Finding how to get quick cash might be one of the most stressful parts when you’re in financial difficulties. In Singapore, personal loans are a common way to acquire fast cash, however, there are a variety of other options now on the market.
We may narrow our options to loans like the CPF personal loan, which are available to specific individual needs.
This kind of loan can provide you with quick and easy access to the financial funding, whether it is for medical bills, house repairs, or any other form of emergency.
Continue reading to learn more about what a CPF personal loan is, whether or not you are eligible for it, what the requirements are in order to apply, and how they compare to personal loans.
What is a CPF Personal Loan?
A CPF personal loan is a form of loan that can be obtained against the savings that you have in your Central Provident Fund (CPF) account in Singapore. CPF personal loans provide you with rapid access to these funds, making them suitable for unforeseen expenditures.
Furthermore, CPF personal loans enable you to borrow up to six times your monthly income at relatively low interest rates ranging from one percent to four percent each month. In addition, the repayment period for these loans is normally between 6 and 12 months after the loan has been approved, or up until your 55th birthday.
You can learn more about the age eligibility requirements and other prerequisites in the sections that follow.
What are the Requirements to be Eligible for this?
To get this loan, you must meet strict qualifying requirements, which are as follows:
- Age requirements start at least 54 years old or must be within one year of turning 55 years old.
- There is a minimum wage of S$2,000 for Singapore citizens and permanent residents.
- A minimum withdrawal of S$5,000 is permitted from either a Special or Ordinary Account Savings.
What are the Prerequisites and Requirements?
To begin, a person must be a citizen or permanent resident of Singapore in order to be eligible to submit an application for a CPF personal loan. In addition to that, you are expected to be able to supply the following documents:
- Cards of identification/NRIC
- Documentation demonstrating that you live at the address given (such as letters sent to you, utility bills, or rental agreements) is required.
- Documentation of employment, such as recent pay stubs, a certificate of employment, a letter or contract outlining job terms, etc.
- SingPass is required in order to log into the CPF, HDB, and IRAS websites.
Which is Better: a Loan taken out against your CPF or a Personal loan?
A CPF personal loan can be also a viable option as emergency funds, however there are specific eligibility criteria, conditions that an individual must meet.
This only implies that if you can’t meet the specific eligibility requirements, taking a personal loan from banks or licensed moneylenders can better option as an easy loan in Singapore.
Read Also: What Do You Need to Apply for a Personal Loan in Singapore
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