Lenders & platforms

Banks vs. financial institutions

Two different types of regulated loan providers in Singapore.

• Banks: regulated by MAS; usually lower rates, higher eligibility requirements, more document checks.

• Licensed financial institutions: regulated by MinLaw with strict caps on interest and fees; easier access but significantly higher cost.

Licensed vs. unlicensed (“ah long”) actors

Legal versus illegal lending.

• Licensed: appear on the official MinLaw list and must follow caps on interest, fees and collection practices.

• Unlicensed: operate outside the law; often associated with harassment, threats and extremely high, illegal charges.

Comparison platforms vs. loan-matching platforms vs. loan providers

A aggregator service versus a matching platform versus the institution that actually gives you the money.

• Comparison platforms: lists banks and alternative loan providers on their website for the user to click on to initiate his/her own loan application, one by one. Promoting generic "from rates" and normally pushes loan options via seasonal promotions and freebies. Commercially incentivised to direct borrowers to the loan provider that pays them the most.

• Loan-matching platforms (like Lendela): Works as a match-maker, empowering borrowers with choice and transparency. Helps users find their ideal loan sourcing for pre-approved, personalised loan options based on each user's unique criteria.

• Loan providers: the bank or moneylender that approves your loan and disburses cash to you.