Can You Get A Personal Loan With No Income Proof?

Over the past few years, the global situation has been precarious. The Covid-19 epidemic had a severe impact on the worldwide economy.

Sad to say, Covid-19 was only the beginning. The global economy is currently dealing with the fallout from the Russia-Ukraine war and an unprecedented economic downturn during the past four decades.

In an effort to survive, some took out personal loans. To mitigate their risks, lenders have taken measures to ensure that borrowers have the means to repay their loans.

This may lead some to wonder, is it possible to obtain a personal loan with no income proof? The short answer is yes.

In Singapore, obtaining a personal loan with no income proof is technically feasible. If you do not have typical income proofs such as payslips or CPF contribution records, you can use other documents to demonstrate your ability to make timely repayments towards your loan.

Continue reading to learn how to obtain a personal loan with no income proof in Singapore.

How Much Can You Borrow With A Salary?

The maximum principal amount you can borrow depends on your income and the lender. Here are some ways you can get a loan in Singapore.

Taking A Loan From A Bank

When it comes to borrowing money, most will consider banks. In any case, banks can give greater loan amounts than, say, money lenders. However, they typically have more stringent eligibility requirements and processes.

However, it is common knowledge that banks in Singapore offer lower interest rates and larger principal amounts than regulated money lenders. However, there is a downside associated with bank loans.

Some banks restrict loan eligibility to those who earn at least $30,000 annually, while others impose age restrictions. This is the general benchmark that Singapore banks follow when extending loans. There are, however, exceptions to this rule.

BankMaximum Loan AmountMinimum Income Per Year
DBS Bank10x monthly salary$30,000
Citibank4x monthly salary$30,000
United Overseas BankAs much as 95% of your credit limit$30,000
POSB Bank10x monthly salary$30,000
Standard Chartered Bank4x monthly pay, but up to $250,000$20,000

Some banks limit the amount you can borrow to four times your monthly income. This also means that the approval process for a smaller loan amount will take longer.

Certain banks may grant you a personal loan with a higher interest rate if your annual income is low. If you reside in Singapore as a foreigner, your yearly salary must be between $40,000 and $60,000, depending on the bank.

If your salary is low, you can still obtain a significant loan with an excellent credit score. However, your interest rate may still be higher.

Taking A Loan From A Money Lender

Licensed money lenders may be preferable in light of the stringent terms of bank loans.

While loan sharks are commonly associated with the term “money lender”, it is vital to stress that they are not the same as regulated money lenders.

Unlike loan sharks and illegal lenders who charge exorbitant interest rates, regulated money lenders in Singapore are not permitted to charge more than 4% interest per month. In addition, licensed money lenders conform to the restrictions stipulated by the Ministry of Law.

If you make less than $20,000 per year, licensed money lenders can only lend you a maximum of $3,000. If your annual income exceeds $20,000, you can borrow up to six times your monthly income.

In terms of loan approval, licensed money lenders are often more lenient than banks. When granting loan applications, they tend to consider your ability to repay the loan more than your credit score.

So there is a greater probability that your loan application will be granted on the first try if your annual income meets the criteria.

In addition, licensed money lenders are typically more versatile and are able to adapt their loan products to a customer’s needs. As such, they may adapt your loan to your financial capabilities so that the interest rate, loan term, and monthly payments are manageable.

How Can You Get A Personal Loan With No Income Proof?

The aforementioned lending requirements apply to salaried individuals. However, the harsh economic conditions have been felt by all.

So how can you obtain a personal loan with no income proof?

In Singapore, if you do not have the typical proof of income such as payslips or CPF contribution statements, you can use other papers to prove you are able to obtain a loan and make prompt repayments.

For example, you can still use your employment letter to support your loan application.

In such instances, you may be unable to obtain a payslip owing to the nature of your profession or your company policy.

