same strategy to the next high-interest debt. In this way, you are essentially decreasing the amount of interest you are paying.

4. Be mindful of your spending

Last but not least, budget carefully. Before taking out a personal loan in Singapore, be sure to assess your current spending and ensure that it doesn’t clash with your repayment plan. This comes with some financial planning and discipline.

If you realise you’re someone who tends to overspend, then it is time for some serious introspection on your finances and addresses the true cause of perpetually being in debt. How you spend is in your control and it is one of the best long-term solutions to having a solid financial future.

Good thing is, we’re here to help you.

Galaxy Credit is a licensed money lender that specialises in helping you secure a personal loan in Singapore. Talk to us today about our loan solutions.

 

Disclaimer

While we try to provide the most accurate information on this website, it may not reflect the most current developments. The information on this website may be changed without notice and is not guaranteed to be complete, correct, or up-to-date. All information provided is for informational purposes only and shall not be relied upon as professional advice. We shall not be liable for any loss or damage resulting from the use of this website.

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When applying for a personal loan in Singapore, you need to ensure you have all the documents required to get a loan. You should be aware of the documents that are needed and know how much you can borrow. Having your income details and proof of employment on hand will certainly help with your application.

The documents that are required will depend on the bank or moneylender you choose but generally, they will require these essentials:

  • Proof of Income
  • ID copy
  • Employment information, like Employment Pass or CPF statement.

Proof of Income

If you want to borrow money from banks or financial institutions then an income statement will be required. The bank will ask for your income level and salary details so they can check if you qualify for a certain amount of loan.

In short, documents you may need for proof of income includes:

  • Contribution statement to your Central Provident Fund (CPF)
  • Latest income tax Notice of Assessment
  • Latest computerised payslip
  • Bank statement showing salary crediting into your bank account
  • Other income statements as required

ID copy

If you are applying for a personal loan, the lender will ask for a photocopy of your identification card, like your NRIC or Employment pass card just to confirm your eligibility and legal status.

Employment information

If you are applying for an employee loan, then the lender will ask for your employment details such as your Employment pass card or CPF statement. The lender might also ask for proof of employment like an employment contract, job offer letter, and details of salary and bonus.

Tips to secure a personal loan in Singapore

You should carefully evaluate your current financial needs and your earning power. Plan and record your monthly budget and expenditure to establish a monthly repayment plan that you are comfortable with.

Loan Amount

This is the most important factor to consider when applying for a personal loan in Singapore. Knowing the correct amount of loan required will allow you to choose the right type of personal loan. It is also important that you obtain the lowest personal loan rates that suit your needs and try not to surpass your borrowing limit.

Loan Tenure

The loan repayment period is also crucial in determining the length of time you have between monthly instalments. Ideally, you will plan to quickly repay your personal loans and avoid incurring late payment fees and an accumulation of unwanted debts. Remember, the inability to repay your loans on time and in full will eventually affect your credit score.

Fees

Besides the obvious interest rate fees, there are also processing fees charged by both banks and moneylenders to process your loan application. Do check thoroughly to determine if other hidden fees are involved as they will affect your total loan amount. Also, clarify on late payment fee charges and their late payment interest rates before signing anything.

Avenues for personal loan promotions

Sometimes, there are special loan deals offered by both banks and licensed moneylenders. Banks, which are typically the big players in Singapore’s finance hub, often advertise personal loan promotions on an ad-hoc basis via their websites, newspapers, financial sites, or social media platforms. Licensed moneylenders, on the other hand, advertise their services on their corporate website, business directories, or via posters at their registered offices.

If you are looking for a flexible and affordable loan in Singapore, visit Galaxy Credit. We offer the lowest interest rates on our loans and have a quick approval process. We have personal loans to cater to your needs. Talk to us and we will help you fill out an online application!

Besides banks, a moneylending company is a specific financial service provider that will lend you money based on your income and credit history. If you are looking for a loan, then moneylending companies are good options to consider.

However, it is important to note that a moneylending company will have relatively high interest rates, but it will be able to provide you with the necessary funds based on your monthly income.

As with all other personal loan applications, a licensed moneylender needs to go through a processing and approval time frame but the good news is you can apply for a loan online and it’s a relatively easy process. Besides personal loans, a moneylending company in Singapore also provides business loans. But do your due diligence and ensure you are signing up only with licensed moneylending companies.

Loan amount

The loan amount you can obtain from a moneylending company will depend on the amount of your monthly income and credit history, although the latter isn’t as important as if you are applying for a bank loan. There are various loans with different purposes to consider and they come with their respective loan amounts.

The typical loan limit can amount to six times your monthly salary. Therefore, when you apply for a loan, make sure that the loan you choose is based on your financial situation and needs.

If you would like to check your credit report, you can get a copy from the Credit Bureau Singapore. You can also read this post for more information on obtaining your credit report.

