P2P Lending Platforms
Tier 2Low Risk Income
Peer-to-peer lending via Funding Societies, Validus, etc. Higher yield, higher risk.
Plain-English Guide
Peer-to-peer lending platforms let you lend money directly to small businesses. You earn interest, typically higher than bank deposits.
You pick loans to fund on a platform (like Funding Societies). Businesses repay with interest over weeks or months. You can spread your money across many small loans to reduce risk.
Borrowers can default — you might lose some or all of your money on a loan. The platforms aren't SDIC-insured. Higher returns come with real risk of losses.
Yield = Total Interest Earned ÷ Amount Invested × 100 (annualised). Platform shows expected returns, but actual returns depend on borrower repayment. Default rate reduces effective yield.
How to Get Started
- 1Sign up on platform (Funding Societies, MoolahSense)
- 2Complete accredited/non-accredited investor check
- 3Browse loans and invest from $20-$100 per note
Where to Invest — Compare Providers
Rates are sourced by AI agents and may not reflect the latest figures. Always verify current rates directly with the provider before investing.
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Tax Treatment
Taxed as income at 11.5% marginal rate. Yield reduced by 86 bps.
After-Tax Yield by Income Bracket
| Bracket | Marginal Rate | After-Tax Yield | Tax Drag |
|---|---|---|---|
| Up to S$20,000 | 0.0% | 7.50% | — |
| S$20,001 – S$30,000 | 2.0% | 7.35% | -15bp |
| S$30,001 – S$40,000 | 3.5% | 7.24% | -26bp |
| S$40,001 – S$80,000 | 7.0% | 6.97% | -53bp |
| S$80,001 – S$120,000 | 11.5% | 6.64% | -86bp |
| S$120,001 – S$160,000 | 15.0% | 6.38% | -113bp |
| S$160,001 – S$200,000 | 18.0% | 6.15% | -135bp |
| S$200,001 – S$240,000 | 19.0% | 6.08% | -142bp |
| S$240,001 – S$280,000 | 19.5% | 6.04% | -146bp |
| S$280,001 – S$320,000 | 20.0% | 6.00% | -150bp |
| Above S$320,000 | 22.0% | 5.85% | -165bp |
Tax calculations are based on publicly available IRAS YA2026 rates and are for general reference only. Individual tax situations vary — consult a qualified tax professional for personalised advice.