1 Fullerton Credit Pte Ltd is a licensed moneylender (License No. 100/2023) listed in the Registry of Moneylenders, under the Ministry of Law in Singapore.

How To Get The Best Personal Loan Singapore

best personal loan singapore


Do you need more cash for a start-up business investment? Or perhaps you need cash to invest in a home renovation? Most people depend on money lenders in Singapore for their big-ticket expenses. While it’s advisable to apply for a loan if you can repay it, there are certain exceptions like needing money for education fees or hospital bills.

In this article, we will discuss the best loan in Singapore that you can avail of. We are also touching upon the different types of personal loan Singapore, the advantages and disadvantages of getting one, the best lending company for funding packages, and more. 

What are personal loans?

In general, a personal loan provides money borrowed from lending companies, banks, and other financial institutions. They are paid back in installments and have varying interests.

A personal loan in Singapore is not usually secured with collateral. Some lending companies accept collateral in exchange for a lower rate. Most lending companies impose no restrictions on where you can use the money.

In Singapore, loan interest can vary among banks such as OCBC. Remember that lenders will review your annual income and credit score to determine the applicable amount. 

Banks and money lenders impose different terms, conditions, and rules for approving applications. Some may require your minimum annual income to be at least S$30,000. If you are a borrower from overseas, the requirements will be different.

Types of Singapore personal loan

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1. Secured

Secured loans necessitate the borrower to use collateral with relative value for the loan amount. There are a lot of items that can be used as collateral, such as real estate properties, vehicles, or jewelry. Giving up an item as collateral will allow the lending company to seize it in case you are not able to pay up.

With secured loans, the lending company has the benefit of security for delinquent payments, while borrowers have the benefit of low interest. Secured loans are much simpler to acquire from reliable money lenders.

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2. Unsecured

An unsecured personal loan removes the requirement of using collateral. This makes it a perfect choice for people who cannot afford to lose their vehicles or real estate or do not own any valuables to use as collateral.

However, it will be harder to get qualified for a loan. You might have to persuade the lending company that you can pay the monthly payments by proving that you have the financial capacity to do so.

One way of doing this is by providing your payslips. You can also get the help of a family or a friend that trusts you to act as a guarantor. Borrowed cash with no security typically has high rates compared to those with collateral, and that is justifiable since unsecured loans don’t take any collateral. 

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Is It a Bad Idea to Apply For a Personal Loan?

Applying for a personal loan Singapore is not a bad idea unless you only need cash to pay for unnecessary expenses like buying a new smartphone and other vices. The important thing to remember is your ability to pay off the loan. 

Take note that borrowing a bigger loanable amount will entail a stricter background check and more documents. Some of the usual requirements include your age (21 to 65 years old), a cash line or credit card account, and a deposit account for cash disbursement.

You can apply for personal loans Singapore for your debt consolidation plan. If you owe cash to different credit cards, for example, you can use borrowed cash to pay off the balance. Most credit cards impose an average rate of interest of 25% versus rates that average between 9% and 13%. This is a good usage of borrowed funds.

Some credit cards charge a minimum of 15% interest, which is still a bit high. Remember that interests are different cash advance fees when you use credit cards to take cash from an ATM. It’s technically a personal loan but with tremendously high rates and charges.

If you are having credit card debt Singapore and want to pay off fast, read here.

How do you qualify for personal loans?

Below, we will give you some tips on how to make your application easy.

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1. Find out your credit rating

First, find out your credit rating first before applying for a personal loan. Your credit rating will considerably influence your loanable amount, loan tenure and interest as well. 

Additionally, having a high credit score is a factor that money lenders consider when deciding on the approval of your application. 

If your credit score is low, work on increasing it first before submitting your application for a personal loan.

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2. Compare lenders

One way of making your search easy is by doing a comparison of possible lenders. Even though the range of lenders offering personal loans is limited, there are still enough differences. 

This is why it is important to evaluate lenders to find out which lender has the ideal amount and interest rate. Watch out for lenders offering secured or unsecured loans, especially if you do not have something that you can use as collateral.

You can search for personal loans in banks, financial institutions, and licensed moneylenders in Singapore such as 1 Fullerton Credit.

3. Sign up for pre approval

If the lending company in Singapore supports it, you can opt to apply for preapproval to get a glimpse of what interest rate you will get even without making an application that can affect your credit score. 

