Licensed Moneylenders vs Banks: Best Place to get Personal Loans in Singapore
Updated: 10 Aug 2026
Written bySingSaver Team
Team
⚡ Quick Answer
| Loan | Monthly repayment | Interest Rate | Base Annual Interest Rate |
|---|---|---|---|
- | - | - | |
- | - | - | |
| EZ Loan | - | - | - |
Disclaimer: The information on this page is for general educational and informational purposes only and should not be considered financial or investment advice.
Banks have long been the top choice for those in need of a personal loan, but licensed moneylenders, under the watchful eye of the Ministry of Law, have made great strides in pushing into the consumer credit sector.
Given the presence of such convincing competition, are banks still the best place to apply for a loan?
Banks are almost always the cheaper option if you qualify; licensed moneylenders are the fallback when you can't, at significantly higher interest.
Decision Guide
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Enjoy low interest rates from 1.00% p.a. (EIR 2.28% p.a.) plus up to S$1,750 in cashback and rewards when you sign up for Trust Bank Personal Loan via SingSaver. Plus, receive a S$10 FairPrice E-Vouchers from Trust when you sign up with the referral code SINGSAVE. Valid till 31 August 2026. T&Cs apply.
Loan | SingSaver Reward | Monthly Repayment | Annual Interest Rate | EIR | ||
|---|---|---|---|---|---|---|
 | Standard Chartered CashOne Personal Loan | S$320 | S$428 | From 0.90 % p.a. | From 1.75 % p.a. | |
 | EZ Loan | - | S$540 | 9.88 % | 9.88 % p.a. | |
 | Cash Direct | - | S$542 | 10.00 % | 10.00 % p.a. | |
 | UOB Personal Loan | S$320 | S$429 | From 1.00 % p.a. | From 1.93 % p.a. | |
 | Trust Bank Instant Loan | S$310 | S$429 | From 1.00 % p.a. | From 2.28 % p.a. |
For instant cash access
1. Download the Trust App and navigate to the Instant Loan section
2. Fill out an application and submit all required documents
3. Wait for approval of personal loan
- LOWEST Interest Rates in the Market from 1.56% p.a. (EIR 3.00%* p.a.) with no processing or hidden fees (until further notice)
- Flexible repayments. Choose your desired personal loan amount and tenure. Repay with fixed instalments over 3 to 60 months.
- Fast approval in 60 seconds.
- *EIR calculated based on loan amount of S$90,000 and tenure of 60 months from 1 Jan 2024. Maximum EIR may be up to 22.34% p.a. based on your personal credit profile.
- Deposit Insurance Scheme: SGD deposits of non-bank depositors are insured by the SDIC, for up to S$100,000 in aggregate per depositor per Scheme member by law.
- Min. age requirement: 21 years old
- Minimum annual income of S$30,000 for Singaporean citizen or PR or S$60,000 for foreigners with valid work pass
- Effective Interest Rate (EIR) is calculated based on a loan amount of S$20,000 and loan tenure of 60 months from 1 Jan 2026. Maximum EIR may be up to 25.03% p.a. based on your personal credit profile.
- We charge a 0.88% first year annual fee and this is illustrated in the EIR above. Subsequent annual fee may be applicable, please see our Instant Loan Key Facts Sheet for more details.
1. NRIC (Front & Back)
2. Salaried employees: Latest month’s computerised payslip or latest 6 months’ CPF contribution history statement
3. Self-employed individuals: Last 2 years’ Income Tax Notice of Assessment
4. Commission-based earners: Latest 3 months payslip or latest 6 months' CPF contribution history statement
The information displayed above is for reference only. The actual rates offered to you will be based on your credit score and is subject to the provider's approval.
SingSaver’s take
Trust Bank Instant Loan is perfect for borrowers who have good credit standing and need fast cash. With a low interest rate and flexibility to choose your repayment terms, it’s a great option if you are looking to split a big-ticket purchase into manageable chunks.
For existing UOB customers
1. Click “Apply Now” on UOB's website
2. Fill out the application and upload all necessary documents
3. Wait for an offer from UOB
Note: Get instant approval and cash disbursed into your UOB accounts for applications submitted between 8am and 9pm
- Enjoy interest rates as low as 1.00% p.a (EIR from 1.93% p.a.)
- No processing fees
- Get instant approval and cash disbursed into your UOB accounts for applications submitted between 8am and 9pm
- Min. loan amount of S$1,000
- Min. income for Singaporeans/PRs: S$30,000 p.a.
- Read our full review of the UOB Personal Loan
- Foreigners are not eligible for UOB Personal Loan
- Cancellation fee: S$150 or 3% of outstanding approved loan amount, whichever is higher
- NRIC (Front & Back)
- For salaried employees: Last 3 months’ computerised payslip; or Latest Income Tax Notice of Assessment with latest 1 month’s computerised payslip; or latest 6 months’ CPF statement (for Singaporeans or PRs)
- For self-employed persons: Last 2 years’ Income Tax Notice of Assessment
The information displayed above is for reference only. The actual rates offered to you will be based on your credit score and is subject to the provider’s approval.
