Crucial Money Tips For Expats In Singapore


Singapore is definitely among the most livable countries in Asia for expats. It assures good quality of life and also great financial prospects. But, if you would like to get the most out of living in Singapore as an expat, you have to know some things in relation to the financial laws in the country. When you are faced with any money troubles in Singapore; you could always request for a foreigner loan issued by a licensed moneylender. Once your paperwork has been approved by a legal moneylender, your foreigner loan will be made available to you to help you ease your financial problem.

Here are several helpful money management guidelines to help expatriates settle in easily in Singapore.

Know The Tax Implications Of Leasing Your Property Back In Your Home Country

If you were living in your own house back home, you may consider renting it out as you are relocating to another country. Although some countries don’t have extra taxes levied on expatriates renting out their homes, others don’t have any such restrictions. You must know this before subletting your home. And when you are considering selling off the property it is wise to conclude the deal before leaving your home country.

When you have a property back home, you could be wondering if you have to keep it, sell it, rent it out, etc. That choice will typically be based on the property taxes. Some countries will be charging you taxes like a non-resident, and it can make great rental income for you. While in others, the taxes will actually increase when you change it to for-rent property. These matters are complex and costly to handle, so be certain to resolve it before you move to Singapore.

Understand How The Local Tax Works

In Singapore, there is no capital gains tax or the inheritance tax. But the taxes system isn’t as easy as it perhaps appears. For example, when your company offers you stock options, they become a component of your salary and the profits are made taxable. In the same way, when you are considering buying property here, you should know that as an expatriate, you will incur a 15% charge in stamp duties. Consult a tax manager for further explanations.

Don’t Plan To Acquire A Car

Singapore’s well-connected road and rail network makes travel in the small island easy, you can even cover the island from end to the other in exactly 90 minutes. Therefore you won’t need to own a car since it may prove to be quite expensive.

You may need to think about money management during the initial period of settling down in the new country. Accredited moneylenders can be contacted for help with their foreigner loan, in case you need additional money.

There is no need for a car here, a greatly interconnected island which you can walk across in a day. In addition, Singapore is among the priciest cities to own a car, in the world. A family car here can run up costs above S$110,000, and this is not inclusive of the prohibitive road taxes, parking fees, electronic road pricing, and the mandatory insurance. But if you need private transport think of long-term leasing

Select Your Bank Wisely

Look for a local bank that offers a lot of ATM options to open an account with. For those who may want to have an expatriate account to enable deposits from your native country to be made, a lot of the local banks have this facility to offer. You could even pick an international bank, particularly if you hold an account with them, back home. In this case, you might even enjoy zero fee funds transfer option with them. Make inquiries on the available options before you choose a specific one.

Singapore has more than 100 banks that operate here. Besides the “big name” bank brands such as HSBC and Citibank, the country host a range of private as well as offshore banks. This will offer you better deals if you are well off. The Local banks, like OCBC and DBS, have an ease of access advantage as well. They have more ATMs, making it easier for you to make withdrawals and cash deposits.

It is suggested that you pick 2 banks as soon as you land. The first one needs to be an international bank to be used for sending money to and from your home country; this is generally cheaper compared to using non-bank remittance services. And additionally, you could get a reasonable exchange rate. Your second bank has to be a local bank, which will make it more convenient for you to handle transactions for example withdrawals.

Find a Reliable Forex Broker

When it happens that you are bringing in large amounts of money into the country, or you may be planning to transfer huge sums on a continuous basis, it is advisable that you talk to a reliable Forex broker. The Forex brokers always make use of options and futures to get the best exchange rates possible, and they are able to do this for you at an agreed upon fee.

Since the exchange rates keep fluctuating, for someone who is not in a hurry, your Forex broker could also give you advice on when it would be a good time for you to make currency exchanges. It at times is worth the wait for about a few months as this will help you minimize your loss of a lot of money, and especially if you are transacting using a substantial amount.

Locate A Reliable And Legit Moneylender

For financial emergencies here or back home, you need to know where to get the best rates and services from a legal moneylender. When you are going through the hassles of moving to a new country, you wouldn’t want to deal with the added pressure of having financial problems. The excellent news is that as a global financial hub, Singapore will always have something to offer you so you will have numerous choices of service providers like the licensed moneylender companies and banking institutions.

Do I Require A Personal Guarantee To Get A Business Loan?


When starting a small business, you often start with your own ambition, vision, and personal growth. For you to keep it successful, you will need business line credit. When getting a business loan, your personal guarantee is often required during these tough economic times, especially for startup loans.

The personal guarantee is simply an agreement you make in the event that your company can’t pay, thus you sign accepting to repay this business loan. It’s like you are the cosigner of your business loan. This agreement is binding even when your organization is not connected to you personally, like, for example, limited liabilities company (LLC) or a corporation.

Let’s say the corporation fails, for example, and is not able to pay its bills, the moneylender company will activate the personal guarantee you cosigned. A personal guarantee may be required in the company by the owner even when the company is a separate legal entity, for example, LLC or a corporation.

Personal assets can be used to secure a personal guarantee, like the owner’s home equity, or it may be unsecured, depending on the goodwill guarantees by the borrower. The personal guarantee necessitates the borrower into swearing to take responsibility for the loan when the company cannot repay.

Why A Personal Guarantee Is Necessary

Starting a small business is a risky proposal, and the business startup loan is the riskiest loan type your moneylender or bank can issue you with. You almost will still need to sign the personal guarantee even when you are able to access an SBA loan guarantee.

