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5 Tips To Repay Your Personal Loan On Time

If you’re planning to take out a personal loan, then you should know that it comes with the obligation of repaying the fixed amount of monthly instalments over an agreed period of time. As a matter of fact, other than ensuring that you pay your loan on time, making timely loan repayments has benefits as well. This can help to improve your credit score and also help you avoid paying the interest that may be incurred from late repayments.

Regardless if you’re planning to apply for a personal loan in Singapore from banks or legal money lenders in Singapore, you must not only ensure you have the resources to pay your repayments on time but to do your best to stay ahead of your repayment dates too.

Read on to find out the consequences of missing loan repayments, and also tips for you to practice to help you repay your loans on time.

What Are The Immediate Consequences of Missing a Payment?

Late Payment Fees
If you miss a payment, you’ll likely be charged a late payment fee for your personal loan. These fees can accumulate quickly, adding to your overall debt and making it harder to manage future payments. Trust us, you will not want your debt to snowball.

Negative Impact on Credit Score
A missed payment can also harm your credit score. Your credit score becomes lower with points deducted when you miss a repayment.

With a lower score, it becomes more challenging to qualify for loans in future. Banks and licensed money lenders in Singapore may also offer you higher interest rates on future credit applications.

#1 Create A Budget

Right off the bat, you need to create a realistic budget tailored to your spending habits, monthly finances, and financial status. In doing so, you’ll find that you will always have the money to repay your personal loans as well as ensuring that you don’t end up accidentally spending the money meant to pay your loans on something else.

But, before you do, you need to understand the dynamics of your loan and how much you’re saving monthly. In fact, by tracking your daily spending, it’ll be easier for you to differentiate your wants from needs, and thereby, determine which things for you to stop spending on. By creating a division of essential and less important things to elucidate your spending habit, you’ll find it even more possible to refrain from spending your money on non-essential items.

If you’re worried that you might have a hard time keeping track of your expenses, there are budgeting apps available to track your expenses on your phone.

#2 Opt For Loan Restructuring

It’s common to think that choosing lower monthly installments (EMIs) with a longer repayment period is the best way to manage your cash flow. After all, it leaves you with more liquidity each month.

However, higher EMIs with a shorter loan tenure can actually save you more in the long run. The key lies in the interest rate charged. You’ll pay off your loan faster and reduce the total interest you owe.

If this sounds appealing, take a moment to assess your situation. Would you rather keep more cash on hand with lower EMIs, or save on interest by opting for higher EMIs and a shorter repayment period?

#3 Identify and Prioritise Your Repayment Loans

Now that you have a clearer idea of your spending habits and set a budget in mind, it’s time to prioritise your personal loans.

The first step is to identify the loan with the highest cost of borrowing and note down their repayment dates. In doing so, you’ll be able to monitor your repayment schedules and the amount without fearing that you’ll miss paying your dues.

It’s also prudent for you to allocate your funds primarily towards repaying loans with higher interest rates, whilst maintaining the regular payments of loans with lower interest rates. That way, you’ll minimise the total amount of interest that you’ll be required to pay and gradually eliminate higher interest amounts first.

#4 Consider Consolidating Your Loans

If you’ve several personal loans under your belt, then it’d be wise to consolidate your loans as having several loans will make your interest rates pile up and increase in the amount in the long run. By consolidating your loans, be it from banks or licensed money lenders, your repayment terms will be more streamlined, making it easier for you to repay your loans.

Additionally, you may also consider consolidating your loans into secured loans. A secured loan is a type of loan backed by collateral, such as a house or car. As the financial institution has this security, secured loans usually offer lower interest rates and higher borrowing limits.

#5 Make Lifestyle Changes

One of the simplest means to pay off your personal loans in Singapore is by making lifestyle changes. For instance, by cutting out unnecessary spending, you’ll have more room to increase your savings as well as funds meant for your personal loan repayments.

Getting into this habit might feel a bit challenging at first, but stick with it, and you’ll start to see real progress. Over time, you’ll steadily grow your savings while making consistent payments on your personal loans from banks or licensed money lenders — bringing you closer to financial freedom with every step.

In fact, you can start slow by shopping at places that can accommodate your budget, choosing a credit card provider with the best rebate plan, and cutting down on entertainment expenses. Assuming that you finally have more control over your finances, you may also be able to consider increasing your monthly repayment amount to help shorten your loan tenure.

It’s natural for borrowers to have the desire to repay their personal loans quickly, whilst improving or maintaining their commendable credit scores. The bottom line is this: the key to paying off your personal loan on time is discipline and proper financial management.

