There are two main costs borrowers face when taking up a loan — whether for personal or business purposes: interest and fees. While most borrowers focus on finding the lowest interest rate, they often overlook fees, which can significantly affect the total cost.
You can use our loan calculator to compare total loan costs more accurately.
One of the most common fees is the processing fee (also known as the admin fee or origination fee) — a one-time charge based on a percentage of the loan amount or a fixed amount, applied in addition to interest.
Application fees are less common in Singapore but can be frustrating — they may be charged even if the loan isn’t approved. More often, lenders may request a commitment fee, or what some call a cancellation fee, which covers costs (like appraisers) if you pull out after terms are agreed.
⚠️ These are not applicable under program lending in Singapore. Be cautious if any lender or loan broker asks you to pay such fees upfront.
Other fees you might find on your term sheet include:
Early repayment charges or prepayment penalties — fees for paying off the loan before the agreed period.
Late payment fees — charged if you miss a scheduled payment.
Returned check / insufficient funds fees — charged when your GIRO or cheque bounces due to lack of funds.
Payment processing fees — sometimes applied if you insist on paying via cheque instead of digital methods.
Confused? Don’t worry — FindTheLoan.com is built for transparency. All our financing partners use the same standardized terms when quoting, so you can compare options clearly.
From your dashboard, you can view fee breakdowns side by side and determine the most suitable loan based on your total cost — including any termination, late payment, or miscellaneous fees.
To better understand whether your loan falls under a program lending or discretionary lending structure, check out our glossary entry on program vs discretionary lending.
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