P2P lending can bridge this gap, connecting borrowers directly with individual investors through online platforms, allowing for more flexible terms and a relatively quicker process.

According to industry experts, while SMEs may still face a challenging economic environment in the coming months, the outlook for next year appears more positive. Jerry Ng, director of Asia Macro Strategy at Sumitomo Mitsui Banking Corporation (SMBC) Asia Pacific, said in an interview with CNA: “Overall, there’s likely some continued challenges, as Singapore continues to experience very tough and challenging growth conditions this year. (However), we expect some better conditions next year compared with this year.” 

Therefore, P2P lending can serve as an advantageous option for businesses that need financing to grow or overcome short-term hurdles. As Singapore continues to innovate and grow, these alternative lending platforms play a vital role in empowering SMEs and promoting a vibrant business ecosystem.

Nature of P2P Lending in Singapore

P2P lending, a FinTech tool, allows lending and borrowing money without traditional banks or financial institutions. According to Investopedia, it’s particularly beneficial for SMEs and startups that might not meet traditional loan requirements. P2P lending in Singapore is recognized and regulated under the Monetary Authority of Singapore.

How does P2P lending work?

In Singapore, the P2P lending landscape has been growing rapidly, providing new opportunities for both borrowers and investors. By connecting borrowers directly with investors through online platforms, P2P lending can offer higher returns for investors and more accessible loans for small businesses and entrepreneurs.

There are several key features of P2P lending in Singapore that make it an attractive option for individuals and businesses. 

  • The process is typically fast and efficient, with loan applications being assessed quickly and funds disbursed as soon as the loans are successfully matched with investors.
  • The P2P lending platforms utilize advanced algorithms and data analysis to assess borrowers’ creditworthiness, potentially offering loans to those who may be considered too risky by traditional financial institutions.

For investors, P2P lending platforms in Singapore offer attractive returns with relatively low entry barriers. Investors can choose from a wide range of loan options, depending on their risk appetite and investment preferences. It’s important to note, however, that investing in P2P loans carries inherent risks, as borrowers may default on their loans, and it’s crucial to diversify your investment portfolio to mitigate those risks.

Below is a brief overview of some key aspects of P2P lending in Singapore:

  • Platform: Online platforms match borrowers with investors and facilitate the loan process.
  • Regulation: P2P lending is regulated by the Monetary Authority of Singapore, ensuring proper conduct and protection for both borrowers and lenders.
  • Borrowers: SMEs and startups seeking alternative financing options.
  • Investors: Those looking for higher returns on their investments while supporting local businesses.
  • Loan Types: Varied, including term loans, invoice financing, and more.

Pros and Cons of P2P Lending

As you explore the world of P2P lending in Singapore, it’s important to consider both the advantages and drawbacks of this alternative investment option. Here’s a brief overview of the key pros and cons to help inform your decision-making process:


  • Accessible funds: P2P lending platforms make it easier for borrowers to access funds, bypassing the stringent eligibility criteria imposed by traditional banks. This allows for greater accessibility for both individuals and businesses in need of financing.
  • Flexible repayment schedules: Many P2P lending platforms offer tailored repayment plans that accommodate the borrower’s circumstances, allowing them to pay back the loan according to their cash flow and financial capabilities.
  • Tailored interest rates: Unlike conventional loans that have fixed interest rates, P2P lending platforms often offer personalized interest rates based on individual risk profiles and credit scores.
  • Quick online processes: Online applications and speedy approval processes make P2P lending an attractive option compared to traditional banks, which may require more time-consuming and complex procedures.
  • Less documentation required: P2P lending platforms generally require less documentation than traditional banks, streamlining the application process and reducing the administrative burden on borrowers.


  • Limited loan amounts: P2P lending platforms may have limitations on the amount of funds a borrower can access, making it unsuitable for large-scale financing needs.
  • Need for thorough financial planning: P2P loans, like any other loan, can lead to financial strain if not managed carefully. You should have a solid understanding of your repayment abilities and potential risks before borrowing.
  • Potential cybersecurity risks: Borrowers and investors may be exposed to cybersecurity threats, given that the entire process is managed online.
  • Risk of fraudulent activities: Although P2P lending platforms conduct due diligence on borrowers, there may still be a risk of fraudulent activities and scams.
  • Additional platform fees: P2P lending platforms typically charge fees for their services, which may increase the overall cost of borrowing. Be aware of these fees when evaluating your loan options.

Remember to conduct thorough research on P2P lending platforms and their offerings before committing to any investment or borrowing.

Best P2P Lending Platforms in Singapore

P2P LendingLoan AmountInterest RateMinimum Investment AmountInvestor Fees (on interest earned)
BRDGEUp to S$2 million0.077% (cumulative) S$1,000 per campaign15%
Funding SocietiesTerm Loan: S$100,000 and S$1 million
Micro Loan: S$100,000
As low as 0.8% per monthS$20 per campaign (S$100 initial deposit)18%
MinterestS$10,000 to S$3 million8% to 18% p.a.S$50 per campaign (S$500 initial deposit)15%
MoolahSenseS$50,000 to S$5 million (Small Offers Exemption)
above S$5 million under Private Exemption
18% p.a.S$100 per campaign1%
br dge logo


It provides businesses with quick access to capital while offering investors the opportunity to fund local SMEs and earn returns. Known for its user-friendly interface and transparent operations, BRDGE has become a go-to platform for those seeking efficient and accessible peer-to-peer lending services in Singapore.

