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How To Find Best Personal Loan in Singapore

Have you been reading news about the best personal loan in Singapore? Why do many trust the loan process when facing financial difficulty?

Taking out a personal loan in Singapore has been helpful for Singaporeans and Permanent Residents. It has become part of their lives whenever they struggle to juggle their finances with their expenses. 

Getting a Singapore personal loan from a financial institution is tricky, especially if you are unfamiliar. You can encounter financial products that sound enticing to avail. However, you can not apply for any type of loan. Every loan service is aligned for a specific purpose. 

A personal loan Singapore can be confusing, challenging, and unsafe if you don’t fully understand how it works. But if you are knowledgeable about it, you can lift the burden from your shoulders. 

Learn more about the best personal loan in Singapore through this comprehensive guide. 

Table of Contents

Define Personal Loan

A Singapore personal loan is the country’s instant cash loan. It is the best life support with fast approval processing for urgent cash needs. It leaves behind the agonising waiting game that traditional money lending facilities offer. 

In addition, the best personal loan in Singapore is unsecured since no collateral is needed to get approved. With this, you don’t need to present a prized property like a car or house to secure loan approval. Therefore, your money lending institution cannot seize your property if you fail to repay on time. 

Most importantly, unsecured personal loan approval is based entirely on your creditworthiness. It involves the quality of your credit score, debt-to-income ratio, and income. With these characteristics, you can utilise your quick cash for any purpose as long as you pay off your personal loan Singapore on time. 

But that’s not all. Another aspect of the country’s quick cash loan is its government’s ordinance. The Ministry of Law, through the Moneylenders Act, oversees that all banks and licensed moneylenders in Singapore abide by the rules and regulations. It provides a safety net for both the lender and borrower to avoid further financial trouble in the future. 

best personal loan in singapore

How Does the Best Personal Loan in Singapore Work?

When you take out a personal loan, you will receive a lump sum from the approved loan amount. But first, the lender will assess your credibility to repay the loan amount. You choose the loan amount and term, but your trusted lender will decide to approve it. 

However, the loan process continues after you receive the quick cash. It continues until you repay entirely. Take note that repayment does not only include the lump sum. In addition to the principal loan, you must pay off the interest rate, processing fee, and other charges. 

Most importantly, you must repay your loan within your lender’s agreed-upon period. Otherwise, expect an additional penalty fee. 

Paying off the best personal loan in Singapore can be done in instalments with fixed interest rates and repayment periods. With this method, you can budget your finances, including the instalment basis that spans months up to years. 

It is no surprise why many apply for a personal loan Singapore. How it works is genuinely beneficial and has a law protecting both the borrower and the lender. 

Advantages of the Best Personal Loan in Singapore

After understanding how the best personal loan in Singapore works, let’s find out why many people apply for them. 

advantages of the best personal loan in Singapore

Quick Processing Time

When you need quick cash, you need the borrowed money instantly. Taking out a personal loan is a feasible option since the application process takes hours up to days. The required documents are often within reach, so completing and submitting them is the least of your concerns. 

More importantly, the best personal loan in Singapore is now available online. You can access the loan products and services 24/7. This way, you can address your financial emergency immediately. 

Collateral Free

A personal loan does not need collateral compared to other loan types like mortgages and auto loans. You do not risk losing your valuable assets if you default on your payments. But of course, defaulting must not be one of your options if you fail to repay your loan. 

Since the best personal loan in Singapore is not tied to an asset, your loan provider will assess your creditworthiness instead. It will review your credit report and consider your previous behaviour in other financial services. 

Best Personal Loan for Foreigners in Singapore 

You might think that only Singaporeans and Permanent Residents can apply for personal loans. However, the best personal loans in Singapore also cater to foreigners. Legitimate moneylenders in the country offer the best personal loan for foreigners in Singapore. 

If you are an ex-pat who stays in the country to work or study, you can take out a loan from a legit loan provider. However, you must have what it takes to qualify. You can still borrow money to buy school books or send funds to your family from your home country. 

The Singapore Personal Loan is highly accessible and versatile, making it one of the go-to lifelines for most Singaporeans. 

