6777 7775
Sim Lim Tower, 10 Jalan Besar Sim Lim Tower #01-01, 208787
Bridging Loans in Singapore: What They Are and Who Should Use Them
26 September 2025 | Monetium Credit
In this current financial climate, the long-term prosperity of your family will be intertwined with the monetary resources you have at your disposal. Not many of us benefit from the savings required to easily surpass financial emergencies, nor is it common for the majority of Singaporeans to benefit from the job security necessary to stop worrying about the future. Truth is, our current work-life balance is predisposed to cracks, which might get enhanced by unfortunate financial situations that cannot really be predicted.
Have you decided to change your career, but this has been accompanied by monetary difficulties that are now starting to affect the stability of your family? Like a significant percentage of SG citizens, do you need fast and reliable monetary help? If so, our services could be what you require. Short-term financial credits have become a staple of the SG financial climate, and they are something that the vast majority of us at least considered at one point in our lives. But there are also moments when it might be possible to require a more substantial financial influx. And in those moments, you will probably be interested in a bridging loan in Singapore.
What is a bridging loan? In a nutshell, it’s an interim credit package that can be used to pay for an investment in a new property while you are awaiting the processing of a significant payment. In other words, it’s a temporary loan that you will pay back after you are paid by the property’s buyer. Have you, for example, sold your old apartment for $500,000, but the payment will not be processed for a couple of weeks? Do you require around $100,000 as a down payment for a new place? Then, in this case, a bridging loan in Singapore can be a good idea.
A Way to Cover Liquidity Needs
Singapore is rich, and the average income per worker in our country has recently surpassed the value of $70,000 per year. That said, you probably don’t benefit from the necessary liquidity to put forward a significant down payment for an investment in a new property, at least not from your own savings. Have you just sold your HDB flat and are planning to move into a new residence? Have you discovered a new property investment opportunity that will generate you a nice profit in less than six months? In such a case, bridging loans are a choice to consider.
These financial credit packages are not intended to be utilized long-term, but rather they are typically paid back in less than six months, depending on the loan principal and the complexity of the transaction performed by the client. As for the repayment of the credit, most lenders in our country offer two options. Either you pay the principal + interest of the loan once your current property is sold, or you go with a mortgage and a monthly repayment plan, at the same time. Either way, since the interest of the loan is limited through the regulations laid out in the Moneylenders Act of 2008, the total costs of the loan should be manageable.
How Can You Use Them?
Going for a short-term bridging loan in Singapore can be a wise idea, as it’s probably the best way to achieve the monetary funds required for urgent real-estate purchases while you are awaiting the sale of your old property. Let’s say, for example, you are interested in such a credit package because you are looking to move from your existing HDB property to a new condo. Even if you manage to sell your flat for a good price, the buyer’s payment will still need a couple of weeks at least in order to get processed.
But what if you’ve found a good deal on a private condo, and you need to put in a 25% deposit in order to secure the property? You don’t yet have the liquidity, and if you wait too long, the property will probably be sold. With a bridging loan, you can borrow an amount equal to the down payment you need, and after your flat is sold, you can use the money received in order to pay off the credit in only one payment. Ultimately, it’s a matter of obtaining fast cash for urgent payments. But that’s not the only way you can use a bridging loan.
Let’s say, for example, you put down a down payment for a built-to-order flat, and you received your keys a bit sooner than expected, so your current apartment is not yet sold. This can be a problem, as you will need to pay ABSD for your new property, which will only get approved for remission once your old flat is sold. A bridging loan can cover the ABSD and basically act as an instant loan for a larger cash amount. And like it was the case for deposits, you could pay back the loan once your property is sold.
What Bridging Loan Interest Rate Can I Expect?
Unlike the personal loans provided by our company, bridging loans in Singapore are not to be used as long-term financial instruments. Instead, they can be looked at as short-term financing solutions. Personal loans are typically repaid in one year after the credit is reimbursed in your account, while for bridging loans, this duration is typically halved.
How much will you have to pay? Well, per the regulations laid out by the Ministry of Law in Singapore, the maximum interest rate of commercialized credit packages cannot exceed 4% per month, or 48% per year. This means that, in the worst-case scenario, for a six-month bridging loan of $100,000, you will need to pay back $124,000. But that’s not always the case. In reality, the interest rates associated with a bridging loan in Singapore do not really come close to these values.
As for the documentation required in the loan application, our team will need your NRIC, proof of your current employment status, proof of your residence, and, in some cases, a copy of your last CPF contributions. Moreover, since bridging loans are typically used in the purchase of real estate, our team will also need copies of your property documents, like your OTP. Not least, in order to receive your data from government sources, our agency will use MyInfo with Singpass, which will require your consent.
What Other Short-Term Loans Are Available?
A bridging loan in Singapore is a fantastic solution if you are on the lookout for a temporary cash influx that you plan to repay in less than six months. But it’s not the only choice you have. Are you currently going through some major financial struggles, and you simply need some monetary help till the end of the month? In such a case, you might be interested in our firm’s short-term payday loans.
These types of credit packages are intended for ultra-short cash infusions and are typically expected to be paid back by the end of the month. The interest rates of these loans are high, typically right at the 4% maximum value permitted by SG law. However, since the sums involved typically do not exceed one or two monthly wages, they are some of the most popular financial instruments available to SG citizens. Do you need a bit more money, but you are not necessarily interested in bridging loans in Singapore? Then, you could apply for a personal loan.
The money you can borrow with a personal, unsecured loan will be dependent on your total annual income. Do you earn less than $10,000 per year? Then you will only be allowed to borrow up to $3000. However, if your yearly wage is above $20,000, you are permitted to borrow up to six times your monthly wage. Do you need even more money? If so, you will need to guarantee your credit application with collateral, which can be anything, from land bonds to artwork or even publication rights.
What Are the Main Benefits of Short-Term Loans?
Above all else, we must mention the fast access to funds, with no questions asked. Short-term loans are popular financial instruments that were used, at some point, by no less than 31% of all Singaporeans. We all need financial help from time to time, regardless of our past economic situation or the yearly wage we enjoy. With a short-term credit package, your application should typically be approved in less than a day, and the money will be reimbursed in your account, on the spot.
Moreover, a short-term loan in Singapore will be flexible, as such a credit can be utilized for everything from merging your existing debt into a singular payment to investing in the education of your loved ones or in renovating your property. Plus, since they are typically meant to be repaid in less than one year, short-term credits can be financially beneficial, as the interest rates will not have time to compound. That said, short-term financial loans come in many shapes and forms, including a bridging loan in Singapore. So, if you have any questions, we invite you to go to our site’s FAQ section and discover the financial instruments we have prepared for you.
Recent News
Recommended Read
Choosing between emergency funds and personal loans depends on the urgency and size of an expense.
Why Wait? Take Control of Your Financial Future Today!
At Monetium Credit, our goal is to help you navigate life’s financial demands with ease and confidence. Our quick personal loan deals are crafted to offer both speed and flexibility, ensuring that you receive the support you need exactly when you need it.
Quick Links
Login to your bank’s PayNow App & Scan the QR Code to make Payment
Monetium Credit (S) Pte Ltd (201326118D)
DBS Current Account
Copyright @ 2024 Monetium Credit (s) Pte Ltd. All Rights Reserved. License No 149/2024.
Disclaimer | Privacy Policy | Responsible Borrowing
Monetium Credit (s) Pte Ltd (UEN No. 201326118D) is a registered company under the laws of Singapore. Customers are strongly advised to take a look at our privacy policy & disclaimer sections. If you have any queries or concerns in regards to personal data, please kindly contact [email protected]
