Someone who wants or needs to borrow money is already facing the pressures of inadequate funding, a tight deadline, or both. Why add the stress of high-interest loans, worries about credit scores, and grueling application processes? Could there be a better way for an individual to get the financial aid they need without jumping through a lot of hoops?
Fortunately, there is indeed a better way: personal loans with low interest rates. We’ll describe these more in detail later on, but for now let’s backtrack to that part about credit scores. What are they, exactly? What does it mean to have a good or bad credit score? Does a bad score mean that applying for financial aid would be hopeless? Who checks all of this, anyway?
We’ll answer all of these questions, and then get to the meat of how an individual can obtain low interest personal loans with bad credit. Let’s get right to it!
Yes, although a weak credit history may narrow your options or affect the terms offered. Banks may consider your Credit Bureau Singapore report alongside your income, debts and other eligibility criteria.
Licensed moneylenders assess affordability and may review your Moneylenders Credit Bureau record, so a weak credit score does not automatically disqualify you. Interest is capped at 4% per month on the remaining principal, regardless of credit history.
For unsecured loans, the amount you may borrow across all licensed moneylenders is capped by the Ministry of Law based on income and residency status. Approval is never guaranteed.
A credit score is, in essence, a rating that is given to an individual which measures how likely that person is to repay (or not repay) money that he or she might borrow in the future.
A credit score is usually determined based on the individual’s credit history, which is a record of their performance in repaying previous loans. If a person consistently pays off the balance on their credit card, or has a large number of previous loans which they successfully repaid – on time and in full – then this person would be considered worthy of receiving further credit, and therefore have a good credit score. This would make it easier for that person to borrow money from certain lenders in the future.
But not all types of lenders place a lot of importance on a borrower’s formal credit score. So which ones do, and which ones don’t?
In Singapore, consumer credit scores are maintained by Credit Bureau Singapore (CBS). Your CBS report carries a score and a corresponding risk grade, and it draws on your repayment history with banks and other credit providers. You can request your own report directly from CBS.
There is a second bureau that matters if you are considering a licensed moneylender. The Moneylenders Credit Bureau (MLCB) holds information on loans taken from licensed moneylenders, including outstanding balances and repayment conduct. Licensed moneylenders review it when assessing an application, and they report to it. A borrower can therefore have a weak CBS file and a clean MLCB file, or the reverse.
A bank rejection does not automatically mean a licensed moneylender will also decline your application, as each considers different records and applies its own assessment criteria.
Banks will very often make it a point to review a borrower’s credit score before lending them any money. This is because the bank naturally wants to be as certain as possible that a borrower will be able to repay the loan completely, and on time.
In addition to the credit score, a bank is also likely to review other information about a potential borrower, such as their current income level. This income may need to meet or exceed a certain threshold before the bank would consider lending the person money. This is a serious consideration for entrepreneurs, freelancers, and self-employed people who want to take out a loan, because these individuals often have volatile or unpredictable levels of income.
A bank’s loan application process may also be quite extensive, taking lots of time and energy to complete.
All of this doesn’t necessarily mean that banks are a bad choice for borrowers, or that banks should never be considered as an option. But it’s best to keep in mind that a bank is probably going to have many requirements which borrowers will need to fulfil in the process of taking out a loan.
Let’s say you want to borrow money. This could be for the purpose of investing in a small business, building up funds for an important project or event, or any other reason; personal loans are quite flexible, after all. However, you have a low credit score, or would simply prefer not to turn to a bank for funds. Given this, what are your other options?
It might occur to you to ask friends or family members for an informal loan, but this is almost always a risky move, as it puts your personal relationships at stake in case of problems down the road.
Taking out a loan with unlicensed moneylenders is an even bigger risk, as these lenders are unregulated; they often charge interest rates and lend sums of money that are outside of what is legal.
The safest and most convenient option – one that allows you to borrow money quickly and easily, without needing a great credit score, and while staying within the bounds of the law – is to use a licensed moneylender.
(If you are considering a particular moneylender, you can ascertain whether or not they are licensed by checking this list provided by the Ministry of Law. If the moneylender you have in mind is not on this list, run for the hills.)
For licensed moneylenders in Singapore, the cost of borrowing has a legal ceiling that applies no matter what your credit history looks like:
Within those limits, the rate you are offered depends on the lender's assessment. When comparing offers, look at the Effective Interest Rate, the total amount repayable and the repayment schedule together, rather than the monthly rate alone.
See how different loan amounts and tenures affect your repayments with the Friday Finance loan calculator →
Friday Finance is a licensed moneylender that can provide the personal loans you need for a startup business; life events such as weddings, funeral services, or relocations; income advances to help you cover short-term costs; emergency funds; and more. With Friday Finance, existing loans do not automatically rule you out, though the total you can borrow across all licensed moneylenders is capped by the Ministry of Law based on your income and residency status.
Best of all, Friday Finance takes current and future earning capacity – not just a previously established credit score – into account when assessing a borrower. This means more leeway for entrepreneurs, freelancers, and self-employed borrowers to get the funds they need.
You can learn more about the loan eligibility criteria you’ll need to meet when borrowing from us. If you have other questions in mind, you’ll probably find the answers here. And if you’d like to know more about the benefits of licensed moneylenders, there are at least five more reasons to choose them.
Friday Finance is a licensed moneylender listed on Singapore's Ministry of Law Registry of Moneylenders, operating as the consumer-lending brand of IFS Consumer Services Pte Ltd (licence No. 85/2026), a wholly-owned subsidiary of SGX-listed IFS Capital Limited.
Borrowing money as an individual with a low credit score doesn’t need to be impossible, or even difficult. Licensed moneylenders like Friday Finance are your best bet to get the funds you need.
Ready to make a new loan application? Get started today!
Friday Finance is the consumer-lending brand of IFS Consumer Services Pte Ltd, a licensed moneylender (licence No. 85/2026) regulated by the Registry of Moneylenders, Ministry of Law, Singapore. Loans are subject to credit assessment and approval. Unsecured borrowing limits across all licensed moneylenders are set by the Ministry of Law based on annual income and residency status. Interest rates, fees and repayment terms will be stated in the loan agreement. The Effective Interest Rate may differ from the stated interest rate as it accounts for factors such as fees and the repayment schedule. Borrow responsibly.
The regulatory information in this article is drawn from the following official sources. All figures are subject to change; readers should verify current information directly with the relevant authority.
