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5 Ways You Can Qualify For Low-interest Loans In Singapore

Stacks of gold coins getting lower and lower to represent low-interest loan rates in Singapore

Low-interest loans certainly sound appealing if you need cash urgently. However, anyone who has tried borrowing money knows it is not easy to get a low-interest loan in Singapore.

You can obtain small loans with low interest by following some basic rules. Here, we share the five things you can do to qualify for the lowest interest rates possible.

What is a low-interest loan?

A low-interest loan is usually a business or personal loan that the lender charges at a competitive rate of interest.

The exact interest rate which the lender charges you is subjective as it is determined by factors such as your income and credit history. The better your credit history, the higher the chance of the lender offering you a lower interest rate.

Where can you get low-interest loans in Singapore?

Another important detail all borrowers should understand is there are two main sources where you can obtain a low-interest loan in Singapore – banks and licensed money lenders.


The most common bank loans in Singapore are home loans, personal loans, car loans, and education loans. Bank loan interest rates for personal loans generally vary between 3.5% and 10.8% per annum, depending on the term, the principal amount, and the borrower’s creditworthiness.

Bank loans with interest rates close to 3.5% per annum can be an attractive option for someone who wants to get a low-interest loan, especially if they can be coupled with other bank offers and deals.

Licensed money lenders

Licensed money lenders in Singapore are heavily regulated by the government. Strict controls around moneylending have created a competitive field for the benefit of borrowers. The most important of these controls is the cap on interest rates. Currently, the maximum interest that a licensed money lender can charge is 4% per month.

There are no lower limits set, but lenders may charge rates as low as 3% per month. This may dip even lower with promotional offers and deals for repeat customers. Some applicants may even be eligible for an interest-free loan.

Before licensed money lenders offer applicants these low rates, they have to check with a governing body called the Moneylenders Credit Bureau (MLCB), which stores data on borrowers’ loans and repayments with all licensed money lenders in Singapore.

5 ways you can qualify for low-interest loans in Singapore with licensed money lenders

Now that we understand the basics, let’s dive into the five things you can do to get small loans with low interest.

1. Maintain good credit

The single most important thing you can do to qualify for a low-interest loan in Singapore from a licensed moneylender or a bank is to maintain good credit.

This is different from keeping a good ‘credit score’. Credit scores are allocated by the Credit Bureau Singapore (CBS), and it is only relevant when you apply for loans from a bank or other major financial institutions.

The relevant agency when borrowing money from a licensed money lender in Singapore would be the Moneylenders Credit Bureau (MLCB). Lenders will submit your information to the MLCB to check your borrowing limit, existing outstanding loan principal amount with other money lenders, total payable amount, repayment records, and other information when you apply for a loan with them.

Note that while MLCB records are the main source of information for a licensed money lender, they may also consider your CBS credit score before approving your loan application.

Two simple rules to help you maintain good credit:

Borrowers with a history of loan defaults may not necessarily be refused a loan from a licensed money lender. However, they are more likely to be charged a higher interest rate as lenders may perceive that they have a higher risk of default.

2. Avoid taking multiple loans

When a licensed money lender in Singapore accesses your MLCB records, they can see the number and total value of all your existing unpaid loans. Multiple concurrent loans are an indication that a borrower is under increased financial stress. This often happens when they are taking loans to pay off existing loans to buy time.

Such loan applicants are at higher risk of defaulting and hence are unlikely to qualify for a low-interest loan.

Avoid taking on new debt until you have settled older ones. If you need assistance to juggle multiple loans, consider a debt consolidation loan.

3. Maintain a stable source of income

Lenders always consider your employment status when assessing a loan application. Consistent employment indicates a steady income flow and reassures lenders that the applicant is likely to repay their debts.

While a formal full-time job is the best option, lenders will also consider income from part-time and casual employment. The Covid-19 pandemic has also led to many lenders relaxing their borrowers’ employment criteria.

Click here to find out how much you can borrow based on your income.

4. Get a co-signer or guarantor

A co-signer or guarantor is someone who agrees to be responsible for repaying a loan. They do not receive any money from the loan but are legally responsible for its repayment if the borrower is unable to make repayment.

