Applying for the best personal loan in Singapore may look quite a challenge but with enough research and accurate information, you can easily find a variety of deals that will cater to your financial worries. The multitude of options can be vital as it will help you consider different factors before deciding which and whose package to get. Moneylender Review can assist you in trimming down your searching time to take you through the best deals from this guide.

Personal loans are a form of credit that can aid in making big purchases, transactions, or consolidate high-interest debts. Usually, it has a lower interest rate/s than credit cards. It can be used to combine multiple credit card debts into a single, lower-cost monthly payment.

 

Top Features of Personal Loans

  1. No Collateral
  2. In Singapore, a personal loan does not require borrowers to provide any collateral such as a house, car, or other possible assets to avail deals. It is approved only based on creditworthiness, which depends on your credit score, monthly or annual income, repayment history, employer reputation, etc.

  1. Flexible End Use
  2. Personal loans can be used for multiple purposes, like meeting expenses of a medical emergency, travel, house renovation, as well as debt consolidation, etc.

  1. Flexible Tenure
  2. Personal loans usually come with flexible tenure either for the short term or long term.

  1. Minimal Documentation
  2. With moneylenders, personal loans can be applied both online and offline with very minimal documentation. Key documents that lenders generally need the applicant to provide include proof of identity, monthly or annual income, and their address.

  1. Flexible Loan Amount
  2. The personal loan amount that gets disbursed is based on an individual’s repayment history, monthly income, age, profession, employer reputation, and other factors.

  1. Quick Disbursal
  2. Personal loan disbursal via banks can sometimes occur within a few days, once the application is permitted. For licensed moneylenders, approval may only take within 30 minutes should you avail of a pre-approved loan offer.

 

List of Licensed Moneylenders

A1 Credit SG Pte Ltd

For most clients, A1 Credit is deemed to have a very helpful and efficient staff. It has been commended many times for its quick and easy approval rate which has provided borrowers with a smooth experience.

  • It is one of the most reliable moneylenders in Singapore, which provides a variety of solutions for every borrower.
  • A1 Credit offers personal loans, foreigner loans, business loans, payday loans, and bridging loans in Havelock II, Singapore. They can accommodate Singaporeans whose minimum monthly income is $1,500 and foreigners whose minimum monthly income is $2,000.
  • Clients can avail through A1 Credit’s online tools conveniently.
  • This lender also provides fast cash loans with its user-friendly application process which is guaranteed secure and confidential.
  • A1 Credit considers borrowers even those with low credit as it aims to help clients with their financial worries.

 
Things to remember:

  • A1 Credit urges future clients to be aware of illegal moneylender, make sure that the moneylenders that you deal with is registered under Ministry of Law;
  • To be able to fulfill the contract and agree legally on terms and conditions; and
  • To have enough income to repay the borrowed amount.

 
Read Review Visit Website

365 Credit Solutions Pte Ltd

First-time borrowers see 365 Credit Solutions as an accommodating lender because of its friendly and polite staff members – granting a seamless application for their financial concerns.

  • It is one of Loan Advisor’s top 10 licensed moneylenders in Singapore for the year 2020.
  • 365 Credit Solutions offers different types of loans including personal loans, payday loans, foreigner loans, business loans, and bridging loans. They have competitive rates of up to 4% per month
  • Clients are assured there are no hidden charges upon applying.
  • This lender guarantees loan applications can be processed within an hour.
  • 365 Credit Solutions does not solely take into account a borrower’s credit score but their ability to service their loans.

 
Things to remember:

  • 365 Credit Solutions suggests borrowers to always verify if a moneylender is licensed by checking the list under the Singapore Ministry of Law;
  • To be aware that licensed moneylenders can only charge a maximum interest rate of 4% per month as mandated by the law; and
  • To provide all the necessary documents for a swift evaluation.

