Most people don’t realise that there’s never any guarantee that your personal loan application will get approved. This is the harsh reality that personal loan borrowers must come to terms with, or else end up sorely disappointed. A licensed moneylender in Singapore reserves the right to approve or deny you a loan depending on several factors.

However, a denied request for a personal loan doesn’t mean that you cannot get one. Below is a detailed list of strategies that you can use that will have an immediate effect on the status of your loan:

1. Use collateral

Collateral can help improve the chances of getting your personal loan request approved. Licensed moneylenders love loan applications, especially ones that come with insurance. Pledging something of value as a form of security for your loan will, therefore, improve your chances significantly.

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Just ensure that you are fully aware of the risks of putting down collateral on the loan amount. You could lose your home, land, vehicles, or other items on your pledge should you fail to repay the loan.

2. Get a co-signer

In a case where your income and credit aren’t enough to get your loan approved, using a co-signer can improve your odds. A co-signer is an extra person, usually a friend or relative, who puts his/her income and credit to your application, assuming that they have a decent income and good credit.

Therefore, should you default to pay the loan, the lender can go after the co-signer too. This can also damage the credit of the co-signer. As such, you should only use a co-signer who knows and understands that risk going forward.

3. Apply somewhere else

Just because one licensed moneylender in Singapore denied you a loan doesn’t mean that the next one will. Remember, that’s just one lender’s opinion. You never know. A different lender may just approve your loan request. Sometimes, all you need is to try somewhere else.

Bottom line

Being denied a personal loan doesn’t necessarily mean that you are not eligible.
You only need to make a few financial tweaks to improve your credit to be on the safe side again. And the pointers mentioned above are the quickest way to do that.

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