SingSaver’s take
With a low minimum loan amount of $1,000, UOB Personal Loan is perfectly suited for locals who need to finance a modest purchase, such as a holiday. As the loan option is only available to existing UOB credit customers, borrowers can go through a simplified application process.
For digital users
GXS FlexiLoan
1. Download the GXS app.
2. Click "Sign Up" for GXS FlexiLoan
3. Get your funds within minutes upon approval.
- No Fees Interest Rates from 1.88% p.a. (EIR from 3.47% p.a.).
- Apply in-app and get your funds in minutes
- A standby revolving credit line which you can draw multiple loans from, from as low as S$200
- Customisable loan tenure from 2 to 60 months depending on loan amount selected
- Flexibility to select your preferred repayment date
- No early repayment fee, plus save on interest when you repay early
- Interest is computed on a daily non-compounding basis
- In-app reminders to repay on time and avoid late interest charges
- Effective Interest Rate (EIR) is calculated based on an average loan amount of S$10,000 with a 36-month repayment period, from 1 Jan 2023 to 1 Jan 2026. T&Cs apply.
- Late interest is chargeable upon late repayment
The information displayed above is for reference only. The actual rates offered to you will be based on your credit score and is subject to the provider's approval.
SingSaver’s take
Digital users looking for quick cash will love GXS FlexiLoan. Loans can be customised to the individual needs of borrowers and easily managed through the GXS App. The low minimum income requirement makes it an attractive choice to locals who require funds for a variety of purposes, such as home renovation.
Before You Compare
Your credit score and history
Banks weigh this heavily; licensed moneylenders focus more on your ability to repay.
How urgently you need funds
Digital bank loans can now match or beat moneylender approval speeds.
Total cost, not just the headline rate
Moneylender's monthly rate compounds differently than bank's annual rate
Your existing unsecured debt
Check where you stand against MAS's 12x monthly income cap before applying.
Loan tenure needs
Banks generally offer longer repayment periods than moneylenders.
Quick Comparison Table – Banks vs Licensed Moneylenders
| Banks | Licensed moneylenders | |
|---|---|---|
| Interest rate range | 2.49% to 5.54% p.a. (nominal rate); note that promotional rates via platforms like SingSaver can go as low as ~1% p.a. | Maximum of 4% per month, which can translate to close to 48% p.a. on a flat basis (though actual cost is lower due to the reducing balance method) |
| Regulation | Regulated by Monetary Authority of Singapore (MAS) | Regulated by the Registry of Moneylenders, Ministry of Law |
| Loan amount | Up to 12x monthly income (MAS's aggregate unsecured credit cap) | Up to 6x monthly income (for borrowers earning ≥S$20,000/year; lower multiples apply below that threshold) |
| Tenure | Typically 1 to 5 years | Typically up to 5 years, though moneylenders often prefer 12 months or less |
| Eligibility | Minimum age requirement: 18. Main evaluation criteria: Debt-to-income ratio | Minimum age requirement: 21. Main evaluation criteria: Credit history and repayment ability |
| Approval time | Fast — can be approved within 30 minutes | Longer — requires time for documents and credit profile to be assessed |
| Fees | Processing fee, early repayment penalty, late payment charges | Processing fee, early repayment penalty, late payment charges |
| Credit score requirement | Not required, as long as borrower meets other eligibility criteria | Good credit score from CBS typically expected |
Quick Funds, Zero Hassle with SingSaver
If you’re stuck in a cash crunch, SingSaver makes it easy to find and compare emergency cash options in just minutes with a 70% approval rate—fast, simple, and hassle-free.
Interest rate
Let's start with the elephant in the room: What's the interest rate on personal loans by banks and licensed moneylenders?
No surprises here – banks generally offer a much lower interest rate on loans compared to licensed moneylenders.
Using DBS as a general benchmark, you can expect a nominal interest rate range that runs considerably higher than the promotional, SingSaver-exclusive rates featured above — the actual interest rate you're offered depends on your income level (lower income tends to mean higher interest rate) and your credit score (lower credit score tends to attract higher interest rates). Promotional rates from banks via comparison platforms are often the lowest rate a well-qualified borrower will see; walk-in or standard rates tend to sit meaningfully higher.
As for licensed moneylenders, the interest rate calculation is a little different. Under the law, licensed moneylenders are allowed to charge a maximum of 4% per month (not per annum).
This figure can be confusing to parse, not least because this interest rate is applied on a reducing balance basis — the 4% interest is calculated on the remaining loan amount each month, not the original principal.
Because of this, 4% per month doesn't quite equate to 48% per annum. But the interest on a licensed moneylender loan is still significantly higher than a bank personal loan.
Taking a S$10,000 loan from a bank over 2 years typically results in far less total interest than the same loan from a licensed moneylender — even at that lender's lowest advertised monthly rate.
Taking a S$10,000 loan from DBS over 2 years will result in S$876 in total interest. However, the same loan at licensed moneylender Lending Bee – even at the lowest interest of 1% per month – will result in a higher total interest paid of S$1,297.52.
Just for fun, go ahead and pump up the interest rate on Lending Bee’s loan calculator to 4% monthly interest. We dare you.
