Requirements to be eligible for a Loan in Singapore and their features

We know that some type’s loan is very popular in Singapore but the requirements and the features of those loans are not same. Today we try to focus the requirement and features of some popular loan in Singapore. I think the post will help you to take a loan

 

Home Loan

Requirements

The following are the documents are required for a Home Loan application in Singapore.

• Age should be between 21 to 65 years old
• Copy of your passport or NRIC (National Registration Identity Card)
• A latest certified true copy of your income documents:
• Payslip or employment letter AND bank statement (latest 3 months) showing salary credit.
• For self-employed, Latest 3 months’ bank statements and latest two years’ notice of tax assessment
• A copy of property’s option to purchase or copy of Sales & Purchase Agreement.

 

You may submit the above documents to our Home Loans Specialist or may apply in online application of licensed money lenders website.

 

 

Features

• Home loans are supported either SIBOR (Singapore Inter Bank Offer Rate) or SOR (Swap Offer Rate). However, SOR depends on the foreign exchange rate (USD / SGD). SOR rate is partially volatile. So when SOR rate become high then the interest rate rises faster and vice versa. So as a borrower somebody may choose SIBO in the case of a home loan.
• Some banks in Singapore like RHB and Standard Chartered Bank offer pre-payment facility in home loan.
• Flexible Floating and Fixed Rate facilities

 

Personal Loan

Requirements

• The nationality of the borrower must be Singaporean or Permanent Resident
• Age should be between 21 to 65 years old
• Minimum Annual Income must be S$20,000 and above.
• Copy of your passport (foreigner)
• NRIC (National Registration Identity Card)
• Latest 12 months CPF (Central Provident Fund) Contribution history statements for employees or latest Income Tax Notice of Assessment

Features

• Low Fixed Interest Rate. EIR rate is applicable according to contract form
• Monthly installments of 1 to 5 years
• Approval time is less comparatively.

Car Loan

Requirements

Ø  Latest Income Tax Notice of Assessment from the IRAS (Inland Revenue Authority of Singapore)

Ø  Computerizedpay slips or a letter from your employer should do it.

• NRIC (National Registration Identity Card)

Ø Passport and employment pass or work permit (if you’re a foreigner).

Ø A carloan is only obtainable for any vehicles thatdon’t seem to be over ten years old from the date of registration. The open market values (OMV) of a second-hand motorcar are going to be adjusted in accordance with its age to determine the accurate loan-to-value (LTV). A straight-line depreciation will be implemented in the value of the original OMV over ten yearsto measure the appropriate LTV ratio.

For your kind information is that OMV is assessed by the Singapore Customs Tel: (65) 6355 2000, based on the price actually paid or payable for the goods.

Features

• Choice of loan tenor from 1 year to 7 years.
• Loan amount is pegged to the Open Market Value (OMV)

A standard calculation is given below that how much loan amount may be found based on open market value:

Open market value amount	Maximum Loan can be found
≤ S$20,000	70% of the cost (purchase) price or valuation price, whichever is lower
>S$20,000	60% of the cost (purchase) price or valuation price, whichever is lower

Education Loans

 

Education loans comprise of study loan, tuition fees loan and computer loan. Normally University, National Institute of Education (NIE), and Polytechnic students are eligible to take student loan easily.

 

Requirements

Requirements for all types of Education loan are almost same which are:

Note that if a student meets any one of the following criteria, he or she will not eligible for Education loan like tuition fees.

• Students receiving any Government/Statutory Board/any school scholarships which cover tuition fees
• Students receiving full Tuition Fee Subsidy from MENDAKI
• Students using CPF savings for payment of 100% of the subsidized tuition fees
• Students on self-funded courses
• Foreign students who are paying full fees
• NRIC / Passport (student and guarantor)

Repayment Criteria

• Maximum repayment period of 20 years
• Repayment will continue no later than 2 years after completing graduation. If the loan is the purpose of computer purchase, in that case, the repayment period will be up to 30 months which starts after course completion.
• Repayment of loan can be in single lump sum amount or in equal monthly installments of minimum $100.

Features

• There is no income requirement and age restriction.
• Interest-free during the course of study, charged at an average prime rate of DBS, OCBC, and UOB after graduation.
• No collateral or security is required.

However, a guarantor is needed on behalf of the student to secure the loan disbursement whose age will be between 21 and 60 and the guarantor is not discharged as a bankrupt.

The guarantor will be as like as student citizenship

Student	Guarantor
Singaporean	Singaporean
Permanent Resident	Singaporean / Permanent Resident
International	Singaporean / Permanent Resident / International

Debt Consolidation Plan (DCP)

Debt Consolidation is another kind of loan taking process which offers a customer the options of unsecured facilities (such as credit cards). However, some types of unsecured loans are excluded from DCP like join accounts, renovation loans, education loan etc.

Requirement or eligibility

To be eligible for DCP, you must:

• Be a Singapore Citizen or Permanent Resident;
• Earn >= S$20,000 and < S$120,000 per annum with Net Personal Asset of less than $2milion;

The term Net Personal Assets = an Individuals total assets – total liabilities.

• Copy of NRIC (front and back)
• Latest Credit Bureau Report
• Latest Income Documents
• Latest credit card and unsecured credit loan statements

Features

• No collateral is required
• Approval period is less

The following Financial Institutions are providing DCP loan:

1. American Express International, Inc.
2. Citibank Singapore Limited
3. Bank of China Limited Singapore
4. DBS Bank Ltd
5. HSBC Bank (Singapore) Limited
6. Australia and New Zealand Banking Group Limited
7. CIMB Bank Berhad
8. Diners Club Singapore Pte Ltd
9. Industrial and Commercial Bank of China Limited
10. Standard Chartered Bank (Singapore) Limited
11. Malayan Banking Berhad
12. Oversea-Chinese Banking Corporation Limited
13. RHB Bank Berhad
14. United Overseas Bank Limited etc.

 Credit Review

Renovation Loan

Eligibility

• Singapore Citizen or Permanent Resident
• 21 – 65 years of age
• The property owner or related family member (parent, spouse, child or sibling) who has the owner’s consent
• Earn more than S$24,000 per annum

Features

• Low-interest rate
• Flexible repayment period between 1 and 5 years
• Loan amount of up to S$30,000
• Protection from unforeseen events with full life and total permanent disability insurance plan.

Pledge	Hypothecation	Mortgage
Types of Securities	Movable	Movable	Not Movable
Possessions of the security	Remains with money lender (Pledgee)	Remains with borrower	Remains with borrower
Example of loan	Gold Loans, Advance against goods,/stock	Car/vehicle, Advance loan against stocks and debtors	Housing Loans