Best Payday Loan in Singapore

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Need an urgent cash loan - and not getting ripped off - is not as easy as it seems.

As your pen hovers over the dotted line, you may be having second thoughts, wondering if you got the best deal and rate available in Singapore.

To avoid doubt and uncertainty, it is important to choose the right payday loan from the very beginning from a legal lender you can trust.

If you take action on the expert advice and use the borrower’s checklist below, you should be able to identify the best deals and avoid the pitfalls.

Save thousands of dollars and countless headaches by spending just an hour researching beforehand. The information you see here is unique for one reason - it is independent. Many unscrupulous creditors offer ‘advice’, which is really just advertising for their own sub-standard credit deals.

Do you want to find out how to identify the best payday loan among the crowd of poor offerings? The easiest way is to look at the borrower’s checklist you see here, which is a foolproof way to check if the credit account you are about to sign up for is really the best deal out there.

Difference Between Banks and Licensed Money Lenders

Pros and cons of borrowing from banks

Since they were established, banks are the most reliable source for credit anywhere. Each bank has its own features and if you are considering getting a payday loan in Singapore, retail banks offer a wide variety of loans to choose from, from short term loan to long term loan, depending on what you need.

Aside from loans, they also offer other products and services, which would be open to borrowers when they pass the requirements set by the bank.

Private banks, meanwhile, serve the top-grossing individuals who require specific services. The loans offered by these banks require valuable collateral. It could be an expensive supercar, wine collection, or a high-value property.

Cons :

Unfortunately, since banks are very strict when it comes to who they allow borrowing, not everyone can get a personal loan from a bank. Borrowers will need to pass a Debt Servicing Ratio, as well as the minimum income requirements for the loan being applied for.

Banks also consider one’s credit rating and history, which can be a problem for those who already have bad records from previous loans.

Pros :

Since banks are official sources of credit and they have been lending credit to borrowers for centuries, they adhere to strict government and industry policies before they lend to potential borrowers.

Banks are also offering revolving credit facilities like credit cards so some borrowers can use it for their expenses or money problems without having to apply for a personal loan.

High loans are possible for banks to grant to borrowers and they come with low-interest rates. Most of these high amounts of loans are for educational loans or housing loans. When you need to pay the loan, the bank will simply charge it to your bank account directly, mailing it to the bank or use the ATM to pay for it. Some will require you to pay your loans in person.

Pros and cons of borrowing from licensed moneylender​

If you are just going to borrow around $10,000 or lower, a licensed moneylender may be ideal as they offer personal loans, including payday loans, that would cover your needs.

Just like banks, moneylenders will require borrowers to submit loan applications with all the documentation necessary to check whether the moneylender could let you borrow from them. The total amount which can be borrowed or the interest rates that will be applied will depend on the moneylender’s decision.

The interest rate for loan repayments with moneylenders vary and they usually require a fixed schedule for repayments. Terms can be negotiated before a borrower can agree on the payday loan.

Cons :

The high-interest rate is the main con for anyone planning to use a moneylender to seek personal or payday loans. In Singapore, licensed moneylenders can charge up to 4% for interest per month. But their loan approval rate is high and fast.

Pros :

If you have a bad credit history, moneylenders are the way to go. They are not as strict when it comes to looking into your credit history and they will be open for inquiries 24/7. You have to go to the office personally to apply and their payday loan approval would only take up to 1 hour. It may even be possible that you can seek an extension to your payments in case you find some trouble that prevents you from paying on your next paycheck.

Don’t Trap Yourself in a Bad Payday Loan!​

Read This Borrower’s Checklist First Before You Apply For a Loan From Legal Money Lenders

Anyone who has been in or around the cash lending industry has encountered horror stories. Consider this one about a young lady who opened a bad credit account. She arrived at a financial advisor’s office in tears, clutching her borrower’s documents after she had taken out a loan when desperate for a fast cash, short term loan.

Unfortunately, in her emotional state, she had failed to do her proper due diligence and became trapped into a repayment schedule she could not meet. The lender pressured her and she sought advice, hoping for help getting out of the borrower’s contract. Unfortunately, the creditor had stayed on the edge of the law. While the terms would be considered immoral, it was not quite illegal. There was nothing anyone could do. The best way to help people like this woman is to stop them from signing bad contracts in the first place. The following checklist helps you protect yourself from predatory licensed moneylender and get the very best deal.

