Frequently Asked Questions

Borrowing from Friday Finance vs Banks

Advantages of Borrowing from Friday Finance

1. Ease of application:
Our application process is streamlined to just one step using MyInfo

2. Speed:
Unlike traditional banks that may take several days to process your loan application, get an indicative offer sent to you immediately as long as you provide us with necessary documentation and information for our credit assessment.

3. Lower eligibility criteria:
i. NOA >$30,000
ii. CBS: Generally have a minimum score/ grade specific to each bank

Friday Finance:
i. NOA: No restrictions
ii. CBS: No restrictions

How does Debt consolidation plan work?

It works by combining multiple debts into a single, loan. Then you pay off your smaller loans with the new one. You can use the Debt consolidation for most kinds of debt including:

- Credit cards
- Outstanding medical bills
- Car repairs and more.

Is the Debt consolidation plan suitable for me?

If you are struggling to make your monthly repayments or are paying very high interest rates on your outstanding loans, then the Debt Consolidation Plan is suitable for you to potentially secure lower interest rates. It can also serve as a means to streamline your financial affairs, providing the convenience of fewer monthly bills and alleviating concerns about multiple due dates.

However, if you need to borrow money for a purpose other than debt consolidation, then instead of this, you can consider taking out a different type of Personal loan.

Do I qualify for the Debt consolidation plan?

Only Singaporeans and PRs are eligible for a debt consolidation plan. Additionally, you must earn at least $20,000 a year. Generally, lenders are also more likely to offer a debt consolidation plan to those who are heavily enough in debt and have debt with multiple lenders.

Do I need to submit any documents?

Only one! Providing your credit bureau report will ensure the accurate evaluation of your application and loan offer!

Debt consolidation plan vs Personal loans?

While Personal Loans can be used for a multitude of purposes, Debt consolidation is a type of loan mainly used to simplify multiple balances into one.

Will my credit score be affected?

As long as you make all your payments in a timely manner, Debt consolidation may actually impact your credit score favorably in the long run!

How much do I need to put aside for my renovation?

The average cost to renovate a house in Singapore varies depending on factors like the scope of work, property size, material quality, and labor fees. A basic renovation can start at around $20,000, while more extensive or high-end projects may range from $50,000 to several hundred thousand dollars. This cost encompasses essential elements like flooring, painting, and basic fixtures. Additional expenses may include custom features, appliances, and furniture. It's essential to plan and budget carefully, considering both essential and aesthetic aspects, to avoid exceeding your financial limits. Keep in mind that obtaining necessary permits may also contribute to the overall cost.

What can I use my renovation loan for?

Your Renovation Loan can be used for:

1. Installation of Solar Panels
2. Electrical and wiring works
3. Built-in cabinets
4. Painting and redecorating works (e.g. wallpaper)
5. Structural modifications
6. External works within compound of the house
7. Flooring and tiling
8. Basic bathroom fittings

Please note that the Renovation Loan cannot be used to pay for furnishings or for any other purpose besides renovation. If you need help with financing those, you can take up a friday finance personal loaninstead.

Will this count towards my loan quantum cap?

Given that a renovation loan falls within the category of personal loans, any borrowed amount contributes to the overall loan limit specified by MinLaw restrictions for personal loans, similar to a standard personal loan.

Is it possible to discuss or negotiate the terms of the offered loan?

Definitely! You can agree to the suggested indicative offer, allowing you to schedule a meeting with the lender for further discussion and potential renegotiation of the terms.

Is the offer provided by us guaranteed approvals?

No, the offers presented by the on the platform are solely in-principle approvals. The completeness of the documents and accuracy of the information you provide contribute to the precision of the offer.

Do I need to submit any documents?

Cbs document, wedding venue confirmation. Invoices/ quotation for wedding expenses.

Can I get a student loan if I don't have a salary?

If you are a student without income proof to substantiate, you may want to find a guarantor who has good income proof and credit rating.

Who should take up this loan?

Student loans are best suited for working adults that are looking to enhance their skills.  

