Quick answer: Singapore’s main loan types are personal loans (general expenses, unsecured), home loans (property, secured, 10–30 years), car loans (vehicle, secured), and business loans (SME funding). Banks offer the lowest rates but stricter eligibility; loan-matching platforms like Lendela compare multiple lenders at once; licensed moneylenders are faster but costlier. Pick based on purpose, not just the lowest advertised rate.
Buying a home, starting a business, or covering an unexpected expense — Singapore’s loan market has a distinct product for each. This guide breaks down the main loan types, how they differ, and how to choose the right one, rather than just the cheapest-looking rate.
The main loan types in Singapore
| Loan type | Purpose | Typical amount | Tenure | Secured? |
|---|---|---|---|---|
| Personal loan | General expenses | S$1,000–S$200,000 (income-scaled) | 3 months–7 years | Unsecured |
| Home loan | Property purchase | Up to ~75% of valuation | 10–30 years | Secured |
| Car loan | Vehicle purchase | Up to ~70% of price | 1–7 years | Secured |
| Business loan | Business operations/expansion | S$10,000–S$1M+ | Varies | Secured or unsecured |
| Debt Consolidation Plan | Merge unsecured debts into one | Scaled to existing debt | Up to 10 years | Unsecured |
Who lends: banks, matching platforms, moneylenders
Banks (DBS, OCBC, UOB and others) offer the lowest advertised rates and the widest range of products, but have stricter eligibility and slower approval. Loan-matching platforms like Lendela don’t lend directly — they compare offers from 70+ banks and licensed providers in one application, useful if you want to shop rates without applying to each lender separately. Licensed moneylenders are faster and more lenient on credit history, but cost more — see our guides to licensed money lenders and foreigner loan eligibility for more detail.
Lendela (operating since 2018) matches borrowers with over 70 banks and licensed providers, and says it has served over 300,000 Singaporeans. It’s a comparison tool, not a lender itself — the actual loan still comes from one of its partner institutions.
CreditMaster is a Ministry of Law-licensed moneylender based in Chinatown (Hong Lim Complex), offering personal, business and foreigner loans for borrowers who may not qualify at a bank.
- CreditMaster location: 531 Upper Cross Street #01-04, Hong Lim Complex, Singapore 050531
- Contact: 6748 1338 · [email protected]
- Website: creditmaster.sg
How to choose the right loan
- Match the product to the purpose. A car loan for a vehicle, a home loan for property, a personal loan for general or emergency expenses — don’t use a more expensive product than the one designed for your need.
- Compare EIR, not the advertised rate. The Effective Interest Rate includes fees and reflects the real cost — an advertised rate as low as ~1.8% p.a. can work out to an EIR of 6%+ once fees are included.
- Check eligibility before applying. Banks typically require a minimum annual income (often around S$20,000–30,000); licensed moneylenders are more flexible but cost more.
- Read the fine print. Early-repayment penalties and processing fees vary by product and provider and can offset a lower headline rate.
- Build your credit standing. Paying bills on time and keeping credit utilisation low, tracked via your Credit Bureau (Singapore) report, helps you qualify for better rates over time.
FAQs about choosing a loan in Singapore
What’s the difference between fixed and variable interest rates?
Fixed rates stay constant for predictability. Variable rates (often SORA-based for home loans) move with market conditions — potentially cheaper, but with more uncertainty over the loan’s life.
How can I improve my chances of loan approval?
Maintain a good credit standing, provide accurate income documents, and apply for an amount within your realistic repayment capacity. A loan-matching platform like Lendela can also help surface lenders you’d qualify with.
Are loans available to foreigners in Singapore?
Yes — both banks and licensed moneylenders lend to foreigners with a valid work pass, though income requirements and loan caps differ from those for citizens and PRs. See our foreigner loans guide for specifics.
What if I can’t repay my loan?
Contact your lender immediately to discuss restructuring — most would rather adjust your plan than have you default. Credit Counselling Singapore can also help arrange a formal repayment programme with your banks. Avoid ignoring the problem, as defaulting has lasting credit consequences.
Last updated July 2026. Facts about lenders and platforms verified against their own websites and public listings on 22 July 2026 — confirm current rates and eligibility directly before applying.
Disclaimer: This article is for general information only and is not financial advice. Compiled from publicly available sources; while we aim for accuracy, we do not guarantee completeness. Confirm all terms directly with the provider before applying. Let us know if you spot anything that needs correcting.
