4 Types Of Instalment Loans You Can Obtain In Singapore

A monthly instalment loan in Singapore is an agreement to take out a loan amount, which is to be repaid every month in instalments. The payback period of a monthly instalment loan may last between a couple of months to several decades. If you are looking to take out a monthly instalment loan from a list of licensed moneylenders in Singapore, here are 4 types of instalment loans that you need to know.

1. Home loan

A mortgage loan is used by borrowers to purchase a home, where the house itself serves as collateral. When you default in loan repayment, the property will be seized and sold to pay back the lending institution. The repayment length of mortgages usually last between 15 to 30 years.

You can obtain a home loan from HDB if you are purchasing a public housing flat, or from banks in Singapore. Usually, you will need to provide documents such as:

  • Purchase agreement for the home
  • Valuation report of the property
  • Credit report obtained from the Credit Bureau Singapore
  • Proof of income
  • CPF contribution history

2. Car loans

Car loans, or auto loans as they are sometimes called, are mainly incurred debts for the borrower to raise funds and purchase a vehicle. The borrower will pay the debt through monthly instalments, and the vehicle serves as collateral to the loan.

Here are some factors lending institutions look at when determining how much to loan you and what interest rates to set:

  • Open market value of the car
  • Credit score
  • Borrower’s income
  • Other financial commitments (e.g. other outstanding debts)

3. Student Loans

Student loans are offered by the government or by private institutions to sponsor tertiary education fees and related costs for the borrower. Student loans do not require a credit score as it is mainly for dependants who have yet to have a stable financial income. These loans have a fixed interest rate, and the payback period can last up to 20 years.

Here are the standard qualifications required for the borrower to qualify for a student loan:

  • Enrolment of the student in an approved tertiary institution
  • Requires co-signer with present proof of income, such as parents or legal guardians

4. Personal Loans

Personal loans are offered to borrowers to meet their financial needs. These include emergencies, travelling expenses, and medical fees. It is a broad term that is used for several different loans, ranging from debt consolidation loan to student loans and lines of credit. Other types of personal loans may be short term loans like payday loans.

Here are a few key factors to consider before applying for a personal loan:

  • Financial history that is reflected in your credit report
  • Proof of annual income to show evidence of monthly earnings
  • Debt to income ratio calculated based on earnings, previous debt, and personal loan amount


There are many benefits of taking out a monthly instalment loan for your financial needs. One significant advantage is the affordable repayment terms that licensed moneylenders offer you when you take out an instalment loan. As you will not be paying off your loan in a large sum of cash, you will have funds on hand for other purposes, allowing you to plan out your spending alongside your instalment loan.

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