Disadvantages of the Best Personal Loan in Singapore

Despite the benefits of the best personal loan in Singapore, there are still drawbacks you must be aware of. 

disadvantages of the best personal loan in Singapore

Eligibility Requirements

Following the Moneylenders Act, only qualified applicants can borrow money from legal moneylending companies. If you need to take out a loan, you must be at least 21 and no older than 65. It is reasonable as this is a working age group. It means you have the means to pay off the loan amount. 

Other than your age, most banks and loan creditors require you to present an annual minimum income. If your yearly paycheck is less than the required amount, you are subjected to a higher interest rate, lower loanable amount, or loan rejection. 

Furthermore, your residency is vital to the loan amount you can apply for. Singapore citizens and permanent residents often have higher loanable amounts than foreigners. 

Possibility of Debt Increase

Borrowing money through a personal loan Singapore is not something you should not take lightly. Although the application process is fast and easy, it does not mean you have to resort to loans now and then. 

Often, people take out the best personal loan in Singapore to pay off credit card debts, hospital bills, or business ventures. That’s why you have to include your repayment in your monthly budget. This way, you can allocate funds for responsible repayment. 

However, people often mistake accumulating debts. With online loan availability, you can borrow funds to cover previous debts. With this, you go in a circle. You take out a loan to pay off your debt and create a new debt simultaneously. That’s why it is essential that you only borrow what you need and can pay for. Also, once the quick cash is reflected in your bank account, spend it only for what it is meant for. 

Long Term Commitment

The best personal loan in Singapore offers short-term and long-term loans. Whichever loan tenure you choose from, it is a commitment you have to take seriously. 

Although licensed moneylenders offer a monthly, weekly, or bi-weekly term, paying it off feels like forever. It is quite the opposite when you receive your instant cash. You can receive your principal loan within a day or a week. But paying it off can take you from months up to years. 

The loan tenure basically depends on you. You chose it at the beginning of your personal loan journey. You have to guarantee you can pay it off on time, or else you will pile up interest and fees. That will be the last thing you want to happen when paying off your loan. 

Repayment is not that taxing if you have a stable income. But if you have a fluctuating income, it might be a different story. 

You must weigh the perks and downsides of a Singapore personal loan before deciding whether to pursue your loan application. 

When to Apply for a Singapore Personal Loan?

The best personal loan in Singapore is versatile. You can apply for quick loan cash when an emergency arises, or your paycheck is yet to arrive. 

Here is a list of common reasons people take out a personal loan Singapore. 

Apply for a Singapore Personal Loan | Education

Medical Emergency

The top reason Singaporeans opt for loans is medical and hospital bills. Accidents and getting sick are unpredictable. Getting hospitalised is the most expensive accommodation you will ever experience. A few hours in the emergency room is twice the price when booking hotel rooms. 

Even with health insurance, it is not enough to cover all your medical expenses. You will still need to shell out money for medicines and maintenance. Also, your emergency funds might not suffice with other costs that coincide with your bills. 

With the Singapore personal loan, you can settle your medical bills and go home to recuperate. When you apply for the loan, include all your hospitalisation expenses. This way, you do not have to worry about borrowing money again for the same reason. Most importantly, spend the funds for this sole purpose to avoid adding debts to your list. 

Education Expenses

Do you have school-aged kids? Or are you still in the process of getting your diploma? Do you need extra cash for the school trip? Everyone wants the best learning experience for you and your kids. However, a lack of funding might hinder you. 

Singapore personal loans help you secure the entire school year’s needs. School enrolment does not only mean spending on tuition fees, books, and uniforms. You also have miscellaneous expenses like school bus service, school trips, and programs. 

Of course, you don’t want your kid to miss out on the most-awaited excursion. When you take out a personal loan, you can settle the field trip fee on time. Also, you can add pocket money to your loan amount for a more enjoyable trip. 

Business Expenditures

Almost everyone wants to start a side hustle, a passive income, or a micro business. Unfortunately, not all are privileged enough to start a venture. Some have great business ideas and courage but need more funding for capital. 