A co-signer with a good credit score can help you qualify for small loans with low interest and even other fee waivers.

However, do not treat a co-signer as a blank cheque. A default on your part will damage their credit score and likely create greater damage to your relationship with them. If anything, be stringent about repaying a co-signed loan and handle the debt responsibly.

5. Compare rates from different lenders

There is no one-size-fits-all ‘best’ loan. Different licensed money lenders and banks offer varying loan eligibility criteria and conditions using their own assessment methods. An applicant’s unique financial status, the reason for the loan, loan history, and other factors could lead to one lender offering lower rates than the other.

Your responsibility to yourself as a borrower is to compare quotes from as many licensed lenders and banks as possible. This goes beyond simply reading advertised rates. You must read the fine print to understand all the fees, penalties, and additional expenses that may apply.

Note that most lenders offer lower interest rates and a waiver of certain charges to regular customers.

Apply for a low-interest loan with Galaxy Credit

Galaxy Credit is the ideal place to get a low-interest loan in Singapore. We understand your financial concerns and are committed to offering the best rates and repayment schedules for your circumstances. Walk-in to our office or apply online with us!


While we try to provide the most accurate information on this website, it may not reflect the most current developments. The information on this website may be changed without notice and is not guaranteed to be complete, correct, or up-to-date. All information provided is for informational purposes only and shall not be relied upon as professional advice. We shall not be liable for any loss or damage resulting from the use of this website.

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Besides banks, a moneylending company is a specific financial service provider that will lend you money based on your income and credit history. If you are looking for a loan, then moneylending companies are good options to consider.

However, it is important to note that a moneylending company will have relatively high interest rates, but it will be able to provide you with the necessary funds based on your monthly income.

As with all other personal loan applications, a licensed money lender needs to go through a processing and approval time frame but the good news is you can apply for a loan online and it’s a relatively easy process. Besides personal loans, a moneylending company in Singapore also provides business loans. But do your due diligence and ensure you are signing up only with the best licensed money lenders.

Loan amount

The loan amount you can obtain from a moneylending company will depend on your monthly income and credit history, although the latter isn’t as important compared to if you were to apply for a bank loan. A moneylending company offers various loans with different purposes to consider and they come with their respective loan amounts.

The typical loan limit can amount to six times your monthly salary. Therefore, when you apply for a loan, make sure that the loan you choose is based on your financial situation and needs.

If you would like to check your credit report, you can get a copy from the Credit Bureau Singapore. You can also read our post for more information on obtaining your credit report.

Repayment period

The repayment period will depend on the type of loan that you have applied for. Short-term loans may have repayment periods of up to three months, while long-term loans may have repayment periods of up to 12 months.

It is important to note that if you’re seeking a relatively lower interest rate, you could look for a smaller loan with a longer repayment period.

Interest Rate

The interest rate charged by a moneylending company in Singapore will depend on the type of loan that you choose. It is important to note that there are personal loans and business loans, and both types of loans will have different interest rates. Also, interest rates for short-term loans will be higher than for long-term loans. Therefore, if you would like to save as much money as possible per month, consider applying for a long-term loan. For example, the interest rate of a long-term loan can be as low as 1% per month while that for a short-term loan is usually in the range of 3-4% per month.

Finally, remember that if you would like a low-interest rate on the loan, you must ensure that you have a good credit history and high income.

Do also ensure that you know the interest rate and repayment period for each type of loan. This will help you to decide on the best loan for your needs, as well as the most suitable moneylending company to get a loan from.

With these three things in min/d, you can now decide on a moneylending company in Singapore. Galaxy Credit offers one of the best personal loans with relatively low-interest rates and specialises in payday loans, study loans to further your studies, and debt consolidation services. Speak to our loan officers today and receive a free consultation on how to better manage your finances.

With the economic impact of COVID-19, it is common for affected individuals experiencing loss of income to start seeking financial assistance such as securing personal loans with the lowest rates. If you happen to need emergency funds but do not want to borrow from friends or family, you can consider taking up a personal loan.

Here are a few questions to consider before applying for one.

