CPF Personal Loan

CPF personal loans are similar to unsecured loans in that you don’t need to put your assets as collateral. It allows you to borrow money against your CPF savings which can then be used for both planned and unforeseen expenses. With your CPF savings, you can quickly and conveniently apply for this loan.

With a CPF personal loan, you can borrow up to 6 times your monthly salary at low interest rates of up to 4% per month. You may repay the loan as soon as you withdraw a lump sum from your Ordinary or Special CPF account.

Note that CPF Personal Loans are only available to individuals close to retirement, or those turning 55 years old.

It may be challenging to think straight when financial emergencies strike. But don’t immediately settle for the first money lender you come across.

First, make sure that you have exhausted all alternatives before approaching a money lender. If typical bank loans or government financial schemes are not accessible to you, then a licensed money lender is a good option.

Secondly, make sure that you are dealing with a licensed lender. Verify their license by checking the complete list of licensed money lenders on the Ministry of Law’s website. Legal lenders, like Raffles Credit, are fully compliant with the Moneylenders Act.

Next, compare different loan plans to find the best CPF personal loan package that fits your budget and your repayment capability. Lastly, don’t forget to read customer reviews and feedback on Loan Advisor or Google Reviews.

Traditional personal loans and CPF personal loans are similar in that they both allow borrowers to get quick cash to cover a wide range of expenses. But the most glaring differences are their eligibility criteria and requirements.

Only those who are turning 55 years old and are eligible to withdraw at least S$5,000 from Special or Ordinary Account Savings can apply for a CPF personal loan. Take a look below for a more in-depth look:

Personal Loan

• Must be at least 21 years old
• Borrow up to 6x monthly income
• 1% to 4% interest rate per month
• 6 to 12 months loan tenure

CPF Personal Loan

• Must be at least 54 years old or turning 55 years old
• Borrow up to 6x monthly income
• 1% to 4% interest rate per month
• 6 to 12 months loan tenure or until your 55th birthday
• Must be eligible to withdraw at least S$5,000 from Special or Ordinary Account Savings

Under the Ministry of Law, all licensed money lenders, including Raffles Credit, can only charge up to 4% interest per month. This cap applies regardless of income and whether the loan is secured or unsecured.

Additionally, licensed lenders can only charge a maximum late interest rate of 4% per month for each month the loan is repaid late. Note that the interest rate can only be charged on the amount that is repaid late – not on the outstanding balance but not yet due to be repaid.

Meanwhile, all licensed money lenders are only permitted to charge the following fees:

• A fee not exceeding $60 for each month of late repayment;
• A fee not exceeding 10% of the principal of the loan when a loan is granted; and
• Legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.

Rest assured that Raffles Credit will take into account your income and loan needs. If you qualify for a low interest rate, we will provide it to you without hesitation. However, you will need to submit the necessary requirements for assessment.

The personal loan approval is swift and efficient. Please expect to receive your borrowed cash within an hour only, or upon the signing of the contract when you’re contacted to come in for the signing of the contract.

No credit score is required when applying for a CPF Loan. Note that your loan application will still be subject to evaluation to prevent you from overborrowing.

However, just like with any type of loan with other financial institutions, failing to make monthly payments will have a negative impact on your credit score.

With Raffles Credit, you can borrow up to 6 times your monthly salary. The maximum loan amount will depend on the savings you have in your CPF account.

The repayment period of a CPF Personal Loan is between 6 to 12 months or until your 55th birthday.