A personal loan in Singapore can help you get your business ideas rolling and finance your capital. You can also purchase the needed materials and equipment to start your business. 

In addition, a Singapore personal loan can help you pay your taxes and paperwork. Since you are only starting, you will need extra cash to cover the expenses of your licenses and more. Creating your business is not just a mere selling of products and services. You must also abide by the law that requires specific fees and start-up costs. 

Apply for a Singapore Personal Loan | Vacation

Most-Awaited Vacation

Most people overlook a holiday vacation. It may be an unnecessary expense, but taking a break from work or school allows you to recharge and be prepared for the next days ahead. 

Planning a vacation is often paired with a tedious task. You need to look for a legitimate travel tour agency or create a DIY travel plan.  Also, you have to include your itinerary and accommodation. On top of these arrangements, you have to budget wisely. Or else, you’ll be back home, swimming the swirling debts. 

In Singapore, middle-income earners take at least one to two annual vacations. This is possible since most fund their trips through a personal loan. But before you go to the nearest banks and money lending shops, plan beforehand. 

Credit Card Debt Payment

Many Singaporeans apply for a personal loan due to their nearing credit card bills. What if you have more than two credit cards and all have bills due close to one another? Worse, your paycheck is still next week. A personal loan can be your financial saviour. 

In addition, credit cards have an average charge of 25% on your outstanding balance each year. Meanwhile, the best personal loans in Singapore have interest rates that range from about 3% to 5%. Many prefer to apply for a personal loan when paying off credit card debts. The interest rates charged between personal loans and credit cards are significant. You can save more in the long run. 

However, it is highly advisable to avoid doing this often. If you always have to take out a loan for your credit card bill, something needs to be fixed with your financial management. Always make sure that you only spend what your payslip can afford. 

Personal Loan Singapore for Foreigners 

Are you an expat working in Singapore? Or probably an exchange student? Or do you have foreign friends who stay in the country for work? If yes, you probably noticed their adjustment in Singapore is about more than just the weather and culture. Your friends might encounter the need for financial assistance. 

One of the best features of personal loans in Singapore is that they are available to foreigners. Yes, you read it right. Licensed moneylenders provide the best personal loan Singapore for foreigners. 

However, taking out a personal loan as a foreigner means you have to meet all the requirements. You must be at least 21 years old but at most 65. In addition, you need a stable annual income that falls from $10,000 up to $20,000. If your income doesn’t fall within this range, don’t worry. If you have less than $10,000 yearly income, you can still bring home $500. 

Unlike other loans in the country, a personal loan allows you to utilise instant cash in any way you need. Regardless of your loan purpose, applying for a Singapore personal loan is the next best bet to overcome your financial struggle. 

Top 5 Features of the Best Personal Loan in Singapore

When selecting the best personal loan in Singapore, there are factors that you should check. 

Features of the Best Personal Loan in Singapore | Interest Rates

Interest Rate

The interest rate is a determining factor in a personal loan’s affordability. Singaporeans often prefer loan offerings with less interest charged over the loan term. However, you must be mindful of how to avail of low interest rates. A low interest with long tenure accumulates payment. Therefore, you pay more in the long run. 

Interest rates depend on various factors, such as your creditworthiness. You can achieve a lower interest rate with a better credit score. However, you might face different circumstances if you need a better credit score. That’s why it is highly advised always to be a responsible borrower.

Processing Fee

Many borrowers need to notice the processing fee their creditors charge as part of the borrowing cost. The fee covers the administrative costs of the loan application process. The best personal loan Singapore charges an administrative fee of at most 10% of the approved principal of the loan. 

Depending on the borrower-lender agreement, you can settle your processing fee in two ways. Some lenders charge it upfront and pay the charges first. Others deduct the processing fee from your principal loan. Remember that this fee is essential for whichever method you agree with. 

Loan Amount

The best personal loan in Singapore is a versatile financial tool. Utilise the instant cash loan for various purposes. You can apply for a home renovation, vacation, and education loan. 

