Find Singapore’s lowest interest rate personal loan in 4 easy steps

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Getting a loan is a major financial step that can have repercussions on your finances and credit score for up to a decade. Before you take such a major decision, make sure that you are aware of your options and have all the right information to find the lowest interest rate personal loan in Singapore.

Loan agreements even between the same moneylender in Singapore and different borrowers are not always the same. Factors like the borrower’s credit score, the amount loaned, the term of the loan, and the purpose of the loan all affect the specific conditions of repayment as well as the interest rate charged.

Still, some rules of thumb apply across the board when you want to find the cheapest personal loan in Singapore. Use these step-by-step instructions and you won’t go wrong.

Find a licensed money lender in Singapore

One of the most common mistakes people make when looking for a money lender is not checking whether the business is legal. Most victims of financial fraud, identity theft, and loan sharks can trace the problem back to applying for a loan from unlicensed money lenders.

A legal moneylender in Singapore will:

  • Be registered with the Ministry of Law
  • Have a physical office
  • Operate a secure website (indicated by “https” at the start of their website URL)
  • Verify your credit score and identity

A legal moneylender in Singapore will not:

  • Advertise their services on chat apps and online (besides their website)
  • Offer you a loan if you did not apply for one
  • Keep any of your financial or personal documents (they may make copies)

Illegal moneylenders may tell you that they offer the lowest interest rate personal loans but it is a gimmick. Once you are in debt to them, they will raise their rates astronomically. On the other hand, legal money lenders are limited by law to a maximum of 4% interest per month (and only on the outstanding amount).

Use a money lender comparison site

It is almost impossible to find the cheapest personal loan in Singapore on your own, especially if you are new to borrowing money. There are many different lenders, each offering many different types of loans, and the terms and conditions can vary significantly. Apart from that, not every borrower will qualify for every loan at the advertised interest rate. You could spend hours, if not days, trying to find the best deal and still not succeed. 

This is why loan comparison sites are so useful in finding the lowest loan interest rates in Singapore. They do all the hard work of extracting the latest rates and terms from different lenders. Importantly, they also filter out all unlicensed moneylenders so you can be sure that you will only deal with a reliable, legal money lender.

Explore the perks of loyalty

Legal money lenders are like any other retail business – they work hard at customer service and want to retain every client that walks in through their doors. If you have borrowed from one lender previously, visit them again for your next loan and you might get yourself a special deal.

Most legal lenders will extend exclusive rates and may even waive admin and processing fees for returning clients. Shop around for deals and find out what perks each lender offers before you sign on the dotted line. Note that a good relationship with your lender may also create room for more understanding if you fall behind in payments.

Ask and you shall receive

Most legal money lenders understand that their clients only borrow money when they are forced to do so. While they do run a business for profit, the human element plays a big part in how any good money lender operates. With that in mind, always try to negotiate the best deal that you can get.

A lender may adjust the terms, the interest rate, and miscellaneous fees so you can come to an agreement. You could get the cheapest personal loan in Singapore from a lender that does not advertise that rate publicly.

The lowest interest rate personal loan in Singapore could be yours with these four simple steps. All it takes is a little bit of planning and you could save thousands of dollars over the course of repayment.

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