What are the requirements for a personal loan?

If you are looking to secure a personal loan from banks in Singapore, you have to take note of the requirements for eligibility.

Firstly, you have to be at least 21 years old with an annual income of at least S$20,000 a year. If you are a foreigner (with an employment pass of at least 12 months validity), you will need an income range of S$40,000 to S$60,000 a year. If you make much more than $30,000 a year, banks might extend lower interest fees to you.

The requirements to borrow from a licensed moneylender is pretty straightforward. All you need is the application form (which you can fill up online), plus other supporting documents that may include:

  • Proof of the borrower’s total income for the preceding 3 months prior to loan application
  • Utilities bills
  • Pay slips; or Income tax statements

And possible supporting documents for foreigners:

  • Original valid employment pass
  • Passport
  • Appointment letters from the borrower’s employer; and
  • Bank statements

How much can you borrow according to your income bracket?

If you are choosing to secure a personal loan from a licensed money lender instead, the maximum amount that you can borrow depends on your annual income. Based on the Ministry of Law’s guide to borrowing from money lenders, for Singapore citizens and PR, If your annual income is below S$10,000, then you can only borrow up to S$3,000. If you’re a foreigner, S$500.

If your annual income is between S$10,000 to S$20,000, the maximum amount you can borrow is S$3,000 for Singapore citizens/PR and foreigners residing in Singapore.

If your annual income is over S$20,000, then you can borrow up to 6 times your monthly income for both Singapore citizens/PR and foreigners residing in Singapore.

Here’s a summary of the annual income and maximum loan amount for each income bracket:

Annual Income For Singapore Citizens and Permanent Resident Foreigners residing in Singapore
< $10,000 $3000 $500
$10,001 – $20,000 $3000
> $20,000 6 times of monthly income

Understanding personal loan interest rates

Lenders make their decisions based on factors including credit records and other existing credit facilities. To get the lowest personal loan rates, you need to build a strong credit report. Borrowers with high credit scores tend to get personal loan interest rates that are low.

When borrowing personal loans from banks in Singapore, they will typically label their interest rates as x%, which stands for a customised interest rate that you would only see once your application is approved. The interest rate is usually dependent on your credit score, loan amount, and your loan tenure. What you should be looking at is the effective interest rates or EIR as it includes processing fees and your loan repayment schedule, which is a true reflection of the cost of the loan.

When borrowing personal loans from licensed money lenders in Singapore, the money lender has to go through the terms and conditions of your loan such as repayment schedule, late fees, and interest charges before you sign the contract. A loan contract stating all the terms and conditions is required by law. The difference between signing up with licensed money lenders as opposed to banks is the quick turnaround time to get your funds, which can be as fast as an hour.

How to maintain my credit score?

An infographic explaining how personal loan interest rates work in summarised points

Maintaining a good credit score is part and parcel of getting the lowest personal loan rates. Banks and other financial institutions can offer a lower interest rate for a loan if your credit score is high. Credit scores are indicators of creditworthiness or the indication of the likelihood of a borrower paying their debt on time.

A great way to maintain it is to pay all your credit card bills and loans on time and in full. Also, refrain from applying for multiple loans at the same time from various money lenders as this will lower your overall credit score and increase your debt threshold.

Once you have a good credit score, you can leverage this as a way to get low-interest rates for your future loans. You can find out more about your credit report and rating from the Credit Bureau Singapore or Singpost branches at a $6.42 inclusive of GST.

Looking for low personal loan interest rates in Singapore? Find out more about your legal loan options with Galaxy Credit today.

Cryptocurrency is all the rage these days, with terms like crypto millionaires and NFTs (non-fungible tokens) on everyone’s lips. Since most people like quick cash, investing in crypto is something we might have considered.

In this article, we explain what exactly Crypto is, its risks and benefits, and whether you should invest in it. If you are looking to make some quick cash to either pay loans or increase your net worth, crypto could be an option.

What is Cryptocurrency?

A cryptocurrency is a form of payment that can be exchanged online for goods and services. The most famous of them is Bitcoin, which was invented in 2009 by an anonymous person. It works via blockchain technology, which transmits data and records transactions. Also, cryptocurrencies are decentralised, which means they are outside the authority of governments and banks.

