Home Finance Is It Hard To Get a Personal Loan From a Bank? Tips...

Is It Hard To Get a Personal Loan From a Bank? Tips and Steps To Apply

- Advertisement -

Living in Singapore is so expensive that falling short on cash is almost inevitable! With fluctuating costs and the lingering effects of the pandemic, getting caught in a difficult financial situation has been an all-too-familiar scene to many. 

A personal loan could be the perfect solution to overcome these rough times. Major banks like DBS, Standard Chartered, UOB, HSBC, and Citibank provide easy access to personal loans. These banks make an excellent lifeline, and qualifying for a personal loan is reasonably easy if you meet their requirements. You may also get your loan in as fast as fifteen minutes. 

Still, banks have stringent requirements, and your loan application may get rejected if you have bad credit scores or don’t have a significant credit history. But don’t lose hope just yet! Read on as we share steps and proven tips to get a personal loan in Singapore

Tips to Speed up the Process Before Applying

If you have a steady income and a good credit score, you will easily qualify for a bank loan. Otherwise, you must do something to be eligible for future personal loan applications.

  1. Check your credit score and work on improving your rating.

Get a copy of your credit report from Credit Bureau Singapore and ensure that all info is correct. You can improve your credit score by:

  • Paying bills, loans, and credit card balances regularly and on time
  • Limiting your applications for new loans or credit card accounts 
  • Lowering your credit utilization rate
  • Keeping your bank account and credit card accounts active
  • Borrowing from credit unions and licensed online lenders
  1. Know your debt-to-credit ratio

Your debt-to-credit ratio is also a crucial factor for banks and other lenders. If you have a ratio greater than 30%, banks may see you as a high-risk borrower and may not approve your loan. Pay your revolving account balances on credit cards or other credit lines to improve this ratio.

  1. Inquire with your current bank

Banks may also have varying requirements. Familiarizing yourself with typical qualifications and documentation needs helps you streamline the process and improve your chances. Common requirements include: 

  • Credit score and history
  • Proof of income documents
  • Debt-to-income (DTI) ratio
  • IDs 

How to Get a Personal Loan  

Unsecured personal loans are a flexible way to finance sudden and unexpected expenses. If you need one but are not sure if you’ll get approved, here are a few considerations:

1. Know how much you can afford

Loans come with consequences if you miss monthly payments or default on your payments. Only apply for an amount you can manage depending on your current financial flow. Do not overborrow to avoid problems like penalty on top of penalty or snowballing interests for missed payments.  

2. Consider getting a guarantor or a co-signer

Personal loans are unsecured loans, and having a guarantor or co-signers gives banks an added sense of security when approving such. A guarantor shares in the legal liability, while a co-signer shares the financial responsibility with a borrower. With lower risks for the bank, you’ll obtain a loan easier and with better interest rates.

Meanwhile, you can also try applying for secured loans if you have properties you can use as collateral. However, with a secured personal loan, you may lose your property if you miss on repayments or fall delinquent.

3. Provide a good purpose for the loan

A personal loan is not easy money to be spent and should only be used for necessity. Some good reasons to use your loan funds include:

  • Home repairs
  • Emergency expenses such as medical bills
  • Essential travels
  • As debt consolidation loans

4. Shop around and compare rates

Gather quotes from multiple lenders and compare interest rates and terms. While it may take some leg work, it will help you get the best loan deals and save money on interest. To save time, find a licensed online lender through loan comparison sites.

Today’s Top 5 Banking Giants and Personal Loan Offers

Interest Rate Effective Interest Rate (EIR)Processing FeeLoan TenureBest Feature
HSBC Personal Loan3.2%6%none1 to 7 yearsLowest interest rate and EIR
UOB Personal Loan3.4%6.4%none1 to 5 yearsInstant approval for existing customers who apply online
Standard Chartered CashOne3.84%8.64%none1 to 5 yearsApply through SingPass and get your funds in as fast as 15 minutes
Citibank Quick Cash(for new customers)3.46%6.5%none1 to 5 years0% interest rate if you avail of a shorter than 1-year loan tenure
DBS Personal Loan3.88%8.2%S$1001 to 5 yearsLowest annual income requirement of S$20,000 

With DBS, you can get instant cash in your account when you apply online. Instant disbursal also holds for other banks where the borrower is an account holder.

How to Apply: Eligibility and Requirements

Banks provide quick access to personal loans online and instantly disburses the money in your account. You may also choose to apply on-site. Whatever method you choose, eligibility and documents are required.


  • Singapore Citizens, Permanent Residents, and Foreigners aged 21 to 65 years old
  • Minimum Annual income of S$30,000 (SCs and PRs)

                                             S$40,000 (foreigners)


  • For SCs and PRs
  • Proof of Identification: NRIC

                                     Income: Recent payslips

                                     Address: Utility bills or mailed letters

  • For Foreigners
  • Passport 
  • Employment pass
  • Tenancy agreement 


Getting a personal loan always makes sense when it comes to emergencies and necessary expenses. And while banks offer competitive loan packages, qualifying may not be for everyone. If you don’t qualify for a bank, you can always consider licensed moneylenders.     

Key Takeaways

  • While you can use personal loans for almost anything, ensure you have good reasons before taking on one.
  • Carefully consider your financial situation to ensure you can handle the loan costs.
  • Personal loans from banks have varying interest rates; compare rates before making your choice.

Do you need urgent financial assistance? With Fortune Credit, getting a personal loan is easy and you can get up to six times your monthly income. Visit our website to get a free quote – absolutely no commitment! 

- Advertisement -
Richard Maxwell
For any queries, email us at:- [email protected]

Must Read