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What Loans Should I Take to Handle Rising Living Costs in Singapore?
14 November 2025 | Monetium Credit
The constantly rising cost of living in Singapore has put many people in difficulty. This situation is currently happening in many countries around the world, and many people don’t know how to handle it. Many young adults move back with their parents, and many elders move in with their adult children. The more the costs rise, the more crowded houses feel. One of the solutions that people seem to have found is borrowing. The problem is that not knowing what loan to borrow, or how to borrow responsibly, leads to having more problems than you had before. Let’s explore how the rising cost of living in Singapore is affecting people. But also what and how to take a loan that could help.
The Rising Prices of Everything
It’s not only housing prices that are rising, but also those of utilities, groceries, education and healthcare. Reuters talks of how the Singapore public housing resale price rose almost 10% in 2024. The fact that the price of utilities and groceries rose also puts everyone in a difficult situation. If we are talking about a family with children who still need to attend school, that gets even harder, especially if using private or international schooling. For most people around the world, health is no longer a priority. Not because they don’t want it to be, but because they cannot afford to treat their illnesses. Organic and healthy food is more expensive, which makes it almost impossible to buy constantly.
Now, the rising cost of living in Singapore is affecting everyone differently. Depending on your income, the area you live in, and your lifestyle, it might affect you more or less. If you were able to eat out 3 times a week before, you can cut out eating out only once, or not at all. But if you couldn’t afford eating out even once a week before, you certainly won’t be able to do that now. It’s essential to understand the gravity of your situation. Even if we are willing to help with everything we can, taking a loan will still be a big responsibility. So, begin by making a list of all of the things you could give up on, to save some money. Some common things that people write on this list are:
- Subscriptions (Netflix, Spotify, etc.)
- Takeout food and coffee
- Clothes or devices that you don’t need
- Name-brand items
If you want to go a level deeper into this issue, you should check out an inflation calculator. The Monetary Authority in Singapore has one that you could use. For those who don’t know, an inflation calculator is a financial tool that shows how the purchasing power of a currency decreases over time due to inflation.
The Loan Types Available
Knowing how to choose the perfect loan begins with knowing the type of loans available. Monetium Credit is located in Jalan Besar, but we serve customers across Singapore, from Tanjong Pagar to Raffles Place and Orchard. We have many loan options that might help you get through this rough patch. Let’s take a look at some of the options.
Personal Loan or Lifestyle Loan
The personal loan is the most popular type of loan that people take, especially in this kind of situation. It works like any other loan. You borrow the money and then pay it back, plus interest, through monthly installments. One thing that borrowers like about a personal loan is that it doesn’t require collateral, which means that it’s unsecured. No need to back up the loan with your car or home. Another benefit is that you can use this loan for a loan of things. You can use it for:
- Medical emergencies
- Car repairs
- Wedding expenses
- Funeral expenses
- Home improvements
This type of loan is typically approved in a short period of time, which helps if you are having an emergency. The biggest disadvantage is that because it’s an unsecured loan, the interest rate is usually higher. But, what about lifestyle loans? Well, a lifestyle loan is also an unsecured loan that you can use for personal expenses, education and home improvements. To qualify for this loan you need to be a citizen of Singapore, be above the age of 21 and be employed (part-time and full-time). Because it is a slightly different loan, you might need additional documents than usual. But it won’t be anything too complicated, and we’ll guide you through the process!
Mortgage Loan
A mortgage loan is the loan you take when you want to buy a house. Many people choose to rent, rather than buy, because it is cheaper in the end of the day. You don’t have to pay taxes or buy a new fridge when it breaks. But with the rising cost of living in Singapore, it just feels like you are investing in someone else’s house, and have nothing at the end. This encourages people to purchase their own place. You are paying a lot of money anyway, so you’ll just pay a little more and have the house of your dreams. A mortgage loan can make that dream come true.
If you are thinking about doing this, you should definitely contact us. Why? Loans from moneylenders are approved quickly, and are easier to qualify for, compared to those offered by banks. Our loan tenure is flexible and we collaborate with professional lawyers to handle all the legal documentation. Less paperwork than with banks, which means less stress and a faster process. Actually, depending on how complex your case is, the processing period is between 5 and 14 days.