Before signing a new payday loan, consider the following:


Amount Borrowed

It is up to you to look at the amount you borrow and decide if you can pay it back. There are rules regarding lending limits, but unscrupulous lenders in Singapore will try to have you borrow more money than you really need.



There is official guidance on fees licensed moneylenders can charge. Make yourself familiar with the rules surrounding these fees.


Interest Rate

There is a limit to the maximum interest rates that can be charged. If your rate is higher than the standard, it is a red flag that you should be wary of.


Repayment Schedule

Many people are happy to get cash and don’t think ahead to the repayment schedule. Ensure you can really meet the repayments outlined in the contract before you sign.



All legitimate lenders will hold a license and the authorities conduct regular checks on the licensed money lenders in Singapore

These are the basics to look out for, but let's look in greater detail at the best way to identify a trusted moneylender.

Find The Best Loan From a Licensed Money Lender You Can Trust

There are a few easy checks you can do to see if a moneylender is legitimate and licensed, including the way they advertise and how they sell you the credit. By looking out for these things, you can ensure you will not get ripped off.

1. Look at the type of advertising the creditor uses.

Regulations are very strict about the way you can advertise to potential borrowers. Lenders can only legally advertise in online and print directories, on their own websites, and on their own shop fronts. An advert that pops up on unrelated websites or is posted at the bus stop will not be from a licensed lender!

2. Make sure the advertised product matches up with the deal you are offered.

It is common for lenders to advertise their very best deal to get you in the door. Once they have you there, they try to get you to sign a contract for different terms.

3. Make sure terms are communicated clearly.

By law the lender must explain the agreement to you in language you can understand. You need to be wary of anyone trying to confuse you with complicated terminology, as well as anyone simplifying the document too much - dodging the finer details. If you are unhappy with the explanation, just walk away.

Now, what exactly makes a good deal for a cash loan and what happens after you sign on the dotted line?

Choose an Instant Cash Loan That Works For You

The most important thing to consider when taking out a cash loan or payday loan is finding the right deal and lender for you. It is impossible to say what ‘the best’ deal is, simply because everyone is in a different position. There are only two things you must be sure of 1. You are comfortable with the deal, and 2. You can meet the repayments. When reviewing the terms, be aware of the law, but also do the sums yourself.

If the interest rate, fees, and repayment schedule are acceptable to you, then it is a good payday loan. Everyone has different views about borrowing terms. Click here to apply loan from our pre-checked legal lenders.

Can you repay the credit? Most people encounter strife when they fall behind in repayments and default fees begin to mount. Check carefully if your income can cover your payday loan repayments and other obligations.

Always do these calculations taking into account the worst case scenario to protect yourself from disaster. Once you sign the contract, it takes effect immediately and you make your repayments as specified in the agreement. Receive the principal amount right away, minus the admin fee if there is any. Be sure you get regular account updates and statements so you can keep track of your credit. If you rushed in too soon and you think your payday loan document is illegal or unfair, there is a way to get advice.

All lenders are held accountable by the Registry of Moneylenders. If you have any doubts, contact the Ministry of Law by email at, or by phone at 1800-2255-529. Save yourself a lot of time and research - click here for a list of instant recommended lenders after you fill out a short form!

Everything You Need to Know Before Signing an Instant Payday Loan

By this point, you are almost ready to go out confidently to search for your next payday loan. With the information outlined, you should be able to avoid the loan sharks and find yourself a good payday loan with favorable terms. To recap and also give you an easy point of reference, here are some of the most common questions about payday loans and no-nonsense answers.

While interest rates offered vary, there are stated maximums set by the Registry of Moneylenders. Review their guidelines before agreeing to a payday loan.

They should, but in reality, good deals are often advertised to get you into their office, then they try and sell you another product. Be wary of this practice and always carefully review your payday loan document before signing.

The Ministry of Law – The Registry of Moneylenders is responsible for oversight in the crediting industry. They are a great resource for anyone looking to take out a loan.

The Registry of Moneylenders should be your first port of call if you believe you have signed any contract that breaches lending guidelines. Ready to take out your next payday loan from a lender you can trust?