The moneylender or the bank will want you to have a financial stake in the achievement of the business. Plus they will want you to understand that you will be leaving the moneylender carrying the bag, thus can’t just walk away from this should it fail.

A business credit line from a moneylender will give you fast and easy access to business funding. This is the perfect way to deal with irregular cash flow, take care of emergencies as well as make the best of profitable opportunities that come your way. Business loans are a financing solution that will afford you quick and easy access to business capital.

The Risk Involved

Whenever you cosign a personal guarantee, you are allowing a moneylender to chase you personally when you are not able to repay the business loan. That could mean many things, depending on the loan agreement you signed on behalf of your business entity. To be included in your guarantee, you may have issued the lender permission to access your assets like property that you own (this includes your home or other valuables) or your investment accounts.

There is also the likelihood that the money lenders may take legal actions against you. This can hugely damage your credit thus making it hard for you to take out loans in the future (this can also affect your prospects of getting a job, purchasing insurances, or even being able to rent a place for you to live).

Family Property
The personal guarantee you sign for your business loan can also have an effect on your family. You need to consider what the collateral you offer will mean for your family as well. Losing your home is clearly a problem affecting your family.

A number of loans will also require that your spouse to also guarantee, therefore assets owned solely under your spouse’s name will also be affected as well (or else, you may be tempted to shift assets to be under your spouse’s name).

Paying For Associates
You might find your self in some serious trouble more than you can handle when the agreement involves the word ‘joint and several.’ This gives the money lender permission to try and collect the whole balance from every and or all the partners who also personally guaranteed the business loans. When the other partners are not able to pay, the money lender will demand the whole balance from you: This means although you are not the sole owner of the business, you may be 100% accountable for the entire debt.

What If I Don’t Have Assets for Assurance

Given that you hold assets, such as equity in a property, you will most likely have to vow them as well as consent to cooperate with them to help repay the loan amount in case it can’t be repaid by your company. In cases where you bring in a cosigner, this individual needs to be prepared to pledge assets in alignment with the loan agreement.

There is a possibility of you not being able to get the business loan if you yourself do not have any of the necessary collateral to guarantee the loan. Consider it as necessary for you to provide a personal guarantee when you need to have the money lending institution to agree to the business loan.

How To Get Protection

However, you need to be aware that once you have signed the personal guarantee hiding behind the business entity won’t cut it. What is required of you and your business is that the loan money is repaid promptly. Before you decide on the type of company to deal with ensure you ask for advice from your financial and tax advisors.

Fully separating your business credit from your personal credit is an essential part of safeguarding yourself and the business. For you to be able to manage the risk, you will need, over time, to shift away from giving a personal guarantee on your business loans. This will be possible once you grow credit for the business and draw together its own assets for collateral purposes, you will be able to stop guaranteeing the business loans.


For you to keep your business startup successful, you will need business line credit. When getting a business loan, you will be expected to give a personal guarantee by your lender. A Personal guarantee is simply an agreement you make in the event that your company can’t pay, thus you sign accepting responsibility for this business loan. Before you sign the guarantee you need to be aware of the risks involved.

Find A Licensed Moneylender Once Your Bank Rejects Your Loan


The approval process of loans by banks is among the most complex and time-consuming procedures. It can at times take more than 1-2 weeks and yet the borrower ends up disappointed for lack of their loan being approved. Even in some situations, the borrowers are not able to meet the bank’s terms and conditions. Therefore, they do not qualify for the bank loans.

During such hard times, the legal and professional moneylenders in Singapore are very helpful for any individual who is in urgent need of money. There are several financial institutions that offer immediate personal loans with reasonable repayments terms and with minimum interest rates.

Every now and then emergencies do emerge that might exceed your expectations. Hence, finding a trustworthy moneylender to assist you by giving you Personal Loans is important. One good option available for most borrowers is the legal Moneylenders available in Singapore. But, there are a few important things you will need to bear in mind to help you access the best deals from the Moneylenders near your area.

Since Banks and other conventional money lending institutions have strict regulations and standards even for their simplest loans- this has generated the demand for many borrowers locating alternative sources for financing. That’s why locating the monthly cash lender, for instance, the hard cash lenders could be an incredible thing to do. The one thing that makes them a good source of funding is because they are able to give you a sizeable amount of money more or less immediately. Although there will be a few drawbacks to this as well. Here are some tips that will help you go faster to get on the right path.

Recognizing Hard Cash Lending

A hard cash moneylender is someone who gives you a personal loan when all the other resources like the banks are reluctant to do so. The monthly moneylender can offer you personal loans without using collaterals such as your commercial and residential properties, apart from a looking at other different things.

When you are planning to visit your personal monthly cash moneylender, then it is important for you to know about several things- the lenders will set their own sees, thus will have their very own specific criteria to decide whether you are a worthy debtor or not. Despite the fact that banks don’t offer such loans, these money lenders do so because they are ready to and are capable of taking the risk.

Before you can settle for anyone money lender for this type of loan, you need to investigate the lender well through checking their business history. When you opt to do your search for this type of money lenders online, it is greatly recommended that you take a look at the reviews and testimonials that have been posted through by their previous borrowers. This will guarantee that you search out the best reputable money lenders in the market.

Benefits Of This Loan

A hard money loan by your personal monthly money lender is quite straightforward to get, unlike the usual mortgage or other loan systems. All you have to do in the procedure is to appear for your scheduled appointment, provide answers to the questions asked and charge to creditors who make inquiries. Here you will need to disclose the value of the security which you are supplying to show whether it is enough to repay the amount of loan you want to take out.