Banks and legal lenders approve loan amounts based on your monthly income and residency. Check out the maximum loan amount you can take out per the Moneylender’s Act. 

best personal loan in singapore - loanable amount


Loan Terms

When searching for the best personal loan in Singapore, consider the length of your loan. The loan tenure will affect the total repayment amount, including your monthly payments and total interest paid. 

Often, shorter-term loans have higher monthly payments. However, they have lower overall interest costs. Here is a sample scenario: You take out a 3-year term for a $10,000 loan. Its interest rate is 6%. If you compute it, the monthly repayments will be approximately $304, and the total interest cost will be $952. 

On the other hand, if you extend the same loan of $10,000 to a 5-year term, you can reduce the monthly repayments to about $193. However, it increases the total interest cost to $1,580. As a result, your longer terms can ease your monthly financial burden, but it results in higher total expenses over the loan life.

Fees and Penalties

Be aware of all associated costs when shopping around for money lending facilities. You must acknowledge the penalty fees for early repayment and late payments. 

Take note of your due dates. Making payments before and beyond the due might incur a penalty. So you can avoid penalties and save yourself from unnecessary debts. 

Licensed moneylenders are transparent with all the fees, terms, and conditions. When you sign your Loan Contract, ensure you have read and understood the fine print. Watch out for hidden charges that can damage your finances further. If you have any doubts, inquire about it immediately. 

Deciding on the most suitable loan provider is a crucial and daunting process. However, considering the top five features above, you can enjoy quick cash without second thoughts. 

Where to Look for the Best Personal Loan in Singapore?

With all the facts discussed about the Singapore personal loan, you now would want to apply for one. But among all the available credit providers, which lender should you talk to? Here are the top money lending facilities Singaporeans go to. 

Best Personal Loan in Singapore with Banks

Banks in Singapore are often the first line of action regarding financial management. Many seek banks to save money and grow their funds and investments. In addition, a bank is one of the go-to places for people taking out a personal loan in Singapore. 

The best Personal Loan in Singapore with Banks

Advantages of Banks Personal Loan in Singapore 

Regulated by the Monetary Authority of Singapore. Many citizens trust banks in Singapore for safe and secure transactions. It abides by the law, allowing the bank and its clients to make legitimate and safe transactions. 

10x monthly salary loan amount. Taking out a loan from banks often requires collateral. If you entrust your valuable property to them, you can get a higher loan amount. However, there are also other factors that banks consider before granting. 

Wide range of financial services. Banks are not just loan providers but are widely known for their financial management. If you want to open savings accounts, get credit cards, or get a mortgage, visit the nearest bank branch. 

Disadvantages of Banks Personal Loan in Singapore 

Longer loan tenure. Banks offer loan terms for a minimum of 3 years up to 25 years. It depends on the bank on how long they can provide you with a loan term. However, the longer your loan term runs, the higher your interest will be. Therefore, you will accumulate more of the interest to pay. 

Lower loan quantum. Banks indeed offer higher loan amounts. However, a bank must follow a tiered system. Borrowing a loan amount 4x your monthly income is possible if your annual income is less than $120,000. 

Stringent eligibility requirements. Banks follow strict eligibility criteria. It includes a minimum annual income of $30,000, a collateral requirement, and a high credit score. If you fail any of the criteria, it will be challenging for borrowers to get approved. 

Best Personal Loan in Singapore with Pawnshops

Pawn shops in Singapore are not just shops for selling unwanted items. Most people don’t know you can also get an instant cash loan here. Pawn shops work by taking a valuable item as your pledge. As a pawnbroker, it will lend you a lump sum based on your collateral’s appraised value. 

The Best Personal Loan in Singapore with Pawnshops

Advantages of Pawsnhop Personal Loan in Singapore

No credit check. A pawn shop Singapore disburses a fast cash loan based on the value of your prized possession. The pawnbroker does not rely on your creditworthiness. If you fail to repay your loan, your pledge item will become the pawnshop’s property. 

Flexible repayment options. Pawnshops have fewer restrictions for repayment terms. It allows you to repay the loan at your own pace. In addition, you can renew your loan by extending the loan term while still paying the interest. 

