Can You Get A Personal Loan With No Income Proof?

Written by Shannon Wong on February 2, 2023

It can be hard to get a loan if you don’t have a regular income.

Banks can be very strict about who they lend money to, and if you’re not employed, or your income is irregular, it can be tough to get approved for a loan.

That is why you need a personal loan with no income proof.

This article discusses all the details you need to know to get the best deal. You will learn how much you can borrow, how to get a personal loan without income proof Singapore, and who to reach out to.

Keep reading below to find out more about no income proof loans in Singapore.

How Much Can You Borrow With A Salary?

If you have a salary, the amount you can borrow depends on your loan provider and the amount you earn. The length of your employment, credit history, and other factors matter too.

But for the sake of argument, we will discuss just these two variables below.

Bank Loan

If you need a personal loan, your first try is likely a bank because banks have low interest rates and are trustworthy. However, their eligibility requirements and bureaucracy are not easy to get past.

So how much can you get? Banks can offer up to 10 times your monthly income for each unsecured personal loan.

There is a downside though. Banks do not fare well with low income loans. Although some have customised such loan packages:

  • Most banks impose a minimum yearly income of $20,000 for Singapore citizens and permanent residents (PRs). If you are a foreigner, these banks usually want your annual income to be above $40,000 or even $60,000 (we are looking at you, Standard Chartered).
  • To mitigate the associated risks, the bank interest rates for their low income personal loans are extremely high. If you get a low income loan from a bank, expect to receive only up to four times your monthly earnings.

Licensed Money Lenders

Your best bet for a low income loan in Singapore is from licensed money lenders. The Ministry of Law (MinLaw) has specified maximum loan caps according to your income to protect you from borrowing more than you can handle:

  • A maximum of $250,000 for personal loans
  • Singapore citizens and PRs:
    • Above $20,000: Up to six times your monthly income
    • Below $20,000: Up to $3,000
  • Foreigners:
    • Above $20,000: Up to six times your monthly income
    • $10,000-$20,000: Up to $3,000
    • Below $10,000: $500

Besides personal loans for low income in Singapore, legal money lenders are more willing to help with no income proof loans.

How Can You Get A Loan Without Income Proof?

You can obtain a personal loan with no income proof, but check the eligibility requirements for the loan you are applying to.

Some money lenders and banks may require specific citizenship or conditions, such as:

  • Just having been employed: In this case, there would not be any income proof because there would not be any earnings. However, there is the promise of a stable income for the coming months.
  • Getting your salary in cash: In this case, regular bank statements and a letter from your employer would suffice.

Pro tip: Send an e-mail or arrange a face-to-face interview with your bank or money lender to clarify these details.

Documents Required

No income-proof loans in Singapore require the following documents (apart from your NRIC and proof of residence in Singapore):

Income Tax Statements

A personal loan with no income proof usually entails no conventional evidence of your earnings. However, your income tax statements will still show your money lender or bank that you can afford to take a loan.

Money lenders have more flexible conditions. As long as you can repay the loan, they will grant the requested sum according to MinLaw’s provisions.

Pro tip: Disclose all income streams with your money lender to access more significant amounts, such as:

  • Interest from dividends
  • Freelancing
  • Rent
  • Alimony

Remember: Some earnings do not appear on your income tax statements, so you will have to name them specifically and separately.

Non-taxable earnings include:

  • The housing allowance received from your employer
  • Alimony
  • Income earned from companies or people outside Singapore
  • Interest from dividends
  • Retrenchment monies
  • Annuities
  • Windfalls

Notice Of Assessment (NOA)

Your NOA is easy to find in your IRAS myTax Portal, or you can go directly to the Taxpayer and Business Service Centre to get it.

This document represents the government’s stamp of approval on the tax statements you have sent. As such, it outlines all the details regarding your chargeable income.

The advantage compared to your tax statement is: An NOA is more trustworthy because the government issues it.

What is the drawback, then? Assuming you have been a freelancer for less than a year, there is no NOA to prove your activity. The same applies to new employees or people earning income from alimony alone.

Remember: You should still include non-taxable income streams in your loan application even if you show this NOA to your money lender.