Repayment period

The repayment period will depend on the type of loan that you have applied for. Short-term loans may have repayment periods of up to three months, while long-term loans may have repayment periods of up to twelve months

It is important to note that if you want a low-interest rate, then you should look for a loan with a longer repayment period that is typically at a lower amount as well.

Interest Rate

The interest rate charged by a moneylending company in Singapore will depend on the type of loan that you choose. It is important to note that there are personal loans and business loans, and both types of loans will have different interest rates. Also, interest rates for short-term loans will be higher than for long-term loans. Therefore, if you would like to save as much money as possible per month, then you should consider applying for a long-term loan. For example, the interest rate of a long-term loan can be as low as 1% per month while for a short-term loan is usually between 3-4% per month.

Finally, remember that if you would like a low-interest rate on the loan, then you must ensure that you have a good credit history and high income.

Do also ensure that you know the amount of interest rate and repayment period for each type of loan. This will help you to decide on the best loan for your needs, as well as the most suitable moneylending company to get a loan from.

With these three things in mind, you can now decide on a moneylending company in Singapore. Galaxy Credit offers one of the best personal loans with relatively low-interest rates and specialises in payday loans, business loans for SMEs, and debt consolidation services. Speak to our loan officers today and receive a free consultation on how to better manage your finances.

Until recently, Singaporeans were unable to secure a loan from traditional lenders such as banks when faced with a financial dead-end. The situation was exploited by non-licensed moneylenders in Singapore, loan sharks known colloquially as ‘Ah Longs’.

Today, the government’s regulation of non-traditional lending has created a competitive market that offers borrowers a range of excellent legal options. We have done the legwork for you, creating this accredited list of well-known licensed moneylenders in Singapore.

Galaxy Credit & Investments

Address: Blk 709 Ang Mo Kio Ave 8 #01-2595, Singapore 560709 (Ang Mo Kio Central, 4 mins walk from Amk MRT)

Phone: 6250 8811

Website: galaxycredit.com.sg

Opening hours: Mon-Sat 11:00am – 7:30 pm, Closed on Sundays & Public Holidays

Galaxy Credit stands out for its vast array of specialised loans with affordable interest rates, which is why it easily takes the top spot. This Ang Mo Kio-based moneylender caters to a wide range of clientele and fine-tunes its loan conditions to suit each applicant’s specific needs.

  • Personal Loan
  • Business Loan
  • Bridging Loan
  • Debt Consolidation Loan
  • Wedding Loan
  • Payday Loan
  • Study Loan
  • Renovation Loan
  • Vacation Loan
  • Grab/Gojek Loan

Galaxy Credit emphasises its commitment to a quick assessment and approval process. Borrowers will be hard-pressed to find another licensed moneylender with a faster time-to-cash period.

R2D Credit

Address: Blk 846 Yishun Ring Road #01-3661, Singapore 760846

(Khatib Central, 5 mins walk from Khatib MRT, right behind basketball court)

Phone: 6635 1596 (Contact Jacob)

Website: r2dcredit.com

Opening hours: Mon-Fri 11:30am – 7:30pm, Sat 11:30am – 6:00pm, Closed on Sundays & Public Holidays

R2D Credit makes our list of top moneylenders in Singapore for its combination of high approval rates and low-interest terms. This Yishun-based moneylender also offers a range of specialty loans, including:

  • Grab/Gojek Loan
  • Wedding Loan
  • Renovation Loan
  • Medical Loan
  • Bridging Loan
  • Study Loan

R2D Credit’s presence in Yishun is a welcome development; the area had previously developed an unenviable reputation for high crime and loan sharking activity. Now, residents have a licensed, reliable legal option in their neighbourhood.

Soon Seng Credit

Address: 1 Park Road, People’s Park Complex #01-21, Singapore 059108

(Chinatown, 5 mins walk from Chinatown MRT Exit C)

Phone: 6226 8860

Website: soonsengml.com

Opening hours: Mon-Sat 11:00am – 8:00pm, Sun 11:00am – 5:00pm, Closed on Public Holidays

Located right in the heart centre of Singapore, Soon Seng Credit is perhaps the most easily accessible licensed moneylender in the country. They offer a variety of consumer-specific loans as well, including:

  • Personal Loan
  • Payday Loan
  • Business Loan
  • Debt Consolidation Loan
  • Grab/Gojek Loan
  • Wedding Loan
  • Renovation Loan
  • Medical Loan
  • Bridging Loan
  • Study Loan

Soon Seng places great emphasis on transparency and trust, which are the two critical elements of the borrower-lender relationship. Few other lenders are as focused on ethical lending as this company.

