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 11 April 2026, licensed moneylenders are charging an average interest rate of approximately
3.89% per month just under the legal cap of 4%.
Monthly Interest Rate Trends (April 2026)
Research updated by Trinh Thanh on 5 April 2026 - As April 2026 begins, Singapore’s bad credit loan segment continues to operate within a stable and regulated environment. There have been no changes to statutory interest rate caps or fee limits and overall pricing remains guided by the same regulatory framework established in previous months.
Borrowing activity in this segment remains steady, largely driven by individuals managing short-term financial pressure rather than planned borrowing. Unlike prime lending categories, trends in bad credit loans are less influenced by promotional rates and more by borrower-specific factors such as income consistency and repayment ability. Compared to March, there are no clear signs of tightening or easing in approval patterns and lending conditions remain broadly unchanged.
Borrowing activity in this segment remains steady, largely driven by individuals managing short-term financial pressure rather than planned borrowing. Unlike prime lending categories, trends in bad credit loans are less influenced by promotional rates and more by borrower-specific factors such as income consistency and repayment ability. Compared to March, there are no clear signs of tightening or easing in approval patterns and lending conditions remain broadly unchanged.
Licensed Moneylenders
As of April 2026, licensed moneylenders regulated by the Registry of Moneylenders under Singapore’s Ministry of Law continue to be the main option for borrowers with weaker or limited credit histories. Average monthly interest rates remain around 3.8%, staying just below the regulatory cap of 4% per month. These rates are applied within a structured framework, even for borrowers with higher perceived risk.
While borrowers may be eligible to apply for up to six times their monthly income, approval decisions continue to focus on current income stability and overall affordability rather than past credit performance alone. Administrative fees remain capped at 10% of the principal and late payment charges generally do not exceed S$60 per month.
Most applications begin online, allowing for a more convenient initial process. However, regulatory requirements still require borrowers to complete identity verification in person at a licensed outlet before funds can be released. Despite this step, processing times remain relatively fast, ensuring that borrowers who may not qualify for bank loans can still access funding when needed.
While borrowers may be eligible to apply for up to six times their monthly income, approval decisions continue to focus on current income stability and overall affordability rather than past credit performance alone. Administrative fees remain capped at 10% of the principal and late payment charges generally do not exceed S$60 per month.
Most applications begin online, allowing for a more convenient initial process. However, regulatory requirements still require borrowers to complete identity verification in person at a licensed outlet before funds can be released. Despite this step, processing times remain relatively fast, ensuring that borrowers who may not qualify for bank loans can still access funding when needed.
Banks
Banks in Singapore continue to maintain strict credit assessment standards, which limits accessibility for borrowers with adverse credit histories. While unsecured personal loans offer lower Effective Interest Rates, approval typically depends on a strong repayment track record and stable financial standing.
For individuals with weaker credit profiles, approval remains less likely and alternative arrangements such as secured loans or guarantor support may be required. In addition, application processes tend to involve more documentation and longer processing timelines, which may not be suitable for borrowers seeking immediate financial support.
As a result, banks continue to play a limited role in this segment, particularly for short-term or urgent borrowing needs.
For individuals with weaker credit profiles, approval remains less likely and alternative arrangements such as secured loans or guarantor support may be required. In addition, application processes tend to involve more documentation and longer processing timelines, which may not be suitable for borrowers seeking immediate financial support.
As a result, banks continue to play a limited role in this segment, particularly for short-term or urgent borrowing needs.
ROSHI Expert Insight
In April 2026, the bad credit loan segment continues to reflect the importance of regulated access and consistent assessment criteria. Licensed moneylenders remain open to evaluating borrowers with past credit challenges, provided there is sufficient income and a clear ability to repay. Monthly interest rates continue to stay close to 3.8%, reflecting the capped structure rather than fluctuations in market conditions.
From ROSHI’s perspective, bad credit loans are best viewed as short-term support tools rather than long-term financing solutions. When managed carefully and repaid on schedule, they can help borrowers navigate temporary financial pressure while maintaining stability.
Accessing these loans through licensed channels ensures that borrowers benefit from transparent terms and regulatory protection, which remains an important factor in this segment.
From ROSHI’s perspective, bad credit loans are best viewed as short-term support tools rather than long-term financing solutions. When managed carefully and repaid on schedule, they can help borrowers navigate temporary financial pressure while maintaining stability.
Accessing these loans through licensed channels ensures that borrowers benefit from transparent terms and regulatory protection, which remains an important factor in this segment.
What This Means for Borrowers
For borrowers in April 2026, the bad credit loan market remains stable and accessible within a clearly defined regulatory framework. Licensed moneylenders continue to provide a viable option for individuals who may not meet traditional bank criteria, supported by clear limits on interest rates and fees.
While borrowing costs are higher compared to bank loans, the structured environment helps ensure transparency and prevents excessive charges. Borrowers who align loan amounts with their repayment capacity are better positioned to manage financial obligations without added strain.
With support from platforms like ROSHI, borrowers can explore licensed options more confidently, allowing them to make informed decisions that address immediate needs while supporting longer-term financial recovery.
While borrowing costs are higher compared to bank loans, the structured environment helps ensure transparency and prevents excessive charges. Borrowers who align loan amounts with their repayment capacity are better positioned to manage financial obligations without added strain.
With support from platforms like ROSHI, borrowers can explore licensed options more confidently, allowing them to make informed decisions that address immediate needs while supporting longer-term financial recovery.
