Top 8 Best Licensed Money Lenders in Singapore (2025)

Banks generally offer loans up to 10 times your monthly income, with interest rates ranging from 3.5% to 6% per annum. They also provide up to 7 years repayment periods. However, banks have more stringent approval criteria. They typically require a good credit score and higher annual income levels: $20,000 for Singaporeans and PRs, and $45,000 for foreigners. For those with solid credit and a stable income, banks can be a more affordable option.

Licensed money lenders offer a different solution, providing loans up to 6 times your monthly income, with interest rates ranging from 1% to 4% per month. They have lower income requirements, offering loans even to individuals with an annual income below $10,000. Licensed money lenders also offer shorter repayment terms (up to 12 months) and welcome applicants with poor credit histories. Though their interest rates are higher, they provide faster loan disbursement, with many offering online loan applications. However, face-to-face verification is still required before funds are disbursed, ensuring the legitimacy of the transaction.

In summary, banks are a more cost-effective option if you meet their criteria, but licensed money lenders are ideal for individuals seeking quick loans or those with a less-than-perfect credit score.