About the Author

Drawing on 3 years of proven knowledge and counting, LoanHere has grown to become one of the go-to platforms for consumers’ diverse loan needs. Besides ensuring borrowers get their loan quotes promptly from the best private loan providers in Singapore, we also make an effort to craft well-founded blog articles focusing on loans, finance, and lenders.

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Swimming in Credit Card Debt? It’s Time to Consolidate

We’ve said goodbye to handwritten letters, newspapers and cash. In their place, we see text messages, digital feeds and digital payment methods.

Many things have changed in Singapore over the years, but there is one thing that has not – the rising cost of living and the financial woes.

For many Singaporeans, money feels tighter than ever in 2025. The rising cost of living, high interest rates, and global economic slowdown have left families struggling to stretch every dollar. According to recent reports, credit card debt is climbing once again and has crossed $8 billion. This is a sign that more people are relying on short-term credit just to get by.

Indeed, financial woes are deemed as norms during these difficult times as surely, many have spent uncountable minutes staring at their unpaid bills, pondering how they will get out of debt during rough times. Credit card debt snowballs easily and this is why you need to avoid credit card debt. Common as it may be, it should be highlighted that it is possible for you to get out of credit card debt without breaking a sweat or hurting your pockets even more.

Wondering how to pay off credit card debt? Consider taking a credit card consolidation loan, or in other words, converting your credit card debts into a personal loan. Whether you live in Jurong East, Bedok, Tampines, Chinatown or Clementi, there are many legal money lenders for you.

Before you brush off the idea, take some time to read how a credit card consolidation loan from a bank or legal money lender in Singapore will benefit you:

Benefit #1: Pay less interest

The first step to paying off credit card debt is to understand how interest is calculated. A quick research will let you know that the overall personal loan interest rates are more affordable than that of credit cards.

Keeping this fact in mind, by using a personal loan for credit card debt consolidation loan, the lower interest rates will take some load off your shoulders as it helps to reduce the number of repayment years, and help you save a significant amount of money.

Here’s the icing on the cake: if your credit score is commendable, you may be eligible for an even lower interest rate on your personal loan.

Benefit #2: It streamlines payments

Managing different credit cards may be simple. However, ask any credit card holder, and they will say that managing different repayments can be a confusing chore.

Credit card debt consolidation makes your life easier as it uses the funds to pay-off your outstanding credit card balances simultaneously. So long as you refrain from accumulating more credit card debt throughout the repayment period, you will only require to make a single loan repayment every month as compared to managing multiple financial obligations.

Benefit #3: Repayment will be more consistent

A credit card consolidation loan allows you to repay the loan in fixed instalments. Therefore, every month you will know the exact amount you are required to pay, and will always be aware when it is due.

Such a beneficial perk will undeniably be a huge sigh of relief to those who are facing credit card debt, and were required to pay varying amounts each month. With a fixed instalment plan, rest assured that you will be able to pay off your credit card debt in no time!

Benefit #4 : Chance To Improve Your Credit Score

Individuals caught in credit card debt often hurt their credit ratings due to high utilisation rates, which will classify them as risky borrowers. By applying for credit card debt consolidation loan or personal loan, and keeping your credit accounts open, it will preserve the longevity of your financial history, and ultimately, help lower your utilisation ratio as well as optimise your credit score. To top it all off, repaying your loans in a timely manner will boost your credit score too.

So, you’ve settled your credit card debt. What’s next?

A credit card consolidation loan has many benefits for individuals who are in credit card debt, especially when it is applied or used properly, and wisely.

Licensed money lenders in Singapore often offer loans to help borrowers settle their credit card debt. This helps to ease financial pressure so that they can focus on work and life events. Before borrowing, always check and verify your money lender’s license to avoid scams.

Regardless if you choose to borrow from a bank or a money lender in Singapore, the key is to manage our monthly finances. You need to change your spending habits to prevent history from repeating itself. Read below for tips to control your spending.

Control your credit card use

Banks such as Citibank, DBS, OCBC, UOB, Maybank, Amex, often offer promotions for credit card sign-ups, tempting individuals to join them.

Credit card ownership is relatively high in Singapore, and undoubtedly, many credit card holders will share that temptation can be immense. It is simply very convenient to swipe your credit card.

That is why in the future, it is important for you to monitor your credit card usage. In fact, it would be helpful to determine scenarios or circumstances that will permit you to use your credit card, such as during medical emergencies. In doing so, it will be easier for you to prevent accumulating credit card debt.

