CPF Personal Loan

A CPF personal loan works like an unsecured personal loan that allows you to get the immediate cash you need. However, you will be using your CPF savings to apply.

Say for example you find yourself in a financial bind before you can withdraw funds from your CPF. You can take out a CPF personal loan to meet emergency expenses. You can pay off the loan when you can withdraw one lump sum from your Ordinary Account or Special Account.

To be eligible for the loan, you must be turning 55 years old.

With a CPF personal loan, you can borrow up to 6 times your monthly income. Plus, since it is an unsecured loan, no collateral or pledging of assets is needed. Lastly, interest rates are capped at 4% per month, regardless of your income.

But before taking out a CPF personal loan, you must consider other alternatives, such as various Government financial assistance schemes. 

Here are other things to keep in mind:

• Verify if the licensed money lender is licensed. Check the complete list of licensed money lenders in Singapore on the Ministry of Law’s website.
• Can you afford to repay the loan? Borrow only what you need and can repay.
• Make sure you understand the terms of the loan. The licensed money lender must explain the terms and conditions of the loan in a language you understand.
• Read the fine print. Read the contract carefully before agreeing to any contractual terms and ask the money lender if you have any questions.
• Get a copy of your signed loan contract. The licensed money lender must provide you with a copy of the loan contract.
• Compare loans. Shop around for favorable loan terms before making a commitment.

The interest rate for CPF personal loans is between 1% and 4% per month.

You can get your cash as quickly as the same day you applied for the CPF personal loan. It’s possible to get approval for your loan application within 30 minutes as long as you have all the necessary documents ready.

No credit score is required when applying for a CPF personal loan. However, just like any type of loan, it will have an effect on your credit score. If you fail to repay the loan, it will have a negative impact on your credit score as licensed money lenders will have to report it.

You can borrow up to 6x your monthly income if your annual income is above $20,000. Note that the maximum loan amount will also depend on the withdrawal amount in your CPF account.

No, you are not eligible for a CPF personal loan if you are over 70 years old. Only individuals who are turning 55 years old can apply.

The repayment period of a CPF personal loan is 1 to 6 months or until your 55th birthday.

Make sure to pay your loan on time and in full to avoid late interest payments and fees.