What Is the Cheapest Moneylender in Singapore? (2026 Guide)
Last updated: March 2026
The cheapest licensed moneylenders in Singapore charge interest rates starting from 1% per month. However, the "cheapest" option depends on your loan amount, income, repayment period, and overall fees — not just the headline interest rate.
This guide breaks down how moneylender pricing works in Singapore, what rates to realistically expect, and how to find the lowest total cost for your personal loan.
How Much Do Licensed Moneylenders Charge in Singapore?
All licensed moneylenders in Singapore are regulated by the Ministry of Law (MinLaw) under the Moneylenders Act. The maximum interest rate any licensed moneylender can charge is 4% per month, regardless of whether the loan is secured or unsecured, and regardless of the borrower's income.
In practice, most licensed moneylenders advertise rates between 1% and 4% per month. The rate you are offered depends on factors such as your income level, employment stability, existing debt obligations, and the loan amount requested.
Typical Interest Rate Ranges
Rate Range (per month)Who Typically Qualifies1% – 1.5%Higher-income borrowers with stable employment and clean repayment history1.5% – 2.5%Mid-income borrowers with regular employment2.5% – 4%Lower-income borrowers, freelancers, or those with limited credit history
Why the "Cheapest" Rate Is Not Always the Cheapest Loan
The advertised interest rate is only one part of the total cost of borrowing. Licensed moneylenders may also charge the following fees, all of which are regulated by MinLaw:
Administrative fee: Up to 10% of the principal loan amount (one-time, deducted upfront)
Late payment fee: Up to $60 per month for each month of late repayment
Total charges cap: The total charges (interest, late fees, and administrative fees combined) cannot exceed the principal loan amount
This means that even if two moneylenders offer the same monthly interest rate, the total cost of the loan may differ based on their administrative fees and repayment structure.
Example: A $5,000 Loan Over 6 Months
Fee TypeMoneylender A (1% p.m.)Moneylender B (1.5% p.m.)Interest (total)$300$450Admin fee (10%)$500$250Total cost$800$700
In this example, Moneylender B charges a higher interest rate but a lower admin fee, making it the cheaper option overall. Always ask for the total repayment amount before signing any loan contract.
How to Find the Lowest-Cost Moneylender for Your Situation
Rather than searching for the single "cheapest" moneylender, focus on finding the lowest total cost for your specific loan requirements. Here is a practical approach:
Step 1: Know Your Borrowing Limit
Your maximum borrowing amount depends on your income and residency status. Singapore citizens and PRs earning above $20,000 annually can borrow up to six times their monthly income across all moneylenders combined. Those earning below $20,000 annually are capped at $3,000.
Step 2: Compare Total Repayment Amounts
Request the total repayment figure (principal + all interest + all fees) from each lender, not just the monthly interest rate. This is the only accurate way to compare costs.
Step 3: Use a Loan Comparison Platform
Platforms like PickMeALoan let you submit one application and receive personalised offers from multiple licensed moneylenders. This saves time, avoids multiple credit bureau enquiries, and makes it easy to compare total costs side by side.
Step 4: Verify the Lender's Licence
Always check that the moneylender is listed on the Ministry of Law's official registry at rom.mlaw.gov.sg. Never borrow from an unlicensed lender.
What Interest Rate Will I Actually Get?
The rate you receive depends on your individual profile. Factors that help you secure a lower rate include:
Higher and stable income: Borrowers with consistent monthly income from salaried employment tend to receive better rates
Lower existing debt: If you have fewer outstanding loans or credit card balances, lenders view you as lower risk
Smaller loan amount relative to income: Requesting a modest amount increases approval likelihood and may result in a lower rate
Clean repayment history: No defaults or late payments with previous lenders
There is no single "cheapest moneylender" that offers the lowest rate to every borrower. Rates are assessed individually based on your profile.
Frequently Asked Questions
What is the lowest interest rate a licensed moneylender can charge in Singapore?
The lowest rates advertised by licensed moneylenders in Singapore start from 1% per month. However, the rate you receive depends on your income, employment, and loan profile. The maximum any licensed moneylender can charge is 4% per month, as regulated by the Ministry of Law.
Are moneylender interest rates in Singapore negotiable?
Yes, in some cases. While moneylenders set rates based on risk assessment, submitting applications to multiple lenders through a comparison platform allows you to choose the most competitive offer. Having a strong income and clean repayment history gives you more negotiating power.
Is it cheaper to borrow from a bank or a moneylender?
Banks generally offer lower annual interest rates (3%–9% per annum) compared to moneylenders (1%–4% per month). However, banks have stricter approval requirements including minimum income thresholds and credit score checks. If you do not qualify for a bank loan, a licensed moneylender may be your best regulated alternative.
How do I avoid overpaying on a moneylender loan?
Compare the total repayment amount across multiple lenders, not just the monthly rate. Check for administrative fees, ask about early repayment options, and ensure the lender is licensed by MinLaw. Using a free comparison platform like PickMeALoan helps you see all costs upfront.
Can I get a 1% interest rate from a moneylender?
Some licensed moneylenders advertise rates starting from 1% per month, but this rate is typically reserved for borrowers with strong income profiles and clean repayment histories. Most borrowers receive rates between 1.5% and 3% per month depending on their circumstances.
PickMeALoan is Singapore's AI-managed loan comparison platform. Compare licensed moneylender rates for free — no credit check, no sales calls, and completely private. Compare rates now →