 
Read Review Visit Website

Bugis Credit Pte Ltd

Clients agree most Bugis Credit staff members will get into each detail to help borrowers thoroughly understand all types of loans, including the terms and conditions that need to be taken note of.

  • It is among the most reliable moneylenders in Singapore.
  • Since 2007, Bugis Credit is a licensed money lending company offering personal loans, payday loans, business loans, and foreigner loans in Bugis Cube, Singapore. Those with a minimum income SGD 2,000 can avail of their personal loan solutions.
  • Bugis Credit guarantees a fast and easy application and appointment process with a 30-minute approval.
  • This lender accommodates flexible repayments for borrowers.
  • It has no hidden fees.

 
Things to remember:

  • Bugis Credit reminds borrowers to ensure the lender delivers the correct principal amount of the loan;
  • Pay the loan installments on time to avoid incurring late payment fees and interest; and
  • Retain all statements of accounts and receipts of payments as documentation when necessary.

 
Read Review Visit Website

GM Creditz Pte Ltd

Borrowers suggest GM Creditz is one of the most considerate lenders in Singapore- assisting clients on their bills and loans amid the COVID-19 situation.

  • It is one of the many licensed moneylenders with a five-star rating from over 330 clients on reviews.
  • GM Creditz offers monthly loans, foreigner loans, business loans, payday loans, and personal loans in City Hall, Singapore.
  • This licensed moneylender charges no hidden fees.
  • GM Creditz offers a flexible repayment plan.
  • It assures a 30-minute preliminary loan approval process for online applicants.

 
Things to remember:

  • GM Creditz suggest clients to double-check whether their lender is registered under the Ministry of Law;
  • To compare the best loan options suitable to their needs and repayment capabilities; and
  • To view trusted reviews.

 
Read Review Visit Website

Raffles Credit Pte Ltd

It’s always a good experience working with Raffles Credit, says most clients. Staff members are keen on listening to financial commitments before proposing options.

  • It offers a suitable plan according to the need, budget, and capability; making clients wise and responsible borrowers.
  • Raffles Credit provides personal, business, payday, and foreigner loans.
  • It claims to approve any application within 1 hour of submission.
  • It could charge up to 4% of the rate of interest on any loan provided.
  • It has no hidden fees and displays clear and simple terms.

 
Things to remember:

  • Raffles Credit reminds borrowers to consider the loan that will be used and the amount needed;
  • Remember they can apply from the comfort of their home with a few clicks online; and
  • Visit the office for an in-person and in-depth consultation.

 
Read Review Visit Website

Fortune Credit Pte Ltd

Fortune Credit is known to most of its borrowers for its compassionate and good service, as it considers various factors to ensure assistance will be given for clients.

  • Fortune Credit is a licensed moneylending company in Bugis, Singapore.
  • It offers personal loans, business loans, foreigner loans, wedding loans, renovation loans, payday loans, etc.
  • This moneylender provides free consultation and quotes and low-interest rates from 1% to 4%.
  • It offers unsecured loans and flexible repayment options.
  • Fortune Credit can let you borrow up to 6 times worth of monthly income.

 
Things to remember:

  • Clients of Fortune Credit are urged to consider to prepare all necessary documents for a faster loan application;
  • To visit their office for face-to-face verification; and
  • Pay attention to debt and make payments on time to avoid extra fees once granted the loan.

 
Read Review Visit Website

 

Steps to Apply

Most moneylenders share the same application process which consists of three easy ways.

1 – Call or apply from the comfort of your home with a few clicks using our online form.

2 – Visit the branch for an appointment to create a customized plan that suits your needs.

3 – Finalize the loan plan and receive the cash right after.

 

How to Choose the Best Personal Loan for You

While looking for the ideal moneylender or bank is already time-consuming, choosing the best personal loan could be way easier. Here are things you can consider to assure the loan you’ll avail best suits your financial needs.

