Get the best personal loans in Singapore

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In Singapore, there is no shortage of services ready to lend you money. Banks have made personal loans extremely easy to obtain, with approval processes that sometimes take only a few hours and up to a day or two. Even credit card debt is also available at high interest rates. And then there are the so-called “approved lenders” who are ready to give money to almost anyone. Who are these people and is it worth borrowing money from them?

According to the Ministry of Law of Singapore, there are approximately 160 approved lenders in Singapore, with 5 others which are suspended. These companies target borrowers who have difficulty obtaining loans from more conventional sources like banks. Because banks generally require a minimum annual income and a certain level of good credit history, they tend to reject loan applications from low-income people who are in desperate need of a loan to pay for an emergency. Therefore, approved lenders provide loans to these people at higher than normal interest rates.

Interest rates at approved lenders

Many of these places offer loans like payday loans, which have extremely high interest rates. Even after the government instituted a 4% cap on monthly interest rates, this level can still be up to 2 times higher than what you would see on a credit card or 4-5 times higher than personal loan rates from banks. Therefore, we absolutely do not recommend going to these services unless there is absolutely no other alternative. Below, we summarize and compare the key features of approved lenders versus a bank. When you borrow S$500, paying S$20 interest for 1 month may not seem exorbitant. However, if you don’t repay such a loan immediately, it could cost you hundreds of dollars in fees and interest, potentially as much as the S$500 you borrowed.

Approved Lenders vs Banks

Consider this if
you want to compare rates from different lenders at once

If you have bad credit, a low salary, or are unable to get a personal loan from a bank, you may want to consider a loan from a pawnshop rather than a moneylender. salary. Because approved lenders target customers who have been waived by banks, they have distinct characteristics that meet the needs of a different set of customers. The biggest difference is the risk profile of borrowers. Because banks focus on people with credible credit histories backed by stable income, they are inaccessible to people who earn less than $20,000 and do not have credible credit histories. On the other hand, approved lenders specialize in loans to the latter category of people. There are some consequences of this key difference.

For example, approved lenders tend to provide only small loans of up to S$1,500. Especially for payday loans for people earning less than $20,000 a year, they’ll likely lend 24% less than your monthly salary, capping the amount you can borrow at around S$1,200. Because lenders are much smaller organizations than banks, they cannot afford the risk of extending a huge loan to someone with a very risky credit profile. In contrast, banks can lend you around 2-6 times your monthly salary up to $200,000, although they only lend to borrowers with stable income.

In addition, the small size of approved lenders allows them to grant loans extremely quickly. Sometimes within the hour, if not sooner. While personal loans in Singapore from banks are already quite competitive and extremely efficient as they are made available to borrowers within 24 hours of application, such speed still pales in comparison to the flexibility with which approved lenders can operate. .

Last but not least, the biggest difference lies in the interest rates charged by these lenders. While bank rates tend to range from 5% to 7% (and up to 25% for credit card debt) per year, approved lenders can charge 30-50% per year. If you still need a loan from an approved lender, we recommend using Lendela, an online platform that offers free, personalized personal loan offers. It’s a great choice for those who want to compare all their options before applying for a loan.

Approved lenders Banks
Cut Less than S$1,500 2 to 6 times the monthly salary up to S$200,000
The rapidity Extremely fast, 30 minutes to a few hours 1-2 days
Rates Extremely high, 4% per month Low, 1% per month
Lending standards Down High


There are better options than borrowing from an approved lender. For example, credit card debt and personal loans are cheaper and more accessible unless you don’t have access to them. Maybe you could borrow a few hundred dollars from your friends and family. If nothing else happens, approved lenders may not be a bad last resort, as long as you pay the money back quickly. Because they’re licensed and regulated by the government, at least you won’t have to worry about the violence and other complications that often accompany borrowing from loan sharks. If you’re considering getting a loan from a licensed pawnbroker, it may be time to reconsider your life and take steps to make some significant changes so you don’t find yourself going back to these pawnshops all the time. the future.

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