Credit culture personal loan singapore review

As part of a pilot by the Ministry of Law, a Singaporean fintech startup Credit Culture has just launched its cloud-based loan platform, the first pilot licensee to launch its platform for customers.

Based on the Amazon Web Services (AWS) cloud, the platform claims to offer a simplified online application process, where fields can be auto-populated based on information from government sites like MyInfo. A credit-scoring engine sifts through the information instantly, and personalised rates are offered to potential customers.

However, face-to-face verification is still required at a Credit Culture office before funds are transferred.

A Mission to Make Personal Loans Less Expensive

Credit Culture claims that being on AWS means that they are able to employ site wide encryption, firewalls and multi-factor authentication in a bid to ensure data protection despite automation.

The end goal though, as per Credit Culture’s raison d’être, is to use its platform to reduce costs as they wouldn’t need to procure, build or maintain any costly servers. And despite conventional tech wisdom, being on a third-party system allows for reduced costs thanks to a pay-per-use payment structures and the removed need for a dedicated IT team to manage the platform.

As such, the startup can offer rates capped at 1% a month, removing high interest rates and extra charges for early settlement.

Credit Culture’s attempt to sweeten the pot includes a user interface that should be simple and understandable even to the layman, which the startup hopes would reduce the uncertainty typically tied to teh personal lending industry while increasing transparency.

On the business side of things, Credit Culture opines that the AWS approach allows for scalability. Through the creation of configured templates, Credit Culture would be able to roll out quicker in new markets. The system also provides a wide variety of tools for data analytics, machine learning and AI which can be more easily integrated into Credit Culture’s platform in the future.

They Gained Funding Prior to launch

Founded by a group of veteran and former bankers, Credit Culture is a startup that was formed with the goal of lowering cost of credit across a spectrum of income bands, including the lower income segment that would otherwise be precluded from accessing banking facilities.

While Credit Culture has yet to launch, it has banked SG$40 million from Malaysia’s RCE Capital Berhad, via a five-year bonds that are secured with the loan receivables from Credit Culture and include granted call options for taking that stake.

Credit Culture Personal Loan is one that you can consider if you appreciate access to personalised rates with transparent loan terms for loans of up to $50,000.

With instant approval, loan tenures of between one and three years, no early repayment fees, interest rate starting from 0.8% a month, this loan option is suitable for Singaporeans and PRs who need cash fast.

Singapore’s digital fintech companies are attracting investor attention and dollars in 2019. Fresh from Singapore Life — a digital-only insurer — raising $33 million across two recently closed rounds, so Credit Culture, a digital loan specialist — has banked SG$40 million ($29.5 million) ahead of its imminent launch.

Credit Culture has raised its capital from Malaysia’s RCE Capital Berhad in a deal that allows the investor to potentially take a stake of up 30 percent in the startup. Its investment is via five-year bonds that are secured with the loan receivables from Credit Culture and include granted call options for taking that stake — in other words: this isn’t your regular startup deal.

RCE Capital Berhad said in a filing that Credit Culture has already raised SG$4 million ($2.9 million) via a seed investment, and it appears that it is financially set ahead of its launch.

“We are currently well-positioned with the recent injection of funds. That being said, we are always open to exploring various options to grow especially for regional expansion,” a Credit Culture representative told TechCrunch in an emailed response.

Founded by former bankers, Credit Culture is set to become one of Singapore’s first digital financial service startups after its parent company, DEY, secured approval to operate a money lending business as part of a pilot to test online fintech services.

Since it hasn’t launched yet, there’s not a huge amount to say about the business, but its goal is to offer personal loans to Singapore-based customers using digital channels, through its website and mobile apps. The company plans to vet applicants using a mixture of existing platforms for data, including government initiatives like MyInfo, and its own credit-scoring engine for creditworthiness assessment. It will also require face-to-face verification for loans to be granted, it confirmed.

Like Singapore Life and other digital-only ventures, including Hong Kong’s Bowtie, the objective is to pass on cost savings from being a purely online player — i.e. not operating branches and other physical consumer-facing outlets — and make prices fully transparent to applicants.

As you’d expect, Singapore is the initial focus for the company, but it is already eyeing potential market expansions.

“We do have plans to expand to other Southeast Asian countries like the Philippines and Indonesia,” a spokesperson told TechCrunch. “There is a large potential given the need for personal financing and the large unbanked population segments.”

Is it difficult to get a loan in Singapore?

Banks are generally laxer on Singaporeans and PRs in terms of the minimum requirements for them to get a loan. If you're a foreigner, on the other hand, it can be quite difficult to get a personal loan from a bank if your income is less than $3,000 a month. (Some banks impose even higher minimum monthly incomes.)

Do personal loans damage your credit?

Does a personal loan hurt your credit score? Your credit score can dip a few points when you formally apply for a personal loan, but missed payments can cause a more significant drop. Getting a personal loan will also increase the amount of debt you owe, which is one of the factors that make up your credit score.

Is it safe to take pre approved personal loan?

Pre-approved loans at times come with a lower rate of interest. This is because the bank is assured about your ability to repay, given your financial prudence and stability of income. Since you are a selected customer, the bank will offer you the most competitive interest rates on Personal Loan pre-approval.

Can foreigners get personal loan in Singapore?

If you are a foreigner and intend to get a personal loan, you need to prove that your employment pass has at least one-year validity and your annual income meets the eligibility requirements of the loan. For foreigners, the minimum annual income required is anywhere from $30,000 to $60,000, depending on the loan.