Personal loans need a backup plan. If you can’t return the loan on time, particularly if you’ve been in debt for a while, it’s demoralizing. Yet, the solutions may help you recover and reduce stress. In this blog article, I’ll explain what to do if you can’t repay your Singapore loan, from looking at other loans or refinancing to restructuring or refinancing with another supplier.


Personal loans are modest secured loans. They’re used to buy automobiles, yachts, and substantial house upgrades. Personal loans may be utilized for groceries and credit card debt. Personal loans from banks normally have a set interest rate for one or more years. You may have to put up part of your car’s worth as collateral to qualify for a larger loan than someone with lesser income and better credit. In Singapore, you must fill out an application form with your work status, monthly income, and any other assets you or your family hold to apply for a personal loan. After receiving this information, the bank will assess whether they can earn money by lending it out at high enough interest rates to avoid losses from debtor defaults.

Plan ahead

Short-term personal loans are great. You may have options if you can’t pay the bill on time. Plan to return your loan on schedule to avoid late fees and bank penalties. Financial preparation tips:

  • Save money
  • Pay off other debts first – Choose a low-interest personal loan instead of a credit card. Try not to utilize obligations. – Medisave and CPF are good savings schemes (Central Provident Fund).

Look into other debts you have

Evaluate your income and spending to determine whether you can minimize costs or improve revenue by working more. If the loan can’t be paid off, refinancing may help you pay it off faster. You might also ask the lender to extend your payment plan.

Communicate with your loan provider.

Inform your loan provider. The lender may provide a loan restructuring scheme to assist you in repaying the personal loan over time or prolonging its duration. They may also cut your monthly payments, making it simpler to repay the amount without financial issues. Contacting them as soon as possible gives them more time to determine whether they can help.

Consider a loan restructuring program.

Consider debt restructuring if you can’t pay. This may lower loan payments and extend payback time. A loan restructuring program lets you adjust repayment conditions without refinancing or switching banks. Lower your interest rate, prolong your loan term by up to five years, cut monthly payments, or divide payments across many months. This may also help you combine many personal loans into one monthly payment with better terms.

Consider refinancing

Even if you cannot make your loan installments, you still have some choices. You may be able to restructure the loan to have a long term or a cheaper interest rate. Rather, search for a different lender amenable to negotiating your repayment conditions.

Cut down your expenses

How can you save? Reduce unnecessary expenditure. Tough love may be needed to repay a personal debt. Stop purchasing unnecessary items and start thinking about methods to save or create money. Some ideas: Work overtime to earn more. Find side jobs online or offline. Get bargains to lower your monthly payments. Reduce dining out and socializing. Reduce your monthly spending to avoid financial strain from this debt.


If you can’t repay a personal loan, you have choices. Before going on debt, prepare ahead so you know what to do if troubles develop.

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