Make a repayment plan

Delaying your credit card repayment spells catastrophic hindrance to your finances. To prevent yourself from accumulating credit card debt, it is best for you to not just monitor how often you use your credit card, and the amount. It is similarly necessary for you to be on top of your repayment plan. One of the best ways to do so is by formulating a repayment schedule that will ensure you make your dues, and avoid accumulating debt.

If you are looking for professional assistance to clear credit card debt, consider using LoanHere, a loan comparison platform that sends you offers from various licensed money lenders across Singapore. All the legal money lenders LoanHere chooses are highly reviewed and have a license from MAS (Monetary Authority of Singapore). Get a loan quote easily.

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How To Check & Verify A Money Lender Licence For Legitimacy

Singapore’s financial services industry has a sterling reputation, playing host to banks, asset management firms, and other companies from around the world. Locally, licensed moneylending by legal money lenders is more than reputable too.

Legal money lenders here are regulated stringently, with a money lender licence acting like a golden ticket. Currently, there are over 150 companies with a money lender licence. This is a true mark of credibility. However, this also begs the question: Why is a money lender licence so important?

Read on to learn more, and find out how to check a money lender licence from a firm and ensure it’s legitimate before taking on a loan.

Why is a money lender licence important?

A money lender licence is crucial for companies who want to do business by accepting loan applications and disbursing funds. If an aspiring lender doesn’t have it, they are generally not allowed to do business. There’s a set of rules and regulations for licensed lenders in the Moneylenders Act as well.

And as mentioned above, a money lender licence is a badge of credibility. The Ministry of Law requires applicants to take the Moneylender’s Test and fulfil several requirements before they can start operating.

Also, the licence is only valid for 12 months, which means it has to be renewed fairly regularly. This is “subject to the good conduct of the licensee”, according to the Ministry.

Where can I find a list of licensed lenders in Singapore?

The full list of licensed lenders in Singapore can be found online. Rest assured that the Registry of Moneylenders updates this frequently.

As of August 2025, there are 153 licensed lenders in the Lion City, with none being suspended. Here are the details you can expect to see for each company:

Business Name (e.g. ABC LENDING PTE. LTD.)
Business Address (e.g. 123, ORCHARD ROAD, #01-01, SINGAPORE 123456)
Licence Number (e.g. 1/2024)
Landline Number (e.g. 6123 4567)
Business URL (e.g. https://abc-lending.com.sg), if any

This list is crucial as it prevents loan applicants from getting caught up with any money lender scams or illegal loan providers. If a company isn’t on the list, avoid it. Even if its staff are able to show you a licence, err on the side of caution and approach another firm as this may be a counterfeit copy.

How do I check a money lender licence to ensure it’s legitimate?

Here’s how to check a money lender licence when you’re scrutinising the document:

Before you check a money lender licence, ensure it’s displayed in the company’s business premise, or that the staff are willing to let you take a look at it.
Check that the licence’s details are identical to what you see in the Ministry of Law’s list of licensed lenders. The Ministry even notes down the different business premises a lender has, and all websites which belong to them.
If you want to be doubly sure of the company before taking up a loan, contact the Credit Association of Singapore and verify that the firm is a member. Being an Association member holds them to higher ethical standards.

However, there’s also a list of over 30 exempt lenders who hold a certificate of exemption from the Moneylenders Act. Fret not, because they, too, are required to extend the validity of their certificate when it nears expiration. These are the only other firms you should be taking up a loan from.

Don’t trust any lender without a valid money lender licence

It is always good to be wary of money lender scams and illegal lenders to be on the safe side of things. Do not trust a lender that tries to explain or give excuses for why it’s not on the Ministry of Law’s list of licensed lenders!

What else should I do before committing to a loan?

Apart from checking a money lender licence from the loan company you’re interested in, obtain a loan quote across multiple firms. You aren’t obliged to commit to any quote or make a deposit to secure the rates displayed. This lets you compare between lenders and make the best decision for yourself — crucial for properly manage your finances.

While you’re at it, do some research on the lenders by looking at their money lender reviews submitted by fellow borrowers past and present. Gather feedback from friends and family, too.

The ideal loan should be fair and reasonable, and allows you to immediately resolve the financial emergency you’re facing while staying comfortably within your budget for repayment. The less you pay in interest and other fees, the better it is for your finances.

In closing

Because of how regulated Singapore’s money lending industry is, it minimises the chance for bad actors to prey on borrowers. There are clear guard rails to help folks out, including publicly posted FAQs and lists of licensed firms.

Now that you know how to check a money lender licence, you can apply for a loan with confidence if you need one to tide over an emergency situation.

