Admin Crawfort
In Singapore’s dynamic financial landscape, a cash advance allows individuals to access funds quickly for immediate needs.
A cash advance lets you get money quickly, but it’s usually expensive. It often means borrowing cash from your credit card, which adds interest and fees. Moreover, it can include short-term loans from banks and lending apps.
This guide will explore the various facets of cash advances in Singapore, from understanding the associated costs to making informed decisions in urgent financial situations.
Types of Cash Advance Options Available in Singapore
Singapore’s financial market in 2025 presents several cash advance options, primarily credit card cash advances and loans from licensed moneylenders, alongside emerging programmes from non-traditional institutions.
Credit Card Cash Advances
Credit card cash advances allow cardholders to borrow against their credit limit for cash withdrawals, accessible via ATMs (e.g., DBS, POSB, UOB), in person at bank branches (DBS/POSB, UOB), and sometimes over the phone.
Digital platforms have streamlined this process, with DBS digibank online transfers and UOB’s TMRW app and Personal Internet Banking.
Historically, convenience cheques were also used. Limitations include cash advance limits (e.g., DBS S$5,000, UOB 75% of credit limit, OCBC limits based on approval date) and daily ATM withdrawal limits (e.g., DBS & UOB S$3,000, OCBC up to S$20,000 daily).
Read also: What Is A Cash Advance Fee In A Credit Card?
Licensed Moneylenders
Licensed moneylenders also offer personal and short-term payday loans, with fast approval and online applications, sometimes using Singpass MyInfo. While payday loans have high annual percentage rates, these lenders cater to individuals who might not qualify for traditional credit options.
Non-Traditional Options: Grab Partner Cash Advance
Grab’s Partner Cash Advance is tailored for drivers and delivery partners, providing quick funds via their Grab cash wallet with low administrative fees (around 1.5% per month) and no late fees or compounding interest. Repayment is through weekly automatic deductions.
Other Potential Options
Globally, lending apps, merchant cash advances, and payday alternative loans exist, but their prevalence in Singapore as of 2025 is not extensively detail.
Regulations and Legal Guidelines Governing Cash Advances in Singapore
The Monetary Authority of Singapore (MAS) and the Ministry of Law (MinLaw) are the primary regulatory bodies. MAS oversees cash advances from banks and credit card companies under the Payment Services Act (PSA) 2019, which aims to prevent illicit financing, protect consumer funds, ensure payment system interoperability, and mitigate cyber risks. Amendments to the PSA occurred in April 2024.
MAS Regulations for Financial Institutions
MAS focuses on consumer protection through transparent fees and financial literacy programmes such as MoneySense. Safeguards against over-indebtedness include a borrowing limit of 12 times monthly income and credit card suspension for those severely overdue or with excessive unsecured debt.
Moreover, MAS sets minimum income criteria for credit card issuance based on age.
MinLaw Regulations for Licensed Moneylenders
MinLaw regulates licensed moneylenders via the Moneylenders Act, requiring licences or exemptions and setting conditions like interest rate caps. The Act mandates a maximum 4% monthly interest rate, a 10% administrative fee limit, and a S$60 monthly late fee cap.
Borrowing limits are based on annual income. The Registry of Moneylenders, under MinLaw, approves and regulates these lenders, requiring a physical address and prohibiting unsolicited loan offers or remote loan approvals without in-person verification.
Read also: An Essential Guide To Personal Loan In Singapore: What It Is And How To Apply
Borrowing Limits and Interest Rates
Borrowing limits and interest rates vary. Credit card cash advance limits are bank-specific (e.g., DBS S$5,000, UOB 75%, OCBC up to 70%). Interest rates are high (around 28-29% per annum for major banks). Licensed moneylenders have income-based borrowing limits (e.g., up to S$3,000 if income is below S$20,000) and a 4% monthly interest rate cap.
MAS’s 12 times monthly income unsecured borrowing limit also applies.
Eligibility Criteria for Obtaining a Cash Advance in Singapore
Obtaining a cash advance in Singapore involves navigating diverse eligibility criteria, varying significantly depending on the provider.
Credit Card Cash Advances
Linked to credit card eligibility, generally requiring applicants to be at least 21 years old with a minimum annual income (e.g., HSBC & OCBC S$30,000 for Singaporeans/PRs).
Existing cardholders are usually pre-approved, but some banks (like DBS) require activation of the cash advance feature.
