When it comes to getting a loan, it is often very important to know how much you will be paying for the money you are borrowing. The money lenders in Singapore offer a range of loans, and each one has its own interest rate.

In this article, we aim to demystify the money lending business in Singapore and provide a general idea of how much you will be paying for your loan.

A licensed money lender in Singapore can be found everywhere. They offer different types of loans, and each one has its own interest rate.

Firstly, you will have to determine what type of loan you want as different types of loans will come with different interest rates. There are many types of loans that you can choose from, and they are all listed below:

Personal loan: This is a loan that you can borrow money for personal purposes such as school fees, weddings, and the purchase of electronics. The interest rate for this type of loan is between 12 to 25% per annum.

Student loan: This is a loan that you can borrow money for your school fees and living expenses while you are studying in Singapore. The interest rate for this type of loan is between 10 to 15% per annum.

Business loan: This is a loan that you can borrow money for the purchase of equipment and other business-related expenses. The interest rate for this type of loan is between 10 to 20% per annum.

Payday loan: This is a loan that you can borrow money for short-term purposes such as an emergency or an unexpected bill. The interest rate for this type of loan is between 24 to 48% per annum.

How much do you need to pay for a loan?

The amount that you will need to pay will depend on the type of loan that you choose. In general, the more expensive the item is, the higher the interest rate will be. If you want to borrow money for a car, expect to pay an interest rate of 12-24%. If you want to borrow money for a house, expect to pay an interest rate of 10-20%. As mentioned above, if you want to borrow money for short-term purposes such as paying off your electricity bill or water bill, expect to pay an interest rate of 24-48%.

In general, three factors determine how much you will be paying:

The duration of your loan: If your loan is long-term, then it means that you will be paying less interest than if your loan is short-term. For example, if your loan is long-term and lasts six months, then expect to pay an interest rate between 10 and 30% per annum. However, if your loan is short-term and lasts one month only, then expect to pay an interest rate between 24 and 48% per annum. 

The amount borrowed: The more money that you borrow from the lender in Singapore, the higher the amount of interest that you will have to pay. For example, if you borrowed $10 000 from a lender in Singapore, then expect to pay between 12 and 25% per annum in interest rates; however, if your loan was only $5 000, you will pay between 10 and 15% per annum in interest rates. 

The length of time before repayment: The longer it takes before you repay your debt, the higher the amount of interest that will be charged on top of it. For example, if it takes six months before repaying your debt, expect about 10-30% per annum in extra charges. However, if it takes only one month before repaying your debt, you can expect about 24-48% per annum in extra charges.

If you are looking for a trustworthy licensed money lender in Singapore with one of the lowest interest rates in Ang Mo Kio, you can check out the different loans that we offer at Galaxy Credit, a 24-hour money lender in Singapore, offering quick cash and personal loan promotions.