Payday Loans in Singapore | Read This Before You Apply

Payday loans are short-term loans given by licensed money lenders in Singapore to address your instant cash needs. With >100 lenders to choose from, learn how to avoid getting the WRONG payday loans that may cost you a fortune,

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You’ve surely experienced this before: an unexpected bill appears out of nowhere, like a medical expense, your car breaks down, your mobile / laptop stops working, your home appliance needs repair, your items get stolen and so on…

These events force you to spend a few hundred, if not thousands of Singapore dollars in such a short period of time. To make things worse, you don’t have sufficient cash and your paycheck would only arrive in two weeks!

As the holiday seasons or special occasions arrive, you would also be pressured to spend money to buy presents or gifts for your loved ones. This makes cash flow ever more important. The big question is, where can you find such instant cash?


In simple terms, payday loans are cash advances given out by licensed money lenders in Singapore to help manage your emergency cash needs. In other words, payday loans allow you to “pull forward” your income by days or even weeks, in exchange for an interest / fee. Therefore, it is important to find the right licensed money lender, like Singa Credit located in Bugis, which offers payday loans with as low as 1% interest rates.

If you are not familiar with the term “payday loan”, here are some other names for it:

• Cash advance loan

• Fast cash loan

• Bad credit loan

• Salary loan

• Paycheck advanced loan

• Short-term loan

• Deferred deposit transaction

These terms have similar meanings with “payday loan” and are sometimes used interchangeably. Think of payday loans as short-term personal loans for people in need of urgent cash.

Unlike bank loans, payday loans are non-traditional loans that are offered by legal and licensed money lenders as the loans are instant with minimal background credit check. They are fairly easy to obtain because the approval rates are relatively high.

With payday loans, you can make any day your pay day.

How much could you borrow from payday loans?

Payday loans can range from just a few hundred to a few thousand Singapore dollars based on your income. Licensed money lenders generally offer from 1x to 6x your monthly income depending on your credit worthiness. Nonetheless, you would not have to worry about having a bad credit history as licensed money lenders are generally lenient in this area.

The maximum loan cap as set by the Ministry of Law could be seen as follows.

1) Annual Income < $20,000 = $3,000

2) Annual Income > $20,000 = up to 6 times monthly income

Source: Registry of Moneylenders Singapore

What about the loan tenure?

Depending on your ability to pay, licensed money lenders could offer loan tenures from as short as one day to as long as 6 months. However, this would very much depend how individual licensed money lenders operate. Generally, the longer the loan tenure, the higher the interest rates.


1. High Approval Rates

– Payday loans generally have very high approval rates primarily due to the relatively small loan amounts and also the less cumbersome regulations for licensed money lenders. Unlike banks, licensed money lenders in Singapore have higher risk appetite and are more willing to lend to Singaporeans with a low credit history. They also do not have to deal with the many levels of management and policies like the banks.

With this, borrowers with bad credit scores can easily apply for a payday loan and get approved. Most licensed money lenders in Singapore does not require you to have a perfect credit history. In fact, those with late repayment histories are also able to easily get approved by licensed money lenders! It is fair to say claim that licensed money lenders are fairly lenient in credit checks.

Nonetheless, you would still have to pick the right lender as some unethical lenders would ask you to commit to more than you can afford. This is where the Singa Credit advantage comes in. We would always give you free financial consultation and advise to rebuild your credit score. We believe in genuinely helping our clients to achieve their financial goals especially in this harsh Singaporean economy.

2. Get Cash Instantly

The best thing about payday loans is probably the ability to get CASH immediately after approval. This is actually what lenders need the most – cold hard cash.

Licensed money lenders are able to approve the loans on the spot and give you the money you need. Banks, on the other hand, would only deposit the funds into your account and you would have to physically go to an ATM to cash out. This would take up much of your precious time.

3. Approval Time

Payday loans are generally approved in 30 minutes or less. As long as you bring the necessary documents, the loan officers could process your loan in a matter of minutes. With this, you would not have to go to the lender for a second or third time just to get your loan approved.

In the case for banks, it may take at least 3 weeks and multiple visits just to get your loan approved. Although the interest rates might be higher for licensed money lenders, it may be worth it especially when you need cash urgently.

If you need same day approval loans, Singa Credit is the right lender for you. We are proud to claim that we have 100% track record in fast loan approvals since our inception in 1992. We can approve you loan in as soon as 10 minutes! Click here to apply now.

4. Unsecured Loans

One very good news about payday loans is that it is an unsecured loan. This means that you do not need any collaterals like a property or personal assets to apply for this loan. In other words, if you default (can’t repay loan), the lender cannot take any property or personal belongings away from you. This would make it very convenient to get a loan especially for those who do not own a property or do not want to pawn their valuable belongings.

Nevertheless, you would have to bear in mind that licensed money lenders can take you to court for any outstanding balances although most would not do so as it is just not worth the hassle.

