How to apply for personal loans for teachers in Singapore

How to apply for personal loans for teachers in Singapore

Teacher sitting in classroom considering personal loans for teachers

Teaching is a highly respected profession both in Singapore and around the world. Most teachers would probably say they are overworked and underpaid but the median salary for educators in Singapore is comparable to teacher salaries around the world. However, there is still a demand for personal loans for teachers.

Why would a teacher need a loan?

Teaching jobs in Singapore can be divided into two categories: government and private. As with most fields, private jobs pay better. Indeed’s statistics show that as of October 2021, government teachers earn an average salary of about $3,100 per month. Top private school teachers earned triple that.

From those figures, it is safe to assume that more government school teachers apply for personal loans for teachers. In the pre-Covid era, many of them supplemented their income with private classes. Today, that option is not as lucrative as it used to be.

There is also virtually no overtime for teachers, either. With so many lessons reduced to an online format, there is simply no need for it anymore with most schools.

In these two cases, personal loans for teachers may be used to keep up with expenses.

However, some forward-thinking teachers may also consider getting a term loan to set up their own business. This is most commonly for an education-related project such as a tuition centre.

Several licensed moneylenders in Singapore offer loans that a teacher may use for one or more of these expenses. Teachers from both government and private schools may also qualify for other personal loans that place no restrictions on how the money is used.

Applying for a loan as a teacher

While the most obvious difference between government and private school teachers seems to be their pay, there are other important distinctions as well.

The most relevant of these for a government teacher considering a loan is that they are considered civil servants. This means that falling into debt or bankruptcy may result in termination from their jobs. (Private schools may have their own restrictions as well)

Basic criteria

The normal rules and restrictions apply to personal loans for teachers as they would to any other civilian. Approval is more likely if an applicant satisfies certain criteria, including:

  •         A ‘Good’ or ‘Excellent’ credit rating
  •         A range of credit lines (home loan, car loan, credit cards, etc.)
  •         Low credit utilisation (approximately 30% of the maximum for their credit score)
  •         Stable employment

·         No history of unpaid debts or bankruptcy (for at least the past 10 years)

Income range and loan principal

A legal money lender that offers personal loans for teachers will assess your eligibility based on your identity and financial history. You can ensure that the process is quick and simple by providing the right documents.

Identity proof

Every legal moneylender takes precautions to prevent identity theft and fraud. Identity proof documents help ensure scammers don’t use your name to obtain a loan. Our office will ask for one or more of these:

  •         NRIC
  •         Passport
  •         FIN card
  •         Work permit/S Pass/E Pass
  •         Utility bills (as proof of address)

Note, Dio Credit will not keep any of these documents. We will verify your identity and may make a copy as required by law but will return the originals immediately.

Financial information

Your financial history and current situation determine the size of the loan principal, the interest rates, fees, and penalties, and may also qualify you for promotions and discounts. You should provide as many of these documents as possible:

  •         Contract agreement and/or Offer Letter
  •         Payslips for at least the past 3 months
  •         Relevant CPF and IRAS documentation

Lenders may also ask that you know your SingPass login to verify this information as they process your application. Note, good legal moneylenders in Singapore such as Dio Credit will never ask you for your login credentials.

What are the best personal loans for teachers?

Dio Credit offers a number of cheap loans that are suitable for teachers. The specifics for each one vary and our loan executives will be happy to help you choose what works best for your circumstances.

  •         Payday Loan – Pro: Short-term; Con: High interest rate
  •         Personal Loan – Pro: Versatile; Con: N/A
  •         Bridging Loan – Pro: Convenient; Con: Short-term solution
  •         Business Loan – Pro: Business-focused; Con: Use is limited
  •         Debt Consolidation – Pro: Good financial solution; Con: Use is limited
  •         Renovation Loan – Pro: ‘New’ home at low cost; Con: Use is limited
  •         Taxi/Grab/Gojek Loan – Pro: Pays for itself; Con: Use is limited

The Singapore Teacher’s Co-op Society offers personal loans for teachers with attractive terms, too. Regardless of your financial situation, always avoid loan sharks – it may seem they offer good deals but they are dangerous people. You could even lose your job by borrowing money from illegal moneylenders.

Dio Credit appreciates the contributions teachers make to create a better society. If you are a teacher and need a loan for any reason, contact us for the best rates and loan terms.


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.

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