How to apply for a furniture loan in Singapore

White piggy bank with coins sitting on wooden tabletop, and modern furniture. All made possible with a furniture loan in Singapore.

Now that you have renovated your new home, the next step will be furnishing it with new furniture. This could leave a big hole in your pocket if you dig into your life savings. Fortunately, you can secure a furniture loan in Singapore from licensed money lenders, with fast loan approval and competitive loan interest rates.

How does a furniture loan in Singapore work?

Licensed money lenders in Singapore provide furniture loans in Singapore to help borrowers with the finance of new furniture. These loans come in 2 broad categories.

1)   Unsecured personal loans

Such loans do not require any collateral. There are a multitude of licensed money lenders in Singapore offering such financing and since the loan is unsecured, the borrower doesn’t have to worry about the furniture being repossessed in the event of default loan payments. However, be mindful that such fast loan approval usually comes with higher loan interest rates compared to a secured loan.

2)   Short term loans

These loans come with a shorter loan tenure and should only be taken if you need to purchase furniture urgently. Since the loan tenure is short, the interest rates will be lower as well. The loan application process is more stringent and is reliant on your credit score and annual income limits. Exercise caution and do not over-borrow and remember to make payments on time as your credit score could be affected otherwise.

Factors to consider for furniture loan application

Shop and compare the pros and cons of all furniture loans before selecting a specific one.


Scrutinise carefully the requirements of the loan. If your credit score is healthy, you have a higher chance of getting a loan with low loan interest rates. Borrowers, who have a bad credit score don’t need to panic, as there are licensed money lenders in Singapore who will offer a loan.

Borrowing power

While shopping around for furniture, it is crucial to have a viable budget. Do your homework while shopping for furniture pieces and keep track of their prices as well. In this way, you will know how much money you need and do not over-borrow since you have done your maths! Most licensed money lenders in Singapore can lend you up to 6 times your monthly salary.

Loan tenure

This is crucial as the loan tenure will signify your monthly repayments. Your loan should not exceed 60% of your total debt servicing ratio (TDSR) according to the Monetary Authority of Singapore (MAS). Licensed money lenders in Singapore are well-versed with these rules and will not give you a loan beyond the statutory figure. Do take note that a longer loan tenure means you end up paying more interest over time.

Fees and Charges

The furniture loan comes with interest charges and fees. You need to review all loan offers and select the best deal. Be careful of any hidden fees, exorbitant charges for late settlement, high processing fees, penalties for early loan settlement, etc.

Loan Interest rates

This is the most important element of the furniture loan as the bulk of the cost is associated with it. The higher the loan interest rates, the higher your monthly instalments. A lower loan interest rate will be the ideal choice but you should study the whole loan package carefully. Look at the monthly repayments and other associated costs, to evaluate whether the repayments will be manageable.

Avoid these pitfalls

Shop around and explore various furniture loans in Singapore before committing yourself. These are some common pitfalls to avoid when looking for a fast loan approval furniture loan.

Do not over-borrow

Do not get caught up with borrowing beyond your current needs. Most licensed money lenders in Singapore will not allow a loan that exceeds your TDSR threshold. A good lender will point it out and advise you against it. Any lender that is offering you a furniture loan in Singapore beyond your repayment capability should be avoided.

Attractive promotional rates

Many lenders will offer promotional loan interest rates, which are generally lower for a certain period. Once the promotion ends, the normal loan interest rates will apply. Find out the normal loan interest rates before signing up for any promotional packages so that there are no default payments along the way.


The information contained on this website is not intended as a substitute for advice from a licensed professional. We do not guarantee the accuracy, completeness, suitability, or validity of any information provided on this website. We will not be responsible for any errors or omissions on the site nor will we be liable for any loss or damage caused by reliance on any information obtained through this website.

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