The entire process of obtaining such funding is a lot easier than having to underwrite that is involved in the regular loans. Additionally, even though a hard lender may in addition cap your loan amount just like the other lenders, you will be easily capable to find lenders whose security requirements are a less complicated and their valuations exceed countless other creditors.

Although there are very many benefits of obtaining a personal loan issued by a licensed moneylender, the rates of interest are almost double those given by the traditional loans and this is where personal monthly cash moneylenders increase such standing from. It possible for a borrower to easily get various types of loans listed below from legal money lenders in Singapore. These include –

Business Loans
Each company is different and has specific requirements, an accredited team of cash lenders do understand this requirement and thus they provide you with the appropriate loans that will suit each of your business needs.

Foreigner Loans
If you are a student or employed in a foreign country, an unexpected requirement for money can be a problem and a challenge to deal with. Through the assistance of money lenders, it will become a lot easier for you to access fast cash through the foreigner loans facility in a short period of time.

Monthly Loans
This loan type is very helpful to access from any accredited money lenders for you to be able to handle the planned and any unforeseen expenses. This loan allows people to make sure that they are not trapped in debts.

When you are seeking out for the right moneylender, consider finding a trusted company that will offer you simple loan disbursement processes and provide you with low-interest rates which should include, monthly, foreigner, and personal loans. These lenders are approved by the Singaporean Law Ministry. Thus they are dedicated to offering you the best and stress-free financial services that will help fulfill borrower’s specific monetary requirements.


The approval process of loans offered by banks is among the most difficult and time-consuming procedures ever. Because of their stringent terms, this has generated the demand for many borrowers locating alternative sources for financing. A hard cash money lender is someone who will offer you a personal loan when all the other lenders like the banks have declined to do so.

Why You Need To Keep An Eye On Your Credit Score

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When your credit score is lower than you would like it to be, chances are such a score is as a result of some little financial mistake or even an oversight you may have made some time ago.

Not all people that have bad credit have a low credit score brought about by something they did. Though at times, other people’s unlawful activity may affect your credit rating. It is therefore advisable that you protect your credit rating to help prevent becoming a victim of fraudulent acts.

Any unexplained adjustments to your credit score may be signalling fraud, however, regular checks on your credit reports will help you prevent financial losses. Through the countless money scams taking place these days, it is better for you to be safe than be sorry. Being a victim of financial scam will not only cause immediate problems like a monetary loss, it could affect your credit rating as well, as a result creating long-lasting financial problems for you.

There are some tips that will assist in keeping you and your credit rating safe from online as well as financial predators:

Why Credit Rating Is Important

Once you have applied for an unsecured loan facility (a personal loan or a credit card) from the banks or an accredited moneylender in Singapore, always ensure to check that an update is carried out on your credit record by your money lender.

Since your credit report holds all sorts of helpful and important information – like the history of the missed payments, or even the likelihood of you being overleveraged, and certainly, the credit score. It plays a key part in determining if you will have your loan request approved for your moneylender personal loan or maybe the credit card you want.

Even if you do not want a loan at this time, a time may come when you will need some urgent cash, for example, to pay for wedding expenses, or to deal with medical emergencies. When it comes to credit cards, you could change your mind as soon as you realize that you will be saving a lot of money a year.

In addition, there are some specific professions (particularly in the finance industry or public service) that require their candidates to hold good credit scores and history. As a result, there are numerous reasons why you should ensure your credit history is in a good status.

However, there is one more way in which a person’s credit score is essential. And this is in most situations often disregarded. Since the data in your credit history changes every time there is a personal loan or a credit card loan request made using your names, the credit rating can also be used to alert you whenever you have become a victim of financial fraud or even other illegal activities.

What You Could Do To Protect Your Credit Rating

A malicious person or a fraudster is only able to affect your credit history when they can access it, generally through stealing your identity. For that reason, you need to always exercise good habits to help safeguard yourself.

Ensure that you always keep safe sensitive information like personal particulars, both online and offline. Make certain that you dispose of documents such as bank statements as well as bills appropriately (you can use a shredder when you would like to be double sure) and never share your personal data through unsafe channels (like during phone calls that are unverified, or over the net and also social media).

Always keep your account numbers as well as PIN numbers safe. Ensure you cover your PIN and account numbers every time you are using debit at a store. Do decline to give your PIN to anyone. Also, avoid noting down your account and PIN numbers simply because you do not know when such information might get to malicious people.

When applications for credit cards are sent to you in the mail, and they are “pre-approved”, tear up these applications and the enclosed letters before you discard them. This isn’t being paranoid. It’s taking caution since identity thieves at times go through garbage as they search hoping to find these forms. This way they will fill them out and thus steal your identity.

Do not buy items online from companies you don’t trust or even from a corporation that doesn’t have an encryption technology plus an excellent privacy policy

As earlier mentioned that your credit history can be an additional tool you could use to protect you against identity theft plus all the consequences that will arise from it. For instance, when you notice that your credit score has been downgraded for no apparent reason or when you notice that there are a number of requests for your credit record all of a sudden, or you might get marked for late repayment when you don’t hold any debt, then you are sure to know that something is amiss.

This is what you should do: confirm your credit history regularly for any inconsistencies, and make sure to report any mistrustful activities immediately. When you dispute any unwanted financial actions as soon as you notice them, you stand a chance of bringing to an end those illegal acts.

