Where To Get A Short Term Loan In Singapore


We all run out of cash at some point, and we’re left wondering what to do. When this happens, one of the options we have is to borrow a short-term loan in Singapore. Such a loan allows you to cover the temporary financial shortfall until your next pay cheque arrives. 

This post will help you make sense of what is and where to get a short-term loan, the different types, and the pros and cons.

What Is A Short-Term Loan?

A short-term loan is a type of loan borrowed for personal or business capital needs.

A short term loan has a short lifespan of 1-12 months. Due to this, the interest rates tend to be a bit high when compared to a personal loan. 

In addition, the loan amount you can borrow with a term loan can vary ranging from $100 to $1,000,000. This also means that the loan amount you can borrow, the repayment period, and interest rates will vary across different lenders. 

Types Of Short Term Loans In Singapore

There are different types of short-term loans you can borrow in Singapore, some of which include:

      1. Payday Loan

 A payday loan is a type of loan you can borrow from your banks before your actual ‘payday’ arrives. They function on the assured fact that you will be paid on a specific date. 

If for example, if your car broke down but you don’t have the cash to pay for new spare parts, rather than wait till your paycheque arrives, you can borrow the needed funds from your bank.

Once your cheque hits your bank account, the bank will deduct the entire amount borrowed plus the accrued interest. 

      2. Bridging Loan

A bridging loan allows you to ‘bridge’ the financial gap between acquiring a new home and selling off your old home.

With such a loan, you can use the funds to pay the pending mortgages of the two homes.

However, you’ll need to have collateral for the loan. In this case, you can use the old home as collateral. Nevertheless, ensure you pay back the loan in time to avoid your lender selling off your home to recover the loan.

In addition, a bridging loan has higher interest rates and fees. You will need to be aware of this before borrowing. 

Overall, such loans are viable when you want to acquire your new home fast. 

      3. Merchant Cash Advances

If you run a small business, you can agree that qualifying for a bank loan can be problematic. But you still have options. 

You can choose to get a merchant cash advance; this is not particularly a loan but an advance in nature. This advance is given based on your business’s expected future credit card sales.

You can apply for financial assistance from a company. Once the application goes through, the cash advance will be deposited in your business’s bank account.

You and the assisting company will then agree to deduct a percentage from your daily sales to repay the loan. This percentage is called a holdback which will be deducted daily until the entire cash advance is repaid.

      4. Line Of Credit

A line of credit is a flexible loan similar to a credit card offered by your bank. A line of credit offers you money that you can access when needed. You can then repay the amount soon after or over a specified period.

Such a loan limits the amount you can borrow, and you’re not allowed to exceed that limit. 

In addition, the interest rate is only charged on the amount you withdraw. If, for example, your line of credit limit is $25,000, but you withdraw only $5,000, the interest rate will only be charged on that $5,000. 

      5. Invoice Financing

Invoice financing, as the name suggests, is a loan acquired through selling your invoices to a financial company. It is also referred to as account receivable financing.

In simpler terms, if you are working with retainer customers or those who pay after an order is completed, you can invoice them and then sell that invoice to the lending company. 

Account receivable financing show’s your estimated amount and date of receiving the payment from your customer. It tells the lender that you will have the funds to repay the loan once the invoice matures. 

Are you in need of financial assistance and wondering where to get a short-term loan? Then look no further than Katong Credit. 

At Katong Credit, we are a licensed money lender that offers short-term loans with higher loan amounts and longer repayment terms tailored to your needs. 

Where To Apply For Short Term Loans In Singapore

Now that you know the different types of short loans, let us look at where you can apply for one. 


Banks are a good starting point when seeking a short-term loan with low-interest rates. 

While the rate may be low, the eligibility and qualification process is rigorous. This is because you must go through tons of paperwork and review your credit score rating to determine your creditworthiness.

This is done to ensure that you can repay the loan on time. If you default or delay repaying your loans, chances are your application will be nullified.

That said, before borrowing, check your credit rating, and if it’s low and has negative reviews, take the necessary steps to improve it. Alternatively, try to borrow from a different lender. 

Private Funders

Private funders are not licensed lenders. They fall under the excluded moneylenders in the Moneylenders Act. 

An excluded moneylender is any corporate or incorporated body allowed to lend money following the Act of Parliament under the Moneylenders Act. 

Such a body lends money to corporations, limited liability partnerships, trustees of business trusts, and trustees of real estate investment trusts.

In the case of corporations, the assets’ net worth should exceed $ 10 million. 