  • Research about banks and licensed lenders from the internet. There are varieties of sites which produce information about the institutions which could match your details.
  • Be mindful of restrictions. Before applying, make sure you can use your money for the purpose you have in mind. Take note that if you want to use the money for home renovation, there could be a different lender/package that fits well.
  • Comparing rates, terms and other fees can get out of hand. Using a personal loan calculator will enable you to compare many options and still make a fast decision.
  • Although most moneylenders consider those with low credit for borrowing, it’s better to build a better credit score. Improving it, even incrementally, can help people get a better rate and terms regardless of where it falls on the scale.
  • Make relevant inquiries and stay away from predatory lenders. It’s best to verify your lender whether they are listed under the Ministry of Law and check reliable reviews as an assurance. Finding quality lenders can help you identify an option that will definitely work for you.

  

Best Personal Loans in Singapore Today

Forget doing multiple loads of searches on where to get your personal loan. Moneylender Review has listed down licensed moneylenders you can choose that are beneficial for your financial demands.

  

FAQs

Personal Loan

How does a personal loan work?

Personal loans are a type of installment loan, which allows you to borrow a fixed amount of money and pay it back with interest in monthly payments. Its amounts vary from lender to lender but what you qualify for is based on your credit health.

This type of loan can be used to finance an expensive medical bill, big purchases, consolidation of your debts, and funding for a small business. It can also be considered as a top-up for renovation loans and as a good resource for urgent cash.

How much can I borrow?

The Monetary Authority of Singapore (MAS) currently limits how much a client can borrow to 12 times their monthly income. This is to ensure Singaporeans don't over-borrow and suffer from financial difficulties, which could have negative effects on the overall economy. Most banks can offer from $500 up to ten times a borrower’s monthly salary. 

For moneylenders, if a foreigner client’s income is less than $10,000, they can loan up to $500; if the income is at least $10,000 and less than $20,000, they can get up to $3,000, if their income is above $20,000, it’s likely they can avail for a loan 1 to 6 times of their income.

What are the interest rates and fees a moneylender can charge me?

In Singapore, the licensed moneylenders are accredited by the Registry of Moneylenders. They are obligated to adhere to all the established lending guidelines, interests, and service fees in order for them to operate. Here’s a list of legal fees that moneylenders can only charge to borrowers:

  • a fee not exceeding $60 for each month of late repayment;
  • a fee not exceeding 10% of the principal of the loan when a loan is granted; and
  • legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.

How long to get my personal loan approved?

Personal loan approvals can take anywhere from a few minutes to days, depending on the type of lender. Licensed moneylenders can grant your loan in as fast as 30 minutes, while some banks and credit unions can take as long as a few weeks.

What are the minimum and maximum loan repayment periods?

Repayment would normally vary depending on the amount that you have borrowed. There is a loan repayment period calculator that people can use online to compute how long it’s likely to take to repay their loans.

Usually for moneylender, the maximum repayment period is up to 12 months subject to the terms and conditions of the agreement. For banks, the tenure is up to 5 years.

What is the difference between personal loans and payday loans in Singapore?

Various licensed moneylenders will have different policies for their personal loans and payday loan offers. However, generally, personal loans have longer repayment periods. Payday loans, from the word itself, requires clients to pay back their loan in full plus the finance charge by its due date, which is typically within two weeks or by your next paycheck.

I have taken a personal loan with another bank/lender. Can I still get a loan with you?

Yes, you can take multiple loans. But even though you can apply for over one loan, your application will still be subject to evaluation to make sure that you don’t over-borrow and suffer from financial troubles. Money lending in Singapore undergoes a strict process to protect both the borrower and the moneylender.

Where to get a personal loan near me?

Through Moneylender Review’s searching tool, potential borrowers can easily look for lenders that are near their area which offer the most ideal loans for them.

What are the types of personal loans available in Singapore?

Personal Instalment Loan - This can be used by Singaporeans and permanent residents in the area. This involves borrowing a specific sum, paying a 1-time processing fee and agreeing to repay the amount in fixed monthly repayment. The loan interest and fees are calculated for the whole loan tenure and added to the total loan amount. 