How The Singaporean Credit Bureau Can Assist In Keeping You Safe

You don’t have to fanatically check your credit history each week. But there lies the setback – it may be easy to forget checking your reports if we were the ones to do so ourselves. Life gets busy or even the task just slips our mind. It is for this reasons that the Credit Bureau (CBS) offers a monitoring service on your credit report. This service ensures that your records are untarnished by no one else and prevent identity theft.

  • Each time a lender updates a transaction on your credit history, you receive an email alert to this regard. It also alerts you when a loan request is made using your name.
  • By safeguarding your credit information and personal finance it makes it easy for you to access all your records from home, thus putting your mind at ease.
  • It ensures the uploaded information onto your file is correct thus managing your credit reputation


The Difference Of 3: Banks, Pawn Shops, Money Lenders


When you are faced with financial problems, there are many options available when you have to borrow money. However, making the choice is very important because you don’t want to get the wrong option for your needs.

For example, when you transact with the wrong moneylender, you are likely to suffer more problems with debt than you may be going through at this moment. It’s for this reason that you need to weigh your options carefully first before coming up with a final decision.

The right use of credit is very important to guarantee your financial health. When you are offered a loan, yet you aren’t disciplined when handling the money, you probably will end up with more problems. Also, lots of discipline is needed when repaying the loans. Be sure to work with a realistic budget and stick to it as best as you can. In doing this, you will greatly improve your credit rating.

Money Borrowing Options

When faced with serious money problems, you can turn to your family and friends to help you with some extra money. However, it’s not guaranteed that they will lend you the amount you require depending on the amount you need.

The other option for you is the money lending organizations and institutions that you can contact for financial assistance. These are banks, Pawnshops, and Licensed Moneylenders.

Below is a look at the differences of the 3.


Banks have been for years regarded as the reliable sources of credit. There are different ranges of services and products offered, but of importance regarding this type of organization is that you need to be eligible to access their services. They also do accept collateral for a special loan option they offer.

  • Advantages

Since they follow strictly government policies and the industry standards, banks require borrowers to meet these standards before getting a loan. Additionally, banks have the revolving credit facility with credit cards they issue. This lets you access extra funds when you need without having to request new loan applications every time.

They also offer bigger loans and their interest rate is often lower compared to other lending institutions. This generally applies to specific loans that include education and the housing loans. It’s also convenient for you to repay your loan in the bank. Other options are by mail, online, or through ATMs.

  • Disadvantages

It isn’t easy to access a personal loan from banks. Another downside of getting a bank loan is that it impacts your creditworthiness should you fail to repay the loan on time. Defaulting on a bank loan will automatically disqualify you from getting a loan from other banks. It is hard to qualify for a bank loan from the private banks.


Pawnshop, require you to put in a “pledge” something valuable you possess in exchange for the loan. That’s why you have to bring a valuable item like jewellery to help you get a loan. The item is then left at the pawnshop and you get the money borrowed.

From the moment you are offered a loan, you will get 6 months period to repay the principal amount taken out plus the interest. But, failing to do this, the “pledge” is sold off by the pawnshop broker.

Regarding the interest rates offered it can grow to 1% in the first month. Then, reach 1.5% in the following month. This is a lot lower than the 2% interests you could get from a usual credit card. It’s important to make note of the repayment option which is not fixed.

Every time you repay your loan, the pawnshop dealer will extend your deadline for auctioning the pledge item by an extra 6 months.

  • Advantages

It’s easy to get a loan from a pawnshop since you only have to present your Identity card and your valuable item (the pledge). They don’t look at your credit record, any existing loans, or salary. The debt does not compound when you do not pay the loaned amount.

  • Disadvantages

One major concern you could have with pawnshops is their high interests. It’s at 1.5% a month and is lower than the rate that banks offer on their personal loans. You only qualify for the one-time loan, compared to the revolving credit facility on credit cards issued by the banks.

The amount you can be given by the pawnshop broker as the loan has a limit depending on the worth of your pledge item. Therefore, you need to have something that is really expensive before you are able to get a loan.

Licensed Moneylenders

The legal moneylenders in Singapore deal with small amounts of money like a loan of about $10,000 or less. If this is your case, you could consider contacting a licensed moneylender near your area to request a personal loan. The loans types they offer are either secured or unsecured.

Ahead of a certified moneylender giving you a loan, you must first present all the required documents. Your credit record checks and salary assessment are also done. The amount and interest rates are determined by the personal judgment of your moneylender. Because moneylenders face certain risks due to the less strict standards they adhere to when offering loans, their interests can be rather high. There is no interest higher than 25% for loans issued by licensed moneylenders.

For loan repayments, a licensed moneylender generally requires a fixed monthly scheme for you to repay the loaned amount. The terms applicable are negotiable, as well.

  • Advantages

When the banks have turned you loan application down, you are able to access a loan from licensed moneylenders provided you meet their basic requirements. This will give you extra money for your urgent needs. Moreover, the entire loan process is stress-free and their friendly financial advisors are at all times there to assist you. They also do contact you in less than an hour. You can access a loan almost in under 3 days, which is much faster than other lenders especially when need money for an emergency.

  • Disadvantages

The one thing you need to consider when borrowing money from a moneylender is their high-interest rates.


