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Borrow Money Singapore: From Friend, Family, Bank, or Moneylender?

Different denominations of the Singapore currency lay scattered, representing the act of borrowing money
Different denominations of the Singapore currency lay scattered, representing the act of borrowing money

Financial challenges are a fact of life, and there will be times when we have to ask for help. Knowing clearly what our options are, as well as their respective advantages, will make our lives much easier when the time of need arrives. Hence, we should definitely put time into researching our options.

In this article, let’s take a look at the key things to know about the different options and which choice we should favor according to our situation when we borrow money Singapore.


The first thing that comes to mind when taking legal loans in Singapore is banks. These financial institutions offer several types of loans, from mortgage to renovation loans, each with its own terms and conditions, as well as perks. The latter can go from no loan origination fee to cashback for a personal loan. You may also qualify for interest rate discounts as some banks offer loyalty discounts or personalised interest rates depending on your credit scores and income profile.

There is also more privacy involved when borrowing from banks, as your friends and family would likely be unaware of your loans. This means that you bear almost no social burden when you borrow from banks.

There are several downsides to borrowing from banks. Some don’t offer personal loans at all or would require good credit to get approval for personal loans. Even if your personal loan is approved, it would likely be strictly pegged to your income, such as the UOB Personal Loan, which offers a maximum loan amount of up to 95% of the available credit limit of your UOB Credit Card account. Furthermore, negotiations with banks in the event of late payment are also trickier than when you borrow from friends and family or money lenders. This is because the terms and conditions are set in stone, and you would have to suffer the stated penalties when the payment is late or absent. Hence, be sure to stave off repercussions and preserve your precious credit score by scrutinising the terms and conditions before borrow money Singapore.

Friends and Family

For instant cash loans Singapore, friends, and family are familiar options that can also be tricky options to navigate. According to a PayPal survey, more than one-third of adults in the United States had loaned an average of US$450 (S$609) to friends or family, and nearly 50 percent were not paid back.

The lack of contract when borrowing from friends and family is a double-edged sword, as it is the reason for the ease of getting instant cash loans Singapore and also the cause of complications during repayment. The main advantage of borrowing from your close ones is the convenience; there are no forms to fill, no credit score to be scrutinised, no terms and conditions to fulfil. Even if there are some conditions, they are likely to be verbal and not set in stone. Hence, when disputes arise over the repayment of loans, it is very difficult to resolve them while leaving the relationship intact.

For instance, if you had lent $5,000 to Uncle Kevin (who watched you grow up and is your father’s close brother) as a personal loan, it would be awkward to demand the money back. This is especially the case when you actually need the $5,000 to repay an urgent debt or for investment purposes. This would inevitably create a rift that may spread throughout the family.

As such, it is important to clearly communicate the reasons for the loan, as well as structuring the terms properly by them in writing. The agreement should include the amount borrowed, repayment schedule, and other terms, with both parties signing the agreement. If the borrower is genuine, this approach should seem reasonable and necessary, especially if the amount is a large one.


Moneylenders are an underappreciated and under-utilised option when it comes to borrow money Singapore. However, before proceeding to the many advantages, ensure that the moneylender you approach is licensed, registered with the Ministry of Law, and operating under Singapore’s Moneylenders Act.

A big advantage of getting instant cash loans Singapore is the faster approval speed when compared to banks. For instance, R2D Credit is known for our simple and streamlined procedures, with quick and fast access to a legal loan in Singapore. A personal loan from banks may go through several stages before getting approved, but because moneylenders often respect the urgency of your financial situation, such as emergency medical fees, a personal loan with moneylenders often takes less than a few days to get approved.

Other huge benefits are the lower interest rates and higher approval rate. For instance, R2D Credit only takes pride in making the borrowing process easier for everyone and requires a simple set of documents for both Singaporeans and foreigners to get personal loans approved. Hence, moneylenders are a reliable option when you are ineligible to get loans from banks or family and friends. Furthermore, moneylenders such as R2D Credit’s personal loan interest rate of 4% per month.

Whether you need fast cash or a long-term loan, do take the time to research your loan options. Here are some key questions to think about before borrow money Singapore:

  • Why do I need the money, and which type of loan best fits that need?
  • What is the interest rate?
  • Are there any fees associated with the loan?
  • How long do I have to pay back the loan?
  • What happens if I can’t pay back the loan?
  • Will a creditor perform a hard credit check that will affect my credit scores?

The information provided on our website is for educational and informational purposes only and is not intended to be a substitute for legal or financial advice. While we try to ensure that information on this website is accurate, we do not warrant that the information will be free from error. We shall not be liable for any loss or damage that may arise from the use of this website.

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