No impact on credit score. Since there is no credit score checking, taking out a personal loan from a pawnshop does not affect your credit history. So, delays in paying off your loan will not result in a bad credit rating. 

Disadvantages of Pawsnhop Personal Loan in Singapore

Limited loan amount. Your loanable amount highly depends on the appraised value of your collateral. If you have a poor-quality valuable item, you will most likely receive a lower loan amount. Worse, you cannot take out quick cash if you have no expensive belongings to pledge. 

Risk of losing collateral. With a collateral-based loan system, there is a high risk of losing your property. Failure to repay or renew your loan on time, the pawnbroker will only keep it in your stead. 

Risk of scam. Although MinLaw regulates pawn shops in Singapore, some pawnshops engage in illegal practices. Even if your pledged item is in excellent condition, you may get its partial worth.

Best Personal Loan in Singapore with Licensed Moneylenders

Legitimate moneylenders in Singapore are now famous for their fast loan cash. Their availability online allows any country resident to avail of loan products and services easily. Unsurprisingly, many opt to apply for the best personal loan in Singapore with them. 

The Best Personal Loan in Singapore with Licensed Moneylenders

Advantages of Licensed Moneylenders Personal Loan in Singapore 

Regulated by the Ministry of Law. Taking out a quick loan cash from trusted money lenders ensures safety and security. These lenders abide by the mandated law and follow the strict regulations on the amount of fees and interests they can charge on a borrower. 

Higher loan quantum. Unlike banks and pawnshops that require collateral, legit lenders qualify a borrower’s loanable amount based on their income. If you have at least $20,000 as your minimum annual income, you can take up to 6x your monthly income.

Flexible loan terms. Reputable moneylenders provide more flexible terms. You can negotiate your repayment schedules and loan amounts based on your financial capability. Their unique and versatile loan terms allow you to manage your finances wisely. 

Disadvantages of Licensed Moneylenders Personal Loan in Singapore 

Higher interest rates. Unlicensed lenders charge exorbitant interest rates. Their illegal practices affect the reputation of licensed money lending companies. As a result, the overall borrowing cost is higher than banks offer, which financially strains you. 

Administrative fees. Legit lenders charge their loan applicants processing fees, reducing the overall principal loan amount. The administrative fees vary, but the Ministry of Law regulated that the typical fee should be around 10%  of your principal loan. 

Loan sharks. As licensed moneylenders in Singapore became widely known, many unlicensed appeared everywhere. Many fall victim to their fraudulent loan services. You must stay vigilant to identify loan sharks from legitimate money lenders. 

When you decide which one to approach, always remember your financial needs. Your financial circumstances depend on whether you choose a licensed money lender or a bank. That’s why it is crucial to research and compare loan products and interest rates before deciding. 

How to Apply for the Best Personal Loan in Singapore Online?

You now know the essential details about the personal loan in Singapore. Looking out for this information will help you land with a reliable financing institution. However, there are also other vital factors you have to consider. Keep in mind these things as they can affect your loan approval. 

Maintain a Healthy Credit Score

A credit report from various credit providers records your payment history. It reflects your payment behaviour from previous loan transactions. It is like your personal diary but only addresses your repayment obligations. 

You must have a healthy-looking score to avail of the best personal loan Singapore. It is possible to apply for a personal loan and pay it off diligently. Your credit provider will grade and document your repayment performance in your account. If you’re a responsible borrower, you will get a high score. But if you delay your payment, expect a lower score.

Afterwards, on your next loan application, your next credit lender will review your credit history. Your loan approval is likely possible if you have a high credit score. But if not, getting your loan denied is inevitable. Or you might get approved but with a lower principal loan amount. 

Maintain a Healthy Credit Score with the best personal loan in Singapore

Minimise your Loan Inquiry Activity

Your credit report also reflects every enquiry you make. Every loan or credit card you apply is filed under your name. If you have many enquiries, banks and licensed lenders will see you as a credit-hungry. In other words, you take a lot of debt.

Being tagged for this is a red flag to any credit providers. Your personal loan Singapore is likely to be declined. If you ever get loan approval, your highest loanable amount might be the minimum amount for others. 