Payday Loan
A payday loan is characterized by the fact that it’s a short-term loan and that it has a high interest rate. This kind of loan is best if you need S$1000 quickly. But, keep in mind that you typically have to pay it back within a maximum of 30 days. The interest for this kind of loan cannot exceed 4% per month, but lenders can add 10% in administrative fees. Moreover, late payments are penalized with a S$60 fee. At the end of the day, it’s a loan that you should take only in special scenario. And you should only take it if you are sure that you can pay it back by the next paycheck. But, if you urgently need to pay some bills, it can be a great help.
Housing Costs Intensify the Need for a Loan
For most people, housing is the biggest expense, and that also applies to Singaporeans. It’s expensive whether you are buying or renting, which means that everyone who has or wants a place to live in, need to have money available. A large share out of the monthly income goes towards rent or mortgage, especially in expensive areas. Some of the most expensive areas or neighborhoods are:
- Nassim Road
- Orchard
- Marina Bay
- Ardmore Park
- Bukit Timah
If you are living in one of these areas, or plan on moving there, you already know why the housing costs intensify the need for a loan. And, even if you are not living in the expensive areas, it is still pretty expensive. As an example, the average monthly salary in Singapore is around S$6,000, and the average rent price for a one-bedroom apartment is S$3,000. And, even a single common room can reach the price of S$1,500. Therefore, if you need a one-bedroom apartment, you are paying around half of your monthly income. Singapore is known as one of the countries with the highest cost of living in the world. This is exactly why the need for loans is rising at the same time as housing prices.
Match The Loan to The Situation
Loans are not like those one-size-fits-all slippers at the hotel. You need to be able to match the loan to your situation if you want to get the most efficient results. Which is why it was important to walk through some of the most useful loan options. Taking loans from licensed moneylenders requires a long-term financial strategy. You cannot just borrow and hope that everything will be alright. You need to borrow responsibly, and that begins with this matching game. So, let’s look at some situations and pair the best loan type with them.
- If you have the ability to back up the loan with collateral, it can be a good idea, because you will get a lower interest rate. But you have to be sure that you can make all payments on time. A mortgage is usually a secured loan, and it is used if you want to buy a house. It gives you a chance to move to a cheaper area of Singapore, or to get a monthly installment that is lower than your rent.
- If you have accumulated debt, you might need to look towards a debt consolidation loan. This is typically an unsecured loan that you can get without too much hassle, so at least that’s how it works if you decide to collaborate with us!
- If you are struggling with paying the utilities or the cost of groceries, you might want a small personal loan. Go for the smallest amount and shortest tenure you can. A temporary line of credit might be another solution to this problem. Don’t be ashamed if you are struggling, the rising cost of living in Singapore is affecting everyone.
Decide How Much to Borrow
If you want to create a long-term financial strategy, you need to be aware of how much you can actually borrow. Many people make the mistake of borrowing too much and then not being able to pay it back. Even if it’s tempting to borrow a little more than you need, it’s important not too. The first thing you want to do is to assess your financial situation. Write down your monthly income, and subtract the biggest expenses first. Start with the fixed expenses like rent, mortgage or car payment.
Continue then with the flexible ones, and try to assess the average for each expense (utilities, groceries). As a tip, if your monthly groceries cost around S$450, write down S$500, as this gives you room to breathe. Do not forget to add every tiny expense. Add all of the subscriptions, and subtract a generic sum for those late-night runs to the store for some snacks. Moreover, some money must go towards savings. Now, how much is there left? Because you can use part of that month to pay back your loan. We have a blog post on our website that discusses how to borrow without losing control.
You Should Plan Ahead
After you have finished calculating and are aware of the sum that you can borrow, you need to start planning ahead. You should consider the possible increases. The rising cost of living in Singapore is probably not at an all-time high, which means that worse is coming. You need to be prepared in case that actually happens. No matter what loan you take, you have to consider both the advantages and disadvantages. When doing calculations, don’t forget to add the interest rate and the potential late payment fees and the administration fees. Make sure that you ask your lender to present to you all of the fees that you will need to pay.
The rising cost of living in Singapore puts a burden on the shoulders of many Singaporeans. This is why more and more people consider taking a loan to handle all of the expenses. The loan you should take depends on the expenses that are squeezing your wallet. But borrowing responsibly should happen no matter what loan you are taking out. Make sure that you are not borrowing more than you need or can afford. If you are looking for a licensed moneylender in Singapore, Monetium Credit is here with the most professional services. You can easily apply online, and you can check our FAQ page to discover information that might be helpful.
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