Best Payday Loans In Singapore 2024
Updated: 22 May 2025
Written bySingSaver Team
Team
A payday loan is a high-cost and short-term loan offered by licensed moneylenders that gives you quick access to funds for unexpected emergencies before your next paycheck in Singapore. You can take a payday loan without a credit check, meaning you can get a loan even if you have a poor credit score or a lower than average income in Singapore.
However, payday loans come with high costs; interest rates and fees are extremely high, which can snowball and leave you in huge debt. Moreover, unlike a personal loan in Singapore, you only have a short window to repay the loan, and the amount you can borrow has to be less than your average income.
Read on to learn more about the pros and cons of payday loans.
Best personal loans with fast approvals
- Standard Chartered CashOne Personal Loan: Enjoy instant approval and get cash to your bank account within 15 minutes
- DBS/POSB Personal Loan: Instant approval for existing cashline or DBS/POSB customers
- UOB Personal Loan: Instant approval for online submissions
- OCBC Personal Loan: Instant approval and disbursement when you apply via Myinfo
- Citi Quick Cash Loan: Instant for Citi accounts
- HSBC Personal Loan: Approval in principal within 1 minute
- HSBC Personal Loan: Apply online and get approval within 10 mins
What is a payday loan?
As the name suggests, a payday loan is a short-term and unsecured loan that provides you with funds for unexpected emergencies ahead of your paycheck.
Payday loans are unsecured, so there's no need to provide collateral. On the plus side, payday loans are easy to get because lenders don't check your credit score and may only ask for proof of income. In exchange for this convenience, payday loans charge a higher interest rate than credit cards and personal loans. Payday loans also come with short repayment terms; you only have until your next paycheck to repay what you've borrowed.
How does a payday loan work?
You can get a payday loan from licensed moneylenders in Singapore. Here's what you need to know about payday loans.
Application process
You can apply for a payday loan either online or in-person at a licensed moneylender. You'll need to provide your personal details, proof of income (such as payslips), and state your desired loan amount.
Loan approval
After reviewing your application, the lender will determine the amount you can borrow based on their own evaluation and risk assessment. This amount usually ranges between 2x-10x of your monthly salary.
Approval for payday loans is also quick—you’ll receive your answer within a few hours or even minutes.
Loan terms
Payday loans usually have short repayment periods, ranging from a few days to a couple of weeks. You'll need to repay the loan in a lump sum, including the principal amount, interest, and fees by the due date, typically by your next payday.
Interest rates and fees
As mentioned, payday loans have higher interest rates compared to personal loans or credit cards due to their short-term nature and perceived risks.
Additionally, you'll also need to pay a processing fee along with other administrative fees.
What are the pros and cons of payday loans?
Payday loan vs personal loan: What's the difference?
Payday loans and personal loans may seem similar on the surface as they both give you quick access to cash. However, there's where their similarities end. Here's an overview of their key differences.
|
Aspect |
Payday loans |
Personal loans |
|
Purpose |
For short-term emergency expenses |
Versatile, can be used for various purposes such as home renovations, weddings, paying off bills, credit debts, medical emergencies, and more |
|
Interest rates |
Much higher than personal loans |
Lower than payday loans |
|
Loan amount |
Small, typically a few hundred or thousand |
Larger, varies widely based on creditworthiness and annual salary |
|
Repayment period |
Usually by your next payday, within a few days or weeks |
Longer term, ranging from months to years |
|
Credit check |
Not required |
Mandatory, good credit score required |
|
Time to approval |
Quick and straightforward as less documentation is required |
May take slightly longer as there is more documentation to review |
|
Accessibility |
Easier to get approval, even with poor credit |
Approval influenced by creditworthiness |
Loan | Monthly Repayment | SingSaver Reward | Annual Interest Rate | Total Cost of Loan | EIR | |||
|---|---|---|---|---|---|---|---|---|
 | UOB Personal Loan | S$880 | S$960 | 1.85 % | S$1,665 | 3.40 % p.a. | ||
 | Citi Quick Cash - Existing Loan Customers | S$947 | - | 4.55 % | S$4,095 | 8.50 % p.a. | ||
 | CIMB Personal Loan | S$880 | - | 1.86 % | S$1,674 | 3.56 % p.a. | ||
 | Standard Chartered CashOne Personal Loan | S$873 | S$910 | 1.60 % | S$1,440 | 3.07 % p.a. | ||
 | HSBC Personal Loan | S$888 | S$450 | 2.20 % | S$1,980 | 4.00 % p.a. | ||
 | OCBC ExtraCash Loan | S$969 | - | 5.43 % | S$4,887 | 11.47 % | ||
 | DBS Personal Loan | S$883 | S$1,250 | 1.99 % | S$1,791 | 4.43 % p.a. | ||
 | POSB Personal Loan | S$883 | S$1,250 | 1.99 % | S$1,791 | 4.43 % p.a. |
Frequently asked questions about payday loans in Singapore
Payday loans offered by licensed moneylenders in Singapore are regulated by the Ministry of Law. This is to protect consumers from unfair lending practices. But before you Google "payday loans near me", be sure to check if your prospective lender is on the Ministry of Law's list of licensed moneylenders.
You'll need a valid bank account to get a payday loan. This is so that the funds can be disbursed into your bank account.
Generally, the maximum amount you can borrow is 2-6x of your monthly salary if your minimum annual income is around S$30,000.
Those with a minimum annual income of S$120,000 or more will be able to borrow up to 10x their monthly income.
Payday loans are costly primarily due to their short-term nature which makes quick repayment necessary, resulting in high-interest rates and fees. Moreover, the lack of a thorough credit check and collateral increases the risk for lenders, which they try to offset with higher fees to compensate for potential non-repayment.
Before obtaining a payday loan, check if the moneylender is on the Ministry of Law's list of licensed moneylenders. Also, you'll need to be mindful of the high cost of the loan and short repayment period. If you have a reasonably acceptable credit score, try to avoid payday loans and opt for a personal loan instead.
Banks like CIMB and Standard Chartered bank offer instant personal loan approvals when you sign up with SingPass, provided you make your financial and personal information available on MyInfo. Some banks, such as DBS/POSB and Citibank, also provide instant loan approvals for existing customers.
Some online lenders like credible.sg, GXS and Trust Bank also issue near-instant approvals—often within minutes. Do note, however, that some lenders may require an in-person loan interview before final approval is given.
Borrowing money from licensed moneylenders is under the purview of the Moneylenders Credit Bureau (MLCB), not the Credit Bureau Singapore (CBS). This means that if you take out a payday loan, it will not directly impact your credit score. However, defaulting on them and missing repayments will still reflect badly on you and may result in MLCB declining future loans.
As mentioned above, payday loans have several drawbacks, including limited loan amounts and the potential of lowering your credit score if you're unable to make repayment on time. Due to their high fees and interest rates, there is also an increased possibility that you may end up being trapped in a cycle of debt, if you don't manage your finances carefully.
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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.