Guide To 12-Month Instalment Cash Loans from Direct Lenders

Guide To 12-Month Instalment Cash Loans from Direct Lenders



Man taking 12-month instalment cash loan from money lender in Singapore
Man taking 12-month instalment cash loan from money lender in Singapore

Many Singaporeans who need cash and are looking for a loan might get discouraged by the strict terms and conditions of bank loans. In this situation, 12-month cash loans from fast money lenders may be the perfect alternative.

Another common situation is that applicants prefer a loan where the payments are spread out over a longer period since short-term loan contracts tend to have higher monthly interest rates.

In both these cases, 12-month loans with same-day payout are the perfect answer.

What is a 12-month cash loan?

12-month cash loans are a form of personal loan in Singapore with 12 month repayment plan. For most people, this is the ideal medium-term loan as it offers the best balance between 1-month loans with higher interest rates and bank loans with a longer-term repayment plan.

Another reason for the popularity of 12-month loans is their versatility. There are no restrictions on what the loaned cash can be used for. However, most borrowers who take 12-month instalment loans use them for the following purposes:

  • Bridging (a stopgap measure)
  • Business (start new or fund existing startups or SMEs)
  • Medical or dental (surgery, convalescence, etc.)
  • Study (local or overseas)
  • Wedding (reception and/or honeymoon)

Types of 12-month instalment loans

Lenders that offer 12-month loans may classify them into various categories. Here are some of the best options for you as a borrower:

1. 12-month loan with bad credit

Your credit score is a figure between 1,000 and 2,000 as calculated by the Credit Bureau Singapore (CBS). Any figure 1,723 and below is considered a bad credit rating and corresponds to a grade ‘HH’. Someone in this category usually has a history of defaulting on loans and/or not repaying their debts on time.

Our 12-month loans with bad credit do not discriminate — most applicants can get a 12-month loan even if they don’t have a good credit score. You can even get 12-month loans with no guarantor, depending on your moneylender.

Someone with bad credit may face hurdles if they have multiple outstanding loans with other lenders, recently defaulted on loans, or already reached their borrowing limit.

Different lenders may offer different rates and incentives. However, you should always read up on reviews of 12 months bad credit loans from various lenders to find the best deal and stay safe.

2. 12-month Debt Consolidation Loan

The word ‘consolidate’ means to combine or unify several things into one. It follows that a debt consolidation loan combines several loans into one. Debt consolidation is a means of refinancing existing debts by taking out a single loan to pay off two or more of the smaller ones.

A licensed moneylender that offers 12-month debt consolidation loans will pay off all the individual loans to different creditors for the borrower. They then create a new loan for the borrower that equals to the total of all the other loans. From that point onwards, the borrower only has to repay the licensed moneylender that approved the consolidation loan.

You may wonder why people would go through this process if you still owe the same amount. There are, in fact, several advantages:

  • A single fixed rate of interest — easy to know how much you owe at any point
  • One instalment due date from a single lender — helps you avoid potential multiple late fees and penalties
  • Reduces credit damage — easier to manage a single credit line and build a better credit score

3. Study Loan

A study loan is an amount taken on credit for educational purposes. It may be taken by the person who is studying or a parent, friend, or guardian.

Study loans do not necessarily have to be used only to pay school fees. The amount may be used to cover associated expenses such as airfare for foreign universities, accommodation, course material, and other miscellaneous costs.

4. Renovation Loan

Most Singaporeans are familiar with renovation works, whether they live in an HDB flat or a private residence. Renovations are generally expensive and can cost many months’ worth of your salary.

12-month instalment loans such as a renovation loan can help to ease your cash flow and make the difference between the home of your dreams and a drab, dreary one.

5. Medical/Surgery Loan

Medical expenses can easily upset even the best-planned budget. Most of us have a medical safety net in terms of our CPF Medisave and health insurance but they can fall short, especially if you prefer to get premium care.

A 12-month credit loan in Singapore from a licensed lender can make all the difference. It can be used to cover the costs of:

  • Surgery
  • Specialists (e.g. oncologists and physiotherapists)
  • Room charges and accommodation for caregivers
  • Dental procedures
  • Post-procedure care

6. Wedding Loan

Weddings are arguably one of the most expensive one-day expenses in our lives. 12-month loans with same-day payout let you have the perfect day even with short notice.

You can use a wedding loan to cover expenses before and after the wedding. This includes the engagement, reception, and honeymoon.

How to improve your chances of getting your loan approved, even with bad credit?