What To Do Following A Money Lender Loan Rejection


Having your loan application being turned down by financial institutions and banks available in Singapore can be overwhelming. This means you won’t be able to obtain the funds you are in urgent need of. And at the same time, you may not be certain what the actual reason may have been that got your money lender loan application rejected to start with.

There are a lot of reasons why your payday loan application was turned down. But regardless of the reason, it could be a wake-up call for you to take a good look at your finances to ensure you have a good credit standing thus increasing your chances of your money lender payday loan being approved in the future.

Read Through Your Credit History

One place for you to start is by figuring out the issue that causes your personal loan being rejected is by going through your credit report. You can get a copy of your credit account report from the Singaporean Credit Bureau for a minimal fee of $6.42.

From there, you may get a better picture of what might have gone wrong. You may have taken multiple credit lines, or be lacking a credit history and even have too many earlier late repayments. This will clearly show you the reasons that contributed to your money lender personal loan application being turned down by your moneylender.

Pay Off The Existing Debts

If the reason why your loan application was rejected by the moneylender was having too much debt, you may start by considering a plan to repay all your debt before you apply for another loan. You may also decide on beginning by paying off those loans that have the highest rates of interest. You may choose to clear the smaller loans this way you will end up having less debt to pay off.

By paying off all your credit card bills not only enhances your credit score but it also positively affects the totals of your Debt Servicing Ratio (TDSR). For a borrower, this indicates that the portion of your salary tied to debt is much less. This makes it a major positive for you when potential moneylenders are establishing your creditworthiness.

Even as you are in the process of clearing all your existing debts, it is advisable that you do not neglect any bill. No matter how unimportant it may seem to you. This may include things like telco bills as well as your utility bills. This is because they will have an unfavourable effect on your credit score as well.

Therefore take the time to go through all the bills for the month that need to be taken care of and have them paid on time. This will greatly help you in the process of rebuilding your credit history.

Avoid Sending Out Loan Applications For A While

Every time you send out an application for a moneylender loan, the lender always sends an enquiry on your credit report. This also applies to those loan applications that did not get an approval. It is important for you to realize that applying for several credit lines within short periods of time shows that you are desperately trying to obtain a loan. This increases the chances of your money lender loan application being rejected. When your loan application has recently been rejected by your money lender, you may consider giving it a break.

It is suggested that you wait for at least 3 months prior to you reapplying again. For the moment, you can work towards repairing your credit score. In following the highlighted issues from your credit records, you can then work out a solution to those issues.

Of importance is that you improve your credit status. This will make it possible for you to access loans every time you apply. But one thing to keep in mind is to take loans that you are able to repay and to ensure you repay your debts fully.

Increase Your Monthly Income

At times, your money lender loan application may be turned away for a payday loan since your income for each month is seen as too low. This to a potential money lender shows an increased likelihood of default.

Money lenders often times require you to have as a minimum, proof of 3 month’s steady salary. With that, they will be able to confirm that you have a steady income which to them shows that you are more likely and able to repay fully your loan amount.

For those borrowers whose wages are based on commissions, they may have a hard time convincing lenders that they are creditworthy. This is because there is a chance that your lenders may think twice before granting the money lender personal loan. This is because your earnings may be considered to be inconsistent thus the chances of your defaulting are seen to be higher. It is important that you make sure that your earning for each month is at most stable. This will greatly improve the likelihood of your personal loans being approved easily.

You can consider taking up a second job as a way of increasing your monthly earnings. There are many avenues that are currently available for Singaporean to make some extra cash. You may check out private tutoring positions or even online jobs available in the Singaporean market and even worldwide.


Having your loan application getting turned down by financial institutions and banks can be overwhelming. It, however, can be a wake-up call for you to keenly look at your financial standing. You can start by going through your credit report for starters.

If the reason why your loan application was rejected since you had too much debt, it may be the time you considered setting a plan to repay all your existing debt. It’s advisable that you wait for about 3 months before reapplying for a loan once it’s been rejected.

Even then look at possibilities if increasing your monthly income as it can sometimes affect the approval of your loan if it’s considered as too low.

Are Money Lenders An Alternative To Bank Loans?

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Taking out a personal loan from banks in Singapore can at times be rather difficult. This is because of a great deal of paperwork involved. In general, banks always check your credit records before they authorize your personal loan application. In addition, banks do not consider your monthly salary when they are looking into your personal loan application. You may consider taking out a loan from licensed moneylenders if you reside in Singapore.

These legal lenders are approved by Singapore’s Registry of Moneylenders. They are bound by set rules and regulations that allow them to do business following these regulations. The money lender’s registry decides on the limit of the amount to be loan out, the interests to be charged, as well as the fees a money lender can charge.

Therefore, the question is whether moneylenders are a suitable choice for bank loans. Let’s look at some facts.

Moneylenders Provide Small Loans

Given that your loan requirement is a few thousand Singaporean dollars, a licensed moneylender can assist you to access this amount. Based on the money lending restrictions put in place, a legal moneylender will only give you a loan totalling four times your yearly earnings.

Though, some of the money lenders will not give borrowers loans equaling the full amount. The lending restrictions put in place by the lender’s registry are aimed at protecting borrowers. And also it’s for regulating the fast-growing money lending industry in Singapore.

These money lenders will authorize a loan amount of about $10,000 given that your yearly earning is about $30,000. Therefore, when you are in search of smaller payday loans to help you buy a budget plane-ticket, getting your car repaired or some other lesser need, turning to a licensed moneylender is always a good choice.