What documents do I need to submit?

Documentation confirming enrollment status and materials outlining the breakdown of course fees.

Important things to consider?

Because of the elevated interest rates associated with payday loans, it is advisable to promptly repay them to prevent entering a cycle of debt. These loans are best suited for essential, non-negotiable everyday expenses such as rent, utilities, and groceries. They should not be utilized for impulsive or unnecessary purchases that could be deferred, saved for, and acquired later. Continual borrowing over several months can result in the accumulation of a substantial debt if not repaid promptly, leading to increased financial pressure. Therefore, it is discouraged to obtain multiple payday loans to avoid excessive borrowing.

Can I borrow more than my salary for a payday loan?

No, usually lenders would grant a maximum loan amount equivalent to your salary. For a higher loan quantum, you may apply for a Friday Finance personal loan.

Are part-time workers eligible for a payday loan?

No, this loan is only eligible for full time workers that has been with the company for 3 or more months.

Should I take up a payday loan?

This kind of personal loan is ideal for employed individuals seeking immediate access to cash, especially those with a consistent work history.

What are the usual reasons for utilizing payday loans?

A payday loan is appropriate for borrowing modest sums of money, typically an amount that can be repaid with your monthly salary.

Are there any restrictions on how a start-up loan can be utilized?

Versatile application

The advantage of a start-up loan allows for various uses such as:
• Procuring inventory
• Hiring new staff or covering payroll
• Facilitating refurbishments
• Meeting rental down payment requirements
• Acquiring equipment

Are there cheaper financing options?

Certainly, if you possess eligible collaterals, you may explore the option of leveraging your property through a property-backed loan, featuring an interest rate of less than 3% per annum. Alternatively, you can opt for invoice financing by selling your invoices, which also offers a lower interest rate ranging from 3-4%.

Will my credit score be affected?

As long as you make all your payments in a timely manner, taking up a start-up loan will not impact your credit score negatively.

Do I need financial statements?

It is not a requirement as our risk assessment is done on a personal risk profile. However, we may ask more details about your business for further clarification.

Will my interest rate be higher as someone that is self-employed?

Your status as a self-employed or gig-economy worker does not predetermine the interest rates we offer for your loan. Instead, we assess interest rates based on your comprehensive financial profile, which includes factors such as monthly income, assets, and past borrowing behavior, including punctuality in payments.

How much can I borrow?

It all depends on your annual income! You may be entitled to a loan quantum that is a multiple of your monthly income. Banks in Singapore only serve the segment earning more than $30,000 a year and can lend up to 8 times your monthly income.

Anyone earning less than $30,000 can only borrow from a licensed moneylender. Individuals earning $20,000 to $30,000 are best served as they can borrow up to 6x of their monthly income. For individuals with no declared income, or income lesser than $20,000, the maximum loan they can obtain is $3,000.

How can I increase my chances of getting a loan?

Here are some tips you can take to increase your chances of getting a loan:

1. Ensure timely and complete payment of all your bills every month
2. Avoid utilizing a large portion or the entirety of your available credit.
3. Refrain from opening numerous new credit accounts within a brief timeframe.
4. Regularly review your credit report for errors and promptly dispute any inaccuracies.
5. Keep precise and current financial records, including income tax returns and invoices.
6. Develop a comprehensive plan that demonstrates stability and reliability regarding your income, expenses, and assets, and be ready to address any queries a lender may pose.

Why may I find it challenging to secure personal loans?

Self-employment, freelancing, or gig work may bring income fluctuations and less job security. Lenders, see these situations as challenges, highlighting the importance of borrowers repaying loans on time.

However, this does not mean that you are not eligible for a loan. Though irregular income might be perceived as a slightly higher default risk, lenders assess your overall financial health, considering monthly income, assets, and past borrowing behavior. It's not solely about employment type; a good financial record with timely payments is crucial for their decision.

Friday Finance is a product of IFS Consumer Services Private Limited, a licensed moneylender regulated by the Registry of Moneylenders of the Ministry of Law in Singapore