By doing this, you will be able to identify which lenders offer favorable terms and conditions and rates, which will help you in making decisions.

Should you take a personal loan?

If you have the capacity to pay up for a personal loan, then take it. For example, if you are using the loaned money for business purposes that have guaranteed returns.

It is not recommended to take up a large financing for buying expensive items or going to vacations since chances are you will have a hard time paying for it if you don’t have a source of income to pay.

What documents are needed to apply for a personal loan? 

When applying a loan with a lender, you would need to present certain documents and information for the loan application to proceed. These are some of the documents needed: 

  • NCRIC/ Identity card
  • Your proof of residence such as a utility bill, a letter addressed to you or a tenancy agreement under your name
  • Proof of employment such as certificate of employment or your most recent 3 month payslip 
  • SingPass (to log into your CPF, HDB & IRAS website)

Things to consider when borrowing money in Singapore

1. Interest Rates

Most personal loans in Singapore are offered by banks with various conditions on the maximum effective interest rate EIR and loan tenure. You need to use the EIR when you have to review loan offers from different banks such as a DBS personal loan, but don’t forget the annual flat rate as well. The annual flat rate will determine the amount that you need to pay every month.

The average annual flat rate of 9% to 13% for a personal loan is applicable to borrowers with an annual income of less than S$30,000. If your income is above average, you can pay a flat rate of 6% for a loan. 

You should also be careful about applying for a loan with so-called 0% interest. Remember that a lender in Singapore will approve your loan to earn from the interest charges.

If the 0% offer for a loan seems legitimate, there can be additional charges like origination or processing fees that will be deducted from the approved personal loan. Singapore banks should deduct between 2% and 3% of the principal loan amount if they offer. In other words, it’s rare to apply for a loan without paying any fees.

2. Promotional Offers and Perks

The timing of your application is also important to save money. Some banks like OCBC or DBS/POSB may offer a rebate or cashback when you pay ahead of the due date every month. Read the terms carefully to qualify for the cashback offer. 

DBS/POSB also offers debt consolidation for those who need to refinance a loan. If you earn more than the average amount, you can apply for a loan worth up to 10 times your monthly salary.

You might think that it’s better to use credit cards, especially if you have a low credit score, but there are lenders who are willing to approve a loan even for people with a credit score of 550. You should expect to pay higher rates for a loan and look for other sources. However, banks like OCBC may not approve a loan if your credit score is too low.

3. Repayment term

The repayment term of borrowed money determines the amount of time that a borrower has to complete their payments before it defaults. Some situations will suit a short term loan Singapore. For example, if you intend to use the cash in a fluctuating market or operational expenditures.

Meanwhile, a longer repayment term is better if you cannot pay up fast enough.

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What is the best place to borrow money?

There are many financial institutions that would loan you the money you require, though most have their own requirements and terms. Banks are always a good place to start, if you can pass the requisite background checks, credit score checks and the like. 

A credit card however, is not a good choice as the hefty upfront fees and large interest rates would make using it a risk, even if you make the monthly minimum payments on it judiciously.  

Aside from banks, the best place to for personal loan is from licensed money lenders like 1 Fullerton Credit. 1 Fullerton Credit has a long history of serving our customers and giving them the best rates along with flexible repayment terms in order for them to meet their financial obligations. 

They have numerous rave reviews online from happy customers all over Singapore, making us one of the most trustworthy licensed lenders around.  

On the other hand, while you don’t need to repay Singapore personal loans from a bank or money lender immediately, that doesn’t mean that you should relax on money management. Don’t forget to pay off your monthly repayments on-time every month since lenders may charge a late payment fee. Your credit score will also suffer even with just one missed payment during the tenure.

For overseas borrowers, the best option involves borrowing money from money lenders offering personal loans. It can be difficult to make an application from a bank such as DBS/POSB and OCBC if you are not a resident. For example, a DBS personal loan requires borrowers to have permanent residency status.


Increase your chances of securing the highest possible amount with low interest by improving your credit score. Singaporeans with a poor credit history should know that they are actually an alternative way to apply for a personal loan such as a licensed money lender. If you need to check how much you can borrow for a Personal Loan, contact 1 Fullerton Credit today to find out more.

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