This makes it easy for a borrower to have quick cash fast and within a short period. In taking the short-term payday loans you are able to meet your urgent financial obligations. And its payable in the next paycheck depending on the repayment period set.

When you are in need of a huge amount of loan to help with renovations of your home, taking out a loan from a money lender isn’t a good option. most of the time, many money lenders will not take the risk of lending significant payday loan amounts of like $20,000 and more because of the risks involved in the case a borrower defaults.

Speedy Loan Approval

Different from banks, most money lenders are quite fast when processing loan applications. When you take with you all the necessary documents, the loan will be approved in about 30 minutes by your money lender. In most cases, it will not take you over 45 minutes to have the ready money in hand after submitting your documents and application to your licensed money lender.

This is because money lenders are dedicated to helping their borrowers address their financial needs in the quickest way. Since money lenders have flexible rules than banks their loan approval process goes much faster thus taking a shorter time for you to access your loan money. This makes money lenders a better option for individuals who are in urgent need of quick cash and are unable to get the cash from banks.

Higher Interests Charged

Although the interest rates offered by moneylenders are on the higher side, there are these lenders that offer lower rates. Even though money lenders are still acting according to the registry rules, the rates charged by most moneylenders are higher than what banks would charge on loans. This may be a downside of taking out loans from money lenders. However, it is important that you consider the repayment conditions they are offering you with the loan you take.

To ensure that you get the best interest available in the market, be sure to make time to shop around comparing lenders. Always compare the different provisions and services the different moneylenders offer before you can settle for a particular money lender. This way you will be assured of getting the right lender who will help you meet your financial needs at suitable interest rates.

Forgiving Credit Rating Assessment

Many borrowers are worried that their credit score may affect the approval of their loan request approval. Even as moneylenders are usually more forgiving when checking a borrower’s credit rating, they are keen to who they extend a loan to. In most cases, banks are very strict when it comes to checking client’s credit history before approving their loan applications. When you have a low credit score, often times your bank will not offer you a loan, but most moneylenders will still let you do so.

Actually, there are some money lenders that give less weight to your credit score compared to banks. And they normally never deny a loan to individuals due to their poor credit scores. Since it may take you time to fix the poor credit score, taking out a loan from a legal money lender would be your best alternative when you are in urgent need of money. Nevertheless, money lenders could turn down your loan application should they find out you already have taken a loan from other money lenders.

This often makes money lenders a better choice since they are not very strict with a borrower’s credit score. As long as the borrower has proof of being able to repay the loan and has a steady source of income, they will be considered for a loan approval by moneylenders in Singapore.


Taking out personal loans from banks in Singapore is at times rather difficult. This is due to a great amount of paperwork involved. Whether moneylenders are a suitable choice for you compared to bank depends on the purpose of loan you are taking.

Moneylenders mostly focus on giving smaller loans, especially when you are in search of smaller payday loans. These lenders are also very fast when processing your loan applications. And also are usually more forgiving when checking a borrower’s credit rating. Even then, they are keen to who they extend a loan to.


Different Types Of Moneylender Loans


When you are in need of urgent cash and have to take out a personal loan, it is very important that you look for the right loan type to suit your financial needs. Once you have identified what your financial needs are, then it is advisable that you research further to ensure that you get the best loan offer from legal moneylenders.

There are many different types of loans offered by licensed moneylenders in Singapore. Therefore, be sure you have the right definition and uses of the different loan types available in the Singaporean market.

Take time to shop around by visiting moneylenders to be familiar with the offers they have on their loan services. Even then being able to tell apart the different loan types and their uses will likely make your search for best loan deal much easier. There is a lot of information available online about personal loans in Singapore.

With all this information it can be quite confusing when it comes to telling the difference between them.

Here is a breakdown that will help you understand better the different types of loans offered by licensed moneylender that you can access.

Personal Loan

Most personal Loans are generally unsecured loans. This means you do not need to put up a collateral or security when applying for this loan type. Personal loans are usually disbursed as a single lump sum.

This is the reason why personal loans are popular among Singaporeans. This is also why they are useful for any type of usage and especially when you are expected to make an urgent payment by cash. There are Singaporeans who use this loan type to settle a huge medical bill, personal debts or even their credit card bills.

Repayments for personal loans are typically made monthly. Since this loan type is unsecured and is offered by licensed moneylenders, it, therefore, requires no collaterals. This means that the money lender takes on a huge risk should a borrower default. It is for this reason, that the interests charged on the personal loans are generally higher than the loans taken using collateral. Some of the loan taken out using collateral include auto and mortgage loan.

For this loan types to be approved, most money lenders will have to check your income levels, the total loan amount you want to borrow as well as your credit history.

Payday Loan

Payday loans are short-term unsecured loans often taken by people to cover rent, bills, as well as other everyday expenditures that can’t be put on hold pending the next payday. The most important difference between a personal loan and a payday loan is the loan amount. Payday loan amount is generally much smaller compared to that of a personal loan. It is for this reason that payday loans can be settled once you receive your paycheck.

Payday loans are normally short-term loans and are made available quickly. This also means the interests charged on them are a lot higher than those of personal loans. On the other hand, the advantage of this loan type is that when the amount of loan is reasonable and is less than your monthly salary, your application will likely be successful therefore be authorized.

Cash Advance or Instant Cash Loan

Instant cash loans are somewhat a blend of a payday loan and a personal loan. They let borrowers have access to a certain amount of loan money based on their level of income. The amount a person can take is usually between 2- 4 months of a borrower’s monthly income. This makes this loan almost accessible to anyone as long as you have to show proof of income. And at the same time, your credit score is not used when approving this loan type.

