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How to Get the Best Unsecured Loan in Singapore

An unsecured loan Singapore is a financial solution that provides quick and accessible funds without requiring upfront collateral. 

Singaporeans have been taking out unsecured personal loans frequently. Why? Gone are the days when you queued in long lines just to get a fast cash loan. In addition, there is no longer an agonising waiting game just to know if your loan application is approved. As a result, you can resolve your urgent financial issue without a hitch. 

But why do many seem to need clarification on unsecured and secured loans? 

Often, first-time borrowers interchange these two. However, once you understand how an unsecured personal loan Singapore works, you can address any money problems immediately. 

Save yourself from unexpected pressing financial matters. Whether you are worried about major life event expenses, emergency finances, home renovations, or capital for business starters, unsecured loans have you covered. Understand more through this comprehensive guide about the best unsecured loan Singapore.

Table of Contents

What Is An Unsecured Loan Singapore?

An unsecured loan Singapore is famous for the following borrower-friendly characteristics. 


No Collateral

As the name implies, unsecured loans do not require security from the borrowers to qualify for them. Unlike a secured loan in Singapore, you don’t need to risk a valuable asset. Even if you have no collateral, you can still borrow money. 

Creditworthiness Matters

An unsecured loan in Singapore solely relies on your creditworthiness. Your credit score, stable income, and citizenship play vital roles in an unsecured loan. Your credit score determines your loanable amount since lenders depend mainly on it. Your loan approval is within reach if you have a healthy credit score. 


The instant cash from Singapore unsecured personal loans is applicable for any loan purpose. You can spend it on a family vacation, wedding expenses, honeymoon, or medical emergencies. What matters is that you use the quick funds you received on your reason for loan application. This way, you can budget your finances wisely for repayment. 

With an unsecured loan Singapore, you can still apply for a loan even if you have no physical assets to put at risk. Most importantly, you can take out a loan regardless of your financial need. 

Secured Loan vs Unsecured Loan Singapore

Avoid complications when applying for an instant loan. Get your facts straight about secured and unsecured loans in Singapore. This way, you can choose the most suitable loan products and services. 

Unsecured Loan Singapore

Advantages of Unsecured Loan Singapore

Quick Loan Application. Nowadays, taking out unsecured loans is faster and easier. With online loan procedures, you can begin your unsecured loan journey whenever and wherever you are. If you have a functioning device and a strong connection, you can apply, get approved, and receive your disbursed cash within a day or a week. 

No Assets at Risk. Since an unsecured loan Singapore does not need collateral, you have no worries about losing your property. However, it does not mean you can be easygoing regarding your repayment. If you fail to comply with your financial obligation, your credit score is at risk instead. 

Short Repayment Term. Unsecured loans are often short-term loans. You can pay off your total borrowed amount in 3 months, 6 months, or 12 months. With this, you can manage your finances wisely. You can accomplish your loan obligation before you meet another financial misfortune. 

Disadvantages of Unsecured Loan Singapore

High Interest Rate. The lack of loan security makes unsecured loans high risk for lenders. To compensate, creditors will approve your loan but with higher interest. Since lenders have no leverage against you when you default, the interest rates will cover it up. 

Negative Impact on Credit Score. Being irresponsible with your loan obligation will significantly affect your credit score. If you make late or missed payments, your lender will record your repayment behaviour. This will reflect on your credit score, affecting your future financial plans. 

Lower Loanable Amount. Applying for an unsecured loan Singapore follows strict regulations from the Ministry of Law (MinLaw). You can only take out a particular loan amount based on your citizenship and annual income. This stringent rule helps borrowers manage their loan expenses based on their earning capacity. secured-vs-unsecured-loan-Singapore

Secured Loan Singapore

Advantages of Secured Loan Singapore

Lower Interest Rates. Because of collateral, lenders can offer lower interest rates for secured loans in Singapore. Your asset’s security helps you cope with your additional financial obligation in the long run. 

Higher Borrowing Limits. Often, your valuable pledge helps lenders approve a higher loan amount. In addition to the security it provides, its value is crucial. If you put your car or home as collateral, you are likely to receive a larger loan cash. 

Easy Eligibility Requirement. You need valuable collateral when obtaining a secured loan from banks and trusted financial facilities. You will proceed with your loan application if you have one. But if you have none, applying for an unsecured personal loan Singapore might be best. 