OCBC can adjust limits based on credit score and utilisation. MAS also sets minimum income and asset criteria for credit card issuance.
Licensed Moneylenders
Often have more flexible criteria, considering those with less favourable credit if they demonstrate stable income and repayment ability.
Common requirements include being 21-65 years old and being a Singaporean citizen, PR, or a foreigner with a valid work pass.
Some have minimum income requirements, but generally, eligibility is broader than for credit cards.
Read also: Are You Eligible For A Personal Loan In Singapore?
Non-Traditional Options: Grab Partner Cash Advance
Tailored to the platform, requiring applicants to be active Grab driver or delivery partners for at least three months with average monthly earnings of at least S$ 1,000. Bankruptcy checks may be conducted for higher loan amounts.
Fees and Interest Rates Associated with Cash Advances in Singapore
Understanding the costs associated with cash advances in Singapore is crucial, as they can vary substantially depending on the provider. From credit card transactions to licensed moneylenders and emerging digital platforms, each option presents a unique fee structure that demands careful consideration.
Credit Card Cash Advances
Almost always involve a transaction fee, typically the higher of a percentage or a fixed amount (e.g., DBS, UOB, OCBC: 8% or S$15). Interest rates are high (around 28-29% per annum) and accrue immediately with no grace period. Minimum interest charges may apply (e.g., DBS & OCBC S$2.50). ATM providers may also charge fees.
Licensed Moneylenders
Regulated by MinLaw, with a maximum monthly interest rate of 4%. They can also charge a one-time administrative fee (max 10% of principal) and a late fee (max S$60 per month).
Non-Traditional Options: Grab Partner Cash Advance
Charges a one-time processing fee (up to 2% per month, typically around 1.5%) deducted upfront. No other fees or compounding interest.
Other Potential Options
Lending apps can have very high interest rates (over 100% APR) and other fees, requiring careful review of terms.
Comparative Analysis of Cash Advance Options in Singapore (2025)
| Feature | Credit Card Cash Advance | Licensed Moneylenders | Grab Partner Cash Advance |
| Typical Use Case | Immediate short-term cash needs, leveraging existing credit limit. | Short-term loans for individuals with less favorable credit, needing quick funds. | Quick funds for Grab drivers and delivery partners. |
| Eligibility | Existing credit cardholder, minimum income requirements (e.g., S$30,000/year). | Singaporeans, PRs, or foreigners with valid work pass (21-65 years old). | Active Grab driver or delivery partner for at least 3 months, minimum monthly earnings. |
| Borrowing Limits | Bank-specific limits (e.g., S$5,000, 75% of credit limit). | Income-based (e.g., up to S$3,000 if income <S$20,000, up to 6x monthly income if >S$20,000). | Varies based on Grab’s assessment. |
| Interest Rates/Fees | High interest rates (around 28-29% p.a.), transaction fees (e.g., 8% or S$15), potential ATM fees. | Maximum 4% monthly interest rate, 10% administrative fee (maximum), S$60 late fee (maximum). | One-time processing fee (around 1.5% per month), no late fees or compounding interest. |
| Repayment Terms | Immediate interest accrual, no grace period, minimum interest charges. | Structured repayment plans, varying based on loan amount and lender. | Weekly automatic deductions from Grab cash wallet. |
| Approval Speed | Instant access via ATMs or online transfers. | Fast approval, often within a few hours or a day. | Quick disbursement to Grab cash wallet. |
| Regulation | Monetary Authority of Singapore (MAS). | Ministry of Law (MinLaw). | Platform-specific, with some oversight depending on financial service aspects. |
| Key Considerations | High costs, easy access, impacts credit utilisation. | Higher interest rates compared to traditional loans, more flexible eligibility. | Specific to Grab partners, convenient for platform users, lower fees than credit card cash advances or moneylenders. |
The Bottom Line
In summary, Singapore’s 2025 cash advance options, encompassing credit card advances, licensed moneylender loans, and emerging platforms such as Grab Partner Cash Advance, cater to diverse financial needs.
Credit card advances offer swift access but incur high interest and fees. Alternative options like Grab Partner Cash Advance target specific users with potentially lower fees. Licensed moneylenders provide more flexible eligibility, albeit with regulated, yet significant, costs.
For immediate cash needs, consider Crawfort’s personal loans. Loan applications can be approved in as fast as 8 minutes. Apply for a personal loan with Crawfort.
