Loans Cost in Singapore (2026)
Quick Answer
Partially verifiedIn Singapore, the cost of a loan depends mainly on the type of lender and whether you are looking at interest, fees, or regulatory caps. For licensed moneylenders, Singapore law caps interest at 4% per month and late interest at 4% per month, with administrative fees capped at 10% of principal and late fees capped at SGD 60 per month. For bank personal loans and home loans, pricing is more variable and usually expressed as annual interest or effective interest rates, so comparing the total repayment cost is essential.
Overview
In Singapore, loan costs are tightly shaped by regulation for licensed moneylenders, while banks and finance companies price loans more competitively and with more product variation. If you borrow from a licensed moneylender, the Ministry of Law sets clear caps: interest cannot exceed 4% per month, late interest is capped at 4% per month on overdue amounts, late fees are capped at SGD 60 per month, and the upfront administrative fee cannot exceed 10% of the principal. The total amount charged by a licensed moneylender is also capped so that all interest, late interest, administrative charges and late fees combined cannot exceed 100% of the principal borrowed. For bank loans in Singapore, common products include personal loans, renovation loans, car loans and mortgages. These usually quote annual interest rates and effective interest rates rather than flat monthly caps, and costs may also include processing fees, lock-in penalties, legal fees or valuation fees depending on the product. Because Singapore has many mainstream banks and regulated non-bank lenders, borrowers should check whether the lender is regulated by the Monetary Authority of Singapore or listed as a licensed moneylender by the Ministry of Law, then compare both the advertised rate and the total repayment amount.
What It Costs
| Item | Cost | Evidence |
|---|---|---|
| Licensed moneylender interest cap(percent per month) Maximum interest a licensed moneylender can charge. | S$4 – S$4 | Verified from source |
| Licensed moneylender late interest cap(percent per month) Late interest is capped at 4% per month on the amount repaid late. | S$4 – S$4 | Verified from source |
| Licensed moneylender administrative fee(percent of principal) Upfront fee cannot exceed 10% of the principal. | S$0 – S$10 | Verified from source |
| Licensed moneylender late fee(per month) Maximum late fee for each month of late repayment. | S$0 – S$60 | Verified from source |
| Total cap on licensed moneylender charges(percent of principal) All interest, late interest, administrative charges and late fees combined cannot exceed an amount equivalent to the principal borrowed. | S$100 – S$100 | Verified from source |
| Bank personal loan annual interest range(percent per year) Estimated range based on typical market rates for mainstream unsecured personal loans offered by banks in Singapore; actual effective interest rates are often higher than headline annual rates and vary by income, tenure and promotions. | ~S$3 – S$10 | Estimated range |
What’s Typically Included
- Principal amount borrowed
- Interest charges
- Possible administrative or processing fees
- Repayment schedule and total repayment amount
Common Jobs & Typical Prices
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Regulator / licensing: Ministry of Law Singapore for licensed moneylenders; Monetary Authority of Singapore for banks and financial institutions
Variants & Configurations
Duration
Loan duration typically ranges from a few months for short-term unsecured borrowing to 25 years or more for property loans.
How Fees Work
Loan costs in Singapore are usually made up of interest plus any applicable administrative, processing, late-payment, legal or early repayment fees. Licensed moneylenders have statutory caps set by the Ministry of Law, while banks and finance companies set product-specific rates and fees.
Factors Affecting Price
- Type of lender: bank, finance company or licensed moneylender
- Whether the loan is secured or unsecured
- Loan tenure and repayment schedule
- Borrower income, credit profile and existing debt obligations
- Extra charges such as processing fees, late fees, legal fees or early repayment penalties
Local Context
Singapore does not generally rely on tipping or negotiable service customs for lending, so loan costs are mainly contractual and regulatory. GST is not usually discussed in consumer loan pricing in the same way as retail purchases; instead, borrowers should focus on interest, effective interest rate, administrative fees, legal fees for secured lending, and late-payment or early-settlement penalties. Costs can also differ substantially between a regulated bank product and a licensed moneylender loan.
Some figures here are still being verified.
Where a verified figure isn’t available yet, we say so rather than guess. For the most current pricing, check the official source below.
Prices are shown in Singapore dollars (SGD). Percentage-based loan costs should be checked carefully for whether they are quoted monthly, annually or as an effective annual rate.
Sources & References
Every price on this page is traced to a documented source. Last checked 24 September 2026.
- Ministry of Law Singapore - Borrow from Licensed Moneylenders · government
Caps on interest, late interest, administrative fees, late fees and total charges for licensed moneylenders.
- Monetary Authority of Singapore · government
Regulatory authority for banks and financial institutions in Singapore.
- Registry of Moneylenders · government
Official borrower information and access to the list of licensed moneylenders.
Frequently Asked Questions
What is the maximum interest a licensed moneylender can charge in Singapore?+
A licensed moneylender can charge up to 4% interest per month, regardless of income and whether the loan is secured or unsecured, according to the Ministry of Law.
Are there legal caps on fees for licensed moneylenders?+
Yes. The upfront administrative fee cannot exceed 10% of the principal, and the late fee cannot exceed SGD 60 for each month of late repayment.
Do banks in Singapore charge the same rates as licensed moneylenders?+
No. Banks usually price loans using annual or effective annual rates rather than the statutory monthly caps used for licensed moneylenders. The final cost depends on the product, tenure, credit assessment and promotional terms.
What should I compare when choosing a loan in Singapore?+
Compare the total repayment amount, the effective interest rate, any upfront or monthly fees, late charges, and whether there are lock-in or early repayment penalties.
Who regulates lenders in Singapore?+
Licensed moneylenders are overseen by the Ministry of Law, while banks and many other financial institutions are regulated by the Monetary Authority of Singapore.
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Check current prices at the official source
Ministry of Law Singapore
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