Disadvantages of Secured Loan Singapore

Collateral at Risk. Defaulting on your secured loan puts you at a significant disadvantage. Lenders will seize your property and sell it to reimburse the money lost from you. If you don’t want to lose your prized property, be diligent with your loan repayment. 

Limited Funding Purpose. Getting approved with a secured loan means you can borrow and spend your money solely for its purpose. If you apply for a mortgage loan, your loan cash is used to pay the mortgage only. You cannot take out an auto loan and use the funding to pay hospital bills. 

Asset Valuation. In secured loans, collateral is an essential factor. If you have a pledge to back up your loan, it will undergo valuation. It is a tedious procedure that verifies and counterchecks if the property is yours. Also, it considers its market value so that you can get approved with a higher loan amount. 

A secured loan in Singapore is not suitable for urgent funding. It requires a strict process but allows you to bring home more cash. 

You can better understand and differentiate secured and unsecured loans in Singapore through the pros and cons. It can help you decide which can assist you with your money trouble. But before anything else, always consider the reason behind your application and how much you need. 

How Does An Unsecured Loan In Singapore Work?

By now, it is engraved in your mind that you don’t need a backup plan for your unsecured loan Singapore. You might wonder how a legal money lender can proceed with your loan process without assurance. Below are the essential characteristics of unsecured loans. unsecured loan in Singapore requirements

Loan Purpose

Unsecured loans are available in Singapore for various reasons. You can take out a loan for continuing studies, home renovation, medical expenses, travel, or another personal spending. 

Eligibility Requirements

As discussed above, an unsecured loan Singapore does not need collateral for loan security. Instead, you need to present a valid identification and proof of income. Your citizenship is a crucial factor, too. Nevertheless, a Singapore Citizen, Permanent Resident, and even a Foreigner can apply for it. 

Loan Approval

The application procedure for an unsecured loan in Singapore greatly depends on the borrower’s creditworthiness. Licensed moneylenders always do credit checks. Creditors assess your previous repayment behaviour and credit score. From there, creditors decide whether to approve or deny a loan. 

Loan Amount

Unlike secured loans, which depend on the loanable amount from the asset provided, an unsecured personal loan Singapore is based on your credentials. MinLaw mandated that legitimate moneylending companies must approve a loan amount based on your salary and citizenship. 

loanable amount in singapore


Interest Rates

Since unsecured loans have no collateral, lenders take a lot of risks in approving a loan. As a result, a higher interest comes with your principal loan. Fortunately, MinLaw regulated the maximum monthly cap of interest charged to 4%. Reputable moneylenders abide by the law regardless of your income. 

Repayment Period

Unsecured loans in Singapore often follow a fixed repayment scheme that spans three months to five years. Borrowers repay the principal loan amount with interest at a specific schedule. The schedule does not change based on the lender’s whim unless your repayment date falls on a holiday. It lets you plan your finances and expenses and avoid making late repayments. 

Before you apply for an unsecured loan Singapore, it is crucial that you meticulously compare the loanable amount, interest rates, and terms from other trusted lenders. This way, you can secure the most favourable agreement suited to your financial situation. 

Top 5 Reasons Singaporeans Get An Unsecured Loan

Singapore unsecured personal loans are famous for their flexibility. You can borrow money regardless of how you will need it and spend it. Here are the common reasons why Singaporeans opt for an unsecured loan. 

Reasons Singaporeans Get An Unsecured Loan

Emergency Expenses

Emergencies are unpredictable and inevitable. It is best to have emergency funds available, but what if you have none? If this happens, you can borrow funds from trusted lending facilities. Unsecured loans in Singapore allow you to finance hospital bills, emergency room expenses, and even home medications. 


They say you only live once, so travel as much as possible. But how can you go backpacking if you have cash on hand? Fortunately, an unsecured loan in Singapore approves funding for vacation. You can secure hotel accommodation and airfare while on sale with the instant cash loan. In addition, you can have extra pocket money to buy souvenirs and explore adventures. 


Are you planning to continue your studies, but your savings are insufficient? You can take out unsecured loans to pay your tuition fee, books, uniforms, or any school-related expenses. This way, you can still maintain your financial obligations at home while pursuing your dreams. But of course, don’t forget to repay your loan after finishing school. 

