In Singapore, there are various types of loans for a borrower to access the banking and other financial institutions. There are loans for renovation for your new home, personal loan when you need fast cash for your personal needs, education loan to allow you to pursue higher education or payday loan to tide you over until your next payday. This makes the choice of the right loan type for your needs rather difficult if you do not know their different uses.

Below is information about the different types of loans found in the Singaporean authorized lenders, the benefits these loans have for a borrower and how each loan is tailored to suit your needs.

Do You Know The 10 Types Of Loans Available In The Market?

Personal Loan

In Singapore, a personal loan is the most popular loan offered by the approved moneylenders. A Singaporean personal loan has a lower rate compared to home loans. Individuals normally apply for these loans to help pay for a wide range of their financial commitments, including debt consolidation, electronics, car loans among others.

Benefits Of Personal Loans

  • You can borrow loan amounts up to 4 times of your monthly income
  • Personal loans have fixed interest rates
  • This loan has an early repayment alternative.
  • The monthly repayment amount is the same every month

Payday Loan

A Singaporean payday loan lets you borrow a small sum of money at a high percentage rate. This loan needs to be repaid in a span of thirty days or until your next take-home earnings.

Benefits Of Payday Loans

  • This loan is flexible and convenient to a borrower
  • Payday loan has fixed interest rates
  • The loan application is approved fast
  • It is easy for a borrower to qualify for a payday loan.

Foreigner Loan

A Singaporean foreigner loan is for foreigners who hold a valid work permit and employment pass. Once you provide the required security it is used as collateral against the borrowed loan amount.

Benefits Of Foreigner Loans

  • This loan type has a low-interest rate
  • A borrower receives the required loan amount fast
  • When applying for this loan type, the number of documentation needed in order for your loan to be approved is very minimal
  • A borrower is not subjected to detailed credit records checks.

Business Loan

Business loans in Singapore are financial resources extended to different kinds of businesses by a financial institution, individual or a bank. This loan type often needs to be reimbursed within a specified date and includes an agreed upon interest amount. The requirements of the borrower, the interest rate, loan amount and the repayment date vary from one borrower to the next.

Benefits Of Business Loans

  • Business loans are easily accessible and convenient for a borrower
  • This loan type is a short term loan used to solve a businesses’ cash flow problem
  • Business loans are often approved faster compared to loans offered by banks.
  • This loan type offers varying repayment options.

Instant Cash Loan

Singapore’s instant cash loan allows an individual to make use of a loan amount which is often subject to their income. This loan type has a very high-interest rate and it is often extended to individuals who are facing financial emergencies and so they need quick cash fast.

Benefits Of Instant Cash Loans

  • A borrowers credit score is not needed to qualify for a loan
  • With proof of income, you can qualify for this loan type
  • The loan amount a borrower can take is up to 2-4 times of their monthly income.

Cash Advance Loan

In Singapore, cash advance loans are similar to payday loans in that you are able to borrow a given amount of money from a certified lender before your next paycheck. Although this loan type has a very high-interest rate, most people qualify for this loan.

Benefits Of Cash Advance Loans

  • You can access this loan type without putting in collateral
  • The approval rate for this loan is very high
  • A simple and easy application and collection loan process are used.
  • Fast and quick cash is made available to a borrower.
  • The loan amount you can access is dependent on your monthly earnings.

Education Loan

A student or education loan is intended for helping students pay for their university tuition, books, and living expenses. The repayment plan starts soon after a student graduates and the interest rates are often very low.

Benefits Of Education Loans

  • Education loans have a very low interest-rate
  • This loan type is easily approved
  • Nearly all students qualify for the education loan

Renovation Loan

Singaporean renovation loans are intended for borrowers who want to fund their home or apartment improvements.

Benefits Of Renovation Loans

  • The loan has a large loan limit
  • A borrower can choose between a variable and a fixed interest rate.
  • This loan type allows a choice of the preferred repayment method; whether to make monthly or weekly repayments.

Vacation Loan

Vacation loans are exclusively used to pay for a vacation.

Benefits Of Vacation Loans

  • Money is made available to you right away
  • There are no hidden charges
  • The repayment period starts soon after you are back from your vacation

Short Term Loan

In Singapore, the short term loan is also referred to as caveat loans. This loan type is aimed at helping businesses fix their cash flow issues and be able to straighten out their finances.

Benefits Of Short Term Loans

  • Application fees are not required
  • The loan is flexible and easy to access
  • The loan approval period is within hours
  • Credit checks are required.


Singaporean legal money lenders offer various loan types for their borrowers. The instant loan approval Singapore makes access to quick cash very convenient for any borrower. Once you identify your needs and the loan type that will suit your financial needs, approaching a legal moneylender in Singapore for assistance is very easy.

Most of the loans offered by the lenders require minimal documentation to help you have instant loan approval in Singapore. The various loan types help an individual meet the different needs they may have for a renovation loan for home improvements and student loans for funding their education.