One feedback from Google Reviews states: “Good service and prompt replies. No issues dealing with the staff. Pretty much as it advertises though I’m not a big lender.”


For Borrowers:

  • Loan Amount: Up to S$2 million
  • Tenure: 3 to 12 months
  • Default rate (cumulative): 0.077%

For Investors:

  • Minimum Investment Amount: S$1,000 per campaign
  • Investor Fees (on interest earned): 15%
funding societies logo

2. Funding Societies

Funding Societies is one of the most well-known P2P lending platforms in Singapore. With a focus on providing seamless lending experiences, Funding Societies has funded more than S$1.95 billion in loans as of December 2020. It offers a variety of features aimed at facilitating informed investment decisions. Additionally, the platform emphasizes diversifying your investments, ensuring that you can explore various opportunities while managing risks effectively.

An investor for the platform wrote on Google Reviews: “Seamless way to invest in relatively risk-free debt instruments. I’m beginning to see more crowd-funding opportunities lately, which is ideal for me to park cash and get that 5 to 8% pa in a safe environment!“


For Borrowers:

  • Loan Amount: S$100,000 and S$1 million 
  • Tenure: 1 to 12 months
  • Interest rate: As low as 0.8% per month

For Investors:

  • Minimum Investment Amount: S$20 per campaign; initial deposit of S$100
  • Investor Fees (on interest earned): 18%
minterest logo

3. Minterest

Minterest is a platform that emphasizes providing investors with a trustworthy P2P lending experience. With a strong focus on transparency and due diligence, the platform helps you make well-informed decisions when investing in SMEs. 

Minterest offers competitive interest rates and a wide range of investment options, ensuring that you can find opportunities suited to your preferences and risk appetite. A review from Seedly states, “Minterest allows investors like me to diversify our portfolio with high quality corporate investments. The e-wallet top up process is so quick! Plus, the auto-invest feature helps me to allocate my funds easily on the go.”


For Borrowers:

  • Loan Amount: S$10,000 to S$3 million
  • Tenure: 1 to 12 months
  • Interest rate: 8-18% p.a.

For Investors:

  • Minimum Investment Amount: S$50 per campaign; initial deposit of S$500
  • Investor Fees (on interest earned): 15%
moolahsense logo

4. MoolahSense

Lastly, MoolahSense offers a comprehensive P2P lending platform that caters to both retail and institutional investors. Founded in 2013, this fintech company was the first digital lending platform to receive the full Capital Markets Services license from MAS. Additionally, MoolahSense is also known to raise more than double its targeted amount. This is because investors can expect attractive interest rates, in-depth project information, and a focus on building a diversified investment portfolio.

In a report by The Strait Times, MoolahSense co-founder and chief executive Lawrence Yong, said: “The large number of investors is a clear indication of the popularity and potential of a crowd-investing, peer-to-peer lending system in Singapore.”


For Borrowers:

  • Loan Amount: S$50,000 to S$5 million (Small Offers Exemption); above S$5 million under Private Exemption
  • Interest rate: 18% p.a.

For Investors:

  • Minimum Investment Amount: S$100 per campaign
  • Investor Fees (on interest earned): 1%

P2P Lending vs Personal Loans

When considering borrowing options in Singapore, you may find yourself weighing the pros and cons of P2P lending and personal loans. In this section, we will compare these two popular lending options to help you make an informed decision.

CriteriaP2P LendingPersonal Loans
EligibilityMore accessible, varies by platform.Criteria for loan approval will depend on the bank or financial institution. For instance, banks have stricter criteria and often require higher credit scores. Licensed moneylenders, on the other hand, are more lenient with the eligibility criteria.
Loan ProviderIndividual lenders or investors on peer-to-peer platforms.Licensed financial institutions, such as banks or licensed moneylenders.
Interest RatesCompetitive and based on the borrower’s financial profile.Effective interest rates in banks in Singapore range from 11% to 14% p.a. while licensed moneylenders are capped at 4% per month.
Loan AmountsThe desired loan amount is limited by the platform and investors.
Total loan money can range 4-6x your monthly income.
RepaymentFlexible, depends on borrower-lender agreement.Typically between 1 and 7 years with fixed monthly instalments.
Loan ApprovalOften quicker, as it connects borrowers directly with investors; automated online processes.Can vary and might take longer due to thorough checks. Within two days for banks or within 30 minutes with licensed money lenders.
Additional CostsPlatform fees, late payment fees, etc.Processing fees, early repayment penalties, etc.
SecurityLess secure compared to traditional bank loans.Added security as they are backed by established financial institutions.

In summary, when choosing between P2P lending and personal loans, consider factors such as eligibility, interest rates, repayment flexibility, and the level of regulation in the industry. P2P lending may provide the personalized touch and flexibility that you need, while personal loans offer stability through established financial institutions. Ultimately, the best choice depends on your unique financial situation and borrowing needs.


Peer-to-Peer lending in Singapore has been growing rapidly as an alternative investment option. Through online platforms, investors can lend money directly to borrowers, offering a higher return compared to traditional investment choices like stocks and bonds. However, with this high return comes an increased risk of defaults and platform issues.

Read also: Best bokerages platform

Key Takeaways

  • P2P lending has become a significant alternative financing solution for SMEs in Singapore, offering a more flexible and quicker way to secure funds compared to traditional bank loan requests.
  • The P2P lending landscape in Singapore is characterized by its speed, efficiency, and the use of advanced algorithms for credit assessments.
  • The Monetary Authority of Singapore (MAS) recognized P2P lending as a valid lending and borrowing method. 

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