What is the difference between a financial institution and a bank?
The main difference between a bank and a financial institution in Singapore is the loan terms that they normally offer. While banks in most cases focus on providing higher loan amounts with a longer repayment period (tenure), financial institutions in Singapore are normally offering slightly smaller loans with a shorter tenure.Having said that, the chance of getting a loan from a bank is normally lower than getting it from a financial institution. The reason for this is that the banks are more restrictive in offering unsecured loans and normally require more from the applicant in terms of monthly income, savings and credit rating.In conclusion, it can be said that banks and financial institutions are catering for slightly different customers. If you are eligible to get a loan from a bank, these loans will most likely save you money through better loan terms (like lower interest rate), but if you don't meet the banks' requirements, there are several good financial institution options for you to get the money that you need.