SingSaver x HSBC Personal Loan Exclusive Offer
Enjoy attractive interest rates from 1.30% p.a. (EIR from 2.50% p.a.) when you apply for HSBC Personal Loan via SingSaver. Available to new and existing customers! Valid till 31 August 2026. T&Cs apply.
Regulation
After interest rates, the next big thing on borrowers' minds is probably regulation. Are licensed moneylenders safe to borrow from?
The licensed moneylending industry in Singapore has come a long way since its inception back in 2008. There's even an organisational body, the Credit Association of Singapore, that aims to collectively advance the professional standards of moneylenders here through training and membership.
Just as banks and other financial institutions are regulated by the Monetary Authority of Singapore (MAS), licensed moneylenders are overseen by the Registry of Moneylenders, a division under the Ministry of Law.
However, that doesn't mean that there aren't any bad apples around. Unlicensed moneylenders still prowl for victims, so be sure to familiarise yourself with what licensed moneylenders are and aren't allowed to do if you are interested in borrowing from a licensed money lender, and always check the official list of licensed moneylenders before proceeding.
⚡SingSaver x UOB Personal Loan Flash Deal⚡
Get one of the lowest interest rates from 1.00% p.a. (EIR from 1.93% p.a.) plus up to S$1,900 in cashback and rewards when you apply for a UOB Personal Loan via SingSaver. Valid till 31 August 2026. T&Cs apply.
Loan limit and tenure
Banks generally have a higher borrowing limit for personal loans than licensed moneylenders.
Under MAS's aggregate unsecured credit rules, your total outstanding interest-bearing unsecured debt across all financial institutions — including personal loans, credit cards, and lines of credit — cannot exceed 12 times your monthly income. Individual banks may set their own lower internal limits based on your specific profile.
Licensed moneylenders, on the other hand, are capped at lending you a maximum of 6 times your monthly income if you earn at least S$20,000 a year (lower multiples apply below that income threshold).
Personal loans from banks are commonly 1 to 5 years in duration, offering a higher degree of flexibility to borrowers. Licensed moneylenders, meanwhile, prefer to offer shorter tenures, often 12 months or less.
Keep in mind that a longer loan tenure translates to lower monthly instalment amounts, making it easier to borrow a larger sum. A shorter tenure means higher monthly repayments, which limits how much you can realistically borrow if your instalment would exceed your ability to pay.
Therefore, borrowers who are unable to make high repayments each month will likely find bank personal loans to be a more flexible option.
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Enjoy one of the market's lowest interest rates starting from 0.90% p.a. (EIR from 1.75%) plus up to S$1,800 in Cashback when you apply for Standard Chartered CashOne Personal Loan via SingSaver. Valid till 31 August 2026. T&Cs apply.
Eligibility criteria
Certain borrowers may find it easier to acquire a loan from a licensed moneylender compared to a bank, and here's why. In evaluating whether to grant your personal loan, one of the factors banks have to take into account is your credit score.
If you have a poor credit history — say, you missed a few payments here and there or aren't the most diligent in clearing your credit card balance — you will be deemed a risky borrower. Should your credit score fall below an acceptable threshold, your loan will likely be denied.
In contrast, licensed moneylenders aren't as concerned with your credit history. Instead, they place greater emphasis on your ability to repay the loan — whether you have stable employment and, thus, presumably the cash flow to make monthly repayments.
Despite this, keep in mind that moneylenders don't have your best interests at heart. By choosing to lend to riskier borrowers, they can charge much higher interest rates to financially-strapped individuals who have no other choice. The trade-off is a higher risk of borrowers not paying back their loans.
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Enjoy attractive interest rates from 1.00% p.a. (EIR from 1.94% p.a.) plus up to S$2,000 Cash when you get approved for a loan with a minimum tenure of 3 years. Available to new customers only. Valid till 31 August 2026. T&Cs apply.
Conclusion: Bank or licensed moneylender – which should you choose?
To sum up, banks are by far the better option if you need a personal loan. You'll almost always be able to access better interest rates (meaning less total interest paid) and choose a longer loan tenure for repayments. Most banks also have branches located all over Singapore, making it easy to interact with a bank of your choice.
In contrast, licensed moneylenders are independent operators, with a handful of branches at most, although online applications do make accessing moneylender loans more convenient than before. Note that you'll still typically need to visit the moneylender's physical location to sign the loan agreement.
For those who cannot qualify for a bank personal loan and urgently need cash to cope with an emergency, a licensed money lender personal loan may be your only realistic option. Since licensed moneylenders charge interest on a reducing balance basis, strive to pay your loan back as quickly as possible — doing so reduces the total interest you have to pay.
About the author
SingSaver Team
At SingSaver, we make personal finance accessible with easy to understand personal finance reads, tools and money hacks that simplify all of life’s financial decisions for you.
The information on this page is for educational and informational purposes only and should not be considered financial or investment advice. While we review and compare financial products to help you find the best options, we do not provide personalised recommendations or investment advisory services. Always do your own research or consult a licensed financial professional before making any financial decisions.