Are you tired of endless searching for a personal loan and have no idea which loan providers are legitimate? You may be going to multiple services to enquire about personal loans but end up with very little information and sometimes, you may even start receiving calls from random numbers pushing you to take up a loan that is not what you need. How do you avoid wasting your time and actually find the best personal loan offers for your consideration? Here is a simple guide on how to do it, and how to spot some red flags around loans that you may encounter online or elsewhere.

Are the 5 Best Personal Loans Universal?

First off, it is important to understand that a bank or loan will have a different value for different people depending on their financial situation and the loan offer’s structure. Just like for insurances, mortgages or telco subscriptions for that matter, personal loans are highly individual and there is no such thing as “one size fits all”. Therefore, it is probably impossible to compose a universal list of the 5 best personal loans in Singapore, that is applicable for every single person. There are factors tied to a person’s financial situation that will affect a loan offer’s value to him or her, like current salary, current debt situation, lending history and credit score. There are also loan term related circumstances that could make a personal loan perfect for one individual and useless for another, such as loan amount, tenure, interest rate and fees.

The Best Personal Loans for Each Individual

To summarise, it is safe to say that personal loans are highly individual and that you have to receive multiple offers based on your unique situation and requirements to be able to understand which loan is the best for you. Luckily, there is a way of doing so, with minimum effort.

The Best Personal Loans in Singapore on the Tips of Your Fingers

With Lendela, you will be able to get all the information required based on your individual circumstances, so that you can make an informed decision when looking for a personal loan. Via only 1 online comparison application on, you will get access to tailored personal loan offers from 30+ banks and financial institutions in Singapore - all customsing their best possible loan plan based on your application and requirements. Once all the offers are in, you can conveniently compare them on your Lendela account, upload necessary documents and book your appointment with the selected loan provider. Lendela shares the steps towards getting the best personal loan before you submit your comparison application online. You may even chat with the Customer Relationship team to enquire before you submit your application. Once you have gathered all the information you need, all you have to do is to apply and Lendela will matchmake you with the best loan offers to meet your needs - often within hours. The service is online, 100% free of charge and you don’t commit to any of the offers that you receive by applying.

Lendela partners only with banks and licensed financial institutions and you do not have to worry about getting calls from random numbers or illegal actors. We do not share your information with any third party before you have given your consent and only do so if it is essential in the process of finding you the best possible loan offer. No one but Lendela’s Customer Service Team will contact you throughout the process to guide you step-by-step towards getting your loan.

Lendela does not do any hard selling and gives no favoritism towards any partner bank or financial institution. Instead, our experienced Customer Relationship Team will find out more about your financial situation as well as your preferred types of loans and comfortable repayments in order to matchmake you with a provider that offers you the best loan plan accordingly.

How to Spot a Shady Loan Provider

Unfortunately, there are Singaporeans that are getting fooled by illegal actors within the personal lending space today. If you have no to limited experience with lending or loan providers, it can be very difficult to spot the shady ones. However, it is absolutely essential to know how to identify a loan scammer to avoid expensive rates, spiralling debt and worst case harassments.

Fake Websites

Many borrowers fall for scams by applying for loans online without knowing whether it is a legitimate website or not. Scammers have been effectively tricking such borrowers by posing as licensed loan providers. They hide behind websites that look very similar to the legit ones, using fake business addresses, license numbers and even fake customer reviews.

In order to avoid applying on a fake website, you can check if the company’s details are legit on the Ministry of Law’s website. MinLaw shares an updated list of approved licensed financial institutions every month with information such as business name, business address, license number, landline number as well as the website if there is any.

Vague & Limited Information

At times you will find websites which have very little information about their business and they may not even look like they are regularly updated. Besides that, when you enquire about the loan options, the person that you talk to may give you minimal information. Thus, you should avoid sharing your personal information with these kinds of companies and try to find out every little detail about their business and offering beforehand. If you feel like they are not being transparent with you, avoid them at all costs.

Online Disbursement Promise

In order to get a loan from a licensed financial institution, you will have to go down to their branch for contract signing before taking up the loan. This is all according to the regulations in Singapore, dictated by the Ministry of Law. Only banks are allowed to offer a full online process including loan disbursement. If the loan provider mentions that they will be able to do online disbursements for you, and / or sends you the loan contract via e-mail or WhatsApp etc., it is a clear signal that this is an illegal actor and you should block them immediately.

Unrealistic Loan Offers

It is important to understand that you can only borrow within the regulations that MinLaw has set for Singapore when it comes to unsecured lending (personal loans). Borrowers can only borrow 6 times their monthly income from licensed financial institutions, and 12 times their monthly income from banks. Not only that - financial institutions can charge a maximum 4% monthly interest rate and a 10% processing fee which will be deducted from the loan disbursement. If the loan provider promises and offers any loan amount beyond the above limitations, they are unlikely to be a legitimate company.

It is better to be safe than sorry! Keep a lookout for such red flags and avoid getting scammed.