Just like finding the best dining deals, looking for the best personal loan in Singapore can prove to be an uphill task.

You’ll have to factor in things like the right lender, an affordable interest rate, plus the required documentation.

If you’re like most Singaporeans, reduced interest rates are a crucial matter because these add up to the final amount you’ll have to repay.

However, here’s what you need to know:

Interest rates depend on your income, the loan tenure, and how much you’re borrowing. These elements outline the likelihood of defaulting on your loan, otherwise known as your risk profile.

Your risk profile isn’t all that matters, though. Your bank’s philosophy also plays a significant role. This means that some financial institutions in Singapore offer affordable personal loans, whereas others don’t because they don’t want to risk it.

Choose carefully, and you’ll secure a low-interest loan from your first try. We’ll let you in on the secrets.


What Are the Best Bank Loans In Singapore?

Most banks in Singapore don’t lend sums below the threshold of $500. Some don’t even accept applications below $1,000.

Besides, your annual income influences the principal loan amount, which is also how much you’re borrowing. Remember that this sum includes additional fees for processing your request and administrating your account.

Many banks in Singapore lend you 4 to 10 times your monthly income. The higher your salary, the higher the probability of loan approval and the amount you can borrow. Hence, they are more likely to approve loans from individuals with a higher-income, as they’ll have a lower chance of defaulting on debt.

This is why most Singaporeans in your shoes choose licensed money lenders. Unlike unlicensed moneylenders, the Ministry of Law regulates the practice of these financial institutions, so they’re safe and convenient.

If you’re still considering taking a loan from a bank first, here are some of the best bank loans in Singapore:



HSBC is best if you need to borrow a lot of money because the maximum loan tenure is seven years and the interest rate goes up to 7% EIR. Bonus: there’s no processing fee.

However, their loan approval is lengthy, so you need to apply well before you need the money.


2. Citibank (Citi Quick Cash)

The Citi Quick Cash addresses people who’ve never taken a loan from Citibank before. This bank also offers zero processing charges, but the loan tenures vary from 1 to 5 years. Besides, the effective interest rate gets up to 8.5% per year for a 3-year term.


3. Standard Chartered

Standard Chartered has a next-day loan approval for a maximum sum of $819. If you didn’t get this option or need more money, their usual loans are reliable too. The interest rate is 3.48%, there’s no processing charge, and you can borrow up to $250,000.

Therefore, Standard Chartered has one of the best personal loan offers in Singapore to date.



This option is among the best if your annual income is low. Here’s why:

Although the processing fee is 1%, you can apply via SingSaver for instant approval and loan disbursal of loans over $500. Besides, the interest rate is about 3.88% per year (EIR 7.56% p.a.).



OCBC features enticing interest rates as well, with just 3.5% p.a. (EIR 7.27% p.a.). If you’re already a customer, though, the rates are a bit higher.

On the downside, the processing fee is 1%, and you can only apply for loans over $1,000.


6. UOB

UOB is another reliable option, mainly as it stays true to its slogan “Cash when you need it.” If you apply online, you can get your loan approved immediately.

You can borrow amounts upwards of $1,000, at interest rates of 3.68% p.a. (7.21% EIR) and get $500 cashback.


Banks vs. Moneylenders: Which Is Cheaper?

Banks vs. Moneylenders: Which Is Cheaper?


As a general rule of thumb, taking out a loan from licensed moneylenders will be more expensive. This is due to their higher interest rates.

But, that’s not the whole story.

If you can’t secure a bank loan because of your low credit score, moneylenders are a convenient alternative. Another reason why licensed moneylenders are popular are also due to their shorter loan processing time. The application process is less tedious with fewer paperwork to go through.

Or, you may have no credit history at all. In this case, obtaining an initial loan from a trustworthy moneylender can make or break your other applications down the line.

So, if you want to avoid the hassle of bank loans, look no further than Lending Bee. We offer affordable and customised financial solutions. Besides, we approve applications much faster than banks because we don’t request as much paperwork.

Here’s another advantage with Lending Bee:

We do not require that you have a minimum annual income to be able to apply for a loan with us. That said, only those above 21 years of age are eligible to apply for a loan with us.

At Lending Bee, we understand that there may be instances in our lives where we require money quickly, and they might be put in a spot especially if they have poor credit, or little to no credit history available. This is why we strive to help as many borrowers as possible.


What Is The Interest That Licensed Moneylenders Charge?

If you’re thinking of applying for a loan with a licensed moneylender for the first time, ensure that you are privy of the fees that they can charge you.

For starters, do note that all licensed moneylenders in Singapore will not charge you an interest rate of more than 4% per month, regardless of the type of loan you’re getting. This includes Lending Bee.

And there’s more:

The interest rate can’t go higher than 4% per month even for late repayments. As such, your interest is calculated only from what remains of the initial amount you borrowed.

Confused? Let’s make it simple:

If Mr Goh has to repay $5,000 out of his $15,000 initial sum, we’re calculating the interest based on the remaining $5,000.

Now, let’s say Mr Goh fails to repay his subsequent instalment of $500. We’ll charge the late interest rate for this $500 he missed, not the whole remaining $5,000.


What Other Fees To Expect With Licensed Moneylenders?

What Other Fees To Expect With Licensed Moneylenders?

The Ministry of Law has regulated the charges that licensed moneylenders can ask for as follows:

  • The total fees can’t add up to more than the initial loan amount.
  • The maximum repayment fee is $60/ month.
  • The maximum processing fee is 10% of the principal amount.
  • If the moneylender takes you to court for loan defaulting and wins, they are entitled to ask for legal costs repayment.


Best Tips To Secure The Lowest Interest Rates From Licensed Moneylenders

After going through all the aforementioned points, the burning question on your mind would probably be how to ensure that your interest rates are kept as low as possible.

Lucky for you, we’ve rounded up the best tips for you to start:

1. Work On Your Credit Score

Low credit scores show a higher risk of loan defaulting. Therefore, a higher credit score increases your chances of loan approval. Plus, you can borrow more money, increase your loan tenure, and pay lower interest rates.

The first step is to make prompt repayments on your bills and instalments. Settle your previous debts and close any unnecessary credit lines.

Pro tip: Many loan applications within a short period decrease your credit score so only apply for loans you can get.

2. Choose Secured Loans

Secured loans have lower interest rates because they’re safer.

If you secure your loan with collateral such as jewellery, a car, or a property, moneylenders might offer you rates as low as 1%. The risk, however, is to lose your collateral if you can’t repay the loan.

3. Ask Someone To Co-Sign Your Loan

This option is best if your credit score is low and don’t want to risk losing the assets you put up as collateral. A guarantor with a high credit score increases your chances of loan approval because their risk of loan default is low.

Therefore, the moneylender rests assured they’ll get their money back, without the need for substantial interest rates.


In A Nutshell

Getting the best personal loan today is dependent on various factors. Things such as your credit score and annual income will all come into play, as discussed above.

However, the factor that distinguishes licensed moneylenders from banks is speed. At Lending Bee, we are committed to providing our borrowers with affordable loans with friendly interest rates. If all goes well, we’ll be able to approve your loan within the hour! Find out more about our wide variety of personal loans today.

About Lending Bee

In a volatile, uncertain, complex and ambiguous world, you can count on one thing – your partner in credit, Lending Bee. Just like an industrious bee, we are committed to helping each and every customer access credit – quickly, easily and seamlessly.