Renovation loan interest rates: banks vs licensed moneylenders

couple planning to apply for a loan with the best renovation loan interest in Singapore

Whether you’re living alone or with loved ones, the space we call home is sacred. It’s where we relax, play, rest, and form relationships outside of work.

Renovations are a great way of beautifying these spaces and increasing our quality of life. However, it can be expensive and we might have to consider taking out a loan. It is important to consider renovation loan interest rates when deciding on which option to take.

In this article, we compare renovation loan interest rates offered by banks with those offered by licensed moneylenders in Singapore.

Renovation Loan From Banks

In general, some banks charge monthly interest fees based on the outstanding balance, whereas others base it on the total amount borrowed. Also, tenures (amount of time you’re given to repay a loan) given by banks are normally at a maximum of only 5 years, and the maximum renovation loan amount is typically 6 times your monthly wages at a cap of $30,000.

To qualify for a renovation loan from banks, you are usually required to

  1. Own a property.
  2. Be a Singaporean Citizen or PR.
  3. Fulfil minimum income requirement as determined by each bank.
  4. Be in a certain age range.
  5. Have an acceptable credit score.

Other than these criteria, one other important limitation is that banks normally determine what the loan can be used for. For instance, most banks do not allow the loan to be used for purchasing furniture.

Renovation Loan Interest Rates For Banks

Here are five renovation loan interest rates from popular banks.

1. POSB Renovation Loan

One of the more popular renovation loans from banks, its selling point is its lower-income requirement of $24,000 per annum.

The interest rate starts from 3.88% p.a. for the Green Renovation Loan, up to 4.18% p.a for a standard renovation loan.

2. OCBC Renovation Loan

The OCBC renovation loan boasts a simple online process, with a fast loan approval within 60 seconds and loan disbursements within 5 working days.

The interest rate is at 4.18% p.a. with flexible repayment of up to five years.

OCBC also offers the Eco Care Renovation Loan. This requires your home to be energy efficient as verified by the Tropical Home Energy Efficiency Assessment (THEEA). If you qualify for this loan, you stand to enjoy a lower interest rate of 3.98% p.a., along with other benefits.

3. Maybank Renovation Loan

Maybank’s interest rate is much lower if you are already an existing Home Loan customer.

The interest rate for existing Home Loan customers is at 2.88% p.a.

The interest rate for new customers is at 4.10% p.a.

The application process is fully online and can be auto-filled using your Singpass account, which makes for a seamless process.

4. DBS Renovation Loan

The terms of DBS’s renovation loan are quite similar to POSB.

The interest rate is at 4.18% p.a.

However, if you fulfil the requirements for their DBS Green Renovation Loan (POSB also offers a similar one), the interest rate can go as low as 3.88% p.a.

5. RHB Renovation Loan

RHB’s interest rates are higher than other banks. However, it offers a unique refurbishing loan that most other banks do not.

The interest rate is at 5.80% p.a.

Here’s a table summary of the bank interest rates for renovation loans (p.a.):



(Green Renovation Loan)



(Eco Care Renovation Loan)


(Existing Home Loan Customers)


(New Customers)



(Green Renovation Loan)


Renovation Loan From Licensed Moneylenders

A more flexible renovation loan option is using licensed moneylenders. A reputable moneylender goes a long way in ensuring you are borrowing safely and legally. These loans are generally kinder in terms of requirements, which may sometimes be a hindrance when borrowing from banks.

In addition, renovation loans from licensed moneylenders can be used for a myriad of home improvement works, including plumbing, electrical works, painting, and the purchase of furniture.

Renovation Loan Interest Rates for Licensed Moneylenders

Besides having more flexible requirements, the renovation loan interest rates for licensed moneylenders can be higher than banks, but with equally, if not more flexible repayment terms. Galaxy Credit is one such example. Registered with the Ministry of Law, they provide the best loan deals for customers along with simple, fast approvals.

Most licensed moneylenders offer interest rates of up to 4.0% per month, but Galaxy Credit’s renovation loan boasts a much lower interest rate, starting from 2.27% flat interest per month because the firm understands just how expensive home renovations can get.

With transparent service and professional customer support in mind, you will be assured of a customised loan package that you can channel towards building your ideal home. Talk to a loan expert about your borrowing options today.



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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Your personal loan in Singapore was approved by a licensed moneylender – congratulations! Now comes the challenging part – sticking to the repayment schedule. There are two reasons why it is important to repay your loan as scheduled.

Firstly, there are monetary penalties every time you are late on a payment. This includes:

  • A one-off late payment penalty every time you fail to pay the monthly instalment by the set date. This fee is capped at $60 per month.
  • Interest on the amount due. This is calculated at up to 4% of the amount due for that month (not the outstanding loan balance).

Secondly, the cumulative debt that you incur as a result of these penalties makes it more likely that you will default on future payments. Remember, a failure to meet your financial obligations today can have catastrophic effects on your credit rating for years to come.

But not to worry, we have got your back! Here are 4 simple and proven ways you can use to adhere to your personal loan repayment plan.

1. Adjust the instalment due date

If you are employed full-time and have a constant monthly stream of income, it is important to keep your payday in mind when it comes to repaying your personal loan. Also consider last-minute purchases and emergency expenses, which will affect your repayment schedule.

Once you have a clear idea of when you receive your salary every month, approach your licensed moneylender and ask for a revised due date for your monthly instalments. As there may be administrative expenses involved with the amendment, it is best to be absolutely sure before informing your lender.

