Rejected from banks for a personal loan... feeling so lost. Trying to look for other options and heard about licensed money lenders. Are legal money lenders really that bad?

Hello all, using a throwaway account because i’m honestly so embarrassed and out of options. Had a major family emergency recently and desperately need about $5k. Tried applying to DBS and SCB personal loans but got rejected because my credit score isn't that great thanks to some stupid mistakes in my early 20s. though, these debts has already been cleared.

I’m genuinely considering walking into a licensed money lender (LML), but the stigma is kinda making me even more worried from what I heard and read online.

Honestly feel like shit just thinking about standing outside one of those shops. Has anyone actually used them? Is the interest going to make me super broke, or is there a safe way to do this?

i don't really want to borrow from family and friends also as i feel that i am troubling them so that's not an option

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strawberrymatcha

Edited 6d ago

Bro, first of all, don’t judge yourself too harshly. Life happens and the banks can be incredibly cold when you just need a lifeline. You are trying to solve a problem, nothing to be ashamed of.

To answer your question: yes, LMLs are an option, but do not just walk into a random shop in Toa Payoh or Chinatown. You'll get slapped with the highest legal interest rates and huge admin fees.

Fun fact most people don’t know: Aggregators like SingSaver actually list licensed money lenders now. If you apply through SingSaver, they usually have exclusive lower interest rates or discounts on the admin fees compared to walking in as a stranger. Plus, you can do it all online from your room, so zero embarrassment.

Hang in there!

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