Small Business Ventures

Are you an aspiring entrepreneur who still needs a capital sponsor? An unsecured loan Singapore can provide instant funds to start your business. You can spend it on inventory, paperwork for licensure, marketing promotion, and more. But what’s important is that you prioritise which business expenditures you will use your loan cash for. 

unsecured loan Singapore for debt consolidation

Consolidating Debts

One of the top reasons for an unsecured personal loan in Singapore is repaying too many debts. Singaporeans have at least two to three credit cards in their wallets. These cards have different bill due dates, and they often need to remember to include them in their budget. When this happens, they take out unsecured loans to repay all their debts simultaneously. This way, incurring penalties and accruing too much interest is avoidable.

Unsecured loans in Singapore are a go-to financial aid for residents. Its versatility and wide range of offerings of loan products and services are some of the reasons. In addition, you can borrow from them online and spend the disbursed cash as needed. 

5 Types Of Unsecured Loan Singapore 

The unsecured loans in Singapore come in 5 variations. Each type is relevant to a particular financial condition. Understand the benefits and drawbacks of each type so you can choose the most appropriate for your current needs. 

Personal Loan

Singapore unsecured personal loans are the most popular type of loan. Their versatility makes it convenient for Singaporeans to apply for them. You can take out a loan for wedding expenses, business expenditures, home renovations, etc. 

Ideal for: Borrowers who need fixed instalments for a more extended repayment scheme. With this loan, you can purchase high-cost items like furniture for a new home or machinery for your business. 


  • Flexible purpose
  • Lower interest rates 
  • Longer and more affordable repayment terms


  • Low income and poor credit history make it challenging to qualify


Credit Card Instalment Plan

This unsecured loan allows you to stretch out your loan repayments on your credit card purchases for a fixed time. It is like the Buy Now Pay Later (BNPL), but payments must be made using a credit card. 

Ideal for: Borrowers who cannot afford to pay the total price upfront for a high-priced product or service purchase. 


  • Most banks offer a zero-interest rate 
  • Flexible repayment terms


  • A credit card instalment plan reduces your credit limit. 
  • Lower loanable amount

Balance Transfer

An unsecured loan type that lets you transfer all your outstanding debts to a new account with a lower interest rate. It includes all your credit card balances from one or more credit cards, so you pay all your debts quickly. It helps you manage debts when struggling to juggle interest charges and repayments. 

Ideal for: Borrowers who want to combine debts from other credit cards or accounts into a single credit card or credit line with lower interest charges. 


  • Save on accruing too much interest 
  • Pay off debt faster


  • Most creditors charge a one-time fee of around 3%. 
  • Although lenders offer a 0% introductory interest rate, the standard rate applies once the offer expires. 


Line of Credit

It is an unsecured revolving loan with no fixed repayment period but a prearranged credit limit. It offers a lump sum, but your repayment only starts with the interest. Then, you can repay the principal debt loan over time. 

Ideal for: Borrowers who need the convenience of easy cash access but need help determining when to use the funds. It is the best alternative to credit cards.


  • Pay the interest on the borrowed amount first
  • Pay off the debt later 


  • Higher interest rates than personal loan rates
  • Although lenders offer a 0% introductory interest rate, the standard rate applies once the offer expires. 

Debt Consolidation Plan

A debt refinancing program that consolidates all active unsecured loan balances from various financial facilities. It creates a new single loan that aims to lower the interest rates. As a result, it makes you debt-free immediately. 

Ideal for: Borrowers with multiple debts charged with high interest rates


  • Lower interest rate
  • Affordable monthly installments
  • One monthly due date only


  • Not advisable for borrowers with bad credit scores 
  • Requires origination fees of debts

An unsecured loan Singapore provides flexibility with your finances. You can utilise the disbursed funding for large or high-priced purchases. Also, you can spend it to consolidate various debts. Despite its versatility, it is still essential that you shop around and compare trusted lenders. You can enjoy more reasonable interest rates, fees, and terms. 

How To Apply for Unsecured Loan Singapore?

With a deeper understanding of how unsecured loans in Singapore work, borrowing money from legit moneylenders is convincing. Here is the primary method of taking out an unsecured loan. 

application for unsecured loan Singapore

Step 1. Figure out how much you need

Identify the amount of money you need to borrow. Always have a rough estimate of the loan amount required. In addition, only apply for the funds that you need, at most. Remember that if you get a more enormous loan amount, your interest will make the cost of your borrowing higher. Also, if you opt for a longer loan tenure, your interest rate will accumulate more, and you’ll pay more than you need. 

