When you take out a personal loan, it’s always good to have a contingency plan. It can be discouraging if you find yourself unable to repay the loan on time, especially if you’ve already been struggling under the burden of debt for some time now.

However, the options available may help you get back on your feet and relieve some of the pressure off your shoulders.

In this blog post, I’ll cover what to do if you can’t repay your loan in Singapore: from looking into other debts you have or considering refinancing, all the way through to restructuring or even refinancing your loan with another provider entirely.


Personal loans are small loans secured by a borrower’s possessions. They’re typically used to pay for big-ticket items such as cars, boats, and major home renovations. Personal loans can also be used for daily expenses like paying off credit card debt or buying groceries.

Banks or financial institutions usually offer personal loans and carry a fixed interest rate over one or more years.

The amount you borrow depends on your income level and credit history: you may have to put down collateral (i.e., put up some of the value of your car) to qualify for a more enormous loan than someone with lower income levels with better credit scores.

To apply for a personal loan in Singapore, you’ll need to fill out an application form with all your details about employment status and monthly income, as well as any other assets owned by yourself or family members listed on the form.

After submitting this information, the bank will decide whether they think they can make money off lending it out at interest rates high enough that they won’t lose money when people default on paying back their debts.

Plan ahead

Personal loans are an excellent way to get a short-term loan. But, if you cannot pay off the debt on time, you might have an option.

To avoid incurring late fees and being penalized by the bank, it’s best to plan and make sure you can repay your loan on time.

Here are some tips on how you can prepare yourself financially:

  • Save money
  • Pay off other debts first – Take out a personal loan with a low-interest rate instead of using credit cards. If possible, try not to use any obligation at all. – Look into saving plans such as Medisave and CPF (Central Provident Fund).

Look into other debts you have

Assess your income and expenses to see if there is any way to cut down on costs or increase income, such as by taking on another job.

If the loan cannot be repaid in full, it’s possible that refinancing the loan could help you pay off the debt more quickly.

You might also consider restructuring your payment schedule with the lender to spread payments over a longer period if necessary.

Communicate with your loan provider

.You should reach out to your loan provider and explain the situation. The lender may be able to offer a loan restructuring program that can help you repay the personal loan in stages, or they may extend its term so that it lasts longer than expected.

They might also lower your monthly repayments, making it easier for you to pay back the amount over time without having any financial problems.

It’s important to get in touch with them as soon as possible; this way, they have more time to decide if there is anything that can be done about it.

Consider a loan restructuring program.

If you cannot repay your loan, consider applying for a loan restructuring program. This can help you make more affordable repayment installments and increase the time available to repay your loan.

A loan restructuring program is an option that allows you to restructure (i.e., change) the repayment terms of your loan without refinancing it or changing banks.

You may be able to lower your interest rate, extend the term of your loan by up to five years, reduce monthly installments, or split payments into smaller amounts over several months.

Sometimes, this may also allow you to consolidate multiple personal loans into one monthly payment with better terms than before.

Consider refinancing

Some options are still available even if you can’t make your loan payments. You may be able to refinance the loan into one with a lower interest rate or longer term.

Or, look for another lender who would be willing to work with you on your repayment terms.

Cut down your expenses

What can you do to cut down your costs?

Cut down on non-essential spending. If you have a personal loan and trouble paying it off, it may be time for some tough love.

This means you must stop buying things that aren’t necessary for day-to-day life and start thinking about ways to make more money or find ways to save money. Here are some ideas:

Make more money by working extra hours at your job. 

Look for side jobs online or in person. 

Reduce your monthly bills by finding the best deals available.

Cut down on entertainment expenses like eating out or going out with friends.

Decrease how much money you spend each month so that this additional debt doesn’t overwhelm you financially.


Personal loans can help you care for your financial needs, but options are available if you cannot repay them.

Make sure you do your due diligence and plan before taking on any debt so that you know what steps to take when problems arise.

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