Looking for the best personal loan in Singapore? We’re here to make it easy. At Lendify, we break down the essentials—clear, straightforward, and hassle-free—so you can find a loan that works for your life. Scroll down to:
Discover what personal loans suits you the best
Learn how to apply and compare loan options with ease
Understand the key differences between banks and licensed moneylenders
A personal loan is a lump sum of money deposited directly into your bank account, giving you the freedom to use it however you choose. Unlike car or renovation loans, which are disbursed straight to service providers or merchants, a personal loan puts you in full control of the funds.
Because it’s not tied to a specific purpose, a personal loan can be suitable for both personal or business use — offering greater flexibility than loans with restricted usage.
Personal loans are popular for a reason — they’re flexible, fast, and can be used for almost anything. Some of the most common uses include:
Here’s a quick look at what a typical personal loan application process involves.
The amount you can borrow often depends on your yearly earnings. In most cases, your loan eligibility is calculated as a multiple of your monthly income. (Refer to the table at the side for a breakdown.)
In Singapore, banks typically cater to individuals earning above S$30,000 per year, offering loan amounts of up to 8 times of their monthly income. If you earn less than S$30,000 annually, you may need to turn to a licensed moneylender instead.
Those with annual incomes between above S$20,000 can usually borrow up to 6 times their monthly income. If your declared income falls below S$20,000—or if you have none at all—the maximum loan amount you’re eligible for is capped at S$3,000.
| Annual Income | Banks | Licensed Moneylender |
|---|---|---|
| < S$20,000 | -- | Max S$3,000 |
| S$20,000 - S$30,000 | -- | Up to X6 monthly income |
| > S$30,000 | X2 | |
| > S$40,000 | X4 | |
| > S$120,000 | X8 |
You’ll need to get your credit report from Credit Bureau Singapore (CBS). There are two ways to access it:
Fee: S$8.00 (excluding GST)
Your Credit Bureau Report plays a key role when lenders evaluate your loan application. Here are three important things they look out for:
| Factors | Banks | Licensed Moneylenders |
|---|---|---|
| Overall grade | Min DD and above | No restrictions |
| Presence of default or bankruptcy | Not eligible | No restrictions |
| Absence of score | Typically not eligible | No restrictions |
Banks generally provide much lower interest rates, usually between 6% to 8% per annum (EIR). On the other hand, licensed moneylenders interest are calculated based on a monthly basis—capped at 4% per month by the Monetary Authority of Singapore (MAS)—which results in a significantly higher annual rate overall.
| Banks | Licensed Moneylenders |
|---|---|
| 6–8% p.a. (EIR) | 1–4% per month |
| 1.5% processing fee | 5–10% processing fee |
Lenders in Singapore are required to show both the advertised rate and the Effective Interest Rate (EIR). The EIR gives a more accurate picture of the loan’s actual cost, as it factors in processing fees and the effect of compounding interest over time.
The Annual Percentage Rate (APR) reflects the yearly cost of borrowing, including fees but without accounting for compounding. It helps you understand the total cost of the loan over a full year.
| Banks | Licensed Moneylenders |
|---|---|
| Up to 5 years | Up to 24 months |
Banks offer longer repayment terms—up to 5 years—which helps reduce your monthly instalments. On the other hand, moneylenders often offer loan tenures within 2 years.
When it comes to personal loans, the decision between banks and licensed moneylenders isn’t always straightforward. Moneylenders are able to serve borrowers in situations where traditional banks fall short. While banks are typically the go-to option, here are three scenarios where a licensed moneylender might be the better fit:
Licensed moneylenders can offer loans of up to S$3,000—even if you fall below this income threshold.
If you don’t have a strong credit history but aren’t currently in default, moneylenders may still be willing to extend credit.
While most banks limit loans to 2 times your monthly income, licensed moneylenders can go up to 6 times your monthly earnings.
Pro tip: Submitting your application while you’re still employed can greatly increase your chances of getting approved.
Personal loans typically come with more attractive interest rates—usually around 5–6% per annum, and in some cases as low as 2–3% per annum when secured with collateral. This is a far more affordable option compared to alternative lenders, who may charge 3–4% interest per month.
With personal loans, your borrowing limit is tied to your income—often up to 8 times your monthly salary. For start-ups with little to no revenue, this can offer significantly more funding than a traditional business loan, which usually depends on existing business income.
Applying for a personal loan is straightforward and fast, often leveraging tools like MyInfo for instant verification. Unlike business loans, you won’t need to prepare detailed financial statements or go through complex paperwork.
While you can apply with banks or licensed moneylenders individually, using Lendify allows you to compare a wide range of personal loan options all in one place—saving you time and helping you secure the most competitive offer.
1. Submit Your Application Online
2. Verify Your Details with Our Loan Specialist
3. Your Case is Published on Our Marketplace
4. Lenders Contact You with Offers
5. Choose an Offer and Receive Your Funds
Final approval depends on each lender’s internal policies, eligibility criteria, and risk assessment. That’s why it’s difficult to know for sure whether you qualify until you submit an application.
The good news? We work with multiple banks and financial institutions, which increases your chances of approval—even if one lender turns you down, others may still make you an offer.
To apply with Lendify, you must meet these basic requirements:
Yes, absolutely. There’s no obligation to accept any of the offers you receive. Your application is commitment-free, and you’re always in control. You holds the final decision.
This depends on your annual income.
Interest rates are determined by your individual loan profile—including the amount, tenure, and your creditworthiness. Because of this, it’s hard to estimate your rate before submitting an application.
Rates can vary widely between banks and financial institutions, so we recommend comparing all available offers carefully before choosing the best one for you.
The initial application is fast and seamless. Our system immediately begins matching your profile with loan offers from our partners. Although the final approval timeline is determined by the specific lender, rest assured that our network includes partners capable of disbursing funds quickly to address your urgent needs.
Easily compare offers from licensed lenders and reputable financial institutions in Singapore — all in one place.