Step 2. Look for the best-licensed moneylenders in Singapore

After figuring out how much quick cash you need to borrow, search for a reputable lender in the country. Various loan providers are now readily available at your fingertips. However, you must be vigilant to protect yourself from lurking loan sharks. The Ministry of Law has provided a list of licensed money lending companies in Singapore. If you find a preferred creditor, make it a habit to cross-check if it is registered or not. 

Step 3. Send online loan application 

Nowadays, Singapore unsecured personal loan applications are available online—there are no longer long queue lines. When you find a trusted lender, search its official website. Submit all the primary details needed as instructed. Then, your chosen lender will begin the loan application procedure. A legitimate lender will contact you with a loan offer. So always keep your communication lines open. 

Step 4. Sign the loan agreement in person

Part of a legal loan process is visiting the lender’s physical office. Your lender will invite you to stop by during business hours to discuss the loan terms and conditions. If everything is acceptable, affix your signature to the loan contract. However, ensure you fully understand what you’re signing for, or you’ll be more financially doomed. 

Furthermore, if you find grey areas in the contract, ask away immediately. This way, you can address your concerns and be enlightened before signing up. Take note that licensed moneylenders always require face-to-face interaction. Consider it a red flag if your lender explained that a contract is unnecessary. 

Step 5. Receive disbursed unsecured loan cash 

After signing the loan agreement, you must receive your instant cash loan. If every fine detail of the loan application and requirements is spot on, you can go home with your cash. Or, if you prefer it to be deposited into your bank account, it is possible. 

But wait! It does not end there. Your loan application journey ended, but the unsecured loan Singapore adventure just started. Once you receive your disbursed cash, spend your funding wisely. Also, don’t forget to repay your loan. This way, you can build a better credit score. 

Taking out an unsecured loan Singapore is not more convenient. It is highly accessible thanks to its online presence. However, the best part of an unsecured loan application is the smooth-sailing transaction with reputable lenders. That’s why you must find the best and most licensed money lenders. 

Where Can I Find the Best Unsecured Personal Loan Singapore?

Unsecured loans in Singapore are undeniably beneficial to its borrowers. With fast loan approval, you can continue with your business venture or out-of-the-country getaway. But where can you find the most trusted money lenders in the country?

borrowing money with unsecured loan Singapore

Unsecured Loan Singapore with Banks

One of the top lending options in Singapore is a bank. It offers various loan products and services that make it attractive to borrowers. Its interest rate is often 3% annually, but with a strict credit history check. 

When you apply for a bank’s unsecured loan, your eligibility matters the most. Singapore citizens and Permanent Residents must be between 21 and 65 years of age. Also, you must have a minimum annual income of $20,000. A good credit report is a must-have to qualify and get approved. 

However, if you fail to meet the eligibility requirements, you will be unlikely to proceed with your loan application. Banks are approachable, but their requirements are never lenient. 

Unsecured Loan Singapore with Licensed Money Lenders

Reputable money lenders in Singapore are the next top choice for borrowing money. They offer competitive loan products and services. As the law mandates, their interest rates cap off at 4% monthly. In addition, their application process is fast and easy. You can apply without stepping out of your doorstep. 

Furthermore, applying for Singapore unsecured personal loans through legit lenders offers flexibility. Singaporeans, Permanent Residents, and even Foreigners can borrow funds. You can proceed with your application if you are between 21 and 65 and have a stable income. 

In addition, your credit record is necessary but sometimes optional. Some money lenders cater to zero-credit borrowers and help them build a better score. Your stable employment and income can prove you can repay your loan diligently. You can still apply. So, talk to your lenders appropriately to address your financial dilemma without much fuss. 

Taking out an unsecured loan Singapore is now more convenient. You have various creditors to choose from. You can borrow quick cash safely and securely if you research and weigh your options tactfully. 

Practical Tips for The Best Unsecured Loan Singapore

Use the facts you’ve learned about the unsecured loans in Singapore. But before you apply to your chosen lender, whether in the bank or legal moneylender, take note of the following tips. 

