SGM Loans

Affordable loans for all your financial needs at low interest rates

SGM offers all our members various types of personal loans. There are two types; secured loans and unsecured loans. For unsecured loans, a surety is required. Loans can be up to 60 months and interest rates as low at 3% per year. Please view our loan types below. Should you have any queries on our loans, please do not hesitate to contact our friendly service staff. All loan applications will be handled with strict confidence.

Loan Types

Loan Product Loan Amount Maximum Repayment Period Loan Interest Rates Per Year/Annum Eligible
Personal Surety / Secured Loan Dependent upon Subscription + Share Savings Ordinary Member: 60 months

Associate Member: 42 months

3% Ordinary & Associate Member

Personal Surety / Secured Loan

A member is eligible to apply for Personal Surety Loan up to the actual amount of the total of his paid–up Share Capital and Saving Deposits.

Such a loan shall ordinarily be repayable in not more than 60 monthly instalments commencing from the month the loan is granted. The Loan Committee may in exceptional cases approve repayment over a longer period depending on the amount borrowed.

Loan Product Loan Amount Maximum Repayment Period Loan Interest Rates Per Year/Annum Eligible
Short Term Loan $3,000 to $5,000 36 Months 3.5% Ordinary & Associate Member
Education Loan Max $5,000 24 Months 3.5% Ordinary Member Only
Renovation Loan Max $30,000 60 Months 5.25% Ordinary Member Only
Medical Loan Max $30,000 60 Months 5.25% Ordinary Member Only
Mid Term Loan A < $10,000 42 Months 3.5% Ordinary & Associate Member
Mid Term Loan B $10,000 to $20,000 42 Months 4.75% Ordinary & Associate Member
Mid Term Loan C $20,000 to $30,000 54 Months 4.75% Ordinary Member Only
Mid Term Loan D $30,000 to $50,000 60 Months 5.25% Ordinary Member Only

Short Term Loan

An Ordinary or Associate member is eligible to apply up to four times his monthly income or $10,000 whichever is the lower. The loan can only be granted upon the applicant providing one surety. ‘Surety’ means a member who is gainfully employed and need not to be a Teacher’s Co-op member who undertakes responsibility for repayment of the borrower’s outstanding loan in the event of default by the borrower.

Such a loan shall ordinarily be repayable in not more than 24 monthly instalments for the loan amount equal or less than $3000. If the loan amount is greater than $3.000, the maximum repayment period shall be repayable in not more than 36 monthly instalments.

Medium Term Loan

An Ordinary member who has salary check-off arrangement or provides at least one surety, may borrow an amount not exceeding six times the borrower’s monthly income or $50,000 whichever is less.

An Ordinary member who has no salary check-off arrangement and with a surety may borrow an amount not exceeding four times the borrower’s monthly income or $30,000 whichever is less.

Such a loan shall be allowable only for purpose(s) of education of the member or his dependants, purchase of a motor vehicle for personal use, tour, medical expenses, purchase of a flat, a house, or land for building a house for his own use, setting up a home or renovation.

Documentary evidence is required for Education, Medical or Renovation Loan.

Such a loan shall ordinarily be repayable in not more than 60 monthly instalments commencing from the month the loan is granted. The Loan Committee may in exceptional cases approve a longer repayment period depending on the amount borrowed.

Wedding Loan

This loan is offered to Ordinary members who are getting married. The total amount of loan allowed shall not exceed six times the member’s monthly income or $30,000 whichever is the lower. The loan is repayable in 36 monthly instalments.

For early settlement of loan of less than 12 monthly, members shall be charged a total interest rate of 1% per annum higher than the Wedding Loan interest rate minus the amount of interest members had paid to the Society. Members need to pay a Loan Admin Fee to the Society to secure such a loan. No suspension of loan repayment shall be allowed. There will be no refund of any part of the loan admin fee for early settlement of the loan.

A borrower is required to submit documentary proof of wedding expenses or a copy of the Registry of Marriage certificate. The registered marriage must take place within six months from the time the loan is granted.

Loan Eligibility

Unless otherwise disqualified, a member who pays monthly subscription in accordance with By-Laws 8.5.1. shall be eligible for a loan, secured by the Loan Default Scheme or Sureties Scheme.

A Member must satisfy the following requirements to be eligible to apply for a loan;

  1. He has been a member for at least 6 months;
  2. He is at least 21 years of age for male and 18 years of age for female; and
  3. The loan is secured by Sureties Scheme Policy or Insurance Policy Scheme except for Personal Surety Loan.
  4. Only Ordinary Members shall be eligible for the Surety Scheme and to stand as surety for a loan.

Do I need to be a member to apply for a loan with SGM?

Yes, you need to be a member for at least 6 months before applying for a loan.

If I am not a member yet and in need to make an urgent loan, can both the application be made together at once?

