Personal loans are the most sought after loan types owing to the advantages they have to offer. Without the necessity of collateral or other forms of security, you are granted personal loans and hence you need to make the best use it. Getting maximum personal loan will help you to customise it the way you like, as they come without strings attached. While applying for personal loans, take into account the possibilities that could fetch you higher loan amount. Here are some suggestions to help you get started.
Notice Of Assessment (NOA from IRAS Singapore) Weighs Better Than Pay Slips
Instead of enclosing your pay slips while applying for personal loan, attach your Notice Of Assessment (NOA) with the application form. NOA is a better option as it will take into account your yearly bonus unlike pay slips, which will reflect only your monthly earnings.
Let us use an example to make it clear. If your salary is $3000 per month and you earn 3 months bonus a year, your personal loan amount using your pay slip will be $3000 x 4 = $12000.
On the other hand, let us assume that you attach your NOA with your personal loan application form. Under this circumstance, the loan amount will be calculated thus:
Monthly Income = $3000
Bonus (3 months) = $3000 x 3 = $9000
NOA reflected yearly income = ($3000 x 12) + $9000 = $45000
NOA reflected monthly income = $45000 / 12 = $3750
Maximum Personal Loan Amount = $3750 x 4 = $15,000
Unburden Yourself Off Earlier Loans
Before you apply for personal loan, you need to have your prior loans cleared. Having no loans in your name will brighten up the prospects for obtaining higher personal loan amount. Here is an example to make an assessment on how it works.
Let us consider that you are drawing $3000 per month. If you have no other loans, you will get personal loan amount up to $12000, which is four times your monthly income. On the contrary, if you already have a loan with the bank, then the bank will sanction you personal loan after deducting your existing loan. If you have an earlier loan of $4000, your bank will grant you only $8000 ($12000 – $4000) after deducting the existing loan from the current personal loan amount that you have applied for.
Co-Borrower Strengthens Your Loan Application
If you are in need of more loan amount than your loan eligibility could fetch you, you could have a co-borrower to apply for an increased personal loan amount. For a salary of $3000, you are eligible to get $12000 as personal loan amount. If you bring in a co-borrower who is in the same income level, you will be sanctioned $24000 by the bank.