Banks and moneylenders, compared together
Most sites only show you one type of lender. Credible.sg matches you across both, so you can actually see which is cheaper for your specific profile.
The real floor on loan pricing
Lowest Personal Loan Interest Rate in Singapore
"Lowest rate" has two honest answers: the legal ceiling licensed moneylenders can never cross, and the far lower rates banks offer to borrowers who qualify. Credible.sg is a loan-matching platform, not a lender — we show you real offers from both, so you can see your actual lowest price instead of a single advertised number.
- See the legal rate cap upfront, not buried in the fine print
- Compare real bank and moneylender offers side by side, for free
- No pressure to accept anything, ever
Illustrative figures. Your actual offers depend on your profile.
4%/month legal cap on licensed moneylenders
2.5%+ p.a. typical bank flat-rate floor
EIR shown so you see the real cost
S$0 cost to compare offers
Where "lowest" actually comes from
Two very different price ceilings
Singapore has two regulated ways to borrow, and they sit at very different price points. Here is the real range for each, side by side.
Bank personal loans ~2.5%–6% p.a. flat rate
Lower for borrowers who meet income and credit requirements. The effective interest rate (EIR) is higher once fees are included.
Licensed moneylenders Up to 4% per month
A hard ceiling set by the Ministry of Law — no licensed moneylender in Singapore can charge more than this, regardless of your profile.
These are illustrative ranges, not a quote. Your actual offers depend on your income, credit profile, and the loan amount and tenure you request. Credible.sg is not a lender.
How it works
From one application to money in hand
-
Tell us your amount and tenure
Share what you're looking to borrow and over how long. It takes about five minutes and costs nothing.
-
We match you across both lender types
Your request goes to licensed banks and licensed moneylenders whose criteria fit your profile, not just one or the other.
-
See the real EIR, not the ad number
Every offer states its effective interest rate (EIR) and fees, so you're comparing the actual cost, not the headline rate.
-
Choose your lowest actual offer
Pick the offer with the lowest real cost for your profile, then verify your identity to receive funds.
Plan before you borrow
Estimate your monthly repayments
Move the sliders to get a feel for what a loan would cost each month. The calculator tops out at 4% a month because that is the legal cap for licensed moneylenders in Singapore. Your actual offers will state their exact rates and fees.
Get real offers insteadGet A Credible Loan
Estimated Monthly Payment SGD 337
What "lowest" depends on
Why the lowest rate is different for everyone
The rate you're offered depends on more than which lender you pick. These four factors move your quote up or down from the headline number lenders advertise.
| Factor | How it moves your rate | Why it matters |
|---|---|---|
| Lender type | Banks generally price lower than licensed moneylenders, but require stronger credit and income | Deciding which to apply to is the single biggest lever on your rate |
| Credit profile (CBS score) | A stronger Credit Bureau Singapore score usually unlocks a lender's lower advertised rates | Weaker credit typically means a higher rate or a smaller offer, not an automatic decline |
| Loan amount and tenure | Smaller amounts and shorter tenures often carry a lower total cost, even at a similar rate | A longer tenure can lower your monthly instalment but raise the total interest paid |
| Flat rate vs EIR | The advertised flat rate is calculated on the full original amount; EIR reflects the declining balance and fees | Two loans with the same flat rate can have different EIRs — always ask for it |
These are general explanations, not a quote. By law, licensed moneylenders can charge at most 4% interest per month, 4% late interest per month, an admin fee of up to 10% of the principal, and late fees of up to S$60 a month, with total charges capped at the amount you borrowed. Before signing anything, check the lender on the Ministry of Law registry.
Who qualifies for the lowest offers
You can apply if you are…
- At least 21 years old
- Singapore Citizen, Permanent Resident, or a foreigner holding a valid employment pass
- A stronger income and credit profile generally unlocks a bank's lower rates; licensed moneylenders weigh your current ability to repay more than your credit score alone
Documents to have ready
- NRIC or passport
- Recent payslips, CPF contribution statements, or Notice of Assessment
- Proof of residential address, such as a utility bill or tenancy agreement
- SingPass login if you apply to a bank through Myinfo
Why Credible.sg
Borrowing, with the guesswork removed
The real EIR, not just the ad
Every offer states its effective interest rate and fees upfront, so a low headline number can never hide a higher real cost.