UK Credit

Address: Blk 210 New Upper Changi Road #01-723, Singapore 460210

(Bedok North Central, 5 mins walk from Bedok MRT Station)

Phone: 6448 7448

Website: ukcredit.sg

Opening hours: Mon-Sat 11:30am – 8:00pm, Sun 11:30am – 6:00pm, Closed on Public Holidays

With affordable rates and serving the Bedok population, UK Credit takes pride in their stellar customer service. They are also lenient towards less-than-optimal credit scores, which is good news for borrowers who have been unsuccessful in obtaining loans from other financial institutions. Some of their loan offerings include: Personal Loan

  • Payday Loan
  • Business Loan
  • Debt Consolidation Loan
  • Grab/Gojek Loan
  • Wedding Loan
  • Renovation Loan
  • Medical Loan
  • Bridging Loan
  • Study Loan

96BM Credit

Address: Blk 302 Ubi Ave 1 #01-31, Singapore 400302 (2 mins walk from Ubi MRT Exit A)

Phone: 6292 2629 (Contact Clara or Sim)

Website: cashloansingapore.com.sg

Opening hours: Mon-Sat 11:30am – 7:30pm, Closed on Sundays & Public Holidays

If consumer reviews are any gauge of a company’s worth, the 1,900+ 5-star reviews on Google for 96BM Credit easily put this legal moneylender in the Top 8.

  • Personal Loan
  • Wedding Loan
  • Payday Loan
  • Renovation Loan
  • Business Loan
  • Medical Loan
  • Debt Consolidation Loan
  • Bridging Loan
  • Grab/Gojek Loan
  • Study Loan

96BM boasts one of the highest approval rates in the industry, which is no surprise considering that they do not assess your credit score. If you have had credit issues in the past, speak to this licensed moneylender.

Synergy Credit

Address: Blk 447 Clementi Avenue 3 #01-201, Singapore 120447 (Clementi Central, 5mins walk from Clementi MRT)

Phone: 6250 0066

Website: syncredit.com

Opening hours: Mon-Sat 11:30am – 8:00pm, Sun 11:30am – 5:00pm, Closed on Public Holidays

Synergy Credit maintains the highest standards of integrity and ethical lending by all applicable laws. They believe in fair practice that does not discriminate against anyone’s credit record, which is why they can establish long-term relationships with many customers, offering several loan options:

  • Debt Consolidation Loan
  • Grab/Gojek/Food Delivery Loan
  • Medical Loan
  • Renovation Loan
  • Study Loan
  • Wedding Loan
  • Business Loan

Cash Direct

Address: 2 Venture Drive, Vision Exchange #01-21, Singapore 608526 (Jurong East Central, 5 mins walk from Jurong East MRT Station Exit B)

Phone: 6493 0088

Website: cashdirect.sg

Opening hours: Mon-Sat 11:00am – 7:45pm, Sun 12:00pm – 5:00pm, Closed on Public Holidays

Established in 2016, Cash Direct is one of the oldest licensed operations on our Top 8 list of money lenders. During this time, they have created several case-specific loans:

  • Business Loan
  • Payday Loan
  • Debt Consolidation Loan
  • Grab/Gojek/Taxi Loan
  • Wedding Loan
  • Renovation Loan
  • Medical Loan
  • Bridging Loan
  • Study Loan

Cash Direct strives to personalise each loan and its terms to suit every borrower. Speak to them about their custom payment schedules for your convenience.

GoldStar Credit

Hougang Branch

Address: 1187 Upper Serangoon Road, The Midtown #01-21, Singapore 533971

(Hougang Central, 5 mins walk from Hougang MRT Station)

Phone: 6384 0088

Website: goldstarcredit.co

Opening hours: Mon-Sat 11:30am – 8:00pm Sun 10:00am – 5:00pm, Closed on Public Holidays

Toa Payoh Branch

Address: Blk 190 Lorong 6 Toa Payoh #01-576, Singapore 310190 (Toa Payoh Central, 5 min walk from Toa Payoh MRT Station, Beside KFC, 7-11 and Guardian)

Phone: 6252 0088

Website: goldstarcredit.co

Opening hours: Mon-Sat 11:00am – 7:45pm Sun 10:00am – 5:00pm, Closed on Public Holidays

Rounding off our list of moneylenders in Singapore is Goldstar Credit, proof that last is definitely not least. This company is one of the few licensed moneylenders in Singapore that is large enough to maintain two branches. The first is located in The Midtown at Upper Serangoon Road in Hougang Central. Hougang is a mature estate and the town with the biggest population in the North East. The second is at Toa Payoh Central, a short walk from Toa Payoh MRT Station. The Toa Payoh region is home to several housing estates and many small to medium enterprises (SMEs).

  • SME Working Capital Loan
  • Payday Loan
  • Debt Consolidation Loan
  • Grab/Gojek/Taxi Loan
  • Wedding Loan
  • Renovation Loan
  • Medical Loan
  • Freelancer Loan
  • Personal Loan

While we have ranked these moneylenders in Singapore, the best option for your specific circumstances may vary. Galaxy Credit is the leading licensed money lender in the Ang Mo Kio region. No matter where you are, contact us and allow our loan officers to help you manage and address your financial needs.