Foreigners can also apply for it, but the conditions require an employment pass of at least 6 months validity, and 3 months' payslips to generate your annual income.

Line of Credit - is an overdraft facility that only charges interest when you withdraw from the account. Once approved, the funds can be withdrawn via ATM, cheque, internet banking, or by going to a physical bank branch. You are charged loan interest the moment you draw funds. No loan interest is charged, when you repay the funds.

It typically has an annual fee ranging from $60 to $120. While its interest rates are generally between 18% to 22% p.a, before any promotional offer. This is deemed useful as a standby cash fund for unexpected expenses.

Fund Transfer - This loan uses the available credit on your card. You pay a 1-time processing fee and enjoy a very low interest or 0% rate for between 3 to 12 months.

Banks normally charge a 1-time processing fee of between 1% to 5% on your approved loan amount. The best balance transfer offers will waive this processing fee. Balance transfers are ideal should you need cash urgently, or have a big, short-term expense on the horizon and want to avoid high-interest rates on other types of loan facilities. 

Debt Consolidation Plan - This loan is a government-approved scheme available with all leading banks in Singapore. It brings together all your open unsecured credit under 1 easier repayment and debt management. 

Depending on the bank and promotional rates, the Effective Interest Rate is typically between 6.7% to 12% p.a. This is commonly used by those who are having trouble keeping up with loan repayments and have a rough guide being 12x monthly salary.

Any alternatives to personal loans?

Credit card - This allows you to make purchases and pay back what you owe little by little over time or all at once. If you repay your balance in full within a month, you’ll avoid interest charges.

Payday Loan - This is a short-term loan that gives you money that you need until you receive your next paycheck. 

A personal line of credit -  Similarly to a credit card; you don’t follow a set payoff schedule for your debt, and you can tap your credit line on an as-needed basis.

Peer-to-peer (P2P) - These loans are like personal loans, except they are funded by individual investors rather than a single lending institution.

Home equity loan - This is a second mortgage that gives you a lump-sum amount of money that is repaid on a set schedule. The amount you can borrow is determined by the amount of equity you have in your home, and terms range from five to 15 years.

Small business loan - A business loan can help keep your personal finances separate from your business expenses. These also tend to have lower interest rates than personal loans.

Can I use a personal loan to buy a car?

Yes. Depending on your circumstances, a personal loan may be the best option for financing your vehicle purchase. It's advisable as you can receive the money within a few days and aren’t required to find the vehicle you plan on buying first. There is also no collateral needed.

Is it better to use a credit card or a personal loan to pay for my honeymoon?

While you could use a credit card to pay for a wedding, there are downsides. Should your card contain a high annual percentage rate, carrying a large balance over an extended time period could make your wedding more expensive than you’d planned.

A personal loan, on the other hand, could be a cheaper way to cover all your wedding costs. It also may have better interest rates than a credit card and take less a toll on your credit score.

Term loan vs credit line — which should you choose?

Also deemed as a business loan, with a term loan, you receive a lump sum of capital that you pay back over a specific time period with a set interest rate, which might be fixed or variable. Meanwhile, a line of credit is one of the most flexible financing products on the market. 

While both term loans and lines of credit can provide you some much-needed capital, they have different use cases. Term loans are best for specific, one-off purchases. Lines of credit, on the other hand, are best for ongoing operating expenses. This type of financing is much more flexible and is usually revolving, meaning you don’t have to reapply each time you use and repay your loan.

What is the difference between Effective Interest Rate (EIR) vs Flat Interest Rate?

A Flat Interest Rate plan computes interest payments based on the initial principal. In Singapore, it is normally applied to car loan financing. Meanwhile, the Effective Interest Rate plan computes interest payments based on the remaining outstanding principal at the end of each term and works on computing interest on a reducing balance basis. This is applied for mortgage loan financing in Singapore.