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How much do you need to earn to get a personal loan?

Learn how lenders determine your borrowing power to get a better chance of being approved.

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Personal loans are available to people in a range of financial situations. To make sure the loan is suitable, lenders set certain requirements that borrowers need to meet to be eligible to apply for the loan. One of these is a minimum income requirement. This is one way of proving you’re able to afford the loan.

Find out below if you’re eligible for a personal loan based on your income.

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What income do I need to earn to be approved for a personal loan?

In Singapore, most banks will require a minimum annual income of at least $30,000, though some may also lend to people who earn less than $30,000 at higher interest rates. For foreigners, lenders generally require a higher annual income between $40,000 to $60,000.

The table below displays the minimum income, as well as other eligibility criteria for the various loans. Select “Compare” to find out if you meet the requirements before you apply.

Name Product Interest Rate From Maximum Loan Amount Min Annual Income Loan Tenure
DBS Personal Loan
3.88% 

EIR: 7.56%

Up to 10x your monthly salary
S$30,000
1 - 5 years
Apply today and receive an interest rate from 3.88% p.a. (EIR 7.56% p.a), plus a 1% processing fee. Loans of up to 10x your salary may be available.
UOB Personal Loan
3.68% 

EIR: 7.21%

Up to 95% of your available credit limit
S$30,000
1 - 5 years
Get S$500 Cashback if you choose a loan of S$45,000 or more with a term between three and five years. This online offer ends on 31 January 2021.
Standard Chartered CashOne Personal Loan
3.48% 

EIR: 6.95%

Up to 4x your monthly salary, subject to a cap of S$250,000
S$20,000
1 - 5 years
Apply by 30 November 2020 to receive Cashback equivalent to 50% of your first month's instalment loan amount. T&Cs apply.
POSB Personal Loan
3.88% 

EIR: 7.56%

Up to 10x your monthly salary
S$30,000
1 - 5 years
Enjoy a fast approvals service and an interest rate starting at 3.88% p.a. (EIR 7.56% p.a), plus a 1% processing fee.
Citi Quick Cash Loan
4.55% 

EIR: 8.5%

Up to 4x your monthly salary
S$30,000
Up to 5 years
Get cash starting at 4.55% p.a. (EIR 8.5% p.a.) on a 36-month loan tenure. The interest you pay varies upon factors such as your credit score.
HSBC Personal Instalment Loan
3.7% 

EIR: 7%

S$200,000
S$30,000
Up to 7 years
Receive S$88 cashback and 5 Grab food vouchers worth $20 each upon approval. Offer ends 31 December 2020. T&Cs apply.
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What if the lender has no minimum income requirement?

If the lender has no minimum income requirement then it will rely on its own methods to determine whether or not you can afford the loan. The lender will do its due diligence by asking for your bank statements and/or an estimate of your expenses and other commitments, such as credit card limits and loans, to see if you will be able to afford the repayments.

If you have concerns about whether or not you will be approved, you might want to contact the lender to get some more information.

How do lenders determine how much I can borrow?

When you submit an application for a loan, the lender will most likely ask about your expenditure. You should try to be as accurate as possible when estimating your expenses as the lender may check your bank statements.

Borrowing limit for unsecured loans

Unsecured loan refers to any loan without any attached collateral. Some examples of unsecured loans are:

Depending on the issuing bank, most individual credit cards and credit lines restrict your credit limit to either two or four times your monthly income. If your annual income exceeds $120,000, you’re typically allowed to borrow up to 8 time your monthly salary, or up to a maximum of $200,000.

To help Singaporeans avoid accumulating excessive debts, the Monetary Authority of Singapore (MAS) has capped the total amount of unsecured loans an individual can have to 12 times their monthly income, which took effect from 1st June 2019. Any further attempts to borrow will automatically be declined.

How can I prove my borrowing power?

The first step to proving your borrowing power is working out whether you can actually afford the loan. Most lenders have a personal loan repayment calculator on their website to help you work out your repayments based on the interest rate, fees, loan amount and loan term of your chosen personal loan. After you’ve done this, determine whether you’ll be able to manage the repayments on your current budget.

What do I do if I’m not eligible?

There are a few things you can do if you find out you don’t meet the minimum income requirements:

  • Apply for a lower amount. If you can’t prove your ability to manage repayments for your current requested loan amount, consider borrowing less. This will mean lower repayments and less of a risk for the lender.
  • Choose a more affordable loan. The reason you might be ineligible for a loan could be that the loan has costs that are deemed too expensive for you. Other loans may have lower interest rates and fewer fees, which will give you a better chance of managing the repayments.
  • Try your current bank. If you have a good banking history you might have a better chance of being approved for a loan with your current bank. You may be able to find products that you could be eligible for by logging into your Internet banking portal.
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