Debt consolidation top reason why SG platform workers get loans

Their borrowing behavior shows that they lean on financing to bridge essentia lexpenses.

Debt consolidation is the top reason why Singapore’s platform workers take out a loan, according to a study by Lendela.

Over 36.7% of delivery riders, and 34.1% of private-hire drivers, take out a loan with Lendela for debt consolidation, it found.

The share of debt consolidation loan applications amongst platform workers— which comprise food delivery drivers and private-hire drivers— fell by 15% over the 2023-2024 period.

This decline in the share of platform workers with significant amounts of debt may suggest a gradual improvement in overall debt management among the demographic over the last two years, Lendela said.

Recurring bills and home & household related expenses followed as their top reasons to apply for a loan, Lendela found.

“Whilst platform workers in Singapore have demonstrated a stronger grip on debt management, cost-of-living borrowing remains an ongoing challenge,” said Bryan Tay, Singapore country manager at Lendela.

Lendela’s data shows that platform workers mirror other lower-to-middle-income groups in their borrowing behaviour, leaning on financing to bridge essential expenses.

“This signals a broader affordability issue, and it’s a trend we must continue to monitor closely," Tay said.