A bank loan is usually meant to take care of sudden large expenses like purchasing a house, preparing for a wedding, or starting a new business.
Compared to credit cards and moneylenders, banks usually offer lower interest rates.
You wouldn't be rushed to pay back the loans, and the duration you can opt to return your loans can be rather long as well. Of course, that would also mean higher interest rates.
Compared to a house loan or a car loan, the process is a lot faster. Sometimes even having the cash within hours.
A personal loan is an unsecured lump sum from a bank or licensed lender, repaid in fixed monthly instalments over an agreed term. Because nothing is pledged as collateral, approval rests largely on your income, credit history and existing commitments rather than an asset. People use them for sizeable, one-off costs — renovations, a wedding, medical bills — or to consolidate several higher-interest debts into a single, more manageable repayment.
Both banks and licensed moneylenders offer personal loans in Singapore, and both are regulated — banks by the Monetary Authority of Singapore, licensed moneylenders by the Ministry of Law's Registry of Moneylenders. The practical difference is in rate, speed and who qualifies. Banks generally offer lower rates and larger amounts but weigh your credit score and income heavily, and take longer to approve. Licensed moneylenders can approve quickly with lighter documentation and are governed by a legal cap on interest, which can make them an option for borrowers with less conventional income — usually at a higher cost.
How much you can borrow and at what rate comes down to a few factors: your income, your record with Credit Bureau Singapore, and how much you already owe. Singapore's rules limit total unsecured borrowing relative to income, so existing card balances and loans directly affect what a new lender will extend. A stronger credit profile widens your choices and tends to earn better terms.
The number that matters is the effective interest rate, not the advertised flat rate — the two can differ meaningfully once fees and the repayment structure are included. It is also worth checking for processing fees and early-repayment charges, and being honest about the monthly instalment against your budget, since a longer tenure lowers the monthly figure but increases the total interest paid.
Fundwise helps you see, realistically, which lenders are likely to approve you and on what terms, so you compare genuine offers rather than applying blindly and denting your credit record with rejections. Talk to us about what you need.
Guiding you at every step — and back again for your next financing need. It's an ongoing cycle, not a one-off transaction.
A personal loan is an unsecured lump sum from a bank or licensed lender that you repay in fixed monthly instalments, usable for large expenses like renovations, weddings or consolidating debt. No collateral is required, but approval and rate depend on your income and credit profile. Fundwise is an advisory, not a lender.
Banks typically cap unsecured personal borrowing at a multiple of your monthly income, subject to MAS rules and your total existing debt. The exact amount depends on your income, credit score and current obligations; we help you see what you realistically qualify for.
Your credit score, income stability and existing debt largely determine the rate offered, which is quoted per annum and differs across lenders. Comparing several offers, rather than accepting the first, is where an advisory adds value.
Usually your NRIC, recent payslips or income documents such as the Notice of Assessment, and CPF contribution history. Requirements vary by lender; we give you one consolidated checklist.
No. Fundwise is an independent loan advisory and brokerage, not a bank, moneylender or licensed financial institution, and does not provide loans itself. We connect you with the licensed institutions that do.
Brief us about your situation before we get on a call to discuss the specifics.
We will get back to all enquiries within 48 hours.
Tap on our knowledge to make better decisions for yourself.
