Borrowing limit is directly tied to annual income and credit evaluation. For those with income below SGD 20,000, legal limits are capped at SGD 3,000. Above this threshold, they may borrow up to six times their monthly income. Higher credit scores may increase eligibility.
Loan tenure varies, usually from a few months up to 2 years. Shorter tenures lower total interest paid but raise monthly repayments. A longer term may ease monthly servicing but adds to overall cost.
Borrowers should confirm the exact repayment schedule, interest computation (fixed or reducing balance), and whether there is flexibility for early settlement. Understanding all terms helps prevent future misunderstandings and financial strain.