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Find out what our great customers have to say about Lendela.
This is how it works:
1. Apply with us in a few minutes – it is 100% free of charge
2. Compare personal loan offers from multiple banks
3. Pick the best loan and get your money
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.
Whether you plan to buy a new car or acquire another property, a personal loan helps you get there faster. Yet, how to find the best personal loans with low interest rates in Singapore? Follow our guide to apply for a personal loan online with Lendela.
A personal loan is money borrowed for personal use, such as paying off credit card debt, home renovation, travelling, or emergencies.
Personal loans are also called consumer loans and are not backed by collateral. Banks typically begin the process by determining your credit score to assess your eligibility and interest rates for personal loans in Singapore. If your credit score is good, the interest charged on the personal loan will be lower. They will also check your ability to repay the loan before approving it. You are expected to repay the principal together with interest over an agreed period.
Personal loans can be a good solution for individuals with financial issues that need to be resolved instantly, such as debt consolidation and refinancing a loan. It also enables huge purchases and repayments at your own pace.
Whether it’s a wedding, the purchase of machinery, holidaying, medical treatment or tuition, you can decide how and when you want to use your personal loan, whether spending it instantly or over a period of time.
For unsecured loans, the issuer does not require any security in the form of collateral before the fund disbursement. None of your assets will be at risk if you are unable to repay the personal loan interest.
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. If you’re applying for an instant personal loan in SG, all you need is a soft copy of each document to complete the application online.
Personal loans are designed so that you can make repayments in monthly instalments. You can select various means of repayment in a manner that suits your financial situation.
Although credit card loans are easy and fast to secure, a personal loan is a better option because it is cheaper. The interest rates on credit cards are very high, while personal loans in Singapore can be as low as 5% per year.
Once you have filled out our personal loan application form and provided all the required documents, the decision to approve your loan is made almost instantly by our partnering banks. The loan fund will then be disbursed in less than a day or two.
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.
There are a plethora of personal loan deals designed for certain industry professionals in Singapore, such as lawyers, doctors, engineers, and investors. Women and farmers may also enjoy personal loan plans with 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, channelling more than one million customers to over 30 well-established banks and financial institutions in the region, such as Santander, SEB & Swedbank.
Through Lendela, we have taken the step to offer a service for online personal loans in SG 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.
Most banks and financial institutions follow a set of criteria when they’re considering you for a loan deal. To get the best loan and interest rates in Singapore, here are 6 steps to follow before filling out a personal loan application:
Weigh your options by determining the loan type that best caters for your financial situation and goals.
Loan types | Financial needs |
Secured loans |
|
Unsecured loans |
|
Personal lines of credit |
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Car loans | 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 to purchase a car with an interest rate calculated and set on the funds. The interest rate could be on a floating or fixed basis.
An unsecured personal loan in Singapore can be a good substitute for a conventional car loan. Since you can spend the money on what you want, this personal loan is a fast and easy way to your car. |
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, including:
Eligibility criteria | |
Credit score | Banks evaluate an individual’s credit score differently. In Singapore, you can expect a credit score ranging from around 1825 to 2000 to qualify for a consumer loan. |
Employment |
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Income | To successfully apply for the best personal loan in SG via Lendela, you are required to earn a minimum of $1,600 per month. |
Residency | Most of our banks and financial institutions grant personal loans to Singaporean citizens, permanent residents and EP holders. |
Age | You are expected to be between 21 and 61 years old to apply for the best personal loan in SG with Lendela. |
Many credit issuers provide online-based applications in addition to applying at their branch office. Usually, you’ll be required to tender various documents and personal data to the issuing institution, before or during the loan application process, including:
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 self-employed, banks may demand tax returns from the previous two years of the most recent one-year statement for both current and savings accounts.
You need to prove your residential address 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 SG 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 returns with a pre-approved offer. These are the two stages to hurdle past before getting 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 personal loan through various means. For example, when you obtain loans for debt consolidation, the bank may send the money to your creditor directly. The disbursement process takes no more than 1 day in Singapore.
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.
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Instant personal loans are considered flexible financing solutions. Apart from those loan types discussed previously, you might want to compare personal loans with some alternatives, depending on your credit score and personal needs.
When you take a personal loan, the repayment will include personal loan interests and applicable fees. If you can cover your expenses with personal savings, avoid paying the interest and fees attached to personal loans. Note that if you have a qualified retirement scheme, early withdrawal might come with a penalty.
Despite having higher interest rates, credit card loans might be a better alternative to personal loans if your credit score is poor. Remember to repay on time because penalties can be very high in Singapore.
