Getting a Fast Loan in Singapore? Here Are 6 Things to Know

Looking for a fast loan in Singapore but not sure where to start? You’re not alone! Although the number of Singaporeans opting for fast personal loans from licensed money lenders has increased these days, many remain sceptical about the validity of these quick financial solutions.

If you are wondering how to get fast cash in Singapore—the legal way—we’ve got you covered. Keep reading to find out the 6 things you should know before applying for a fast loan in Singapore.

1. Interest rates for a fast loan aren’t always high

We’re sure you’ve heard financial horror stories of how interest rates crippled one’s finances or ruined relationships. It’s fair, given there is no such thing as “free money”, so there must be a catch, right?

Well, not exactly.

A high interest rate is not the standard for a fast loan in Singapore. The amount of interest you pay is tied to your credit score, income status, and general repayment capacity.

This means interest isn’t pre-determined but rather calculated based on the information you provide and the type of loan you need. In addition, Singapore’s Ministry of Law sets the interest rates that licensed money lenders can charge—which cannot exceed 4% per month.

2. Pay attention to other fees involved

When applying for a fast loan in Singapore, interest rates are not the only fees you need to pay. Besides interest rates, the aggregate cost of a fast loan includes other fees, such as processing fees, late repayment fees, etc.

So while you are considering taking out a fast loan, do your due diligence and figure out what it will cost you every month, and if the overall costs outweigh the short-term benefits.

3. Watch out for scammers

Money lending can be helpful when you need it, but it is also a cesspool. Hence, take extra caution when choosing a money lender when looking to apply for a fast loan in Singapore. Make sure the one you choose belongs to the Ministry of Law’s list of licensed money lenders.

Remember when we mentioned how there is no “free money”? When a self-proclaimed “fast money lender” promises something that seems too good to be true, it is most likely a scam. Some examples of “too good” scenarios:

• Promising a hefty amount of cash without needing to check your credit history
• Asking you to make an upfront payment to facilitate loan approval
• No apparent website or proof of physical address
• Using urgent messages such as “offer expires today”

As a rule of thumb, any trusted lenders should be registered under the Ministry of Law. While fast loans are relatively easy to obtain, do still conduct your own research and take some time to consider your options before proceeding.

4. Fast loans are accessible to foreigners in Singapore

It’s not easy making a living in an expensive city, and it is even more challenging for foreigners who are trying to survive, let alone thrive locally. If you are a foreigner looking to apply for a fast loan in Singapore, here’s the good news. Licensed money lenders offer quick cash options for non-locals, including expatriates, foreign students, and legal immigrants. Here are the eligibility criteria to apply:

• Over 18 years
• Employed full-time with a valid Singapore work pass, including eligible foreign students
• Residing in Singapore
• Having an income

5. A salaried job is not required

Contrary to popular belief, you don’t have to be on payroll for you to access a fast loan in Singapore. Unlike banks, licensed money lenders have a flexible metric for assessing those who meet set requirements.

As much as a stable income is a key determinant of how fast your application will be approved, it doesn’t have to be a permanent staff position. Freelancers, entrepreneurs, and retirees are still part of the fast loan equation.

6. You can still get a fast loan with bad credit

Even if you possess a bad credit report, you can still obtain a fast loan in Singapore. This is one of the key advantages of borrowing from licensed money lenders instead of banks. In a sense, it is more flexible, and you have lower chances of loan rejection. That being said, it is still recommended to research the money lender you intend to borrow from before applying.

At Galaxy Credit, our loan officers are dedicated to listening and understanding your situation before guiding you to the best personal loan option for your financial needs. Talk to us about applying for a fast loan in Singapore!