If you are considering applying for a personal loan for the unemployed in Singapore – this is a handy article for you.
The unemployment rate is a constant element that we cannot eliminate in the world. Every country in the world can’t escape unemployment. Even developed countries will either have a rising or a falling unemployment rate and this includes Singapore.
There are many factors that affect the unemployment rate. We can observe that the pandemic has greatly affected the economy and does we can observe a rising unemployment rate. Also, as companies are having tight employment standards, fresh grads are having a hard time to apply. Thus, they end up contributing to the increasing unemployment rate of the country.
Unemployment is unexpected to a person’s life. So, you might be thinking if there is a loan for the unemployed that can help you with your financial needs while you are applying? Getting a new job is not cheap, you need to have a budget to support your application.
Is there a fast cash loan for the unemployed in Singapore?
To extend their help, some moneylenders in Singapore offers the unemployed loan. Applying for a loan for the unemployed in Singapore, an applicant must meet their eligibility requirements and have an eligible form of income.
What are the Key Considerations When Applying for an Unemployed Loan?
Before applying for loans for a safer and better life you must consider these things first. If you are fulfilling this requirement then you may apply for loans. Our team had researched for the best tips and tricks for getting instantly approved for loans and the tips are as follows:
1. Credit Score
A credit score is the most important factor for the approval or disapproval of loan applications. People are retrying again without noticing their credit score. Banks thoroughly check your history payments, no of accounts, money borrow, and past or upcoming loans.
Having a high credit score is a good indicator which means you will get loan approval easily. And a low credit score is directly proportional to no loan approval
In simple terms, a good credit score means that you will be able to pay the loan over the required time. And overall gives a good impression of your account.
|Rating||Score||Probability of Default|
|AA||1911- 2000||0.00% - 0.27%|
|BB||1844 -1910||0.27% - 0.67%|
|CC||1825 - 1843||0.67% - 0.88%|
|DD||1813 - 1824||0.88% - 1.03%|
|EE||1782 - 1812||1.03% -1.58%|
|FF||1755 - 1781||1.58% - 2.28%|
|GG||1724 - 1754||2.28% - 3.46%|
|HH||1000 - 1723||3.46% - 100.00%|
Source: Credit Bureau Singapore
2. Eligibility Criteria
As I have mentioned earlier, sometimes it may be easier or difficult. It may vary from bank to bank. Many banks demand that the borrower of loans must have annual earnings of $30,000 which is a little tough for freshers. There are some other resources which only demand $20,000. Also, licensed moneylenders can allow you to borrow even your monthly income is below $10,000.
However, you have to choose them wisely which one of the loans is better according to your needs.
You may also read what are the things to consider before applying for a loan.
3. Total Cost of The Loan
People don’t calculate the overall amount of loans. You must have to check the interest rate and other taxes, after check the loan price. You will come to know if this is suitable for your budget.
Loans with high-interest rates are usually for rich ones, for fresher students you must find banks with low-interest rates.
4. Payment Options
Payment options are also one of the leading factors before applying for loans. Check the due dates of loans payment and carefully read their terms and conditions. I have seen many companies providing no facilities after due dates and may charge a fine.
5. Customer Support
Customer support is the last option, choosing the right lender will be helpful for your life. Getting a loan without any queries is a blind faith that may lead to many losses. If there are things that are unclear to you always ask. If a lender can’t answer you, you can away. Also, if they don’t suit your need it’s time to look for other lenders.
What to Do to Increase Chances of Loan Approval When You’re Unemployed?
There are some basic steps to increase your chances of getting loan approval easily. If you don’t follow these steps you chance maybe 10-20% of getting a loan. Steps are given below:
- Maintain a good credit score: Having a good credit score means that you will get easily approved by any bank.
Some income-earning assets: Before owning an income-earning stream asset, you should not apply for a loan because it may decrease your chances of approval.
- Asset as collateral: You must have the collateral which lender demands before giving loans to their new customers.
- Eligibility requirements: Thoroughly read the eligibility options before filling the loan form.
- Resources to pay money on time: You must have at least one resource to pay all loans, this will increase your chances of getting a personal loan.
Got Rejected? Discover the Alternatives to Unemployed Loans
People fail to get personal loans due to their own fault and in the end, blame the bank. If you are not following the company eligibility guidelines you will be rejected at all times.
The reasons you got rejected include low credit score, no income stream asset, no property, no job, no annual income, less age, can’t define loan purpose, repay issues of loan, and lack of information in the form. No worries if you got rejected for a loan. There are many alternatives to look at.
1. Interest-free credit card deals
Credit cards have the potential to use them as debt and can be proved as a great source of financial assistance. But getting good deals on it is a tough job. You have to maintain a good credit score for getting 0% interest rates and will find good sources.
2. Apply for Government Financial Assistance
Government financial assistance can be proved as the best alternative for unemployed people. You can apply for this if you have no savings, no accounts, no family support, unable to work due to old age, and children don’t have money to support you.
Facing all these problems means that you must join this financial support program and free your mind from financial issues.
3. Taking a Secured Loan
Most of the banks provide you with a secured loan which means they demand collateral and many other earning proofs. A secured loan can be a good option for the unemployed because you won’t have any earning proof or annual earning. You can set your property, car, or any other asset as a backup for your loan. This may be helpful for people struggling with no jobs.
After implementing these considerations no company will reject your application ever for sure. And if find any problem with some loan companies you can try many other which one suits your needs.