Our Expert says
A low credit score doesn't define your financial future!
If your score dropped because of a rough patch, licensed moneylenders can still help. They assess your MLCB record, your current monthly income, your existing debt situation and your ability to make repayments.
Borrow what you can repay and use the loan to stabilise your financial situation at the same time avoid getting into recurring unmanageable debt. 
Trinh Thanh
Head of Research
Get Approved with Bad Credit
How to Improve Your Approval Chances
- Show stable income with recent payslips or CPF statements
- Reduce existing debts before applying
- Borrow only an amount you can comfortably repay
- Bring complete documents to avoid approval delays
- Be honest about your financial situation, lenders check your MLCB report anyway
Rebuilding Your Credit Score
Rebuilding takes time but consistent effort pays off
- Pay all bills and loan on time, every month
- Keep credit card utilisation below 30% of your limit
- Avoid submitting multiple loan applications in a short period
- Check your CBS report regularly for errors
- Check your MLCB report to make sure your moneylender repayments are recorded correctly
- Set up auto payments wherever possible
- Close unused credit lines you no longer need
With consistent on-time payments most borrowers see improvement within 6–12 months.
Interest Rate Trends
Below is an overview of current interest rate trends in Singapore:
Today's moneylender interest rate trends in Singapore
Today's moneylender interest rate trends in Singapore - As of 5 June 2026, licensed moneylenders are charging an average interest rate of approximately
3.9% per month just under the legal cap of 4%.
Monthly Interest Rate Trends (April 2026)
Research updated by Trinh Thanh on 6 May 2026 - Entering May 2026, Singapore’s bad credit loan market continues to remain stable under the country’s existing lending regulations. There have been no changes to statutory interest rate limits or fee caps and overall lending conditions continue to follow the same regulatory framework seen in recent months.
Borrowing demand in this segment remains relatively consistent, particularly among individuals facing temporary financial pressure or difficulties accessing traditional bank financing. Approval patterns continue to depend more heavily on current income stability and repayment ability rather than promotional pricing or market competition. Compared to April, there have been no major shifts in approval trends, with lenders continuing to assess applications using broadly similar criteria.
Borrowing demand in this segment remains relatively consistent, particularly among individuals facing temporary financial pressure or difficulties accessing traditional bank financing. Approval patterns continue to depend more heavily on current income stability and repayment ability rather than promotional pricing or market competition. Compared to April, there have been no major shifts in approval trends, with lenders continuing to assess applications using broadly similar criteria.
Licensed Moneylenders
As of May 2026, licensed moneylenders regulated by Singapore’s Registry of Moneylenders continue to remain one of the main borrowing options for individuals with weaker or limited credit histories. Average monthly interest rates continue to stay around 3.8%, remaining slightly below the legal cap of 4% per month. These rates continue to apply within Singapore’s regulated lending structure, even for borrowers who may present a higher level of credit risk.
Although borrowers may still qualify for loan amounts of up to six times their monthly income, lenders continue to place strong focus on present income consistency and repayment affordability rather than relying solely on past credit performance. Administrative fees remain capped at 10% of the principal amount, while late payment charges generally continue to stay within the S$60 monthly regulatory limit.
The application process also remains relatively straightforward. Most borrowers begin by submitting their applications online before completing the mandatory identity verification process at the lender’s office. Despite the in-person verification requirement, approvals and disbursements are still commonly processed within a short timeframe, helping borrowers access funding even when traditional bank approval may be difficult.
Although borrowers may still qualify for loan amounts of up to six times their monthly income, lenders continue to place strong focus on present income consistency and repayment affordability rather than relying solely on past credit performance. Administrative fees remain capped at 10% of the principal amount, while late payment charges generally continue to stay within the S$60 monthly regulatory limit.
The application process also remains relatively straightforward. Most borrowers begin by submitting their applications online before completing the mandatory identity verification process at the lender’s office. Despite the in-person verification requirement, approvals and disbursements are still commonly processed within a short timeframe, helping borrowers access funding even when traditional bank approval may be difficult.
Banks
Banks in Singapore continue to maintain stricter credit assessment standards for unsecured lending, which continues to limit access for borrowers with adverse or weaker credit records. While personal loans and credit facilities from banks generally offer lower Effective Interest Rates, approvals still depend heavily on a borrower’s repayment history, income stability and overall financial profile.
For borrowers with lower credit standing, approval rates remain relatively limited and additional requirements such as secured collateral or guarantor arrangements may still be necessary. Bank applications also continue to involve more detailed documentation and longer processing timelines compared to licensed moneylenders.
As a result, banks continue to play a smaller role in the bad credit loan segment, especially for borrowers who require short-term financing or more immediate access to funds.
For borrowers with lower credit standing, approval rates remain relatively limited and additional requirements such as secured collateral or guarantor arrangements may still be necessary. Bank applications also continue to involve more detailed documentation and longer processing timelines compared to licensed moneylenders.
As a result, banks continue to play a smaller role in the bad credit loan segment, especially for borrowers who require short-term financing or more immediate access to funds.
ROSHI Expert Insight
In May 2026, Singapore’s bad credit loan market continues to highlight the importance of regulated borrowing access and consistent affordability assessments. Licensed moneylenders remain open to reviewing applications from borrowers with past credit difficulties, provided there is sufficient current income and a reasonable repayment plan in place. Monthly interest rates have also remained stable at around 3.8%, reflecting Singapore’s regulated lending framework rather than short-term market movements.
From ROSHI’s perspective, bad credit loans continue to work best as temporary financial support rather than ongoing borrowing solutions. When repayments are managed properly and completed on schedule, these loans can help borrowers navigate short-term financial pressure while maintaining greater financial stability over time.
Borrowing through licensed channels also continues to provide greater transparency around fees, repayment terms and legal protections, which remains especially important for borrowers in this segment.
From ROSHI’s perspective, bad credit loans continue to work best as temporary financial support rather than ongoing borrowing solutions. When repayments are managed properly and completed on schedule, these loans can help borrowers navigate short-term financial pressure while maintaining greater financial stability over time.
Borrowing through licensed channels also continues to provide greater transparency around fees, repayment terms and legal protections, which remains especially important for borrowers in this segment.
What This Means for Borrowers
For borrowers in May 2026, Singapore’s bad credit loan market continues to remain stable and accessible within a clearly regulated environment. Licensed moneylenders still provide an important financing option for individuals who may not meet traditional bank lending requirements, while clear limits on interest rates and fees continue to support transparency across the market.
Although borrowing costs remain higher compared to standard bank loans, Singapore’s regulatory structure helps reduce the risk of excessive charges and unclear lending practices. Borrowers who keep loan amounts aligned with their repayment ability are generally in a stronger position to manage repayments without creating additional financial strain.
With comparison platforms like ROSHI continuing to improve visibility across licensed lending options, borrowers are also able to review and compare available choices more easily. This helps support more informed borrowing decisions that address immediate financial needs while encouraging more manageable long-term financial recovery.
Although borrowing costs remain higher compared to standard bank loans, Singapore’s regulatory structure helps reduce the risk of excessive charges and unclear lending practices. Borrowers who keep loan amounts aligned with their repayment ability are generally in a stronger position to manage repayments without creating additional financial strain.
With comparison platforms like ROSHI continuing to improve visibility across licensed lending options, borrowers are also able to review and compare available choices more easily. This helps support more informed borrowing decisions that address immediate financial needs while encouraging more manageable long-term financial recovery.
