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Where can I Borrow Money in Singapore?

Loan Approval

At times of financial difficulties, we are all looking for trustworthy financial institutions that could lend us money. While there are a lot of companies and businesses offering money loans in Singapore, we must make sure that we choose the best one. We have to look for a money lender that provides the kind of service that fits our specific needs.

This article will help and guide you in choosing where to apply for a money loan in Singapore. Know the difference between the different types of money lenders. And hopefully, decide which among these options, money lending services is best for you.

Where to get a money loan in Singapore?

In Singapore, you have a lot of lenders to choose from, such as banks, licensed money lenders, or even non-banking financial institutions. This does not mean, though, that these choices are made equal. In fact, there are certain choices better than the other. Here are the options you have if you are thinking of taking a loan in the near future.

1. Banks

Banks refer to financial institutions that accept deposits from the public while also providing low-interest loans such as a business loan, personal loans, cash loans, a renovation loan, and other more. Without a doubt, banks are significant in the financial system of the country. This is the reason why the Singapore government heavily regulates banks. Borrowers must only negotiate with banks included in the government’s official list found here.

Banks offer various financial services aside from deposits, savings, or loans. Customers can also apply for debt consolidation in banks. Note that banks do have their own deals and policies, inquire about the loan requests to the loan officers of your bank, so you know what loan options you have.

2. Licensed money lenders

Also known as legal money lenders in Singapore, these are private companies that offer short-term and long-term loans in a non-conventional manner. Their business is solely focused on providing loans. Every licensed money lender must follow government regulations. Various government agencies are involved in regulating licensed moneylenders.

The Ministry of Law has an official list of licensed moneylenders, also called the registry of moneylenders, which can be found here. Only a money lender who follows the strict guidelines set by the government gets to be included in the list. Note that lenders who do not operate under the moneylenders’ act and rules are called loan sharks or an ‘Ah Long.’ Borrowers should not deal with these illegal businesses as they can be abusive and exploitative towards their borrowers.

3. Pawnshops

Also known as pawnbrokers, pawnshops can be an individual or business that offer secured loans. Pawnshops offer a collateral-based loan. This means that the shop has to take a valuable item from the borrower. The broker will then evaluate the value of the loan. After this, the money will be lent to the borrower.

Pawnshops in Singapore are under the jurisdiction of the Ministry of Law. Here is the list of licensed pawnbrokers in Singapore. Meanwhile, here are the relevant laws and regulations for those thinking of borrowing money from pawnshops. Note that these rules and laws are meant to protect the borrowers. Hence, it is crucial for borrowers to read and understand them.

4. Non-bank Financial Institutions (NBFIs)

Technically, all lending companies that do not have a bank license are called non-banking financial institutions. Examples include investment banks, mortgage lenders, insurance companies, hedge funds, and peer-to-peer lending (P2P). Unlike the three other examples mentioned above, NBFIs are not governed by the Ministry of Law or any other Singapore government institution. Instead, they have their own rules and regulations. Hence, borrowers are exposing themselves to a certain degree of risk.

Comparison table

To determine how these financial institutions differ from another, below is a comparison table. Note that certain aspects of borrowing are emphasized here, including how long the loan application can be, the amount of loan one can borrow, the interest rate of the loan, the repayment period, and the service fees or other charges. You have to identify which of these aspects is important to you for you to know which of the options work best in your situation.

Banks Moneylenders Pawnshops Non-banking financial institutions
Application process 3 days to a week An hour to a day Less than an hour to a day Days or weeks
Loan amount Up to 12x monthly income $200 to 4x monthly income 25%-60% of the item’s resale value As high as $5,000 to $10,000
Interest rate Around .5% to 1% per annum Around 2% to 4% per month Around 1.5% per month, additional amount if the redemption lapsed 1% to 5% or even higher
Repayment period 1-5 years Can be renewed Can be extended but with an additional fee 1-5 years or depends on the institution
Fees and other charges Service charge is 1-5% of the principal loan amount $60 for each month of late repayment; service charge is 10% of the principal loan amount Around $10 No limit depends on the institution

Application process

Among the loan company options, the fastest loan application process is through moneylenders and pawnshops. It only takes less than an hour or a day to get your loan approved. Meanwhile, banks and non-bank options may take a longer time to approve a loan. Note that non-bank institutions have varying policies. Hence, it is difficult to say what the average length of the loan application can be.