Many companies, including a few Singaporean ones such as and StraitsX, issue their own cryptocurrency, also called tokens, which can be used to buy goods or services that the said company provides. There are currently more than 10,000 different cryptocurrencies being traded publicly. All cryptocurrencies also have the same value in every country and there are no exchange rates.

How can you hold Cryptocurrencies?

There are three main ways to hold cryptocurrencies. All involve having a “wallet”, which is an account that holds your crypto.


Firstly, you can hold them on exchanges such as Binance or Coinbase. On such platforms, you will be issued a “hosted wallet”, so-called because these platforms hold the wallet.

Non-custodial wallet

A “non-custodial” wallet allows you to have full control over your crypto. The downside is that if you lose your password, the wallet is gone forever.

Hardware wallet

Unlike the previous two options, a “hardware wallet” is a physical device the size of a thumb drive that stores your crypto. The upside is that you cannot be hacked since this is offline, with the downside being an inconvenience.

How do you make money out of Cryptocurrencies?

Much like stocks, the value of your portfolio increases when the price of the crypto token/s you hold rises, and vice versa. In other words, you make money when you sell the crypto tokens at a profit.

Cryptocurrency risks

As with all investments, there are risks. Crypto is known to be more volatile than stocks or gold, which is why it would be good to keep a healthy capital at bay so that you may buy more when it drops and sell when it’s at a higher price.

No sure-win crypto token

Although there are many established tokens with reputable companies behind them, the market is very competitive, with many tokens getting unlisted every few months. If you happen to hold such tokens, you lose all their value.

Vulnerability to hacks and criminal activities

For example, if your crypto is stored on an exchange, hackers can hack into your account and transfer your assets to their accounts. You may or may not be able to recover your crypto tokens — some are traceable while others are untraceable.


These tokens are often either hyped-up to offer extremely good services, such as giving you a percentage of their earnings, or entice you to invest by a tactic called “pump and dump”. “Pump and dump” happens when a token suddenly rises many times in value, attracting you to buy at an already high price. Once enough people buy at a said high price, the manipulators will “dump” the price by selling all their tokens, leaving you at a great loss. You may end up needing to pay loans that you have borrowed to buy such tokens looking for quick cash.

Cryptocurrency benefits

Many see cryptocurrencies as the currency of the future. We may end up using coins like Ethereum or Bitcoin to pay our monthly bills, or to procure certain products or services. Hence, buying these coins may be considered a long-term investment.

Get cash quickly

There is indeed such a thing as making quick cash. In May 2020, Bitcoin’s price was about USD 9,500. In May 2022, it was hovering around the USD 31,000 mark, though, in July 2022, it went down to around USD 19,000. Many coins have grown exponentially over just a few days, such as DogeCoin, which often pumps dramatically due to a tweet from billionaire and Dogecoin fan Elon Musk.

Advancing technology

The technology behind crypto, blockchain, is also why many people believe in digital currency. This technology is touted to be able to revolutionise industries from shipping to gaming. Having many believers and potential, many investors believe that cryptocurrency is not a fad and will only become more important as time goes on.

High liquidity

Some cryptocurrencies have high liquidity. This means that you can sell or buy them very quickly at market price. For example, if you need money to pay loans, you can simply liquidate your tokens for fiat, which is a term for real-world money.

Should You Invest In Crypto?

It depends if it is within your means. It is important to remember to never invest more than what you could comfortably afford to lose.

Investing in crypto can be an option to diversify your portfolio, which is always a good thing. This is especially true if you believe in the technology behind the tokens that you buy, and also that crypto usage will become more widespread as time goes by. However, do take note that the MAS discourages the general public from engaging in cryptocurrency trading as it is “highly risky”.

Bent on snagging some tokens right now but lack the funds? You might want to consider borrowing a relatively small sum from Galaxy Credit, a 24-hour money lender in Singapore, anytime, any day. As it stands, nobody said you have to invest a tonne of money into cryptocurrency for potentially big wins!


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