Understand your Financial Need

Understand your Financial Need

Taking out an unsecured personal loan Singapore is essential based on your financial situation. Before applying for any loan, always check the reason for a quick cash loan and how much you need. This way, you can address your money needs quickly and efficiently. 

Also, identify which type of unsecured loan Singapore best suits you. Various unsecured loan types are suitable for specific financial scenarios. Personal loans are the best choice for quick one-time funding. Meanwhile, a credit instalment plan is the top choice for big purchases but needs more cash for full payment. 

Knowing your current financial status helps you choose from the country’s long list of licensed money lenders. Some lenders are the best bet for personal loans, while others are the go-to for balance transfers.

Pick a Suitable Repayment Scheme

Legit creditors offer various repayment plans. When you inquire about the products and services of an unsecured loan Singapore, look into the loan repayment. Most unsecured personal loans are short-term. Often, it ranges from 3 months up to 12 months. Figure out if you can cope with your finances for a short period. 

Sometimes, it is better to take up a shorter term. Taking out a longer repayment term accumulates your interest rates, which results in a higher total loan amount to be paid. In addition, accomplishing your financial obligation helps you improve your credibility. 

Lastly, compare your expenses with your monthly disposable income when picking a repayment plan. This way, you can determine how much you can add to your spending. It will prevent you from creating unnecessary debt and improve your credit score. 

Identify Long Term Financial Goals

Borrowing money is not just a one-time thing. It is a commitment you must always remember. When deciding whether to take out an unsecured loan, foresee how your loan decision will impact your financial standing. 

Taking out short-term loans helps you stabilise your credit report with diligent repayment. It creates a broader path for upcoming large purchases like a house or car. This way, you can enjoy a better interest rate or a higher loanable amount. 

If you have a detailed financial plan for the future, always take precautionary measures with your unsecured loan Singapore applications. Always understand the fine print from the terms and conditions. In addition, shop around for the best interest rates and reasonable fees. This way, you can choose the best unsecured loan Singapore that aligns with your objective. 

Maintain Employment

Stable job history is one of the vital requirements when applying for an unsecured loan. If you have a steady income source, getting your loan approved will likely happen. 

But it does not end there. Your employment record must indicate at least 3 to 6 months stay in your current company. This way, the legal creditors will know you are properly compensated to repay the loan. 

Furthermore, the nature of your job is fine if you can present payslips or employment certifications. Whether you work as a professional, contractual, or freelancer, you can still apply for an unsecured loan in Singapore. 


Establish a Healthy Credit Score

Banks and trusted financial institutions significantly consider your credit history and borrowing record. Since no collateral is needed for an unsecured loan Singapore, you can ensure your creditworthiness through it. In addition, your diligence in repaying the loan helps you build a healthy credit score. 

Always maintain a good credit score regardless of the loan type you applied. If you are a first-time borrower with no credit record, this is your chance to improve your score. 

Never delay your loan payment. 

Getting approved for your unsecured personal loan Singapore application benefits your future financial plans. Often, reputable money lenders offer better interest rates. With a good score, you can also apply for a higher loan amount and longer tenure. 

These tips help when you apply for an unsecured loan Singapore. Keep it in mind for safe and secure transactions. Most importantly, you can enjoy great deals from the legit moneylending companies in Singapore. 

Why Apply for Cash Mart Unsecured Loan Singapore?

Unsecured personal loans in Singapore are advantageous, especially if you partner with reputable money lending facilities like Cash Mart

Cash Mart approves low-interest personal loans to eligible borrowers. In addition, it is a registered moneylending company that strictly abides by the country’s rules and regulations. You can apply through its secured official website. 

As a trusted lending facility, you can enjoy its loan offerings anytime, anywhere, because of its online accessibility. Check out their webpage and apply for an unsecured loan Singapore today. 

Frequently Asked Questions About Unsecured Loan Singapore

How much unsecured loan can one get in Singapore?

The MAS (Monetary Authority of Singapore) approves a borrower with a maximum unsecured loan of up to 10 to 12 times the monthly income in Singapore. But first, ensure you are eligible to apply for the specific unsecured loan Singapore. 

Is Singapore unsecured personal loans better than a secured loans?

It depends on your financial needs. If you need quick cash and have no assets to pledge for a loan, an unsecured loan Singapore is your best choice. But if you need a large loan amount and have valuable collateral, opting for a secured loan in Singapore is best.