Does my job matter? Getting a credit loan in Singapore with and without employment.

Loans for unemployed’ printed on a page with charts and graphs, emphasising need for credit loan Singapore
checking blog post using mobile

Does my job matter? Getting a credit loan in Singapore with and without employment.

checking blog post using mobile
Loans for unemployed’ printed on a page with charts and graphs, emphasising need for credit loan Singapore



With the economy and job market as uncertain as it is today, many Singaporeans are unsure about the future. Many who have been laid off or retired recently need loans to set up a business or maintain their lifestyle.

This post explores the relationship between loan approval and employment. We touch specifically on getting a credit loan Singapore from a licensed money lender in Singapore.

Why does employment matter?

A provable steady source of income is one of the biggest advantages you have when applying for a loan. There are four ways in which regular employment helps your case.

1. Credit score

All lenders, from every major bank to each licensed money lender in Singapore considers a loan applicant’s credit score. This credit score is a combination of various factors from your recent financial history. That includes repayments on your current credit cards and short term loans, as well as previous debts.

Most employed applicants manage to pay back their debts on time and in full. This is reflected in a higher credit score, which makes it more likely that the applicant will get same day loan approval. They may also be eligible for lower interest rates from the best credit loan company.

2. Reliability

Every lender who gives you a credit loan Singapore wants to be repaid according to the loan contract. They know that someone who is employed will have the income to support themselves as well as meet their repayment obligations.

This reliability is missing in cases where the applicant is unemployed. It makes lending to unemployed people a bigger risk for the lender. Even if they approve the loan, they usually attach higher interest rates and stricter terms to it.

3. Impact of Covid, if any

One of the major consequences of the Covid pandemic continues to be the suppressed jobs market. Many businesses, especially those employing unskilled and semi-skilled workers have been forced to close. Because of this widespread impact, some lenders may be less rigorous with applicants for short term loans who were gainfully employed until the pandemic hit.

They will still have to show a history of responsible financial behaviour up till the time they were let go from their jobs. Look for the best credit loan company when you apply as they are usually more understanding of such unique circumstances.

4. Reason for unemployment

Not all unemployed persons are the same in the eyes of a licensed money lender in Singapore. People are unemployed for various reasons and lenders assess them each differently. Here are three of the most common reasons for unemployment and how each affects your loan application.

  • Laid off – If you have been laid off recently but were employed consistently prior to that, lenders will be more lenient.
  • Industry affected – Workers unemployed because of the pandemic may receive special consideration.
  • Never had a job (homemaker, student, etc.) – This is a high-risk group because they usually do not have a track record of financial responsibility.

Does the industry make a difference?

With people in Singapore employed across such a diverse range of industries, it is natural to wonder if same day loan approval only applies to certain types of workers. The impact of the industry you work in is small but it may matter.

Lenders may regard applicants involved in the food and beverage (F&B), tourism, and entertainment industries as higher risk. Meanwhile, those working in pharmaceuticals and streaming services may be seen as more likely to thrive in current circumstances.

More important than the industry is the type of work you do.

Types of work viewed positively

  • Contract (1-, 2-, 5-years, etc.)
  • Executive-level
  • Management roles
  • Skilled jobs

Types of work viewed less positively

  • Short-term contract work
  • Temp work
  • Unskilled and semi-skilled jobs
  • Freelance work (especially if it is inconsistent)

Remember also that only licensed money lenders will approve a loan to applicants who do not have a full-time job. Banks automatically reject these applicants. That is the case even when the person receives a regular income from other sources.

Does your pay package make a difference?

Many people assume that a high salary means automatic same day loan approval. That is certainly not the case. Approval is independent of high salary. Lenders put more weight on your credit utilisation. If you have already used over 30% of the credit available for your credit score, it will lower your chances of approval.

You can maximise your chances of getting a credit loan Singapore with a low salary if you pay your bills on time, don’t default on loans, and have several lines of open credit already.


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