Personal Loan Calculator Singapore (2026)
Calculate your monthly repayments, total interest, and compare costs across bank loans and licensed lenders. Free, instant results.
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $974.87 | $724.87 | $250.00 | $9,275.13 |
| 2 | $974.87 | $742.99 | $231.88 | $8,532.14 |
| 3 | $974.87 | $761.57 | $213.30 | $7,770.57 |
| ... | ||||
| 12 | $974.87 | $951.09 | $23.78 | $0.00 |
Compare: $10,000 over 12 months
These are estimates. Get real personalised offers from licensed lenders in 2 minutes.
How Personal Loan Interest Works in Singapore
Understanding how interest is calculated can save you hundreds of dollars. In Singapore, personal loans use two main methods — and the difference matters more than most people realise. Our personal loan guide covers the basics in detail.
Flat Rate Interest
Interest is calculated on the original principal for the entire loan tenure. Even as you repay the loan month by month, interest is still charged on the full amount. Banks in Singapore often quote personal loans using flat rates because the number looks lower.
Reducing Balance Interest
Interest is calculated on the remaining outstanding principal each month. As you make repayments and the principal shrinks, so does your interest charge. Licensed moneylenders in Singapore typically use this method.
Why EIR (Effective Interest Rate) Matters
A 6% p.a. flat rate loan is actually equivalent to roughly 11% p.a. EIR on a reducing balance basis. This is because with a flat rate, you are paying interest on principal you have already repaid — effectively doubling the true cost of interest.
- At 6% p.a. flat rate = $600 total interest ($50/month in interest)
- At 6% p.a. reducing balance = ~$330 total interest (decreasing monthly)
Same quoted rate, but the flat rate loan costs 82% more in interest.
How Much Can You Borrow?
Singapore regulates borrowing limits based on your annual income and residency status under the Moneylenders Act. See our borrowing guide for a full breakdown of eligibility and requirements.
Moneylender Borrowing Limits
| Annual Income | Singapore Citizens & PRs | Foreigners |
|---|---|---|
| Below $10,000 | Up to $3,000 | Up to $500 |
| $10,000 – $20,000 | Up to $3,000 | Up to $500 |
| $20,000 and above | Up to 6x monthly income | Up to 6x monthly income |
Bank Personal Loans
Banks typically offer up to 10x your monthly salary, subject to the Total Debt Servicing Ratio (TDSR) framework. TDSR caps your total monthly debt obligations at 55% of your gross monthly income. If you have an existing mortgage, car loan, or credit card debt, these reduce how much you can borrow.
Bank Loan vs Licensed Lender: Cost Comparison
For a $10,000 loan over 12 months, here is how the numbers typically compare:
| Bank Personal Loan | Licensed Lender | |
|---|---|---|
| Typical rate | 6–9% p.a. (flat) | 1–4% per month (reducing) |
| Monthly payment | ~$883–$908 | ~$879–$1,078 |
| Total interest | ~$600–$1,000 | ~$546–$2,400 |
| Approval speed | 1–5 days | Same day |
| Min income | $20,000+/yr | Flexible |
| Credit check | Full CBS check | Less strict |
Bank loans are cheaper for larger amounts and longer tenures if you qualify. Licensed lenders offer faster access with more flexible requirements — ideal for urgent needs or if your credit history is not perfect. You can compare personal loans side by side to find the best option for your situation.
Tips to Reduce Your Loan Cost
- Borrow only what you need. Every extra dollar borrowed costs you interest. Calculate the exact amount you require and resist rounding up.
- Choose the shortest tenure you can afford. A 6-month loan costs far less in total interest than a 12-month loan at the same rate. Use the calculator above to find the sweet spot between affordable monthly payments and minimal total cost.
- Compare multiple lenders before committing. Rates vary significantly between lenders. Even a 0.5% difference per month adds up over the loan tenure. Browse our licensed moneylenders directory or compare on PickMeALoan to see actual offers.
- Ask about early repayment. Most licensed moneylenders in Singapore allow early repayment without penalty. If you come into extra money, paying off your loan early can save you significant interest.
- Check if you qualify for bank rates first. If you earn $20,000+ per year and have a clean credit record, bank personal loans typically offer lower annual costs than moneylenders.
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Frequently Asked Questions
- Use our free calculator above. Enter your loan amount, select the interest rate type (flat or reducing balance), set the rate percentage, and choose your repayment tenure. The calculator instantly shows your monthly instalment, total interest, and total repayment amount.
- Since October 2015, licensed moneylenders in Singapore can charge a maximum of 4% per month on the reducing balance. There is also a cap on late interest at 4% per month and total fees (including interest, late interest, and charges) cannot exceed the principal amount.
- Flat rate calculates interest on the original loan amount for the entire tenure — you pay interest on principal you have already repaid. Reducing balance calculates interest only on the remaining outstanding amount each month. A 6% p.a. flat rate is roughly equivalent to an 11% p.a. effective interest rate (EIR) on a reducing balance basis.
- Singapore Citizens and PRs earning below $20,000 annually can borrow up to $3,000. Those earning $20,000 or more can borrow up to 6 times their monthly income. Foreigners earning below $20,000 can borrow up to $500, while those earning $20,000 or more can borrow up to 6 times their monthly income.
- Yes, 1% per month on a reducing balance is an excellent rate from a licensed moneylender — it is the lowest end of the typical range (1-4% per month). For context, 1% per month on a reducing balance works out to roughly 6.5% total interest on a 12-month $10,000 loan, which is competitive even compared to some bank rates.
- The Total Debt Servicing Ratio (TDSR) limits your total monthly debt obligations to 55% of your gross monthly income. Banks use TDSR when assessing personal loan applications. If you already have a mortgage, car loan, or credit card debt, these reduce how much additional borrowing capacity you have. Licensed moneylenders are not subject to TDSR but follow the Moneylenders Act borrowing limits instead.
- A shorter tenure means higher monthly payments but significantly less total interest paid. A longer tenure lowers your monthly commitment but increases the overall cost. For example, a $10,000 loan at 2% per month costs $1,308 in total interest over 12 months but $3,586 over 24 months. Choose the shortest tenure where the monthly payment is comfortably affordable.
- Yes, most licensed moneylenders in Singapore allow early repayment without penalty. This can save you significant interest since interest is calculated on the reducing balance — once you clear the principal, interest stops accruing. Always confirm the early repayment terms before signing your loan contract.