How To Choose The Best Money Lender In Singapore | Moneylender Review

Singapore has a very robust licensed money lending industry with many established lenders offering a range of services. There are also many new money lenders in Singapore who have introduced innovation and the latest in financial technology. Here, we show you the most important criteria to compare money lenders in Singapore so you get the best rates and terms.

DIY or use the experts?

Remember that finding the best loan is not easy and neither is it quick if you really want to get the best deal. You will have to invest the time and energy and take several steps in sequence:

  1. Find legal money lenders
  2. Research each money lender and each loan that they have
  3. Note down and compare personal loan rates, terms, and conditions for each loan
  4. Create a shortlist and ensure that the loan terms have not changed since you last checked
  5. Apply for the loan

If you think that this process is too tedious, you are not alone. The alternative is to visit a comparison site for money lenders in Singapore

These sites do all the hard work for you. They list only legal lenders that have been verified and display only the latest rates and terms. Best of all, this information is usually displayed in easy-to-compare tables to help you make the best decision at a glance.

Either way, the criteria that you should use to assess potential lenders are generally the same.

Comparison criteria

Almost everyone would agree on the 7 basic factors to compare money lenders in Singapore from the borrower’s perspective:

  1. Low-interest rates – The lower the interest rate, the less the borrower has to repay over the principal loan amount.
  2. Long loan term (period of repayment) – The longer the loan term, the more slowly a borrower is allowed to repay the loan.
  3. Lenient penalties – Despite our best efforts, we sometimes fail behind in our loan repayments. The missed or late payment penalty usually combines a late fee and a processing fee.
  4. Low application fees – Every lender charges a processing fee for the office work and checks required by law so that a loan can be approved.
  5. Smooth application process – A good lender should be able to process your loan within a day even after following all the government guidelines for the safety and privacy of your personal and financial information.
  6. Convenient location – You want to borrow from a lender that is easy to visit even when you are using public transport, and situated in a safe, urban area.
  7. Good communication – Besides a physical office, every good licensed money lender in Singapore will have its own website, several phone numbers, one or more email addresses, and even an online query form. They will respond promptly to queries on all of these channels.

This list of criteria is generally in descending order of importance, with the financial factors at the top, followed by speed, and then miscellaneous factors. However, there is no need for you to follow them in exactly that order. Instead, weigh each factor in terms of what is most important for you.

For example, if you think you will need several loans, the lender’s location may turn out to be a more important criterion. On the other hand, you may be willing to put up with slightly higher interest rates and penalties if you need a loan urgently.

Note that some lenders specialise in a particular type of loan, for example, business loans. They may offer more attractive rates as well as a range of related services and information for those loans. 

For example, private car hire (taxi, Grab, and Gojek) loans are very popular, and some lenders have special rates for people who want to start such a business. There is no need to compare personal loan rates with these companies unless you need that particular service.


Sometimes, you may need a loan that does not fall into any fixed category offered by a lender. This is where their flexibility comes into play. Some lenders will be willing to create a reasonable loan for your exact needs while others may not.

So, to compare money lenders in Singapore is much more than to just compare personal loan rates. In the end, this criteria list is just a start-off point and the best lender for you is the one that suits your needs the best.