Why Trust MoneySmart?Under the Monetary Authority of Singapore (MAS) rules, your total unsecured debt—including personal loans and credit cards—across all financial institutions cannot exceed 12 times your monthly income. The exact amount you can borrow depends on your annual income, lender type (bank versus licensed moneylender), and residency status. Individual banks and moneylenders may also impose their own limits and assess your application based on their risk criteria, so the actual approved amount may vary.
Maximum loan amount by income level
For Singapore Citizens and Permanent Residents (PRs):
Annual income < S$20,000:
Borrow up to S$3,000 from licensed moneylenders (banks generally require higher incomes).
S$20,000–S$30,000:
Borrow up to 6× monthly income from licensed moneylenders. Some banks may offer small loans, but not always.
S$30,000–S$120,000:
Borrow typically 4–6× monthly income from banks or moneylenders.
Above S$120,000:
Some banks may offer up to 8× monthly income.
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For foreigners:
Annual income < S$20,000:
Borrow up to S$3,000 from licensed moneylenders (some set different minimums for eligibility).
S$20,000 and above:
Borrow up to 6× monthly income from licensed moneylenders.
Note: Bank-specific policies vary—always check each offer’s eligibility requirements before applying.
Other factors that influence your loan amount
While annual income forms the main basis for maximum loan quantum, lenders also review:
Credit score and history:
Good credit standing can increase approved amounts and unlock better terms.
Existing debt and TDSR:
MAS imposes a Total Debt Servicing Ratio (TDSR) cap—your total monthly debt repayments (including housing, credit cards, and loans) cannot exceed 55% of your gross monthly income. High existing debt reduces your eligible quantum.
Lender policies and internal caps:
Banks and lenders often set lower maximums than MAS's ceiling (some cap at S$50,000; others may offer up to S$250,000 for high earners).
Always check the specific lender's eligibility, caps, and requirements to estimate your likely borrowing power before you apply.
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