When applying for a loan in Singapore, you need to ensure that you have all the documents required to be able to get a loan. You should be aware of the documents that are needed and know how much you can borrow.
You should have your income details and be able to show proof of employment so that you can get a loan despite your bad credit score.
The documents that are required depend on the lender but generally, they will require income certificates/ payslips, bank accounts statements, ID copy, proof of occupancy, assets ownership and employment information like NRIC/ Employment pass card or CPF statement.
Income certificate/ Payslips
If you want to borrow money from banks or financial institutions then an income certificate will be required. The bank will ask for your income level and salary details so it can check if you qualify for a certain amount of loan which is also known as the lending ceiling. The lending ceiling is based on your monthly salary which is compared with other borrowers in your sector. This helps the bank to decide how much they can lend you without risking defaulting by customers who take more than they can payback. For example, if your monthly salary is $3200 and the lending ceiling for your sector is $3000, then you will be able to get a loan of $3000.
Before applying for a loan, you should ensure that you have enough savings to pay the instalments of your loans. When applying for a loan, the banks will ask for bank statements and if the bank sees that you have enough savings/ funds in your account then they will lend you a lower amount. If they see that you do not have enough funds available in your account, then they might reject your application as it might mean that if you have an emergency or unforeseen events occur, then it will be hard for you to repay the loan instalments.
If you are applying for a personal loan, then the lender will ask for a photocopy of your identification card like your NRIC or Employment pass card. The lender might also ask for information on employment which includes your EPF statement or other employment details. If you are applying for a business loan, then the lender or financial institution may ask for financial documents like audit reports and corporate documents like Memorandum and Articles of Association (MAA). Some lenders might also ask for proof of occupancy like a tenancy agreement so that they can confirm that your business premises are actually owned by you.
If you are applying for a loan to buy property, then the lender will ask for the documents on the property such as the Certificate of Entitlement (COE) or certificate of ownership so that they can confirm that it is owned by you. The lender will also ask for other supporting documents like a tenancy agreement in case you are renting a place. If you are buying a car with a loan, then the lender will need car registration and proof of ownership like the original invoice from the dealership or transfer letter. The lender may also ask for other supporting documents like your driving license and insurance details.
If you are applying for an employee loan, then the lender will ask for your employment details such as your NRIC/ Employment pass card or EPF statement. The lender might also ask for proof of employment like an employment contract, job offer letter and details of salary and bonus. If you are applying for a business loan or a startup loan then you might be asked to provide information on your company like audit reports, profit & loss accounts, tax details and financial statements.
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