So, you have done your due diligence and read all the reviews of various 12-month instalment loans and decided on a licensed moneylender. Even if you do not have a bad credit score, it does not automatically guarantee loan approval.

Here are two things you can do to improve your chances of getting your loan application approved:

  1. Don’t apply for multiple loans — Every time a borrower applies for 12-month loans by direct lenders, the lender checks their borrowing limit and their outstanding loan amount (with other lenders) with the Moneylenders Credit Bureau. If the borrower already has several loans with other moneylenders, their loan application might be affected. If you have multiple loans, you might want to consider a Debt Consolidation Loan instead.
  2. Apply for smaller loans (one at a time) — Any lender is more likely to approve a smaller loan principal because it exposes them to lower risk. If you need a large loan, you should consider taking a smaller one first. Paying off one loan before applying for the next is easier and it improves your credit score, too.

By following these tips, you will improve your chances of qualifying for a 12-month loan with bad credit without a guarantor from a direct lender.

Remember to only apply 12-month loans from licensed moneylenders

Licensed moneylenders are regulated by the government. They cannot charge exorbitant fees or high interest (anything more than 4% per month). The total fees they charged cannot be higher than the loan principal. On the other hand, unlicensed lenders or ‘loan sharks’ might not only overcharge borrowers but might also harass them and their families.

Why should you take a 12-month cash loan?

12-month cash loans in Singapore are an attractive option for many borrowers for several reasons.

Firstly, lenders offer the option of same-day payouts. This means you can get the loan within hours of applying. It is ideal for times when you need cash urgently.

The second advantage is that these loans have lower interest rates than loans with shorter repayment terms. This allows you to spread out the payments and have more breathing room to manage your monthly budget.

Who can apply and what are the documents needed?

All legal residents of Singapore can apply for 12-month cash loans. This includes Singaporeans, PRs, and Work Permit holders.

However, the documents needed to apply differ according to your specific circumstances:

For Salaried Singaporeans and PRs:

  1. NRIC
  2. CPF details (you will need Singpass access to retrieve details)
  3. Payslips for at least the past three months (if your monthly salary exceeds $6,000)

For Self-Employed Singaporeans:

  1. NRIC
  2. IRAS Notice of Assessment (NOA) (you will need Singpass access to retrieve details); OR
  3. Proof of income (any official income statement, including bank or commission statement)

For foreigners:

  1. Employment pass
  2. Proof of address (tenancy agreement, utility bills, etc.)
  3. Payslips for at least the past three months

What is the maximum loan amount I am eligible for?

The maximum amount that you can borrow for a 12-month loan by lenders in Singapore depends on two factors — citizenship and salary.

  • Any legal resident, whether local or foreigner, who earns over $20,000 a year is eligible to borrow up to six times their monthly salary.
  • Singaporeans and PRs who earn less than $20,000 a year can borrow up to $3,000.
  • Foreigners earning between $10,000 and $20,000 a year can also borrow up to $3,000.
  • Foreigners earning less than $10,000 a year can borrow up to $500.

Note that these are the limits for unsecured loans from licensed moneylenders at any one point in time.

What are the interest rates?

Licensed money lenders’ interest rates are chargeable at a maximum of 4% per month. The best 12-month loans may come with rates as low as 1% per month.

You may also be charged interest on late payments. This is also limited to 4% per month for each month the loan is repaid late. Late payments can quickly accumulate and become a heavy burden, so always make sure to pay your loans on time to avoid this situation.

When would the repayment due dates be?

The due date for all 12-month cash loans depends on the date when the loan was granted. For example, if you received the loan on November 10, each repayment instalment will be due on the 10th day of the next 12 months, i.e., December 10, January 10, and so on.

How to apply for a 12-month cash loan?

The loan application process at Prosper Credit consists of five simple steps:

  1. Fill in your details in the online loan application form and submit.
  2. Our executives will contact you within an hour.
  3. Discuss a suitable appointment time to begin the loan process.
  4. Once face-to-face identity verification (to prevent identity fraud) and all paperwork has been completed, loan approval takes just ten minutes.
  5. Once the loan is approved, you will receive your money within five minutes.

We strive to make the loan application process as quick and simple as possible. However, you should not rush through it. Always take the time to read through all terms and conditions before you sign any agreement. If you have queries or need clarifications, our team will be pleased to offer their assistance.


While all reasonable efforts are made to include accurate and up-to-date information on this website, errors or omissions may still occur. We are not liable for any loss or damage caused by the use of this website. The information on this website is for general information only and should not be taken as professional advice.