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Find out what our great customers have to say about Lendela, Singapore’s top loan company.
This is how it works:
1. Apply with us in a few minutes – it is 100% free of charge
2. Receive personalised loan offers from multiple banks
3. Compare terms and choose the best personal loan deal
4. Sign the agreement and get your personal loan
Our goal is to make your loan application process quicker, simpler and more transparent. As Singapore’s only true personal loan comparison service, we support you all the way from application to disbursement. Click below to read more about Lendela and how we empower thousands of loan-seeking Singaporeans every month.
How do you find the best personal loan in Singapore the easy way? Take a few minutes and read our guide below, and you will have all the important information you need before applying for a personal loan online with Lendela. If you still have questions, feel free to contact our Customer Relationship Team for help.
A personal loan is money borrowed for personal use, such as paying off credit card debt, buying home gadgets, home or kitchen renovation, embarking on a special vacation, education, medical or wedding expenditure, or emergencies. Personal loans are also called consumer loans and are not usually backed by collateral. Banks typically begin the process by determining your credit score to assess whether you are eligible for a personal loan in Singapore and what interest rate should be placed on the loan. Making repayments on the loan usually involves making principal and interest payments monthly. The interest rates that are fixed on personal loans in Singapore will be determined by your credit history. Personal loans can be a good solution for individuals with financial issues that need to be resolved instantly. It also enables huge purchases and repayments at your own pace.
Banks and other credit institutions or financial companies can lend you, for instance, funds ranging from $5,000 to $250,000; and when you sign the dotted lines, you are agreeing to pay that amount back plus an interest. The repayments are made regularly and over a fixed period of time. The optimal loan tenure for a personal loan in Singapore is usually 10 years. Personal loan repayment rates are set such that you can slowly pay back the amount you borrowed, i.e., the principal and the interest.
There are a number of places that offer personal loans in Singapore for borrowers with different needs. Banks are often the first place people go to obtain an instant personal loan. Traditional banks require a decent credit score to qualify for any of their loan packages, and existing customers may be eligible for additional benefits. Virtual banks operate in more or less the same way but without the need for a physical branch presence, so you can obtain a personal loan almost instantly online.
Financial institutions, including online-based companies, are another popular option for personal loans in Singapore. These credit institutions have a strong track record of analysing consumer creditworthiness and can provide competitive personal loan offers. In some instances, financial institutions can be more flexible on some of the metrics when assessing an individual’s creditworthiness and effectively step in where some banks would have declined the same application. Online-based financial institutions often set themselves apart with flat-rate quotations and swift approval, along with added benefits like flexible disbursement, repayments, zero fees, or methods of lowering personal loan interest rates.
There are websites that allow individuals to compare and select personal loans online in an instant by connecting borrowers to banks and financial institutions. Lendela is the market leader when it comes to this type of service and the only online comparison platform that finds personalised offers so that you can compare concrete loan alternatives and select the best personal loan in Singapore.
Before securing a personal loan in Singapore, an application form will be first issued to you. Most banks and financial institutions follow a set of criteria when they’re considering you for a loan deal. To get the best loan package, there are some important things to think carefully about before filling out a personal loan application. Here are 6 steps to follow in order to secure the best personal loan in Singapore:
Weigh your options by determining the loan type that best caters for your needs. There are a variety of personal loans on the credit market today, and the one that you finally settle for is dependent on your financial situation and goals. Let’s examine some of the common loans that may be offered to you in Singapore.
Secured loans require the presence of a guarantor or collateral. The guarantor will be responsible for paying back the loan should you default (i.e. fail to make repayments on the personal loan). If you present a house, car, land, a piece of machinery or any form of collateral, then the institution will take possession of the collateral until you fully service the loan deal.
Most personal loans in Singapore are unsecured loans. For these types of personal loans, you do not need to present collateral or a guarantor. However, since these loans are unsecured, you may be asked to present proof of financial stability in order for your loan application to be acknowledged and ratified. This is done to ensure that you can make timely repayments on the loan.
You can also have an account through which you can borrow funds in fixed amounts without the need to repeatedly apply for loans. This is referred to as a personal line of credit. It can be likened to a credit card; however, a personal line of credit allows the borrower to obtain cash instead of credit. A line of credit is beneficial when making expenses for long-term ongoing tasks such as hiring the services of a contractor for home renovations. There is no set repayment period for a personal line of credit.
