Getting an easy loan in Singapore is somehow common among adults. In fact, according to MoneySmart Singapore, around 1.5 million people or 36 per cent of the adult population in the country, have personal loans. The most valuable percentage of borrowers are between the ages of 25 and 34, and the average value of the loan is $20,400.
In the span of 5 years, the amount of personal loans obtained in Singapore has even increased by 60 per cent. There was also a rapid increase in the value of the loan from $500 million to $1.25 billion. This comes as no surprise since personal loans have an array of purposes, from consolidating debt to paying medical bills and other emergency expenses.
If you are wondering whether or not it is the right time for you to get a personal loan, this article is especially for you! This article explores what a personal loan is and at what age it is appropriate to get such type of loan.
What is a personal loan?
A personal loan is an unsecured amount of money that can be borrowed from a bank or money lender with an established repayment period and consistent monthly payments. It is considered ‘unsecured’ because it is not bonded to collateral, such as a house or any other property. Simply put, the money lender does not have the right to seize your assets if you cannot pay off your loan.
There are several different types of personal loans that you can obtain – the most common of them being personal instalment loans, debt consolidation plans, and the like. Most of the time, these personal loans come with interest and other possible charges you will need to pay on top of the lump sum you initially borrowed.
Is there a right age to get a personal loan?
The simple answer to this question is yes. In Singapore, you need to be at least 21 years old before you can avail of personal loans. Age is one of the essential eligibility requirements that borrowers must fulfil before they can successfully obtain personal loans in Singapore. However, it is best to keep in mind that you are not automatically up for fast loan approval in Singapore, although you may be past 21 years of age.
Aside from age, there are other eligibility requirements you would need to meet when applying for a personal loan; one of these is your credit history. It is the record of your ability to repay your loans and your demonstrated responsibility for repaying them on time. A better credit history essentially plays a huge part in obtaining a personal loan at a faster rate.
A person who just started their career is unlikely to have numerous assets and an excellent credit score. Only after earning for some time will they be able to afford assets like a home or car. This also entails that the individual’s earnings will have increased just enough to get a loan and be able to repay it. Hence, it would help if you likely increased your assets before improving your credit history and subsequently be highly eligible for personal loans.
Although there is an age requirement for obtaining a personal loan, older people do not necessarily have more access to it than youngsters. Banks and money lenders do not typically reject a first-timer’s personal loan application based solely on age. Even if you are still in your early 20s, you can successfully get a personal loan for as long as you maintain a decent credit score.
If you are in need of trusted and hassle-free financial assistance, Orange Credit is here to help you! We are a well-known Geylang money lender that offers an array of fast, easy, flexible, and reliable loans for all your financial needs. Feel free to reach out to us today to learn more about our valuable services.