Free to compare, no obligation
Applying and comparing costs nothing, and you can walk away from any offer you receive.
What actually is the lowest rate available in Singapore?
There are two honest answers to "what's the lowest personal loan rate in Singapore." The first is a legal fact: licensed moneylenders, regulated by the Ministry of Law, can never charge more than 4% interest per month, no matter your profile. That's a ceiling, not a typical rate — it's the maximum, not what most people pay.
The second answer is the real floor: banks and finance companies, regulated by the Monetary Authority of Singapore, advertise flat rates from around 2.5% per annum for borrowers who meet their income and credit requirements. For those who qualify, a bank loan is almost always the lower-cost option over a licensed moneylender. The honest "lowest rate" for you personally depends on which side of that line you fall on.
Why your rate isn't the advertised rate
Lenders advertise their best-case number, not a guarantee. Your credit profile through the Credit Bureau Singapore (CBS), your income, the amount you request, and your chosen tenure all move your actual quote away from the headline figure. Two people applying for the same loan product can receive noticeably different offers.
The other gap between the advertised number and what you pay is the flat rate itself. Lenders quote a flat rate calculated on your original loan amount for the entire tenure, even though your outstanding balance shrinks every month as you repay. The effective interest rate (EIR) accounts for that declining balance and any fees, which is why it's almost always higher than the flat rate in the ad. A loan advertised as "lowest rate in the market" on its flat rate can still carry a higher EIR than a competitor once fees are factored in.
How to actually land the lowest offer you qualify for
Start by checking your CBS credit report, since a stronger score is the single biggest lever on a bank's advertised rate. Borrow the smallest amount and shortest tenure you can comfortably manage — both reduce the total interest you pay, even at the same rate.
Then compare more than one lender type. Applying to only a bank or only a licensed moneylender means you only ever see half the market. Ask every lender for its EIR before you compare flat rates, and read the fee schedule in full before you sign anything.
Common questions
Lowest Loan Rate FAQs
Still unsure about something? Message us on WhatsApp and a real person will walk you through it.
Is there a legal minimum or maximum interest rate for loans in Singapore?
There's no legal minimum — banks compete for strong borrowers, which is what drives their advertised rates down. There is a legal maximum: licensed moneylenders in Singapore cannot charge more than 4% interest per month, a cap set by the Ministry of Law since 1 October 2015 that applies no matter your income or credit profile.
Why didn't I get the "lowest rate" I saw advertised?
Advertised rates are usually a lender's best-case offer for borrowers with strong income and credit. Your actual quote reflects your own Credit Bureau Singapore (CBS) profile, the amount you're requesting, and your chosen tenure, so it can land above the headline number you saw in an ad. Comparing more than one offer is the only way to see where you actually fall.
What is the absolute maximum I could ever be charged by a licensed moneylender?
By law, a licensed moneylender can charge at most 4% interest per month, 4% late interest per month, a one-time admin fee of up to 10% of the principal, and late fees of up to S$60 a month. On top of that, the total of all interest, fees, and late charges can never exceed the amount you originally borrowed — that ceiling can never be crossed, no matter how long a loan runs.
Does a longer loan tenure always mean a lower interest rate?
Not necessarily. A longer tenure usually lowers your monthly instalment, but it can raise the total interest you pay over the life of the loan, even at a similar rate. Compare the total cost of a loan, not just the size of the monthly payment, before you choose a tenure.
How can I actually improve the rate I am offered?
Check your CBS credit report before you apply, since a stronger score is the biggest lever on a bank's advertised rate. Borrow only what you need, choose the shortest tenure you can comfortably manage, and apply across both banks and licensed moneylenders so you can see your full range of real offers instead of just one.
If I only qualify for a licensed moneylender, am I stuck with the 4% cap?
No — 4% a month is the legal maximum, not a fixed price. Licensed moneylenders can and do charge less, particularly for smaller amounts, shorter tenures, or lower-risk profiles. Credible.sg matches you with more than one licensed moneylender so you can compare their actual offers instead of accepting the first one you find.
Browse by topic
Explore related topics
Get started
Ready to see your actual lowest offer?
One free application, and licensed lenders — banks and moneylenders both — send you real offers. Compare the EIR, see where the legal cap applies, and choose with confidence.
