Why Is My Personal Loan Application Taking so Long?

In an ideal world, no one would ever need a loan. But sometimes emergencies happens and you can't save up money to pay for these things because you need the money as soon as possible. But then if that part takes too long, it can be frustrating, because this is an emergency after all. So if you were ever wondering why your loan was taking so long, here's some reasons as to why, and what you can do to make it go faster.

Money is a scarce commodity. We all need it more for our needs, comforts, and luxuries. And whenever we are short of it, getting it instantly is the only solution. We all have been through this stage of borrowing money from someone at some point in our life. The lending market being the most systematic one is preferred by one and all. As easy and hassle-free applying for a personal loan is, sometimes the procedure gets quite tiresome and lengthy.

So, why in today's fast forward world, to obtain an instant cash loan, someone in Singapore has to wait so long?

Reasons for delay in personal loan sanction

A personal loan is the easiest method to fill a sudden financial void. But it's easier said than done. It is undoubtedly an organized way to obtain finance but not the fastest one. It takes a little longer to see the credit flash up in our accounts than we expect. And there are many reasons for it.

Scanning of documents

When you submit a loan application, you've successfully done your part. Now, it's the lender's turn. Only thing they have to do is scan your documents thoroughly for verifying their credibility. These are the following:

  • Your residency proof
  • Your proof of income backed by the last six month's
  • Your passport and employment permit if you're a non-resident
  • Recent Income Tax report

These are all a few documents that the lender is supposed to verify by contacting all these departments.

And in the meantime, the application is passed from one officer to another. Loan officers, underwriters, and processors. They might also call for some additional proofs from you, if necessary, to verify your information in the loan application. Tiresome? Yeah, it is. That's why your loan is still in the processing stage.

Many new-age lenders offer faster loan approval than the traditional ones; they still have a slow process to follow with many documentation and proofing required along the way. Check out licensed money lender Singapore for a fast approval online loan.

Busy lenders

Interest rates in the personal loan market are quite low and they have been like this for quite some time now. As per statistics, the average mortgage rate for the past 30-year has been calculated below 4% for most of the years.

And in the meantime, prices of homes have only gone up, forcing homeowners to refinance their homes. This regular application of loans has kept the lender's busy in verifying multiple borrowers, all at the same time.

Need for additional verification

The hardest step to crack in the loan application's verification process is the underwriter's screening. He thoroughly checks not only the documents attached to the form but also the background of the borrower and the property offered as a mortgage. And more often than not, borrowers are called for providing additional documents or letters of explanation to back their proofs.

How to Get your Personal Loan approved faster?

  • Always check for the eligibility criteria of the lender. Apply only if you fit the bill. Otherwise, you're bound to waste your precious time. Also, it'll lower your credit score for having denied credit.
  • Get all the documents the lender has listed in one place beforehand to save time.
  • Be always ready to be called for extra documents for verification. Make a file of all the papers related to your work (salary slips, income tax reports, etc.) and the collateral (ownership papers, valuation report, etc.) This will prevent delays.

If you aren't sure of what documents you'd need beforehand, always ask for help from the lender's customer care representative. Also, before filing the loan application, check for any errors with the rep as it is the most common cause of delay in loan sanction.

How to get an instant cash loan in Singapore?

Since we now know that obtaining loans from an organized sector of lenders would anyway take time, be prepared to wait at least for a few days after you have applied for a personal loan. But if the situation demands instant cash, you might opt for other non-conventional ways which are equally legal and secure. Here are some of those preferred sources of borrowing that are decided by borrowers now and then when they're in a hurry to address their financial crunch.

Borrow from traditional pawnshops

Pawnshops are famed for the fastest and secure cash dealings. Loans are sanctioned against a collateral like jewelry, antique, or luxury items. Cash disbursement is instant. The repayment period is generally short i.e., within six months or so as the collateral items lack any ceiling value like that of cars or real estate. The rate of interest is also low around 1.5% on average, but it is topped with the same price every successive month. All you need to obtain a loan is a valuable item to pawn against, your identification card, even if you're a foreigner, you can get a loan by showing your employment permit. And you should be at least 16 years of age. But if you fail to repay the loan within the stipulated time, you'll lose the ownership of your valuables to the lender/broker.

Independent licensed moneylenders

A new-age class of lenders has emerged in recent times that are not part of the traditional organized lending sector but still are allowed to operate due to their adherence to the government's lending regulations. More and more borrowers are approaching them for financial help as they offer loans at the lowest rate of interest, secure and flexible repayment options tailored as per individual customer and cash disbursement within a day of the loan application.

Online moneylenders

The loan procedure is entirely online while dealing with them, and the loan approval typically takes a few minutes to one or two business days. All the documents are submitted online, and funds are transferred directly to your bank account once the verification is done.


While selecting the best alternative to obtain your loan, consider all the options comparing their average loan approval period. All of them usually takes some time for verification. But to reduce this time to a minimum, ensure that you have done everything correctly on your part.

Penniless Parenting

Mommy, wife, writer, baker, chef, crafter, sewer, teacher, babysitter, cleaning lady, penny pincher, frugal gal

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