Some older organisations, for instance, may pay their employees in cash without providing a payslip. In addition, there are various instances in which you may not have a payslip, for example if you are:

  • Self-employed, such as a taxi or private-hire driver
  • A freelancer
  • A contract employee
  • Always paid in cash

Documents Required To Get A Personal Loan With No Income Proof

Lenders generally do not care where your funds come from so long as you have them. If you don’t have proof of income, you can provide the following instead:

Income Tax Statements

Include all taxable income aside from your earned income in your loan application to increase your chances of obtaining a larger loan.

While certain income sources in Singapore are not taxable, providing proof of revenue from such non-taxable sources can boost your loan approval prospects. Here are some examples of such income sources:

  • Company-supplied housing allowance
  • Foreign clients’ revenues
  • Alimony
  • Investment income
  • Retrenchment benefits
  • Annuities
  • Windfalls

Notice of Assessment (NOA)

The document you receive after filing your income tax is the Notice of Assessment or tax bill. This document contains all pertinent information regarding your taxable income and the amount of taxes you have to pay.

Here’s how to apply for a NOA:

  • Using your Singpass, sign in to IRAS’ myTax Portal.
  • Alternatively, make an appointment with the Taxpayer and Business Service Centre at Revenue House

Before submitting a NOA, consider the following:

  • NOA only includes information regarding your taxable income. Remember to include non-taxable income sources in your application.
  • If you are a new employee who has not yet paid taxes, you will not have an NOA. You can include your tax records if the year is nearly over.

Employment Contract

Include your job contract to improve your chances of loan approval if you are a first-time employee in Singapore and lack your standard income documentation.

This is the best option if you have been unemployed for an extended period and are now returning to the workforce.

Foreigners who have recently begun working in Singapore can also submit their employment contracts. However, lenders may reject your application if your job contract is missing any of the following:

  • The organisation’s letterhead
  • The date on which your employment began
  • Your complete name and NRIC number
  • Your salary particulars
  • The actual date of the contract
  • Your signature
  • Your employer’s signature
  • The firm’s stamp

Bank Statements

Bank statements can also be helpful. You can include your bank statement as an alternative if you are self-employed, have non-taxable income, and only paid in cash.

The problem with bank statements is that they are only accurate if you deposit all your income into your bank account. But the truth is that you may not always do so if you are paid in cash.

Here’s the solution: Add payment vouchers and bank statements to your loan application.

What To Do If You Are Unemployed But Need A Loan

If you don’t have a job at the moment, try these strategies for obtaining a personal loan or balance transfer. Your chances of approval depend on the lender.

  • Ensure you have an excellent credit rating.
  • Show that you possess a substantial amount of assets.
  • Consider applying jointly with another individual, such as your spouse or a friend who receives a steady salary.
  • Choose loans with fast cash advance lead times.

Where To Apply

Numerous personal loans in Singapore have minimum income restrictions, which can be intimidating if you do not make much to begin with.

Here are some personal loans* with the lowest interest rates for low-income earners. You can borrow from these lenders if you earn at least $20,000 per year for Singaporeans or permanent residents (PRs), or $40,000 per year for foreigners.

*Information correct at time of publication 

Personal LoanInterest Rate (%)Best For
DBS Personal Loan3.88% per annum onwardsSingaporeans and PRs who are already DBS clients
HSBC Personal Loan3.4% per annum (fixed)Foreigners with limited means or poor credit
Standard Chartered CashOne3.48% onwardsSingaporeans and PRs seeking interest-free loans
OCBC ExtraCash5.43% per annum (fixed)Singaporeans and PRs with a low income or poor credit score
Citibank Quick Cash3.45% per annum (0% for 12-month loan tenure)Foreigners seeking a loan without interest

So, if you’re looking for a personal loan with no income proof yet want favourable terms, good interest rates, and a seamless application process, Horison Credit is your best bet.

We pride ourselves as being one of the best licensed money lenders in Singapore. Contact us today for a quick quote or apply for a loan now.


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