Instant cash loans attract high interests and are often used by individuals who are in urgent need of cash. An additional similar loan type is a cash advance. But, cash advances are often linked to a credit card. With this, you will are able to have access to a loan totalling your credit limit.

Credit Line

This is a kind of an emergency fund that a borrower can draw upon when a financial need arises. This product is mainly offered by banks that will give you access to loan funds from anywhere, and at any time. You are often allowed to draw credit equal to 4 times the monthly salary. And you will only pay the interest charged on the funds you use.

The Interest rate is calculated every day, thus the interest rate amount you repay each year may be about 20%. Considering credit line has high interests, the account needs to be made use of only in an emergency situation and also when you are certain you can repay back the loan amount within the shortest time possible.

Foreigner Loan

Accessing a personal loan in Singapore for a foreigner may prove to be very difficult. You can imagine you have just arrived in Singapore, with no income statements and even having no credit history here. And with all this, you are expected to pay for different expenses, which include a deposit for the new rental home and also the purchase of new furniture.

Legal moneylenders in Singapore are able to offer you easy access to a foreigner loan. This is meant for foreigners who may not have access to bank loans due to their strict credit criteria.

For you to qualify for the foreigner loan, you need to have a valid work permit or employment pass. You may also be required to show proof of residence as some of the requirements you are to meet.


When you are in need of urgent cash and have to take out a personal loan, it is important that you look for the right loan type to fit your financial needs. Being able to tell apart the different loan types and their uses will certainly make your search for loan deal much easier.

There are various loan types available in Singapore. These are offered by Singapore’s licensed moneylenders and include Personal Loans, Payday loans, Foreigner loans, Instant cash loans and Credit line.

Get A Loan With A High Debt-To-Income Ratio With A Moneylender

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Moneylenders use the debt-to-income ratio as a way to measure an individual’s capability to manage their debt repayments and the payments made each month. This is meant to compare your debt amount you have with your overall income.

Having a good credit score may not guarantee that you will get a personal loan from a bank or other money lending institutions. Banks frequently reject loan applications from individuals whose debt-to-income percentage is high.

Therefore, what is the debt-to-income ratio and why is it so important to a potential borrower.

What Is Debt-To-Income Ratio – DTI

Debt-to-income ratio-DTI isn’t part of a borrower’s credit score. It is instead something that banks and moneylenders use to establish your ability to pay back the personal loan taken. When your debt-to-income percentage is high, bankers and moneylenders are likely to turn down your loan application. This is because a high DTI shows that a borrower has a lot of debt for the income they have. This for a lender means you may not be able to manage the repayment of the loans you take out.

DTI is calculated by dividing the total debt service payments for each month by the gross income for each month. The DTI is often expressed using percentages. When you have a debt-to-income ratio of 36% and above, then it means your DTI is high. And the likelihood of your money lender approving your loan application is significantly reduced.

Therefore, you have to work at lowering your debt-to-income ratio ahead of applying for a payday loan. Below are some useful strategies that will help you notably decrease your DTI percentage.

Debt Settlement Plan

When your debt amount is above $10,000, you need to consider debt settlement as a key option for you to decrease the high debt-to-income percentage. When you take on a debt settlement plan, you will be able to give a lump sum of money to your lender. This way you are able to reduce the actual payday loan amount you owe.

This will also contribute positively to reducing your DTI ratio hence giving potential money lenders confidence in your ability to repay the loan taken thus making them approve your loan applications fast and with ease.

Change Repayment Terms

In order for you to reduce your debt payments for each month, you may do so either by consolidating your debt or in extending your debt repayment plan you had set with your money lender. Having a one-year debt repayment plan will more likely increase your debt repayment instalments for each month. On the other hand, a 5-year repayment program will greatly reduce your debt repayment instalment for each month.

Even with this new debt repayment plan, it is important for you to realize that by extending the repayment period you will pay more money in the end. But on the bright side, it will do away with any financial strains and stress when repaying your debts thus ensure you make your monthly instalments with ease.

Transfer Your Debt Balance 

In the debt transfer plan, you are able to get yourself a credit card which will help you pay one of the smaller debts you owe using the cash advance option. Despite the fact that the amount you owe stays the same, your debt instilment for each month are greatly reduced after you have closed one instalment account.

Increase Your Income

In order for you to increase your monthly income, you may consider taking a side job. There are many job offers in Singapore today, therefore, do a good such for a job that will not affect your usual 8-5 job schedule. Any employment that increases your income for each month will positively help you do away with your debt easy and fast. It will also help reduce your debt-to-income percentage of your personal finance.

Asking for a pay rise will also increase your income level and it’s also t easier to do. You may also consider turning your hobby into a business, this way you are able to bring in more money. The goal is to offset all your urgent debt you owe and in turn, reduce your DTI ratio.

Finding Places That Offer Loans To individuals With High DTI Ratio

Most licensed moneylenders in Singapore are known to offer personal loans even to people whose debt-to-income ratio is on the higher side. Though, you should have a reasonably good credit score.

All the Legal lenders in Singapore are under the Registry of Lender’s authority. This means they are expected to manage their money lending businesses in accordance with the laws and rules put in place by the registry.

In general, the Lender’s Registry decides on some aspects of the money lending regulations such as the maximum loan amount to be offered, fees to be charged, and the rates of interest the money lender can charge on any loan.

