4 Reasons You Should Not Use Loan Directories to Find Your Personal Loan

July 29, 2025
Benjamin Lam
4 Reasons You Should Not Use Loan Directories to Find Your Personal Loan

Loan directories are often the first stop for borrowers searching for personal loans. These sites list multiple loan products, highlight their features, and redirect users to apply directly with each lender. While this might seem helpful, using a loan directory may actually make your borrowing journey more complicated and time-consuming.

Here are 4 reasons why loan directories may not be the smartest way to find a loan:

1. You Don’t Save Time

Loan directories don’t streamline the application process. After browsing, you’ll still need to apply to each lender individually, fill out separate forms, upload your documents multiple times, and track responses manually. Rather than simplifying your loan search, it ends up taking even more time and effort.

2. They Don’t Pre-Screen for Eligibility

Directories don’t evaluate whether you’re likely to be approved before showing you the options. You’re left to guess which loans you qualify for based on vague criteria. Important details such as your income, job type, outstanding loans, or credit history aren’t considered before you're redirected to the lender's website.

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3. Rates Are Often Misleading

Loan directories often showcase the “best rates” — but these are typically reserved for borrowers with exceptional credit profiles. For instance, some licensed moneylenders list interest rates as low as 12.12% p.a., but in reality, most borrowers receive offers closer to 3% per month and a 10% admin fee. Similarly, bank loans may advertise 3.47% p.a., but very few applicants actually qualify for that. These figures can be misleading, making it hard to compare real offers.

Screengrab on a listing on Moneysmart – 29 July 2025

Screengrab on Best Licensed moneylender website on 29 Jul 2025. They show Interest rate here at 47% p.a.

4. Promotional Rewards Can Be Confusing

Many directories offer sign-up rewards, vouchers, or exclusive gifts — which may sway borrowers to choose a loan based on freebies instead of financial suitability. This adds unnecessary complexity when you're trying to make an informed decision based on rates, tenures, and approval likelihood.

A Smarter Alternative: Lendingpot

Instead of browsing through directories, platforms like Lendingpot offer a smarter, application-led approach. Here’s how it works:

  • You submit a single application — with no impact on your credit score.
  • We create an anonymous borrower profile and send it to multiple licensed lenders.
  • Lenders return with personalised offers within 2 hours, including real interest rates, amounts, and tenures.
  • You choose from pre-approved offers — not just advertised rates.
  • Our team is available to answer questions and help you compare terms.
  • Plus, we keep it simple with 0.5% cashback via PayNow on your disbursed loan — no gimmicks.

Conclusion

Loan directories may seem convenient, but they fall short where it matters: saving time, filtering by eligibility, and providing accurate offers. Platforms like Lendingpot do the heavy lifting for you — helping you compare real, personalised loan offers quickly and clearly.

Ready to make a smarter borrowing decision? Visit Lendingpot.sg and get your personalised loan offers today.

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Lendingpot is working on making your search for financial products an easy one. Apply on our platform for personal loans, business loans and mortgage refinancing to get access to exclusive rates with our partners. On top of that, we aim to bring you insights & reviews on the latest financial products available.

Benjamin Lam

Benjamin heads up Lendingpot with a background in all things SME. He was previously a commercial banker at Citi with experience in Relationship management, Credit Risk, Trade Operations and Corporate FX sales; and understands the difficulties SMEs face in this opaque world of SME financing.

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https://personal.lendingpot.sg/articles/4-reasons-you-should-not-use-loan-directories-to-find-your-personal-loan-2

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