Singapore is a first-world country in Asia. It is known for having an affluent and progressive society where most of its residents live fairly comfortable lives. Despite this, there are many low income earners in the country and many of them live on a day to day basis. These low income earners may not even be holding a permanent full time job. Many may be in part time jobs and does not have a steady income. Whatever the reason, many are in need of a low income monthly loan to pay for various necessities such as utilities (like water and electricity) or food expenses.
But are there really legal loans for low income earners available in Singapore? If so, are they even allowed to borrow from banks or money lenders?
In Singapore, in order for you to be considered coming from a low-income household that is eligible for a loan, you will need to meet the following conditions:
- You should be at least 21 years of age;
- Your annual gross income should never go beyond $30,000; and
- You need to be a Singaporean resident or a permanent resident to qualify
These requirements are standard for low income earners who want to take out a payday loan. These are the basic requests made by banks and money lenders from their potential clients. However, due to low income earners being more high risk with regard to repayment, banks and money lenders may require additional documents.
Now those who are living in low income homes, may first try to take advantage of Workfare Income Supplement scheme or WIS for short. This scheme is available for low income wage earners aged 35 and above who work regularly and are willing to undergo trainings to gain new skills and increase their employability. Depending on your age group, those who qualify under the WIS scheme may actually receive as much as $3,600 each year. It may not seem much but it can definitely beef up a bit the income of low income earners. WIS scheme program also provides subsidies for those undergoing up-skill trainings who are looking for ways to improve their employability and market value in the job market.
However, for those who don’t qualify for WIS, the alternative is really going for a Personal loan for low income Singapore wage earners.
Now, there are many available banks and money lenders that provide low income monthly loans. It is best to shop around and look for a bank or money lender that suits your needs. You may compare the available loans that can be taken and the rates of each bank and money lender so that you can make an informed decision.
If it is not possible or it is out of a question to loan from a bank, there are also many 3rd party firms that can help you get offers from their partner creditors and lenders. The creditors will then look up your credentials and provide different offers separately. You can then decide from which lender you want to take the loan from. Remember that there is no obligation for you to pay should you decide not to push through with a Legal Loan for Low Income.
Once you have decided on a creditor or lender, you may need to prepare additional documents as requested by the money lender. They may ask for a credit report as the lender will also want to know if you have existing debts and there is no need for a co-guarantor.