The interests charged by the licensed money lender are higher compared to those by banks. When you have all the proper documentation, your licensed money lender will more likely process your loan application a lot faster and in a short amount of time. There are some money lenders who may do some background checks on you for them to assess the lending risk involved.

When you have recently taken a loan from another money lender, they may not approve your loan application. Even then, most licensed money lenders available in Singapore do approve your loan application. Provided it doesn’t increase your debt for each month to above a specified threshold.


Debt-to-income ratio-DTI is not part of your credit score. It is instead a ratio that banks and moneylenders use to establish your ability to pay back the loan taken. To ensure you qualify for loans easily, there are useful strategies that will help you greatly decrease your DTI percentage.

One is increasing your income either by taking a second job or asking for a pay raise. Payment of lump sum to your debtors will also affect your debt ration positively. And the transfer of debt balance will also help reduce your instalment accounts to less more manageable ones hence strengthening your DTI.

Licensed Money Lenders & Loan Sharks Differences in Singapore


There is a big misunderstanding when it comes to licensed moneylenders within Singapore. Many Singaporeans have even called them “legal loan sharks”. However, there are fundamental differences between loan sharks and licensed moneylenders in Singapore.

In particular, when it concern debt collection, then loan processing, and its approval. Earlier, some Singaporeans, particularly those from low-income earning families got quick cash from loan sharks. This eventually ended up causing these borrowers major social issues. This is because the interests charged seemed to sky-rocketed within days. This left the borrowers with a much bigger problem than they had before taking the loan.

This led to the Singaporean government setting up a body that was to regulate and control the new moneylender’s industry. This has made it possible for the Singaporean government to control how this industry will work. And also it has enabled the government have an overview of the industry’s dealings and at the same time ensuring it protects the borrower’s interests.
This way the Singaporean government is able to decrease the social problems. These problems come up from illegal borrowing that people may engage in.

Even Then, Some Of The Key Differences Between Unlicensed And Licensed Money Lenders Consist Of:

The Loan Process

Most people turn to loan sharks first when they are not able to get loans from the legal institutions such as banks. The reasons for them not getting loans vary. From the amount needed to issues with their credit rating. Such problems are a major cause of weaknesses that most loan sharks often exploit.

Loan sharks know these individuals desperately need money. And they are certain the individuals have no one to turn to. As a result, they often charge very high interests on their loans. Many times there are no paper trails and written agreements. This means that the borrowers are often at their creditors’ mercy. More so when it comes to calculating the repayment amounts and the interests charged.

Nevertheless, this is not always the case when you are dealing with the accredited money lenders. The licensed moneylenders always use a rating system that allows them to check a borrower’s credit score.

In general, the moneylenders often tolerate more of the borrower’s credit rating. This is because the loans they can issue are often in smaller amounts. The accredited money lenders instead focus on other factors such as a borrower’s salary when deciding whether to grant a loan. Most times the licensed moneylender will protect your own interests by making sure you sign a written agreement.

The written agreement will clearly show all the rates of interests charged and the loan amount given to you. On the other hand, this does not always mean that the loan amount you apply for will 100% be approved. Given that you have other existing debts with other accredited money lenders and a large amount of credit card debt. The loan you have applied for may end up being rejected. This is, however, often very different for the different cases and varies from one individual to the next. Therefore, be sure to check with your loan specialist for guidance and advice with regards to your loan approval.

The Interest Rates Charged

When there are no contracts signed and paper trails, a loan shark will often times charge a borrower an interest rate between 100 to 200%. This can also go beyond this percentage and sadly there is nothing you as a borrower will be able to do to avoid these rates. Everything is done solely by word of mouth agreement. This on many occasions is not binding and does not protect the borrower. This way there is no proof that you negotiated a different interest rate with the loan shark.

In contrast, a licensed moneylender is bound by the interest rates set by the Singaporean government. These regulated rates are regularly adjusted to help protect the potential borrower. An example of such is the interest rate capped at 4%. This rate is to be put into regulation by the Singaporean government.

Even with the government regulated interest rates, a licensed moneylender will always have you sign a contract. This is first explained to you to ensure you are clear about the terms. Then you are to put your signature. This agreement always states the interests charged on the loan amount you have received. The loan amount given to you is also clearly written as well as the repayment instalments you will be paying and the frequency. The frequency will either be monthly, weekly or one time, depending on the loan type you have taken.

No Illegal Harassment Allowed

Since there are no paper trails and written terms of the agreement, you are more likely to be at the loan shark’s mercy. This is will be evident once you fail to meet the agreed upon repayments. In the past, there have been numerous reports in the news concerning debtors who have turned into running. This is because they failed to meet the repayments agreed on.

Do not let your financial issues snowball and get worse by dealing with a loan shark. As an alternative, talk to a loan specialist from licensed moneylender available in Singapore. They will be able to guide and advise you. As a result, helping you find the most suitable loan for meeting your financial problem.


When you find yourself in need of urgent and quick cash it is always advisable to accredited institutions. These institutions include licensed moneylenders and banking institutions. When you are not able to get a loan from these institutions, you can also consider getting help from other sources. Such sources may be voluntary organizations and even from your MP.

Regardless of the financial situation, you find yourself. Avoid seeking financial assistance from the illegal parties. When you do so, it can lead to your financial situation spinning out of your control. Also, ensure you receive a written agreement from the institution you deal with. This should clearly state the loan amount you have received and the interest rate charged.