There are numerous laws and guidelines that you must follow when applying for personal loans in Singapore. As an illustration, the most you can borrow is S$30,000. A borrower is permitted six personal loans at a time, including credit cards.

However, the total amount of all personal loans should not be more than 12 times the borrower’s monthly income. On the other hand, the sum of all outstanding private loans shouldn’t exceed 24 times the borrower’s monthly income. The Monetary Authority of Singapore (MAS) has established these rules, and anyone requesting a new loan from a financial institution under MAS’s supervision must follow them.

You must confirm that a loan is covered by this rule before you take out a new one or pay for one already in place. Even after you’ve borrowed the maximum amount from a bank, other options remain, like payday loans and moneylenders.

A borrower can have a maximum of 6 personal loans. 

A borrower is permitted a total of six personal loans. The most personal loan you can have at once is six. Credit cards, auto, and home equity loans fall under this category.

Your annual income will determine the maximum amount of your personal loan (up to a maximum of $50,000) if you are over 21 years old and do not have a co-borrower. If you are under 21, your combined income and co-borrower determine your maximum loan amount (up to $75,000).

The total amount of all outstanding personal loans

All personal loans allow you to borrow up to 24 times your monthly income (principal and interest included).

If your monthly salary is $4,000, you can apply for a personal loan with a maximum outstanding balance of $100,000. The total amount of all outstanding personal loans combined determines the maximum and not each individual loan application or interest rate.

The Monetary Authority of Singapore (MAS)

An important part of making sure that borrowers are shielded from dishonest lending practices is played by the Monetary Authority of Singapore (MAS). As a result, MAS has established a thorough framework that oversees the disbursement of personal loans in Singapore.

Personal loans are governed by Singaporean law, which also includes important guidelines, licensing requirements, and consumer safety precautions.

By being aware of these laws, borrowers can make educated choices when looking for financial aid and avoid predatory lending techniques.


Personal loans do carry some risks, though. Before taking on debt obligations that may be difficult or impossible to repay, it’s important to weigh all of your options because personal loans typically have higher interest rates than those provided by banks. When considering personal loans, you should also consider other options like payday loans and moneylenders and debt consolidation services like Debt Payoff Plans that enable borrowers to pay off their debts over time (typically six months) with lower monthly payments.