Fortunately, you can avoid being labelled as credit-hungry. You can take out a personal loan from the bank to which you already have a credit card. This way, you have your existing records, and there is no need to open a new one. Also, compare the loan products and services between banks and other money-lending institutions before applying for your next loan. 

Limit your Loanable Amount

One way to secure your personal loan Singapore approval is by applying for a smaller loan amount. If you first take out a small loan, banks and money lenders will see you as a low-risk borrower, making it easier to get your loan application granted. 

In addition, starting your loan with a small amount avoids overleveraging. You can manage your debts wisely and build your credit score better. Then, you can start applying for a higher amount but with the assurance that you can diligently pay it off. 

However, if you take out a higher loan amount, these creditors will consider you a high-risk borrower. They will question your loan purpose and doubt your capacity to repay on time. 

Look for a Guarantor or Co-Signer

Sometimes, your eligibility needs to be improved despite your efforts to meet the requirements. When this happens, you can look for a trusted guarantor to improve your chances of getting approval for a Singapore personal loan. 

Talk to a family, relative, or friend willing to be your co-signer. Make sure that their income, credit score, and credit history are positively stable, as this will be considered. Your guarantor’s records will become yours, too. Thus, it allows you to qualify for a personal loan. 

However, your co-signer must provide consent. Never force someone to be one. Also, you must repay responsibly. This way, you will not leave an additional burden on them.

Applying for a personal loan in Singapore is less taxing and tedious than before. Considering the above tips, you can get a loan approval without much fuss. 

Why Does Personal Loan Singapore for Foreigners Get Rejected?

Foreigners can avail themselves of Singaporean personal loan products and services. However, getting denied is inevitable in some instances. You can avoid such a dilemma if you avoid the following scenario. 

Insufficient Salary

Most banks require a minimum of $30,000 annual income from Singapore Citizens and Permanent Residents and Foreigners of $40,000. If your annual income does not fall within the threshold, getting your loan denied is bound to happen. Therefore, you can not secure the quick cash needed for your emergency. 

On the other hand, licensed moneylenders cater to borrowers with annual incomes ranging from less than $10,000 to more than $20,000. As a foreigner residing in Singapore, you can still take out the best personal loan in Singapore if you apply with reputable money lenders. 

Unstable Employment History

Employment is equivalent to a stable income. If you frequently change jobs, it will raise concerns to credit providers. It is one of the red flags that you must avoid. 

In addition, your stable job record reflects your commitment. You are a reliable and competent borrower if you can stay for your current job for 6 months up to years. It shows that you will not hide to avoid your loan responsibilities. 

Most money lenders require their loan applicants to have at least six months of their current job history. Your payslip and Certificate of Employment are vital documents that can help prevent your loan from being rejected. Request one beforehand for a fast loan process. 


Poor Credit History

Your credit report includes a list of your loan repayments. It holds a record of your late payments, defaults, and bankruptcies. If you have done this in the past, it will result in a bad credit history. In turn, it can lead to your personal loan in Singapore being rejected. 

Don’t be surprised why on-time repayment is often emphasised. Failure to do so creates a domino effect. If you can’t commit to your loan obligation, your loan providers also can’t trust you. 

But what if you have a zero credit score? If you are a first-time borrower, you can seek financial help from trusted moneylenders in Singapore. Some lenders approve loan applications from zero-credit owners. However, it comes with a smaller loan amount. You can apply for it and repay it diligently to build a better credit score. 

High Debt-to-Income Ratio

Singapore uses the Total Debt Servicing ratio (TDSR), which indicates the maximum amount one can spend on monthly debt repayments. It might seem overwhelming, but TDSR serves as your safety net. 

Every time you apply for a loan, you have a credit limit to watch out for that the government mandated. Your TDSR must be less than 55% of your gross monthly income. Getting your loan application denied will happen if you exceed that percentage. 

What must you do to avoid such trouble? You must pay off your outstanding debts first to ensure your loan approval and apply for a larger loanable amount. With TDSR, you can manage your debts better and keep the Singapore property market healthy. 

