Piggy bank with a miniature buoy in front of it to indicate the concept of an emergency loan

When and Where to Get an Emergency Loan in Singapore

11 min

Sometimes, unexpected situations can arise that require urgent funds. For those who do not have sufficient savings, this can be a problem. Fortunately, an emergency loan can help.

What is an emergency loan?

In Singapore, an emergency loan is a type of financial assistance provided by various financial institutions or licensed moneylenders to individuals who are in urgent need of funds. It is designed to help people overcome unexpected financial emergencies or cover immediate expenses.

When you face an unexpected situation like a medical emergency, urgent home repairs, or unexpected bills, an emergency loan can be a lifeline. It provides you with quick access to cash so that you can address your immediate financial needs without delay.

Emergency loans in Singapore are typically also unsecured, so you do not need any collateral to get one. They can also be obtained through credit card advances from banks or payday loans from licensed moneylenders.

Types of emergency loans in Singapore

Personal loan

In Singapore, you can obtain an emergency loan in the form of an unsecured personal loan. The loan amount, eligibility criteria, and interest rate can be determined based on factors such as your age, residential status, income, employment history, and for banks–your credit score.

It is worth noting that licensed moneylenders in Singapore do not focus on credit scores. A stable source of income is more crucial. They also do not have a minimum salary requirement, although your income would still impact your loan limit. These factors make licensed moneylenders a viable alternative for individuals with bad credit scores or those whose earnings come from non-traditional salaried employment, such as gig workers.

Many lenders offer various types of personal loans that can be collateralised by assets such as real estate, investments, or cars.

Payday loan

Payday loans, which are available only from licensed moneylenders in Singapore, are characterized by their higher interest rates and smaller loan amounts. This means that the cost of borrowing the loan is relatively high compared to other loan options.

Unlike other types of loans, payday loans generally do not require a credit check and have a fast processing time. They are designed to be repaid by the borrower on their next payday, which is how they got their name.

Car title loan

A car title loan is a type of secured loan where the borrower provides their car title or deed as collateral. This means that you need to have a valuable car to be eligible for this loan.

A secured loan means that you are using your car as security for the loan. If you are unable to repay the loan, the lender has the authority to keep your vehicle as compensation. Therefore, it’s crucial to carefully consider the risks involved before pursuing a car title loan.

Credit card advance

Credit card holders have the option to obtain a cash advance from their available credit balance. It’s important to be aware that cash advances typically incur higher interest rates compared to regular purchases made with the card. In addition, there are associated fees, such as processing and transaction fees.

Once you withdraw cash through a cash advance, interest starts accruing immediately, increasing the amount that needs to be repaid.

What can an emergency loan be used for?

Emergency loans in Singapore can be used for:

Medical emergencies

Emergency loans can be used to pay for unexpected medical expenses like hospital bills, surgeries, or treatments.

Even if you have medical insurance, these loans can be particularly helpful when an upfront payment is required before insurance reimbursement. Since insurance processing may take some time, the loan can cover the medical expenses in advance, allowing you or your loved ones to receive timely medical care without having to wait for the insurance reimbursement.

Rent and mortgage payments

If the mortgage payment on your house is about to expire and you don’t have the funds to pay on time, an emergency loan can help you ride the storm till you can afford to make the payment by yourself again. It provides a temporary solution to ensure you can fulfill your financial obligations and avoid potential consequences, giving you the breathing room needed during challenging times.


If you find yourself unable to cover your electricity, water, or other utility bills and risk facing service disconnection, an emergency loan can provide the funds needed to ensure timely payments. By using the loan to pay your utility bills, you can avoid disruptions in essential services and maintain a stable living environment.

Funeral expenses

If a loved one passes away and you haven’t prepared for funeral expenses or other end-of-life costs, you may need an emergency loan. In such unfortunate circumstances, emergency loans can help pay for funeral arrangements and related expenses.

These loans provide timely financial assistance to ease the burden of funeral costs, including burials, cremation, or memorial services. They ensure that you can give your loved one a proper farewell without the added worry of financial strain.

Home or car repairs

Although you can get more satisfying interest terms and rates through a home equity line of credit (HELOC) or home equity loans, any home repair typically requires urgent payment which a HELOC might not be suitable for. Moreover, car repairs often pop up at the most unfavourable times.

If you are required to repair a car or provide funds for house repairs and cannot wait, an emergency loan can help you cover these costs as well.

When to consider an emergency loan

An emergency loan is designed to provide quick access to funds when you have an urgent need for money.

These loans serve as an alternative to traditional financing options and are tailored to meet immediate and pressing financial requirements. Once your application is approved, the funds can be disbursed to you within a short period, providing the financial assistance you need in an emergency.

Each emergency loan situation is different. Eventually, the decision to accept an emergency loan is totally up to you. It’s best to weigh the amount you require, and ideally, you should not borrow debts that exceed your ability to pay them back. Just by adopting these loans for an emergency, you can reduce the risk of falling into a debt crisis.

Read this article for effective ways to manage your debt.

Where to get an emergency loan quickly

You can get an emergency loan from a payday loan lender, credit card issuer, licensed moneylender, credit union, or bank.

Licensed moneylenders

Licensed moneylenders offer various types of emergency loans. They typically ask specific questions upfront to determine if you qualify for the loan. The great thing is, these pre-qualification questions don’t involve rigorous credit checks that can harm your credit score. This means you can apply for an emergency loan without worrying about it impacting your credit rating.

