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How To Borrow Money With No Income – Thanks 21 Pte. Ltd. is a licensed money lender (License No. 51/2022) listed in the Registry of Moneylenders (S/No. 37), under the Ministry of Law in Singapore.
It’s no secret that banks are becoming stricter in their lending practices. And while it may be harder to get a personal loan without proof of income, it doesn’t mean you can’t get one.
How To Borrow Money With No Income
This article will outline how you can get a personal loan without proof of income, the maximum loan amount, the required documents, and where to apply for it.
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Banks are notorious for their strict personal loan eligibility requirements. They look at your annual income, age, and credit score before deciding whether or not to approve your loan.
However, banks usually require you to earn at least $30,000 per year to qualify for a loan if you are a Singapore citizen or permanent resident.
On the other hand, you may need to prove that you earn around $40,000 to $60,000 per year if you are a foreigner living in Singapore.
Additionally, banks will require you to have an outstanding credit score as well. Licensed money lenders, on the other hand, are quite lenient.
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For example, you can borrow $3,000 as a Singaporean or permanent resident if you earn at least $20,000 per year. If you earn more than $20,000 per year, you can borrow up to six times your monthly salary.
The maximum loan amount changes if you are a foreigner living in Singapore. An annual income of less than $10,000 will make you eligible for a $500 loan, while you can borrow up to $3,000 if your income is between $10,000 and $20,000.
Also, licensed money lenders have a fixed interest rate limit (up to 4%), which helps you know exactly how much you need to pay back each month.
There is no such limit when it comes to banks. Instead, banks’ interest rate will vary based on your income, credit score, and loan amount.
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The strict and flexible set of eligibility requirements also means that your bank loan application will go through a longer and more tedious process – something you can avoid if you go with a licensed lender of money.
But what if you are unemployed and need quick cash? How can you get a personal loan without income?
Getting a personal loan when you are unemployed is difficult but not impossible. Here’s what you can do to improve your chances of getting a loan when you’re unemployed:
Your credit score reflects your credibility and reliability as a borrower. The higher your credit score, the more trustworthy you are to lenders.
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If you have a good credit score, some lenders may be willing to overlook your employment status and approve your loan.
Your loan application will get a big boost if you have some assets to your name. Showing the lender that you have some skin in the game will make them more likely to approve your loan.
You can also improve your chances of being approved for a loan by making a joint application with someone who has a good income and credit score. A joint applicant can be your spouse, relative, or friend.
This way, even if you have no income, someone else’s income and credit score will increase your chances of being approved for the loan.
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The required documents for a personal loan application may vary based on your money lender, but the most common are:
As a Singapore citizen or permanent resident, your NRIC is sufficient to prove your identity. If you are a foreigner, you must provide your passport and employment pass to apply for a personal loan.
You will need to show some form of proof of income to be approved for a personal loan. The most common proofs of income are:
But things change when you don’t have solid proof of income. Let’s answer the burning question: “how to get a personal loan without proof of income?”
Finance Landing Pages With Flat Characters And Money Cash. Savings, Business Investment, Loan And Income Growth Vector Stock Vector
For example, you may have recently joined a new organization and have not yet withdrawn any salary. Or maybe you work for a less organized employer that pays you in cash.
Note that it is possible to get a personal loan without any proof of income or standard proof of income documents.
Here are the documents you can attach to your application to be approved for a personal loan without proof of income:
If you are employed, the most common document you can submit as proof of income is your Income Tax Statement.
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Your income tax statement will highlight all possible streams of income, including your job, rental income, investment dividends, or any other business you may be involved in. pay the debt
Furthermore, you can also add your non-taxable sources of income to your application to further strengthen your case. The most popular are:
Alimony: If you and your spouse are separated, proof of alimony can also be added as a supporting document. Alimony isn’t taxable, but it shows that you’re getting a steady stream of payments, so you’re more likely to pay off your debt.
Foreign income: If you work as a freelancer or have other sources of foreign income, you can also declare this in your application. Again, this income is not taxed but serves as a solid alternative proof of income.
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A Notice of Assessment (NOA) is a document that shows your total taxable income and the taxes you paid on it for a particular financial year. The NOA is commonly known as your tax bill.
You can obtain a copy of your latest NOA from the Inland Revenue Authority of Singapore (IRAS) website.
If you are employed, just log in with your Singpass and download a copy of your NOA. If you are self-employed, you will need to submit a request via the IRAS website and make an appointment at the Taxpayer and Business Service Center at Revenue House.
Your employment contract can also be a supporting document for your loan application without proof of income. The contract will help the lender understand your job role, income, and employment status.
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Now that you know all about getting a personal loan without proof of income, let’s see where you can get one.
The bank and licensed money lenders are the two most obvious choices for personal loans in Singapore. Let’s see how the two compare.
It is common knowledge that getting a loan from banks is a tedious process. They have strict eligibility criteria, ask for more documents, and take longer to approve loan applications.
For example, as explained above, banks have higher annual income requirements than licensed money lenders. Banks also often require stellar credit scores to approve loans.
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However, banks offer a higher loan amount compared to licensed money lenders. Moreover, banks have longer repayment periods and lower interest rates, making it relatively convenient to pay.
They may provide smaller loan amounts than banks but have less stringent eligibility requirements. For example, you can get a personal loan even if you earn $10,000 annually.
Also, all licensed money lenders must comply with the rules and regulations laid down in the Moneylenders Act introduced by the Ministry of Law. This means you can rest assured that you will not be bullied or scammed, as many loan sharks in Singapore do.
In addition, licensed money lenders approve loan applications quickly, which means you can count on them whenever you need immediate cash. In fact, you can get your loan applications approved within an hour and collect the loan amount on the same day. It’s possible to qualify for a loan when you’re unemployed, but you’ll need solid credit and some other source of income.
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If you are unemployed unexpectedly or by choice (in the case of retirement), lenders will consider extending you a loan as long as you can convince them that you can make regular payments on time.
If you cannot provide proof of employment, your lender will want to review your financial records to verify other source(s) of income. While unemployment benefits can represent a part of your income stream, their temporary nature means you shouldn’t rely on them alone. Other forms of income lenders may accept include:
In addition to proving income streams, you can also qualify for a loan by showing evidence that you have access to a large supply of cash, whether that’s now (in a savings account, for example) or later . Certain situations may be accepted by a lender:
Before taking out any loan, regardless of your employment status, it is important to be honest with yourself about your ability to fully repay the loan as agreed. Missing just one payment can do a lot of damage to your credit, and defaulting on the whole thing will put a big blot on your credit history.
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Be realistic about your ability to cover the monthly payments for the life of the loan. If in any doubt, consider skipping the loan or borrowing a lower amount that you can comfortably repay.
Depending on the type and amount of your income sources, lenders may consider your unemployment as a precaution, which may cause them to change their loan offer in a number of ways, including :
A personal one
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