Getting rejected for a Singapore personal loan is a dreadful scenario. Fortunately, you can turn the table around if you know the factors that trigger loan denial. Remember these things so you can avoid such trouble during your financial emergency. 

Quick Tips for the Best Personal Loan in

Singapore Application

After learning more about the best personal loan Singapore, you will better understand how they work, where to apply, and when to take one out. 

But before you talk to a lender representative, tick off this list to ensure a safe, secure, and approved loan. 

Short-Term or Long-Term Personal Loan

A Singapore personal loan can either be long-term or short-term. Before you apply, consider which tenure you prefer and what you need. 

Short-Term Personal Loan

Short-term loans are most suitable when you borrow for a small lump sum of money. It is ideal, especially when you need a cash loan immediately. In addition, it comes with the following benefits: 

Collateral Free. Short-term loans does not need collateral from borrowers. You don’t have to present any asset, such as your house or car, as collateral. You can still bring home quick cash without risking your valuable property. 

Quick Process. In addition, short-term personal loans in Singapore have a fast process and approval rate. With the smaller loan amount applied, the loan procedure takes a day or two. This is perfect for situations where you urgently need the money but don’t have the luxury of time.

Fast Cash Disbursement. A short-term personal loan by licensed moneylenders is short for a reason. It can be processed and approved in less than an hour. With the availability of an online loan portal, the application process and quick cash disbursement can happen on the same day. 


Long-Term Personal Loan

Long-term loans are the best for borrowers making a big-ticket purchase. If you plan to buy a car or a dream home, this is the best personal loan in Singapore for you. In addition, taking out this kind of loan is beneficial. 

Higher Loan Amount. Long-term personal loans finance your crucial life investments. Since you are making a significant purchase, you need more money for these commitments. It is possible to apply for a long-term loan. 

Reduce EMI. Equated Monthly Instalment (EMI) is the total amount you must pay monthly for your loans. If you choose a long-term loan, you have a longer loan tenure. Therefore, you can split your repayment across more months to get a more manageable EMI. You can determine the shortest and most manageable tenure using an EMI calculator. This way, you can avoid paying too much in interest.

Improve Credit Score. Taking out long-term personal loans and showing diligence in repayment refines your credit score. You have financial discipline if you can handle a lengthy tenure responsibly and still make punctual repayments. Therefore, it increases your credibility and the possibility of loan approval in the future. 

Compare and consider your reasons for applying for a loan. Weigh the pros of a short-term and a long-term personal loan in Singapore for consent decision-making. 

Plan Ahead

Borrowing money is about more than just the principal amount. You must also consider all the borrowing costs—interests, processing fees, and other charges. So, when you apply for a Singapore personal loan, ensure you can repay your debts. 

Before you apply for a personal, you set your budget. Include your monthly dues and obligations, then add your monthly loan repayment. This way, you can allocate your finances wisely. In addition, your timely payment can help increase your credit score. 

Search for Alternatives

Taking out a personal loan in Singapore is one of your best options. But it is not the last. If you are still hesitant to take out a loan from a bank or a legit money lender, consider talking to a family or friend. Explain your current financial trouble and your plan to repay them. 

Also, you may seek financial assistance from a Pawn Shop Singapore. As your pawn, you need a prized possession like a gold necklace, ring, or bracelet. Then, you will get an instant cash loan based on the value of your item. 

Utilise the Online Personal Loan Calculator

Shop around and compare the loan products and services various moneylending institutions offer. Although it may sound tedious, finding the best personal loan Singapore for you is critical. 

the best personal loan in singapore | cash mart personal loan calculator


Fortunately, there are online loan calculators available to most online money lenders. This way, you can quickly evaluate and do the math. Using a Singapore personal loan calculator, you must provide the following information:

  • Loan amount you need
  • Payment schedule you prefer (weekly, bi-weekly, or monthly)
  • Loan term you can manage 

Once you entered these details, you can identify these vital details: 

  • Possible interest rates
  • Gauge the loan tenure from your financial standing
  • Identify your eligibility for a particular loan 

You can estimate your new financial responsibility with a Cash Mart personal loan calculator. Therefore, you can adjust your expenses and loan tenure for better money management.