However, before approaching any moneylender, it is best to research well and make sure they are legally allowed to loan money. You can refer to the official list of licensed moneylenders to verify their credibility. Make sure to engage only a legal and reliable moneylender to avoid issues in the future.


Those who have a traditional bank account at a brick-and mortar-bank can get an emergency loan in the form of a personal loan. However, banks have more stringent processes and requirements when it comes to reviewing loan applications, especially for new customers.

For instance, a good credit score is a must-have to get a loan approved from a bank. Besides, you cannot get the funds as quickly as you would from a licensed online moneylender due to the detailed processes involved.

Credit cooperative

You can also consider obtaining a loan from credit cooperatives. These institutions are known for their user-friendly approach and community-based services, which means they may be more open to providing loans to individuals with lower credit scores.

Loan options and terms may vary among different credit cooperatives, depending on their policies. However, they often offer a range of loan amounts for emergencies. It’s advisable to inquire directly with the credit cooperative to understand the available loan options and borrowing limits they offer.

Keep in mind that many credit cooperatives have membership requirements. They may offer loans exclusively to their members or those who have been part of the credit cooperative for a certain period.

Benefits of an emergency loan from a licensed moneylender

Infographic on the benefits of a licensed moneylender's emergency loan

Higher approval rate

When it comes to banks, they typically assess your credit rating before approving a loan. If your credit history shows instances of non-payments, late payments, or other financial issues, banks are unlikely to grant you a loan.

On the other hand, emergency loans from licensed moneylenders offer a simplified option with smaller loan amounts that can be repaid within a few weeks. Due to the shorter repayment period of emergency loans, many lenders are more flexible when considering applications.

Licensed moneylenders in Singapore take into account factors beyond just credit scores, focusing on your current financial situation and repayment ability. This means that even if you have a less-than-perfect credit history, you still have a good chance of obtaining an emergency loan.

Easy and convenient to apply

Getting emergency loans from licensed moneylenders in Singapore has many benefits. One advantage is the convenience they offer compared to traditional banks. With online moneylenders, there’s no need to visit physical branches or engage in high-pressure negotiations. The application process is streamlined, allowing you to apply for a loan online from the comfort of your own home.

Greater flexibility

Emergency loans from licensed moneylenders allow you to tailor the borrowing amount according to your specific financial needs.

You have the freedom to access the exact amount of cash you require, without being burdened by a larger loan balance. Whether you need a small amount like $200 or a larger sum such as $2,000, you can customise the loan to suit your needs.

Moreover, licensed moneylenders understand that everyone’s financial situation is unique, which is why they provide flexibility in repayment terms. For smaller loans, you can choose a shorter repayment period, paying off the balance more quickly. For larger loans, you can opt for a longer repayment period, spreading out the payments over 3 to 6 months. Additionally, if you happen to have extra funds and want to repay the loan ahead of schedule, licensed moneylenders allow early repayment without penalties.

It’s important to note that the flexibility offered by licensed moneylenders would still consider factors such as your income and repayment ability. However, compared to typical loans from traditional banks, emergency loans from licensed moneylenders provide more freedom to customise the amount and repayment terms to better meet your specific financial requirements.

Quick processing

When you encounter a financial emergency, time is of the essence. You may not be able to wait for a long approval period, and you may not have time to schedule a meeting with the bank manager.

Licensed moneylenders can disburse funds to you in as little as an hour, provided that you meet the requirements and provide all the necessary documents. You can further reduce the processing time if you have already submitted your documents online and scheduled an appointment. This quick processing time is crucial when you are facing urgent financial needs, such as a car replacement or breakdown. Emergency lenders can swiftly provide the funds you require without any delay.

Easy to manage

Nowadays, many licensed moneylenders provide user-friendly online platforms that allow you to easily handle your loan payments.

When you apply for a loan, you will gain access to the lender’s user-friendly online payment dashboard. Through this platform, you can conveniently monitor your current loan balance, track the repayment date, and explore various online payment options.

Saves your money

Dealing with financial emergencies can lead to extra expenses like bounced checks, overdraft fees, and default fees. These charges can quickly pile up and put you in a difficult financial situation.

Emergency loans from licensed moneylenders can provide you with the necessary funds to cover your urgent needs, potentially reducing the overall costs you incur. But this is only relevant if you are certain that you can repay the loan on time.

Improves your credit rating

One advantage of using emergency loans is that they can help you avoid situations like overdrawing on your credit card.

While licensed moneylenders in Singapore do not share your loan information with Credit Bureau Singapore, your responsible money management, like not overspending, can still have a positive impact on your credit history. By being smart with your finances and using emergency loans when necessary, you can work towards keeping or improving your creditworthiness over time.

Maintaining a good credit history is important for your future financial plans. It increases your chances of getting credit cards, mortgages, and other loans with better terms.

Emergency loans as a safety net for unexpected financial challenges

Sometimes, unexpected twists and turns occur that necessitate emergency alternative finance options. It’s essential to remember that you don’t need to be stressed. There are many affordable emergency moneylenders to choose from.

If you encounter a situation that requires urgent funds, please contact Cash Direct. Our experienced team is available to help you at any time, and we will try our best to provide you with the best services that meet your needs.


The information provided on our website is for educational and informational purposes only and is not intended to be a substitute for legal or financial advice. While we try to ensure that information on this website is accurate, we do not warrant that the information will be free from error. We shall not be liable for any loss or damage that may arise from the use of this website.

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