What is the difference between an interest rate and EIR?
A personal loan’s interest rate is the monthly interest rate used to calculate interest on the outstanding principal. EIR details are not provided in the Fact Pack, so any explanation of how EIR is calculated or how it should be compared requires verification: [VERIFY: EIR definition and calculation method].
How much can I borrow based on my salary?
Licensed moneylenders in Singapore apply aggregate unsecured borrowing caps based on annual income and borrower category. As of August 2026, citizens and PRs earning below S$20,000 a year have a S$3,000 cap. Those earning S$20,000 or more have a cap of six times monthly income. Foreigners have different income tiers.
What documents do I need to apply for a personal loan?
The Fact Pack does not specify a complete list of documents required for a personal loan application. Licensed moneylenders must explain contract terms in a language the borrower understands and provide a copy of the Note of Contract. For a specific document checklist, use [VERIFY: required application documents].
How long does it take to get loan approval?
The Fact Pack does not provide a verified approval timeframe for personal loans. Approval is subject to the lender’s assessment of factors including income, existing loans and repayment ability. Any statement about same-day processing, approval within a specific number of hours, or another fixed timeframe requires [VERIFY: current approval process and timing].
Can I repay my loan early?
The Fact Pack does not specify whether a borrower can repay a personal loan early or whether an early-repayment fee applies. Do not assume that early repayment is free or subject to a particular charge. The lender’s current contract should be checked for applicable early-repayment terms: [VERIFY: early repayment policy and fees].
Are there any hidden fees or charges I should know about?
For loans to individual borrowers, licensed moneylenders can charge certain amounts subject to legal limits. As of August 2026, maximum interest is 4% per month, late interest is 4% per month on the amount repaid late, the late fee is S$60 per month, and the administrative fee is capped at 10% of principal.
Should I choose a short-term or long-term loan?
Choosing a short-term or long-term loan depends on whether the repayment amount fits your repayment ability and how the tenure affects total borrowing costs. The Fact Pack does not provide a prescribed loan tenure or a calculation comparing different tenures, so specific tenure recommendations require [VERIFY: available tenures and repayment calculations].
Can I apply for a loan if I already have existing debts?
A borrower with existing debts should not assume approval because licensed moneylenders assess factors including existing loans and repayment ability. Unsecured borrowing limits also apply across licensed moneylenders. As of August 2026, these aggregate limits depend on annual income and borrower category under the verified borrowing caps.
How do I know if a lender is licensed in Singapore?
Borrowers in Singapore can verify whether a moneylender is licensed by checking the Ministry of Law’s list of licensed moneylenders. The Fact Pack identifies the Registry of Moneylenders as the relevant regulator and states that licence information can be verified through the official list maintained by the Ministry of Law.
What should I consider before choosing a personal loan?
When choosing a personal loan, consider the interest rate, applicable fees, borrowing amount, repayment ability, existing loans and the loan terms you are agreeing to. Licensed moneylenders are regulated by the Registry of Moneylenders, Ministry of Law, and borrowers can verify a lender’s licence through MinLaw’s official list.