Employment Contract

Attaching your employment contract will help you get a personal loan with no income proof. However, this agreement must include the following to be considered:

  • Company letterhead
  • Start date of your employment
  • Your full name
  • NRIC number
  • Income information
  • Correct application date
  • Clear signatures from both you and the employer
  • Your company’s stamp

Bank Statements

Bank statements show your money lender or bank that you have enough money coming in each month. This alternative way of proving your income is a good idea for:

  • Freelancers
  • One-time contractors
  • Cash-paid individuals
  • Those with non-taxable income

For example, you may receive $5,000 each month from alimony and windfalls without having any salary. Or you may freelance for a company in Canada. Although you lack employment and standard income proof in these cases, your bank statements will save the day.

What if you are being paid in cash?

If you are a domestic worker or contractor, you may not receive payment for your work in your bank account. That’s why it is wise to always deposit this cash in your bank when you receive it.

Alternatively, include your payment vouchers in your application.

What To Do If You Are Unemployed But Need A Loan

Getting an unemployed loan in Singapore is more difficult, but still doable. Here are your options:

Show Them The Money

Prove that you have enough funds to pay that loan’s monthly installment. To do that, you should include all documents outlining your income:

  • Bank statements, especially for non-taxable income
  • NOA
  • Tax statements
  • Payment vouchers

Use Collateral

To access a bigger amount, apply for a secured loan. This type of loan uses collateral, such as a car or property.

Make sure you can repay the installments before applying. Otherwise, the lender is legally entitled to seize your property.

Find A Co-Guarantor

If you are unemployed and do not have collateral or other income sources, you can ask someone else to vouch for you.

For example, a relative or one of your close friends might be willing to co-sign your application if you have the following:

  • Promise of new employment
  • Unprocessed sales proceeds
  • Unfinalised inheritance

Apply For A Credit Card

Credit cards for low income earners will help you through a rough patch if you are not employed. Check your bank’s eligibility requirements and see if you fit the bill.

Remember: You might still need to show some income sources to access a line of credit.

Also, using your credit card might not be a good idea compared to personal loans – even a personal loan with no income proof from a licensed money lender.

Although credit cards have lower interest rates of up to 26% per year, compared to moneylenders’ 4% per month:

  • It is easier to snowball your debt with credit cards because you can always keep borrowing more against your credit card’s limit while making just the minimum payments. This practice can bring you into a lot of debt. In comparison, a loan from a money lender can help you control your spending patterns.
  • Credit cards have shorter tenures. Although you can make the minimum monthly repayment to these cards, it is wiser to repay your balance in full each month. But that can be difficult for most people. In contrast, money lenders set accessible monthly installments according to your budget so you can repay your debt comfortably every month.

Where To Apply

You can apply for a personal loan with no income proof in Singapore at:

  • Your local bank: If you have been a client for some time, your bank can easily review your financial information. Besides, it is more likely to trust you.
  • Peer-to-peer (P2P) lenders: These online platforms connect individual investors with borrowers, and often require less documentation. They also have lower interest rates than traditional banks.
  • Credit cooperatives: These institutions offer low interest rates and flexible payment plans to those with bad credit or low income.
  • Licensed money lenders: Unlike banks, licensed money lenders are faster and have fewer paperwork requirements. Compared to P2P lenders and credit cooperatives, they can grant you access to a more significant amount of money and longer tenures.

Getting A Personal Loan With No Income Proof Is Possible

Licensed money lenders operate within government regulations and offer a safer option for obtaining a personal loan with no income proof. They may have slightly higher rates than banks or financial institutions, but the peace of mind is well worth it.

Pro tip: When choosing a money lender for your personal loan needs, don’t just go for the cheapest option – pick the smartest one.

If you are tired of being rejected for a personal loan because you don’t have income proof, 1AP Capital has your back with a convenient, stress-free loan process.

We offer customised personal loans without income proof in Singapore, and consider your credit score, current outstanding debts, and employment history.

In addition to our lenient requirements, we guarantee competitive interest rates and fast approval times.

Contact us now or apply for a loan with us today.

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