These are loans designed for the procurement of a vehicle. Depending on the financing rules deployed, there are typically two forms of car loans found in Singapore:
This type of car loan provides personal funds for individuals for the purchase of a car with an interest rate calculated and set on the funds. The interest rate could be on a floating or fixed basis. The interest rates on the floating interest rate depend on the base rate which varies between banks.
An unsecured personal loan in Singapore can work as a good substitute for a conventional car loan. Since you can spend the money on what you want, this type of personal loan serves as a fast and easy way to your car.
Make sure you meet the requirements for a loan deal. This will save you a lot of time that could be wasted considering a consumer loan that you are not eligible for. Basic eligibility criteria that need to be satisfied vary from bank to bank, but there are common factors to consider when applying for a personal loan, either online or in person. These include:
Many banks evaluate an individual’s credit score differently. In Singapore, you are generally expected to have a credit score that ranges from around 1825 to 2000 in order to qualify for a consumer loan.
In general, banks accept applicants who work or reside in Singapore and are gainfully and stably employed or self-employed. Some banks may expect you to have alternative sources of income like retirement benefits or investments in addition to being employed.
To successfully apply for the best personal loan in Singapore via Lendela, you are required to earn a minimum of $1,600 per month.
Most of our banks and financial institutions grant personal loans to Singaporean citizens, permanent residents and EP holders.
You are expected to be between 21 and 61 years old to apply for the best personal loan in Singapore with Lendela.
The application procedure for a personal loan varies across banks. Many credit issuers provide online-based applications in addition to applying at their branch office. Usually, you’ll be required to tender a variety of documents and personal data to the issuing institution, before or during the loan application process. The documents typically consist of:
You need to provide a passport, driver’s license, or other forms of government-issued identification when the bank is processing your personal loan application or when you are collecting the loan disbursement.
Some banks may ask you to provide payslips from the last three to six months, or your bank account statements. If you are in the self-employed category, banks may demand tax returns from the last two years of the most recent one-year statement for both current and savings accounts.
You need to prove your residential address. This can be done, for instance, by providing your latest local utility bills, local telecommunication bills, or local bank statement/credit card statement.
When you apply for the best personal loan in Singapore with Lendela, your application gets sent to several banks and financial institutions instantly. They will get back quickly with their best personal loan offers in Singapore for you to compare. The online application takes only a couple of minutes to complete (to speed it up, have all your information ready), but you can also apply by calling our Customer Relationship Team and one of our experienced agents will help you through the whole process.
Your online application for a personal loan will be acknowledged electronically and you’ll be notified as soon as a bank comes back with a pre-approved offer. This normally happens instantly, taking no longer than just a few minutes. No matter the approach of the bank, the pre-approval and full approval phases are the two stages you need to hurdle past to get your loan.
This is the provisional approval stage, which involves less time as the bank is assessing your credentials as a borrower. A pre-approved offer is also called an in-principle-approved offer. This designation is given while they await supplementary information from you which could range from additional pay slips to papers summarising your debts or assets. The credit issuer still needs to fully acknowledge your personal loan application and evaluate your credit before granting you full approval.
Final approval on your loan application is usually given when you have supplied all required information to the bank and passed its eligibility criteria. The bank will then grant you a personal loan contract that details the amount you are borrowing, the interest rate, the final amount to be paid as well as other vital information attributed to your loan deal.
Banks can fund your loan through a variety of means. For example, when you obtain a car loan, the bank may opt to pay the car dealer directly. This is usually the same case with loans taken for debt consolidation, where they send the money to your creditor directly. When you apply for an unsecured personal loan in Singapore, the bank forwards the funds to your account. This process of disbursement happens almost instantly as it usually takes no more than 1 day.
Most banks' repayment terms are set on a yearly or monthly basis and have an affixed interest rate. Repayments on personal loans can be made online, via direct payments from your set bank account. It can also be done via third-party money transfer providers, to the account of a designated debt collector or check. Sometimes, it can be wise to ensure that the bank doesn’t restrict the amount of funds that you can pay per annum, if you wish to service your loan earlier than expected.START HERE
This is perhaps one of the biggest advantages of the best personal loan deal. There are no restrictions on how you use the money. So whether it’s a wedding, the purchase of machinery, holidaying, medical treatment or tuition, you decide how and when you want to use your personal loan, whether it be in an instant or over a certain period of time.