Be Careful of Loan Sharks

Illegal lenders are loan sharks practising harassment methods. These lenders intimidate and extort more money from borrowers. Their aggressive behaviour makes it difficult for you to seek help from the proper authorities. That’s why, before taking up a personal loan, ensure you’re doing business with a legitimate moneylender.

But how can you identify a loan shark? Here is a list of its characteristics. 

1. Not listed under the Singapore’s List of Registered MoneyLenders

Before applying for any loan, review the list of registered licensed money lenders by the Ministry of Law. These lenders can operate in Singapore and have an existing registered business place. 

In addition, legitimate moneylenders conduct a face-to-face verification as part of the loan process. Meanwhile, illegal money lenders may post an office address but refrain from holding face-to-face meetings with you. Instead, they will proceed with your loan application through email, SMS, or phone without any verification.

If you deal with someone who approves your loan immediately without submitting any document, they’re most likely an illegal money lender.

2. Keep your NRIC until you repay your loan.

Your National Registration Identity Card (NRIC) is an essential identification you must always have. No one other than you should secure it on your behalf. So when a moneylender looks out for your NRIC, it is a big red flag. 

The Ministry of Law strictly mandates that no business or legal money lender has the right to withhold your NRIC. If anyone tries to take it away from you, report it immediately. This way, loan sharks can receive their rightful punishment. 

Find the best personal loan in Singapore | Be Careful of Loan Sharks

3. No Loan Contract

Another characteristic of an illegal money lender is the lack of a loan contract. A loan shark may or may not offer you a contract loan. If ever they have, it is an incomplete form. In addition, these illegal lenders will not discuss the details of your loan terms. If you ask them any questions, they will divert their answers. 

On the other hand, licensed moneylenders in Singapore are diligent about these formalities. They discuss the fine print and elaborate on the terms and conditions of the loan contract. Most importantly, legit lenders allow you to cancel your loan application immediately and reconsider your options.

Cash Mart Singapore Personal Loan: Your Best Financial Aid

Finding the best personal loan in Singapore can be challenging if you need help understanding how it works. Fortunately, Cash Mart Singapore is a trusted moneylending company that guides every borrower. It helps you every step of the loan process, making you have informed decisions and advantageous choices for your personal loan application.

Cash Mart offers a low-interest personal loan without collateral. This loan is vital for financing major purchases and managing unexpected expenses. In addition, Cash Mart has fast loan approval based on your creditworthiness. Getting approved depends on your capacity to pay off. 

Frequently Asked Questions About the Best Personal Loan in Singapore

Can I still borrow money despite a zero credit score?

Yes. You can still apply for a personal loan Singapore despite having a zero or bad credit history. Even if you have a poor credit report, licensed moneylenders in Singapore, pawnshops, relatives, and friends still allow you to borrow money. 

Where to find the best personal loan in Singapore interest rates?

The Singapore personal loan interest rate varies based on income, loan amount, and loan tenure. That’s why you must shop around legit lending companies about their rates and find the most suitable ones.

Furthermore, an online loan calculator can be used to better calculate the repayment loan amount, including the interest rate.

What are the basic requirements needed?

Whenever you apply for a personal loan Singapore, always have the following: 

  • Your proof of identity, like your NRIC,
  • your proof of income, like your payslip and/or CPF statements, 
  • and your proof of residence, like your utility bills.

What are the expected fees for the best personal loan in Singapore?

The best personal loan in Singapore is always upfront with all its costs. Often, the loan payments include the following fees:

  • interest rates for the amount charged by the lender to a borrower and is a percentage of the principal loan amount, 
  • monthly repayments for the amount paid per month to repay the loan in its loan tenure, 
  • processing fees for the service fee of assessing your loan application
  • and late fees for your late repayments.

If your repayment bill charges unfamiliar fees, seek immediate clarification with your legal lender. 

Will I experience my loan application rejection?

Yes, only if your bank and licensed money lending company have a valid reason for it. Some examples include insufficient paycheck, a low credit score, too much debt, and unstable job records. That’s why it is advisable to check your eligibility before applying for the best personal loan in Singapore.