Loan amount

Aside from the policies of each financial institution, the Singapore government has its own rules and regulations when it comes to the amount one can borrow. This is to make sure that no group or individual gets to drown in debt. Banks and moneylenders can lend money based on the monthly income of the borrower. Meanwhile, the amount you can borrow from a pawnshop depends on the collateral you are pawning.

In the case of non-bank financial institutions, they are not under the supervision and regulation of a government body. Hence, it is up to the institution how much they are willing to give. In such a case, the borrower does not really have a say on the amount of loan they can borrow.

Interest rate

Among the financial institutions lending money, banks remain the institution the gives the lowest interest rate. Licensed moneylenders have fairly high-interest rates as they are bear a greater risk when it comes to lending money. When it comes to finding the institution with the lowest loan interest rates, it is best to talk to loan officers so you can find the most competitive deal.

Also, remember that you can always negotiate about the terms and conditions of your loan. Find time to get in touch with the staff if you can get the best and most hassle-free loan offering if the financial institution you are dealing with.

Repayment period

Most banks and non-banking financial institutions have a repayment period of 1 to 5 years. Meanwhile, other lenders have more flexible repayment plans. Note that extending your loan period can mean that you have to pay additional charges.

Fees and other charges

Service charge or loan fee refers to the amount you need to pay upon getting the cash from your loan. Remember that aside from paying the amount interest, financial institutions would also ask to pay additional charges if you fail to settle your loan in time. Lending companies do have their own fees and other charges. You must ask the details about your loan contract to know about these.

Which to choose?


Probably the most popular place to apply for loan products is the banks. They offer low-interest rates for personal loans, business loans, and other types of loans. Also, they are known to provide loans for groups and individuals needing a lot of money. Those looking for capital for a business or money to purchase a car or a house often go to banks to apply for a loan.

One notable downside of going to banks is that they do have a lot of requirements, such as identification documents and financial records. Most of the time, they only accommodate clients who have a good credit history. Also, the loan application may take a long time.

Licensed Moneylenders

Licensed moneylenders in Singapore have become popular in recent years. People who need money immediately choose to apply to these private lenders because they do have fewer requirements, and loan approval is fast. Even those with bad credit score can apply for a loan. Also, licensed moneylenders offer various types of loans, including a fast cash loan, a payday loan, a foreigner loan, and many more.

One disadvantage of choosing a licensed moneylender is that it has relatively higher interest rates compared to banks. Also, borrowers are limited to borrow a certain amount of money. This means that if you are planning for a big purchase, going to a legal money lender might not be the best choice.


Note that you are not selling the item to the pawnshop. Instead, you are borrowing money from them, and the valuable item is just collateral. As a result, you could lose your item if you fail to settle your debt. Pawnshops are best for those who are uncertain if they could pay back their loan. Pawnbrokers would just have to take your valuable item as a payment of your loans.

Non-banking financial institutions

Borrowing from these institutions is for those who have exhausted all other lending options. Also, these are less informal institutions, which means that borrowers have direct interaction with the lenders.

One problem with NBFIs is that they do not have the same level of accountability to regulators. They operate outside the typical rules and regulations, followed by banks. This means that borrowers have to consider the risk attached to borrowing to institutions like this.

Eligibility and requirements

When it comes to eligibility, Singapore citizens, permanent residents, and foreigners are all eligible to take a loan. You just have to be at least 21 years old up to 65 years old to be able to take personal loans or other types of loans. For Singapore citizens and permanent residents, you must be earning at least $30,000 per year. For foreigners, you must be at least earning $42,000 a year.

In terms of requirements, lending companies have their own policies. Generally, banks ask more requirements while licensed moneylenders ask for the least. Also, take note that a foreigner has different requirements from a Singapore citizen or a permanent resident. Here are some of the common requirements you have to prepare if you are thinking of taking a loan in the near future.

  • National ID card (NRIC)
  • Proof of residency (utility bills)
  • Proof of income (latest payslip)
  • Income tax statement
  • Latest bank statement
  • Work Permit
  • Employment pass


Moneylending has become an important aspect of life in Singapore. It is critical that people choose the best credit company to fit their specific needs. If you find it difficult to find which company to trust, you can use loan comparison sites to know the strengths and weaknesses of each company.

Remember to trust only licensed and registry lending companies. If you choose to apply for a loan to a licensed money lender, 365 Credit Solutions can help you.

We are a legal money lender with years of experience in providing a personal loan, foreigner loan, business loan, payday loan, and many other more. We guarantee customer satisfaction and a great loan contract.

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