Private funders also offer short-term loans to individuals who:

  • Have financial assets with a net worth exceeding $1 million
  • Have net personal assets worth over $2 million. Their primary residence should be valued at most $ 1 million
  • Income is at least $300,000 in the preceding 12 months

Private funders offer secured loans. This means you’ll need to offer something as collateral for the loan. 

Often, the collateral needs to be in the same monetary value as the loan amount. If you fail to repay the loan, the funder will sell the collateral to recover the loan. 

Money Lenders

The last option on where to get a short-term loan is moneylenders. In Singapore, there are many moneylenders listed and licensed by the Ministry of Law.

As such, when taking a loan from a moneylender, you do not have to deal with the uncertainty of the rates and fees you’ll be charged. The Ministry of Law standardises them all.

 As for the loan amount , it will be determined by your annual income, as shown in the table below. 

Borrower’s Annual IncomeSingapore Citizens And Permanent ResidentsForeigners Residing In Singapore
Below $10,000$3,000$500
Minimum $10,000 and below $20,000$3,000$3,000
Below $20,0006x the monthly income6x the monthly income

Rates and Fees:

  • A maximum interest rate of 4% per month
  • A maximum late repayment interest rate of 4%

The late interest rate is only charged on the amount repaid late. If you borrowed $3,000 but delayed repaying the final $1,000, the late fee will only be charged in the $1,000 that is yet to be repaid. 

In summary, on where to get short-term loans in Singapore, do a thorough analysis of what each of the above options offers. Consider your current credit score, needs, and income, then choose the best option for you, be it a bank, private funder, or moneylender.

If none of the above works for you, consider the following alternatives.

Alternative Places To Get A Short-Term Loan 

You can also seek a short-term loan through:

      1. Selling Off Some Of Your Items

If you have new or used items at home or in your business that you have no use for; you can consider selling them to get some cash. 

Even though the price you sell them for may be low, it will help you get the needed cash and clear the clutter in your home or business. Just ensure the items are in good condition.

      2. Ask For A Salary Advance From Your Employer

Like a payday loan, you can ask for a salary advance from your employer. If the option is available, you’ll get the needed funds which will then be deducted from your salary. 

The good thing with this is that there’s no interest rate charged. 

      3. Friends And Family

In desperate times, seek assistance from your friends and family members. 

With this option, there won’t be any need for collateral, rates, and fees. You and your friend will agree on how and when the loan will be repaid. 

Pros And Cons Of A Short Term Loan


Some of the pros of getting a short-term loan include the following:

      1. Reliability

All facts considered short-term loans in Singapore are reliable. This is because the application process is more straightforward when borrowing from moneylenders or banks, and you know what to expect.

 The application process can also be done digitally; hence, the forms need not be submitted physically.

      2. Less Emphasis On Credit Score

When applying for a loan from a moneylender or private funder, there’ll be less emphasis on your credit score. So, even with a low rating, your chances of getting your application approved are still high.

      3. Wide Range Of Choices

While there are three main places to get a loan; bank, money lender, and private fund. Each option individually offers a lot of choices to choose from.

For instance, there are over 150 licensed money lenders in Singapore. With such a number, you can easily find a lender that offers a loan and loan terms that fit your current situation. 


Some of the cons include the following:

      1. Short Repayment Period

A short repayment period can work for you or against you. For the latter, if you cannot repay the loan in the set time, you risk losing whatever collateral you’d put forward.

You can also hurt your credit rating and negatively affect future loan attempts.

There is also the risk of being legally sued for failing to comply with the loan terms.

      2. Risk Of Borrowing From Loan Sharks

Lastly, it is easy to fall prey to loan sharks. When this happens, you’ll be forced to repay the loan with a high-interest rate and unrealistic repayment terms.

If you fail to pay, you might be subject to threats and harassment.

As such, be careful and counter-check your lender. 

A Short-Term Loan Can Be Beneficial

A short-term loan can help you meet urgent financial needs, especially when you’re too short of funds. There are also various options to choose from when thinking of where to get a short term loan. 

You can choose a money lender, bank, or private funder. There are also different short-term loans, including payday loans, merchant cash advances, lines of credit, bridging loans, and invoice financing. 

However, be careful when borrowing to avoid falling into the wrong hands. Also, ensure you can repay the loan to avoid losing your collateral when you fail to repay.

That said, if you need financial assistance, apply for a loan from Katong Credit, a licensed money lender in Singapore.