If you own a home in SG, a home equity loan might be a good alternative to personal loans. A home equity loan is a financing option that is backed by the equity of the borrower’s home.
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Most banks in Singapore offer personal loans, given that you have a good credit score. Some banks allow you to apply for personal loans online without visiting their branches because they already have all the details, such as personal information and transaction history. It is advisable to work with banks offering the best loans and interest rates.
Singaporean financial institutions provide competitive personal loan interest rates and carry out thorough checkups on the borrower’s creditworthiness. They can be more flexible on the parameters used to gauge an applicant's creditworthiness and approve personal loans where banks would have declined. Engage with only financial institutions that are allowed to operate according to the Ministry of Law’s (MoL) restrictions.
By operating virtually, they can cut down costs associated with running multiple branches in busy cities. Because virtual banks are relatively new, they have the ability to offer competitive personal loans and other products.
Online-based financial institutions mainly focus on utilising the internet and technical innovation to provide a faster and more convenient way to get a personal loan. They are normally faster when it comes to loan approval rates, offering flat-rate quotations along with benefits such as zero fees and flexible disbursement.
Peer-to-peer lending is a new financing model that allows people to get a personal loan in SG through web-based platforms without using a registered intermediate financial institution, meaning that the cost of personal loans is pretty low.
To identify the best bank for a personal loan, one of the best ways is to use a comparison site, such as Lendela. We not only make your loan application easy but also ensure you get different offers so that you can pick the best option.
Back to topIf you want to get the best personal loan in Singapore, it is important to look for the right bank. Here are some useful tips in this personal loan guide to help you:
To avoid falling into the hands of scammers, you should only work with loan providers registered to offer financial services in Singapore. These organisations strictly follow the rules outlined in their licenses to access the Singapore market. Therefore, start by confirming the license number of the loan provider before submitting your application and signing a personal loan.
To identify a good bank, you can also check the feedback provided by previous clients. What did they have to say after using personal loans from the selected bank? If many borrowers have positive feedback about a bank, that might be a good option.
As you review different banks, put emphasis on the difference between the principal and total amount payable. If the interest does not cater for the entire difference, the chances are that there is an additional hidden charge. With Lendela, you only get introduced to banks and financial institutions that are 100% transparent about all their fees.
Although today you are interested in a personal loan, it could be an advantage if the bank also has other interesting financial products. This implies that instead of working with a different company when looking for another type of credit, such as a renovation loan, it will be easy to stick with the current bank.
A bank with good customer support can acknowledge your issues faster and professionally. Good customer support would particularly come in handy when you are researching the best personal loans in Singapore. Some components of good customer support include:
Multiple communication channels
Knowledge base pages
Demonstration videos on loan applications
Good website layout
At Lendela, we pride ourselves when it comes to customer support and transparency. We stay with you all the way from the initial application, via document upload and loan comparison, to the appointment at the bank's office where the final agreement and disbursement take place. Feel free to use our service for free anytime, and get access to multiple personal loan offers from reliable banks and financial institutions in Singapore. If you have any questions, let us know and our experienced Customer Service representatives will help you.
Back to topStep 1: Determine your borrowing needs and eligibility in terms of the amount you need to borrow, your preferred repayment period, and your credit score.
Step 2: Fill in Lendela’s online application form, our algorithm will automatically start comparing interest rates and fees among different banks, while taking into consideration the Annual Percentage Rate (APR) to show you the loan's total cost. Also, getting an estimation of the monthly repayment.
Step 3: Lendela’s result page will also lay out all the extra charges like prepayment penalties, late payment fees, or processing fees. We save you hours from reading the loan terms and conditions of each bank you are considering, just to avoid any hidden fees or charges.
Step 4: Apply for the loan of your choice, submitting the necessary documentation, such as proof of income and identification, to complete the application process.
Back to topComparing personal loans in Singapore is essential to making an informed financial decision. By comparing the interest rates, fees, repayment terms, and other features, you can find the best personal loan that fits your needs and budget.
With so many licensed loan providers offering personal loans, it can be challenging to choose the right loan in Singapore that suits your financial needs. To make sure you get the right loan, it's best to compare different loans from different providers before borrowing money.
That's not all, by comparing loans between different banks like HSBC personal loan vs DBS personal loan, you can get a clear overview of which loan will work out for you in the long run. You can also get a clear understanding of the loan tenure, processing fee, origination fees, loan terms, and hidden charges, to help you avoid paying unexpected costs while staying in control of your finances.
Back to topWhen you make an application for a personal loan, the bank is interested in understanding your ability to repay the money plus the interest. So, all you need to do is provide proof of a reliable source of income and good credit score.
