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 a Personal Loan in Singapore with Lowest Interest Rate?


Looking for the best personal loan in Singapore can be a daunting task. There is a lot you have to think about, from the lender to the loan interest to documents needed.

Getting low interest rates for your personal loan is one of the most important aspects when searching for personal loans in Singapore. Finding out how to obtain such loans is as important as actually getting it as it will affect the amount of money you would be repaying long term. 

Singapore personal loans are an example of cash loans. According to ValueChampion, the actual cost of getting a personal loan will depend on a person’s annual income, principal amount, and loan tenure. Banks use these three factors to determine a borrower’s risk profile. 

The lowest possible interest rate for your personal loan can also depend on several factors such as the economy and regulatory activities of the authorities can also affect the interest rates for loans in Singapore.

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Which Bank Loan Is the Best in Singapore?

If you are planning to apply for a personal loan from a bank, you should know that most banks in Singapore won’t lend money below $500 to $1,000. The amount that you can get also depends on your annual income. Don’t forget to take into account extra charges such as a processing or administrative fee.

It’s possible to borrow up to 10 times your monthly income depending on the bank, but you’ll need to have a bigger income to qualify for a higher principal. Banks are more likely to approve a loan to higher-income individuals, simply because they are more capable of repaying their debt than lower-income borrowers. 

These strict rules and regulations are what make money lenders a better alternative for those who have urgent financial needs.

Whether you choose to borrow money from a bank or licensed money lender, remember that the Ministry of Law has certain guidelines that protect consumers from unscrupulous financing terms.

The Best Bank Loans Offered in Singapore in no particular order


1. HSBC Personal Loan

With zero processing fee and 3.7% interest rate, HSBC personal loan is a good choice for people who need to borrow a large amount. If you have a limited ability to pay for a monthly installment loan, you will like the 7 years maximum loan tenure. 

The effective rates for HSBC loans is 7.00% p.a. Be sure to apply early if you need the cash soon, since it takes days or a week for your loan application to get approved and released.

Citibank logo

2. Citibank Personal Loan (Citi Quick Cash)

This loan requires the applicant to be a new loan customer in Citibank, so if you have already taken a loan from this bank before, you are out of luck. Having said that, if you are a new customer, you can enjoy Citibank’s Personal Loan with 4.55% interest rate and zero processing fee. 

The minimum loan tenure allowed is 1 year, with the maximum set to 5 years. Meanwhile, the effective interest rate is 8.50% p.a. computed on a 3 year loan duration.

Standard Chartered logo

3. Standard Chartered Personal Loan 

There is also an ongoing promotion of next day loan approval capped at S$819. If you missed this promotion, or you want to apply for a higher amount, there is no need to worry. You can still apply for their regular personal loan featuring a 3.88% interest rate, zero processing fees, and a maximum loan ceiling of S$250,000.

Do Money Lenders Charge More Than Banks?

Generally speaking, licensed money lenders have a higher loan cost when compared to banks. As such, when you submit a loan application with a money lender, you should expect to pay a slightly higher interest rate.

The reason why other loan providers impose higher interest rates is mainly attributed to the borrower’s creditworthiness. Since banks are no longer an option for people with poor credit scores, money lenders have been their last resort.

However, not all people who borrow from licensed money lenders have poor money management like making late payments. Some borrowers simply find it hard to apply for a loan because they are just starting with their credit history.

Having said that, 1 Fullerton Credit differs from other loan providers with its low-cost and flexible financing options. 1 Fullerton Credit also has less strict requirements compared to banks and other lending companies.

In terms of income requirements, 1 Fullerton Credit requires locals and permanent residents to have a minimum income of $2,000 per month. Foreign borrowers must have a minimum income of $3,000 per month. Only people aged 21 years old and above can apply for a loan. 

1 Fullerton Credit understands the struggles of people who need to borrow money, whether or not they have little to no credit history.

Giving Cash

How Much Interest Do Money Lenders Charge?

Moneylenders are a great alternative, especially if you prefer to explore non-bank options for a better comparison of interest rates. Licensed lenders like 1 Fullerton Credit have a very strict set of guidelines that they must follow when giving out loans to their customers.

A licensed money lender in Singapore can only charge a maximum interest rate of 4% per month for a personal loan. This maximum applies regardless if the loan is a secured or unsecured personal loan or payday loan

The lender can also only charge a maximum late interest rate of 4% per month for each month the loan is repaid late. The interest can only be charged based on the principal remaining after deducting the original payments made. 

For example; Ms. Y has taken out a loan of $10,000 and has repaid $5,000. Only the remaining $5,000 can be taken into account for the computation of interest.

Also, the late interest can only be charged on an amount that is repaid late. The moneylender cannot charge on amounts that are outstanding but not yet due to be repaid. For example, Mr. X takes a loan of $10,000 and fails to pay for the first installment of $1,000. 

1 Fullerton Credit can only charge the late interest on $1,000, not on the remaining $9,000 as it is not due yet.

What Fees Do Money Lenders Charge? 

There are a number of fees that a lender can charge, but the total amount would not exceed the loan amount itself. 

These are the following fees can be charged:

  • 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

The total charges imposed by a money lender on the loan’s interest, late interest, upfront administrative and late fee cannot exceed an amount equivalent to the principal of the loan. 

Things that you can do to reduce interest rates when borrowing from a money lender

There are many ways you can use to obtain lower interest rates when taking out loans from a licensed money lender or a bank. Here are some good practices that you should adopt before taking on a loan.

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1. Work on improving your credit score

Having a high credit score will make your life easier when it comes to loaning money. A high credit score will allow you to easily qualify for loans, be offered reduced interest rates and increased loan tenure, and more. 

Some ways of improving your credit score include paying your bills on time, closing unused bank accounts or credit card lines, settling your existing debts, and avoiding multiple loan applications and inquiries in a short period of time.

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2. Use a collateral to secure your loans

An unsecured loan will normally come with a higher interest rate to offset the risk that the lending institution. The reverse is true. If you are applying for a loan with collateral (also known as a secured loan), you will have the benefit of lower interest rates. 

Real estate properties, vehicles, jewelry, and other valuable items can be used as collateral. Be cautious though, as you may lose the item used as collateral in case you defaulted on the loan.

3. Use a person with a high credit score as co-signer of your loan

If you have a low credit score and cannot risk using collateral, there is still one more option for you to reduce your interest rates. Using a person as a co-signer or guarantor is a good way to get approved for a loan that the said person is qualified for. 

Therefore, if the person acting as your co-signer has a high credit score, you will be able to take advantage of loans with lower interest rates too. 


The interest rates for personal loans will depend on different factors. While licensed lenders such as 1 Fullerton Credit are not as strict as banks when it comes to credit checks, they still follow lending criteria to determine the actual rate for your debt application. Contact us today to learn more about our traditional approach to lending standards. With our high approval rate, you can get your cash quickly within the hour!

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