These days everything is getting expensive, and the average human can’t buy expensive things like a car or home, all with their own money. In many places worldwide, Inflation is at a record high, and in these countries, it cannot be easy to buy things without a loan. Now taking a loan isn’t that easy. Sometimes the interest rates are so high that you think twice before applying for a loan. But when an emergency strikes or when you need the loan irrespective of the interest and you need the loan fast, there are a few tips you need to keep in mind. Today we will talk about getting a fast approval loan in Singapore and how to go about it.
Knowing the Bank’s Criteria
Before you go ahead and apply for your loan from the best money lender in Singapore, you need to know what things you need to keep ready. Hence we will tell you what you need for a loan to be approved so that you can get your loan approved by making one trip to the bank. The following specific documents are what most banks require, but some banks might need some extra documents too.
- Income Proof: Since you will be applying for a loan, you must show income proof because the bank needs to know that you have the capabilities to pay back the loan as well. For this, you will need to show any form of income proof, and it could be your bank statement, tax returns, and so on.
- Bank Statements: This will give the bank a better understanding of your transactions and other loans you have taken. This will help you get your loan faster.
- Personal Identification: Bring any government card, driver’s license, and others to show that you are who you claim to be.
- Address Identification: This can be anything from your utility bills, tax bills, and so on.
- Employment: If you are employed and earn a good salary, it makes it very easy to get a loan, so bring all your employment details to fast forward the process.
How to get faster loan approvals
Now that we have got all the basic documents, let us discuss what else we can do to make the process more streamlined and, in turn, faster:
- Do your homework: The first step to taking a loan is choosing the bank. It is not necessary that the loan has to be done from a very reputed bank. Look at all the offers available in the market, and look who is offering the interest rate which is the most beneficial for you. The reputation of the bank is obviously important, but that should not be priority number one. Sometimes you will see that smaller banks might give you a much better deal than a very big bank. If you get good reviews regarding the bank and you feel like you can trust it, then the brand value isn’t something you need to worry about. Smaller banks won’t necessarily cheat you; they are trying to create their brand value and get customers, so you can trust them. But if you get bad reviews about the bank, then try to avoid it.
- Last loan application: It is very easy to know when you have applied for a loan before this. Now, if you were rejected previously, then chances are you’ll be rejected again. So it is always advisable that there should be a gap of 6 months between your last application and current.
- Documents should be ready: We told you which documents are mandatory and must be taken with you while applying for a loan but do not forget to take them with you. Take all the original documents and xerox copies because they will take the xerox copies to keep with them more often than not.
- Bank Balance: To get your loan approved faster, you must make sure that you have sufficient amounts of money in your bank account. Theoretically, while you are applying for the loan, your bank account must have twice the required EMI money you are supposed to pay. If you have this, the bank will easily accept your loan request.
- Do not ask for a loan from more than 1 lender: You must do your research before approaching a bank for a loan, but that does not mean you approach multiple banks. It is okay to be confused about which bank to choose, but you must stick to it when you decide on one. If you go to multiple banks and apply for a loan, there will be multiple loan requests on your credit history, which will result in both getting canceled. As mentioned above, it is kind of the same thing as applying for a loan from two different places in a span of 6 months. Giving a loan is a risky process for the banks, so do not give them reasons to reject you.
- Stability: Banks love stability. If you can show that you are working for a company for more than 6 months of working in the same field for the past 2 years, you are a stable, responsible person who does not leave things hastily. Approving a loan is a very risky thing, and banks need guarantees, and stability is a huge guarantee.
- Loan amount: Your loan amount cannot be ludicrous. You cannot expect that you are earning a thousand bucks a month, and you are expecting to get a loan that is 100 times that amount. The banks will always see how your EMI relates to your monthly salary. Your EMI must be equal to or less than 40% of your current monthly salary. If the EMI amount is more, you must reduce the amount or look for a longer tenure.
Applying for a loan is easy and applying for a loan fast is also very easy. There are just some systems in place which you need to understand and follow the rules properly.