Even people who are employed might get their application for personal loans declined if they are considered high-risk parties. To know if you are eligible for a personal loan, check with various banks to see their requirement for personal loan approval.
Most financial institutions will approve an application for a personal loan even if the borrower has another loan as far as he can comfortably service both loans. Therefore, if you have an urgent need for money and you are still repaying another loan, do not shy from making an application for a personal loan.
Most banks tend to have a minimum tenure for borrowers to make monthly instalments. Once the minimum tenure for the personal loan is over, you can foreclose the personal loan after paying a fee for prepayment.
Back to topWhen used properly, a personal loan can be a reliable and convenient financial tool. Here are some of the dos and don’ts to help you get the best out of personal loans in Singapore.
Relook at your budget and factor in the loan repayment so that you do not default. Being late with monthly payments can have serious implications on your financial health, including penalties and decreased credit scores.
If your credit rating has improved significantly since the time of application, there is a chance to make some savings on monthly payments through refinancing.
Contact the bank immediately if you know that your payment will be late. Otherwise, your personal loans are marked delinquent and lower your credit rating.
Because a personal loan does not restrict how you use the money, it is advisable to resist the temptation of borrowing more than you actually need. If you get a larger loan, the interest will be higher and the repayment period longer. The larger monthly payments are likely to restrict the available cash and impact your financial wellbeing.
When you provide documents and personal details in addition to your initial loan application, the bank will verify the information. If you are found to have provided false information, the loan is likely to get cancelled.
Back to topComparing loan offers with Lendela makes it easy for you to land the best personal loan offer in Singapore. Submit the application, go on with your work, and let Lendela do the work for you. Other benefits of using Lendela in this guide 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.
Back to topIn Singapore, different banks have varying personal loan interest rates, and it is crucial to do your research and identify the most affordable. Remember that the interest rates for personal loans are determined based on the borrower’s credit rating and repayment ability.
Some people opt for longer loan tenure to enjoy lower monthly payments. This is not always a good idea because the total amount payable will be higher with longer loan tenure.
As a general rule, you should target spending no more than 30% to 40% of your income on debts. In addition to repaying the personal loan, you also need money for other expenditures, such as medical bills, utility bills, rent, etc.
Banks might have additional charges, such as sign-up or originator fee, but it is possible to also get some that only have the interest. A sign-up fee is a one-time upfront charge that banks subtract from the personal loan to meet the processing or administration costs.
If you are borrowing $10,000 and the personal loan has a sign-up fee of 1%, it implies that the amount that will be deducted when the loan is deposited into your account is $100. In some cases, you might be able to negotiate for a lower sign-up fee or have it waived altogether.
To be sure about your credit score, it is advisable to check it and correct errors, if any, before applying for a personal loan.
Incorrect credit scores can arise from the wrong entry of your personal information or omission. In this case, you only need to provide documents proving the correct position. Then, the credit reference agency will recalculate your score.
If the credit score is low and you want to enjoy lower personal loan interest rates, it might be a good idea to improve it before making an application. You might also go ahead and take the loan, and ask for refinancing when the credit score improves.
When calculating a borrower’s credit score, credit agencies incorporate a number of factors, including the credit mix. Therefore, if you already have other lines of credit, such as credit cards, getting a personal loan will strengthen the credit mix. The overall impact is improving your credit score.
If you have a combination of debts, ensure only to borrow what you can afford to pay on time.
Once a personal loan is approved, the funds are deposited into the borrower’s checking account. However, you can opt for a different channel if you are working on debt consolidation. Instead of having the money sent to your checking account, simply ask the bank to deposit the personal loan directly to other creditors. This will be a great way to avoid getting the temptation of using the money for other purposes.
Debt consolidation loans allow you to combine multiple debts, such as credit card debts and personal loans, into a single loan with a lower interest rate. This makes it easier to manage your debts and potentially save money on interest charges. Debt consolidation loans are different from personal loans as personal loans can be used for any purpose, while debt consolidation loans are specifically designed to help you pay off multiple debts.
Back to topA personal loan is a form of unsecured loan borrowed for nearly any purpose, great for individuals having financial issues to be resolved instantly.
Apply for personal loans in SG via banks, traditional financial institutions, virtual banks, online-based financial institutions, and P2P lending.
Once you submit the required documents online, your personal loan application will be processed quickly, and so the fund disbursement.
Depending on your credit score and needs, consider alternatives to personal loans such as secured loans, personal lines of credit, car loans, etc.
If you’ve decided to get a personal loan in Singapore, Lendela is your best option to compare and secure the best personal loans with low interest rates. Apply for a personal loan with Lendela today.