5. Less Requirements

Compared to traditional bank loans, payday loans have fewer requirements in terms of documents and also credit score. This would make it much easier to apply as you would not need to go through the stressful process of obtaining a ton of documents just to apply for a small loan.

For payday loans, the documents you need would be:

– National ID Card

– Proof of residency (utility bills / letters with name & address)

– Latest bank statement (can login iBanking at our office)

– Latest payslips (3 months)

When it comes to credit history, payday lenders are very different compared to banks. Financial institutions like banks would always put the borrowers in a very strict vetting process. They only approve borrowers with a perfect history – those who never missed a single payment and those little to none existing loans.

On the other hand, payday loans are given by licensed money lenders who specialize in offering small loan amounts to people with a less than perfect credit rating. They could understand the situations and needs of the common salaryman more. Therefore, licensed money lenders are much more accepting when it comes to people with bad credit histories.

6. Easy access

With the advancement of technology, payday loans are easier than ever to apply. You can now search for payday loans online and make an electronic application to any licensed money lenders you find suit. They would generally call you within 3 business days to follow up with your application and explain to your more about their interest rates.

Singa Credit consistently invest in technology to provide you with easy access to our excellent services. We have an online application form that is super easy to fill up. Moreover, we would ensure that you would be contacted within 1 business day as we know you are in urgent need of cash. If you have iBanking, you could also login at our office so you do not need to prepare a bank statement.

For your convenience, we are located in Bugis Cube, which is just a minute walk away from Bugis MRT. Contact us now to apply!


1. Interest rates

As you may have already known, the interest rates for payday loans are higher than conventional loans. This is because licensed money lenders would have to make up the higher default risks by the borrowers with higher interest rates.

However, the interest rates for such loans are capped at a maximum of 4% per month by the Ministry of Law. This is to prevent licensed money lenders from overcharging their clients. With this, you could worry less about lenders charging astronomically high interest rates.

If you are concerned about the interest rates, you should definitely check out Singa Credit (located in Bugis) as we are the pioneer for 1% loans in Singapore. We understand your needs for urgent cash and genuinely want to build a win-win deal with you.

Singa Credit offers payday loans from as low as 1% with flexible repayment schemes. Get your offer here!

2. Risk of borrowing too much

Greed may sometimes be an uncontrollable sin. You may be tempted to borrow more than you could afford and end up in a debt cycle that may be hard to get out of. In fact, about 25% of payday loans are borrowed again and again for more than 9 times!

Therefore, you should always assess your own ability to repay the payday loans before borrowing. This is something only you yourself would know best.

Singa Credit cares about your financial well-being. We would always give you in-depth advice on how to manage your personal finances. Having our customers in a debt trap is the last thing we want as a lender.

Don’t worry, our well-trained loan officers would always assess your situation and give you advise on how much you could and should borrow. Always remember, we care.

3. Unethical lenders

Beware of unethical money lenders. There are lenders who would charge super high fees if you make a late payment. There are also those who charge hidden fees before you know it.

ALWAYS, ALWAYS read fully the terms and conditions of the loan agreement before you sign it. You are bound to anything you put a signature on. Licensed money lenders are required by law to explain each term and condition to you in a language you understand.

Please refer to the following regulations set by the Ministry of Law:

All licensed money lenders in Singapore are only allowed to charge the following fees:

-a fee of ≤$60 for each month of late payment;

-an “administration fee” of ≤10% of the loan amount granted

-any legal costs by the court for a successful claim by a licensed money lender to recover a loan

Source: Registry of Moneylenders Singapore

Even with these regulations in place, some unethical lenders may also still charge unreasonable interest rates even if you have a fairly good credit score.

Therefore, you are always advised to shop around first before deciding to take up a loan from any licensed money lenders. The golden rule would be to shortlist at least 3 licensed money lenders and compare the deals offered by each of them before making a decision. At the bare minimum, compare the tenures, interest rates along with the terms and conditions of the offer.

As an ethical licensed money lender, Singa Credit adheres strictly to the highest standards when it comes to offering payday loans to our customers. Our loan officers would always seek to understand your situation first and give you sufficient advice so you would know clearly each term and condition of our services. You can fill up our online application form here.


– Aged 21 and above

– Preferably Singaporean citizen / PR

– Currently employed

How to apply?

At Singa Credit, we make everything easy for you. Just fill up our online application form which takes less than 30 seconds. Our professional loan advisers would call you within 24 hours to help you assess your financial situation.

If you are eligible for a payday loan, we would then ask you to come over to our office to fill up the application form and get your CASH! With our highly-trained loan advisers, it would take as little as 10 minutes (including filling up the application form) to get approval and get your cold hard cash.

*Remember, it is required BY LAW to visit the office of the licensed money lender to get a loan.

If you would like credit counselling, you could also call our hotline at (+65) 6694 6166 for free financial advice.