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Loans for unemployed applicants

Compare loans that are available to people who are unemployed.

If you are considering a payday loan from a moneylender you should read the “Notes for Borrowers” (PDF) from the Ministry of Law Singapore.

Alternatives to short-term loans

Consider these alternatives before applying for a payday loan:

  • Payment plans. Talk to your electricity, phone or water provider to see if you can work out a payment plan or receive an extension on your due date if you’re behind on payments.
  • Contact your creditors. Speak with creditors about extending the due date of your payment, or working out a new payment plan that works for both of you. Seek personal loans elsewhere. Consider a small personal loan from a bank or a credit union. You may qualify for a loan with much lower interest rates than those offered by payday loan companies.
  • Pay with credit card. Consider paying with your credit card to cover your emergency bills or payments. This is not a long term solution, as you’ll need to pay off the balance as soon as possible, but it’s an alternative to a short term loan with high – and immediate – interest rates.

Some lenders in Singapore provide loans for unemployed applicants, as long as the applicant meets the lending requirements and receives an eligible income. This guide covers loans for unemployed applicants in Singapore, the eligibility criteria applicants must meet and alternative financing options.

Are there loans for unemployed applicants in Singapore?

An unemployed person can apply for a loan, but will still need to earn an eligible form of income or have suitable income-earning assets to repay the unemployed loan. Acceptable forms of income may include self-employed earnings or regular deposits in an account from shares. However, only some lenders provide loans for unemployed applicants and you’ll still need to meet the eligibility criteria to receive approval.

Applicants may be required to provide bank statements and financial documents to verify whether or not they can repay the loan. If you’re employed but are looking for a short-term cash loan, consider payday loans instead.

What eligibility requirements must be met for an unemployed loan?

The specific eligibility criteria will vary between loans, but lenders will typically consider the following:

  • Ability to repay the loan. When reviewing applicants, lenders will consider whether or not applicants can afford to manage repayments. If an unemployed applicant is looking to borrow a small amount and their income, expenses and financial assets prove that they can easily manage the ongoing repayments, they may be eligible.
  • Financial situation and credit history. Lenders consider credit history, credit score and financial situation when assessing an application.
  • Eligible income. Some lenders will approve applicants who are receiving eligible government payments, income-paying assets or income from part-time work. It is therefore important to check the specifics of eligible income and even the definition of unemployment with your desired provider.
  • Assets. If an applicant owns assets such as a vehicle or has equity in a property, the application may have a greater chance of being approved. This is because the lender may use this as security for the loan.

Alternatives to unemployed loans

If you are considering loans for unemployed applicants in Singapore, you should first be aware of all other alternative courses of action available. These include:

  • Cut costs before borrowing. Reduce unnecessary expenditure and allocate the bulk of your income to paying off essential costs.
  • Utilise government initiatives well. Make use of SkillsFuture schemes to upgrade yourself and find employment quickly to avoid relying on debt-driven expenditure.
  • Joint applications, guarantors and cosigners. Unemployed applicants can consider applying with another person, such as a partner, relative or friend, to boost their eligibility for unemployed loans. The guarantor or cosigner shares the responsibility of repaying the loan.

If an applicant can meet the eligibility criteria and demonstrate their ability to make repayments, they may be approved for an unemployed loan. However, it’s important to consider your financial situation, compare other options and consider the lending criteria before applying.

And as always you should read the “Notes for Borrowers” (PDF) from the Ministry of Law Singapore if you are considering a payday loan.

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