Should you require a loan urgently and need a quote swiftly, look no further than Loanhere. You can receive multiple loan quotes in no time at all from our curated list of licensed lenders in Singapore — simply submit the form online. Be sure to compare and select the one that fits your needs best.

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Cheapest Personal Loan (Singapore): 4 Ways To Check Validity

Whenever we apply for a loan, our top priority is almost always to look for the cheapest rates. This is completely understandable as all of us are merely trying to save on some cash and not burn a hole in our pockets.

However, it is crucial to remember that if something sounds too good to be true, it probably isn’t real, or legitimate. For example, a money lender that offers extremely attractive rates but uses high-pressure sales tactics and demands upfront payment.

No one wants to get caught in a loan scam, really. It’s important to ensure that what you’re dealing with is a licensed money lender in Singapore, not an illegal money lender.

Here are some precautions to take and warning signs to look out for when you apply for a personal loan in Singapore.

1. Check if the money lender is legal

The easiest way to differentiate a licensed money lender in Singapore from an illegal one is through the Ministry of Law’s Registry of Moneylenders site. This list contains the legal and credible money lenders that are approved by the government.

Take note that every legal lender should have a license number. These money lenders have been approved to manage their business under strict regulations set by the ministry. Before you apply for a personal loan, check your money lender against the list and if you don’t find them there, take that as a red flag.

Another way you can check if your money lender of choice is legitimate is by doing a little digging into their reviews and contact details. Money lenders should have their phone numbers and their business address on their secured websites. These are some of the information that illegal money lenders may leave out as they prefer being untraceable.

2. Pay attention to the required documents for verification purposes

While there are different types of personal loans available, certain documents are always needed when applying for a loan.

Your money lender would require you to submit your income tax statements, payslips, along with your NRIC.

Based on these documents, your money lender officer will determine your loan amount and personal loan interest rate before drawing out a verification document that you will have to sign. While some money lenders may not ask for your credit report when applying for a personal loan, they will always ask for your income statements.

If your lender does not ask for any sort of documentation related to your salary, it is probably a warning sign for you to walk away.

3. Compare with other lenders

A good way to gauge the credibility of your lender is to compare them with other money lenders, such as through money lender reviews. If your cheapest personal loan quote seems too good to be true, it probably is. Many illegal money lenders promise the cheapest personal loan interest rates in Singapore, which also come with unreliable protocols. For example, they may demand upfront payment even before processing an application and may even want money to be sent through an untraceable method, such as a prepaid gift card.

Licensed money lenders are not authorised to charge an administrative fee or processing fee to secure the loan before the loan is disbursed.

Another clear warning sign is that unlicensed lenders usually do cold calls or send out unsolicited text messages; legal lenders deal at their physical offices, which are verified by the ministry.

4. Ensure you aren’t being charged extra interest for your loan

While some illegal lenders promise the most hassle-free, cheapest personal loan in Singapore, they may also be trying to charge exorbitant rates without you even realising.

There are laws set in place by the ministry that put a cap on interest rates that licensed money lenders are allowed to charge their clients. For example, licensed money lenders in Singapore are authorised to charge a maximum interest rate of 4% per month. If the interest rate offered is higher than that, cancel your transaction immediately!

Before engaging with a money lender, it is important to do your research and tick off a checklist comprising both red and green flags.

Need a leg-up? Use LoanHere to get free loan quotes from top licensed money lenders in Singapore.

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Latest Articles

5 Tips To Repay Your Personal Loan On Time

What Are The Immediate Consequences of Missing a Payment?

#1 Create A Budget

#2 Opt For Loan Restructuring

#3 Identify and Prioritise Your Repayment Loans

#4 Consider Consolidating Your Loans

#5 Make Lifestyle Changes

About the Author

Swimming in Credit Card Debt? It’s Time to Consolidate

Benefit #1: Pay less interest

Benefit #2: It streamlines payments

Benefit #3: Repayment will be more consistent

Benefit #4 : Chance To Improve Your Credit Score

So, you’ve settled your credit card debt. What’s next?

Control your credit card use

Make a repayment plan

About the Author

How To Check & Verify A Money Lender Licence For Legitimacy

Why is a money lender licence important?

Where can I find a list of licensed lenders in Singapore?

How do I check a money lender licence to ensure it’s legitimate?

Don’t trust any lender without a valid money lender licence

What else should I do before committing to a loan?

In closing

Cheapest Personal Loan (Singapore): 4 Ways To Check Validity

1. Check if the money lender is legal

2. Pay attention to the required documents for verification purposes

3. Compare with other lenders

4. Ensure you aren’t being charged extra interest for your loan

About the Author

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