It depends on case by case basis and will be subject to the management approval.

Who qualifies to apply for a loan with SGM?

  • An Ordinary member of SGM who is working as a teacher (under Ministry of Education /Private Institutional)
  • An Associate member of SGM (He/she who has direct relation to the ordinary member of SGM e.g. spouse/siblings)

Do I need to provide surety (ies) for the loan application?

Yes, but only Ordinary members of SGM, will have an option by using Insurance to secure for their loan.

How many sureties are required for a loan application?

  • Within the amount of less than S$10,000.00 = 1 surety
  • Exceed the amount of more than S$10,000.00 = 2 surety**Amount of loan eligible depends on your gross salary. **
Loan Amount:
Number of Years:
Number of Monthly Payments:
Annual Interest Rate:
(ex. 8.5% = 8.5)
   

General Rules

1. All members shall be eligible to apply loan of any type from above. A member may apply for the total sum of loans granted and shall not exceed:

a) $50,000 for those whose income is on salary check-off and with a surety.
b) $30,000 for those whose income is not on salary check-off and a surety.

2. Personal Surety (Secured) Loan is limited to members’ Deposit and Share Capital savings.

3. No member shall claim a loan as a matter of right.

4. All applications for loans shall be submitted on prescribed forms to the Loan Committee stating the purpose except Secured Loan.

5. It shall be within the powers of the Committee of Management to reject, defer or reduce the amount of loan applied for and no explanation need be given.

6. When a member is granted a loan, he/she shall agree to the deduction of instalments and interest from his/her salary by his employer or by GIRO deductions.

7. Associate members shall authorize the deduction of instalments through GIRO.

8. Loans shall be disbursed to members only after complete execution of bonds and other necessary documents.

9. A borrowing member may repay a loan in whole or in part at any time before the due date without any penalty.

10. Under exceptional circumstances the Board of Directors may sanction the postponement or reduction of any loan instalment. The suspension of loan principal or reduction of loan instalment shall only be considered after 6 monthly instalments have been affected.

11. A loan shall be recalled immediately with interest without any reference to the term for which the loan was granted in the following cases:

i) Cessation of membership;
ii) Use of the loan for purpose other than that for which it was granted.

12. The interest payable on a loan shall be according to the rate stipulated for the type of loan.

13. For the purpose of calculating interest payable for any period of a month, interest will be computed based on:

i) Settlement date for existing loan and
ii) Disbursement date of a new loan.

14. The Board of Directors reserves the right to change the interest rates for all loans and the Administrative fees from time to time.

15. The Loan Committee may consider the waiver of loan interest and the restructuring of loans based on the following circumstances:

i) A member in financial difficulties;
ii) Any other reasons acceptable by the Loan Committee.

Waiver of such interest shall require the approval of the Board of Directors.

16. Should a member cancel / withdraw his loan application after it has been processed and approved, an administrative fee not exceeding $50 shall be imposed on the applicant.

17. In the event of death, the Committee of Management may at its discretion, waive the interest chargeable on a loan with effect from the month following the death of the borrower.

18. All members with loans and who retire / resign from service shall settle their loan balance in full. A retired member may continue to pay by instalments provided his continuation for membership is first approved by the Board of Directors. The borrower shall provide one or two guarantors depending on the amount of loan balance (The guarantor must be a person above 21 years of age and be gainfully employed).

19. Loans to New Members.

i) The application will only be considered upon Board of Directors’ approval of
membership.
ii) An Ordinary member whose dues have yet to be affected through Central
Pay Office / Direct Salary Deduction may apply for a loan provided he first makes a cash payment of:
Ordinary Member – entrance fee of $30, a purchase of $1,000 share capital saving ($100 X 10 months instalments) and minimum subscription saving of $30 per month X six months.
iii) A member whose applies to pay his dues through interbank GIRO may apply for a loan after the first deduction for Bank Direct Debit Authorisation had been effected and a cash payment is made for the following types of membership:
Ordinary/Associate Member – entrance fee of $30, a purchase of $1,000 share capital saving ($100 X 10 months instalments) and minimum subscription saving of $30 per month X six months.

20. For calculation of loan quantum eligibility income means the total gross monthly income of the borrower before contribution to CPF and other deductions. This may include passive income (e.g. rental income) received by the borrower.

21. In the case of a loan of $10,000 or more, a credit report is required to support borrower’s loan application. The Society reserves the right and ascertain the credit rating from the Credit Bureau to assess borrower’s eligibility.

22. In the case of Education, Medical or Renovation loans, the borrower is required to provide supporting documents, to satisfy that the proceeds of the loan are or will be used to defray relevant expenses.

Download Application Form

To apply for our loans, you may download the respective forms as shown below. Please print the form and fill in and complete all required fields with all requested documents and send them to us.