Renovation Loan


Renovation Loans in Singapore

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At a Glance

Pros & Cons

Who Can Qualify?


How It Works

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Renovation loans are loans that allow homeowners or commercial property owners to access funds for renovations.


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  1. Credit score of between AA – GG
  2. Singaporean/PR between the ages of 21 – 65
  3. Main applicant to be earning at least $2000 a month or $24000 a year
  4. Joint applicant has to be employed, and they have to either be a spouse, sibling, parent or child of the main applicant

Disclaimer: These are general qualifications. Other information might be considered during your application.


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Renovation loans are typically applied via a few of the local banks. Alternative lenders don’t normally provide renovation loans as the risks are similar to an unsecured personal loan.

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Renovation Loans at a Glance

For a renovation loan, you have the option of selecting a flat rate or monthly rest. Flat rates mean that the interest rates are fixed during the whole loan tenure, on the other hand, monthly rest means that the payment differ every month but it tends to be lower. Do take note that renovation loans do not cover the cost of furniture or appliances.

The Pros and Cons

Loan based on renovation quotation

Fast approvals

Monthly repayments based on full loan amount

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Compare All Loan Types...

Loan Type


Interest Rates

Trade Financing

2 – 4 weeks

2.3 – 2.8% per annum

Personal Loan for Business

3 – 7 days

4.4 – 6.88% per annum

Short-Term Loan

1 – 2 weeks

7.8 – 12% per annum

Invoice Financing

1 – 2 weeks

6 – 18% per annum

Micro Loan

2 – 3 weeks

3.2 – 4.5% per annum

Business Term Loan

2 – 3 weeks

5 – 7% per annum


1 – 3 weeks

12 – 16% per annum

What Documents Do I Need to Apply?

Bank Statements

Profit & Loss Statements

Balance Sheet

Income Tax Returns

Identification Card (NRIC) / Copy of Passport

Renovation quotation/invoice by the contractor

Proof of ownership of the property


“Equity Financing is a good way to raise significant amounts of funds to propel a business into super growth and expansion.”


See What Loans You Qualify For

Types of Equity Financing

Of the many challenges that come with the journey of running a start-up, many entrepreneurs would agree that cash flow and capital acquisition are some of the main struggles that they have encountered with.

Most startups are initiated with limited personal savings, or capital raised from close friends and family. Sadly, this initial source of funds often runs dry, which then leaves many startup entrepreneurs in a dilemma.

However, among the various avenues of financing, equity funding should always be kept as a viable option.

Equity financing in essence, revolves around private investors who are seeking capital gains through investments in startup businesses.

More often than not, many investors who invest in startup businesses, simply love the thrill and excitement of being able to witness and be a part of a young company’s growth from seed stage to a successful functional business.

For the lack of proper assets or the ability to get a business loan, equity funding can actually serve as a great alternative source of startup financing.

Now, given the understanding that the equity financing culture in Singapore may not yet be fully matured, you should expect that unless you are able to present a business plan that is substantial and outstanding, it may be a tall challenge to obtain any equity funding.

For a start, you should be able to present an innovative yet rational business plan, that includes a clear exit strategy, realistic cash flow and revenue projections, a meticulous cost structure break down, and a brilliant action plan to make profits.

Corporate angel investors and venture capitalists make up the bulk of equity funding in Singapore. Other potential investors include hedge funds, private equity funds, investment banks and a few private alternative financiers:

Angel Investors

Usually high net worth individuals who have deep pockets of cash, are risk-seeking and enjoy the thrill of investing in startups with the hope of gaining potential exponential returns.

In other words, angel investors are typically private investors who prefer to utilize and disburse their financial resources and business skills in startup businesses. Angel investors usually act alone, or sometimes, they form a network of fellow angel investors and act together as a group.

These angel investors tend to offer investments to start-ups that they believe to possess exponential or infinite growth potential.  Angel investors also have a tendency to invest in businesses that they are somewhat familiar with.

Often, some angel investors also like to actively participate in the startup by offering themselves as consultants or advisers who provide advice, direction, or even resources to the business owners, while others remain in the back seat as silent investors.

Venture Capitalists

Mainly consists of seasoned professional investors who set up venture capital companies for the purpose of investing in young companies, while also participating in the operations of the business, albeit from a more macro perspective.

As with most angel investors, venture capitalists do not stop at investing into a company, they also get involved in the operations and directions of the company, in hopes of helping the company to make more profits.

However, this can sometimes come across to the business founders as overbearing and domineering. In most cases, venture capitalists usually demand for a bigger stake of up to 25 percent or more of the company that they are investing in.

In Singapore these days, there is a trend that is clearly showing venture capitalists with increased preferences for investing in startups or young companies that deal in the areas of intelligent programming and advanced technology.

Private Equity Funds

Usually big private equity firms with very large bank accounts and very deep pockets. In Singapore, the main providers of private equity financing are usually financial institutions, investment firms, hedge funds, or private equity fund houses.

Unlike the angel investors and venture capitalists, these big private fund managers usually do not bother to participate in the startup businesses that they have invested in. Their only concerns mainly revolve around how much profit their investments can make.

Normally, funding from these private equity funds go to the bigger businesses that are already established and generating consistent revenues.

Apply For the Best Equity Loans
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Frequently Asked Questions (FAQ)

What is the maximum amount I can loan with a renovation loan?

  • Minimum amount: $5000
  • Maximum loan amount: $30,000 or 6x of monthly income, whichever is lower.

What if my home renovation exceeds $30,000?

You can actually apply for renovation loans separately with your spouse, therefore you may be able to borrow more than $30,000 depending on both you and your partner’s income.

Tenure for renovation loans

The average loan tenure for a renovation loan can be between 1 to 5 years. Some banks also offer free insurance that covers accidental death and permanent disability for the whole tenure of the loan.

Are there any other bank fees if the renovation loan were to be approved?

If you decide to take up the loan, there is a processing fee which varies from 1% to 2% of the loan amount depending on the bank.

Interest rates for a renovation

The interest rates for a renovation loan ranges from 2.5% to 5% a year depending on the bank.

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