FIRST TIME APPLYING FOR A LOAN? START HERE
This guide walks you through the essentials of getting a loan. What to know, what to prepare, and what to avoid, so you can apply confidently and make smarter choices.
WHAT TO KNOW BEFORE YOU APPLY
Not All Loans are Equal
Different banks and loan providers offer different rates, fees, and terms. Don’t just look at interest rates. Assess what is important to you and compare total repayment, fees, and flexibility.
Your Credit Score Matters, But It's Not Everything
Your score affects approvals, but so do income, job history, and existing debts.
Know Your Borrowing Ceiling
You're eligible to borrow up to 12x your salary but most banks do not offer the full amount. Most first time borrowers get offered 2-6 times their monthly income.
Every Application Leaves a Trail
Multiple loan applications in a short time can hurt your credit profile. It's better to understand your chances first.
WHAT MOST FIRST-TIME BORROWERS MISS
Hidden Fees Can Add Up
Processing fees, early repayment penalties, and admin charges. Always ask for the total cost, not just the headline rate.
Save On Interest With Shorter Tenures
It’s tempting to stretch out repayment, but you’ll pay more over time. Always compare total cost, not just monthly instalment.
Fixed vs Flexible Loans
Understand if your loan terms can change (interest rates, repayment schedule) and what happens if you miss a payment.
Prepare Your Documentation Early
Prepare at least 3 months' payslips, CPF contribution history, and IRAS Notice of Assessment. Freelancers may need additional proof like invoices.