2. Know your finances

This method is all about how well you know your finances. Before you can even determine a feasible repayment plan for your personal loan in Singapore, you need to first assess your current income and expenses.

While there are many free apps today that can help ease the burden of recording your daily personal finances, you still need the discipline to keep this habit consistent. Just think of how invaluable this information will be in helping you see where your money is going and how you can cut back on unnecessary expenses in time for your next repayment.

3. Prioritise your debts

Now that you know where to cut back on expenses, the next step is to determine where your income will go. All debts are not created equal and you have to determine the order of which gets paid first and that depends on two factors:

  • Size of each debt
  • The interest rate on each debt

Together, they dictate the amount by which your debt increases if you do not pay them in full. The idea is to gradually climb out of the debt by ensuring that you either maintain or reduce the amount owed.

You can use either the debt snowball or debt avalanche strategy to accelerate debt repayment.

Debt snowball – List all your debts – from smallest to largest – and make the minimum payment every month to prevent further increase in debt. Pay off the smallest debt first as best you can, and make minimum payments to the remaining debts with any money left. Over time, you will pay off that debt, and you can apply the same strategy to the next smallest debt.

Debt avalanche – List all your debts and make the minimum payment on all debts every month. Pay off the debt with the highest interest using any money that remains. Over time, you will pay off that debt, and you can apply the same strategy to the next high-interest debt. In this way, you are essentially decreasing the amount of interest you are paying.

4. Be mindful of your spending

Last but not least, budget carefully. Before taking out a personal loan in Singapore, be sure to assess your current spending and ensure that it doesn’t clash with your repayment plan. This comes with some financial planning and discipline.

If you realise you’re someone who tends to overspend, then it is time for some serious introspection on your finances and addresses the true cause of perpetually being in debt. How you spend is in your control and it is one of the best long-term solutions to having a solid financial future.

Good thing is, we’re here to help you.

Galaxy Credit is a licensed money lender that specialises in helping you secure a personal loan in Singapore. Talk to us today about our loan solutions.


When applying for a personal loan in Singapore, you need to ensure you have all the documents required to get a loan. You should be aware of the documents that are needed and know how much you can borrow. Having your income details and proof of employment on hand will certainly help with your application.

The documents that are required will depend on the bank or moneylender you choose but generally, they will require these essentials:

  • Proof of Income
  • ID copy
  • Employment information, like Employment Pass or CPF statement.

Proof of Income

If you want to borrow money from banks or financial institutions then an income statement will be required. The bank will ask for your income level and salary details so they can check if you qualify for a certain amount of loan.

In short, documents you may need for proof of income includes:

  • Contribution statement to your Central Provident Fund (CPF)
  • Latest income tax Notice of Assessment
  • Latest computerised payslip
  • Bank statement showing salary crediting into your bank account
  • Other income statements as required

ID copy

If you are applying for a personal loan, the lender will ask for a photocopy of your identification card, like your NRIC or Employment pass card just to confirm your eligibility and legal status.

Employment information

If you are applying for an employee loan, then the lender will ask for your employment details such as your Employment pass card or CPF statement. The lender might also ask for proof of employment like an employment contract, job offer letter, and details of salary and bonus.

Tips to secure a personal loan in Singapore

You should carefully evaluate your current financial needs and your earning power. Plan and record your monthly budget and expenditure to establish a monthly repayment plan that you are comfortable with.

Loan Amount

This is the most important factor to consider when applying for a personal loan in Singapore. Knowing the correct amount of loan required will allow you to choose the right type of personal loan. It is also important that you obtain the lowest personal loan rates that suit your needs and try not to surpass your borrowing limit.

Loan Tenure

The loan repayment period is also crucial in determining the length of time you have between monthly instalments. Ideally, you will plan to quickly repay your personal loans and avoid incurring late payment fees and an accumulation of unwanted debts. Remember, the inability to repay your loans on time and in full will eventually affect your credit score.


Besides the obvious interest rate fees, there are also processing fees charged by both banks and moneylenders to process your loan application. Do check thoroughly to determine if other hidden fees are involved as they will affect your total loan amount. Also, clarify on late payment fee charges and their late payment interest rates before signing anything.

Avenues for personal loan promotions

Sometimes, there are special loan deals offered by both banks and licensed moneylenders. Banks, which are typically the big players in Singapore’s finance hub, often advertise personal loan promotions on an ad-hoc basis via their websites, newspapers, financial sites, or social media platforms. Licensed moneylenders, on the other hand, advertise their services on their corporate website, business directories, or via posters at their registered offices.

If you are looking for a flexible and affordable loan in Singapore, visit Galaxy Credit. We offer the lowest interest rates on our loans and have a quick approval process. We have personal loans to cater to your needs. Talk to us and we will help you fill out an online application!

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 moneylender 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 licensed moneylending companies.

Loan amount

The loan amount you can obtain from a moneylending company will depend on the amount of your monthly income and credit history, although the latter isn’t as important as if you are applying for a bank loan. There are 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 this 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 twelve months

It is important to note that if you want a low-interest rate, then you should look for a loan with a longer repayment period that is typically at a lower amount as well.

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, then you should 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 for a short-term loan is usually between 3-4% per month.

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

Do also ensure that you know the amount of 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 mind, 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, business loans for SMEs, and debt consolidation services. Speak to our loan officers today and receive a free consultation on how to better manage your finances.