For unsecured loans, the issuer does not require any security in the form of collateral, prior to the disbursement of the funds. In contrast to secured loans, the loan funds are disbursed irrespective of security concerns and you need not put up anything such as a house, vehicle, or land as collateral to the bank or financial institution.
Completion of the paperwork for a personal loan in Singapore is simple. You only need to tender proof of your identity, address, income, recent salary slips, current income tax returns, and statement of account from the past six months to a year, as well as other fundamentals. If you’re applying for a personal loan online, all you need to do is upload a soft copy of each document, and complete the application.
Personal loans are designed so that you can make repayments in monthly instalments. This involves repaying a portion of the principal amount and the interest amount in simple chunks. The bank does not expect you to pay off a large chunk of the loan all at once. You can select various means of repayment in a manner that suits your financial situation.
It is commonplace to find people using credit cards. Obtaining a credit card loan deal is quick and easy but one drawback is its expensiveness. Interest rates on credit card loans in Singapore can be very high, while a personal loan can go for as low as 5% per annum.
Most personal loans can be processed almost instantly, taking less than two days. If the loan issuer has received your duly filled application and all the requisite paperwork, then a decision is taken almost instantaneously. Your credit score and history will be further evaluated when your personal loan application is being reviewed. Besides receiving your application at a branch office, some banks also allow you to apply for a personal loan online directly through their website.
A personal loan in Singapore comes with quick turnaround times. An approved loan fund can be disbursed almost instantly, in less than a day or two. Older customers of a credit institution stand a better chance of receiving the money faster. If your application falls during the weekend or public holiday; when they might not be in operation, the application can be processed as soon as the next working day. The disbursal of funds is dependent on full approval of the loan application as mentioned earlier.
The borrower is often given a range of one to five years to repay the loan funds; 10 years according to some banks. Tenure depends on the loan principal and interest rate affixed to the personal loan. Make an effort to discuss tenure options with the bank so that a repayment plan that works for both parties is agreed upon.
Some banks allow you to top-up on an existing loan deal. Let’s say you have a loan of $30,000 but need an additional $5,000. In such a scenario, you can request an extension fund on the running personal loan at the possibility of the same interest rate. With this, you aren’t required to apply for a fresh personal loan, either online or in person, ultimately evading the rigorous application process.
A personal loan in Singapore is not merely a standardised scheme. In truth, there are a plethora of personal loan deals available. There are some plans that are designed for certain industry professionals such as lawyers, doctors, engineers, and investors. Women and farmers may also enjoy personal loan plans that charge very low interest rates due to their social characteristics.
At Lendela, we believe in finding innovative ways to simplify your personal loan application process by leveraging digital technology. We are brimming with confidence on the back of over 15 years of experience in helping connect consumers with the best banks in the Scandinavian region, channeling more than one million customers to over 30 well-established banks and financial institutions in the region, such as Santander, SEB & Swedbank.
We have mediated over 600,000 loan applications in South America, thanks in no small part to our partnerships with more than 25 established credit partners including Banco Pan, BV, Safra, Banco Maxima, Banco CBSS and Banco Ibi. We are also market leaders in Brazil and have been lauded for enabling customers to enjoy the best personal loans to fulfil their dreams.
Through Lendela, we have taken the step to offer a service for online personal loans in Singapore as well. We are constantly looking to improve our user experience, bank panel and customer service, to become even better in finding you the best personal loan in Singapore.
It is time to get the hustles out of the personal loan application process, and Lendela is here to make it happen. Whether you want a personal loan for buying a new car or to fund tertiary education, the process does not have to be stressful and painfully long. By applying for a personal loan online through Lendela, the process that could have taken multiple hours, days, or weeks is completed almost instantly, taking just a few minutes.
Comparing loan offers with Lendela makes it easy for you to land the best loan offer available to you in Singapore, and to do so quickly and efficiently. Why struggle to make 10 personal loan applications, and all of them get rejected when Lendela can help you find the one in an instant? Submit the application, go on with your work, and let Lendela do the work for you. Other benefits of using Lendela include:
1. You only need to provide a few details.
2. Lendela partners with a long list of banks and financial institutions to get application approval as fast as possible.
3. By connecting with multiple banks and financial institutions, Lendela makes it easy to compare and identify personal loans with low-interest rates.
4. You can find a personal loan even if you don’t have a very good credit score. Even if most conventional banks might have declined your application, Lendela can help to revive your hope of getting the personal loan that you want.