When you’re looking for a personal loan, remember to compare and find one with the lowest interest rates. Ensure that you check parameters such as the Effective Interest Rate (EIR), credit availability or how much money you would be able to borrow, the minimum income requirements, and whether you will be able to make repayments regularly and on time. While some banks may let you borrow up to 10 times your monthly salary or offer you a cashback when you apply before a certain date, there is no guarantee that the loan in question is the best for you.
Maybe a lower interest rate of 3.7% p.a. is more appealing than a loan with a high credit limit. Maybe the fact that you can get a credit card for free holds more significance than a loan which lets you repay for up to 7 years. Comparing different loans will help you find the one that’s most suitable for you.
Here are the list of best personal loans with interest rates in Singapore
|Bank||Interest Rates(p.a.)||Processing Fee||Tenure||Minimum Income|
|POSB||3.88%||1%||1 - 5 years||S$20,000|
|Standard Chartered||6.88%||S$199||1- 5 years||S$20,000|
|Citi||4.55%||*||12 - 60 months||S$30,000|
|HSBC||3.7%||S$88||1 - 7 years||S$30,000|
|UOB||8%||*||12 - 60 months||S$30,000|
|OCBC||5.8%||2%||12 - 60 months||S$20,000|
|DBS||3.88%||1%||1 - 5 years||S$20,000|
|Maybank||6%||2%||12 - 60 months||S$30,000|
|BOC||6.48%||3%||12 - 84 months||S$30,000|
|CIMB||4.5%||*||1 - 5 years||S$24,000|
*Contact the bank for current rate
HSBC gives the longest tenure on personal term loans – 7 years. Most other banks have tenures going up to 5 years only. You can also redraw on your existing loan at no extra cost. The bank is offering a processing fee waiver of S$88 on applications made by 31 March 2019 and approved by 30 April 2019. If you apply online through HSBC’s website and get the loan approved by the same dates, you will also receive a cashback of S$88. There are special interest rates for the same application and approval period, with the following terms: a) 7% p.a. for people with a yearly income of S$80,000 and applying for loans of tenures 3 to 7 years, b) 9% for those earning S$30,000 to less than S$80,000 and applying for a 3- to 7-year loan, and c) 13% p.a. if the loan tenure is 1 or 2 years.
|Interest rate(p.a)||Processing fee|
|Starts from 7% (EIR)||S$88 (waived)|
This loan is linked to your credit card, Cashline account or a deposit/savings account. So if you don’t have one, you’ll have to first get a DBS or POSB credit card, line of credit or account. This is a fixed repayment loan with a tenure of 12 to 60 months.
|Interest rate (p.a.)||Processing fee|
|Starts from 7.56% (EIR)||1%|
This loan can also be easily obtained if you have a Citi credit card or Ready Credit account. However, new customers can enjoy lower interest rates. There’s also an option to pay an upfront service fee and skip interest payments. You also get a 1-hour approval-in-principle if all your documents are in order and meet all the eligibility requirements.
|Interest rate(p.a.)||Processing fee|
|Starts from 8.5% (EIR)||NA|
With UOB Personal Loan, you have more control over your finances with low monthly repayments, starting from S$0.80 per day. Choose to repay the loan over a period of up to 60 months. If you are an existing UOB customer, then your loan will get approved instantly. The bank will draw-down the approved amount form your credit card limit or CashPlus account and disburse it to your chosen account.
|Interest rate (p.a)||Processing fee|
|Starts from 8%||*|
*Contact the bank for the current figures.
OCBC Cash-on-Instalment loan is a term loan linked to an existing OCBC credit card or EasiCredit account. You don’t need to have a savings or current account with OCBC to get the money – the funds will be transferred to any bank’s account that you choose. Enjoy additional cash from interest rates when you opt for a 12-month instalment plan. You could get lower interest rates during promotional periods.
|Interest rate(p.a)||Processing fee|
|Starts from 11.38% (EIR)||2%|
This is an instalment loan under Maybank CreditAble, which means you can convert up to 90% of your credit availability to a fixed repayment plan. You can get the loan through an existing Maybank credit card as well. If you are among the first 500 persons to get S$9,000 or more approved under this loan, you will receive cash credits of S$120. The cash credit will not be given to you if you cancel the loan after approval or closed through full or partial payment before the chosen tenure ends.
|Interest rate(p.a.)||Processing fee|
|Starts from 9.48%||1%|
With this OCBC ExtraCash loan, you can borrow up to 6 times your monthly earnings. You can make regular and fixed monthly payments and ensure a stable cash flow. The tenures available vary from 1 year to 5 years. With online and mobile access to your account, you can check your transactions at any time and from anywhere. You’ll also enjoy multiple convenient repayment modes such as cash deposit, cheque deposit, mobile banking, and online banking. Depending on your annual income, the processing fee on your loan could be as low as S$100. The nominal interest rate could be as low as 8.18% p.a. and the effective interest rate could be as low as 15.92% p.a.
|Interest rate(p.a.)||Processing fee|
|Starts from 8.18%||2% or up to S$200|
With this instalment loan from BOC, you could borrow up to 90% of the credit limit available in your MoneyPlus account at the time of application. The minimum tenure available is 1 year. The maximum tenure available is 7 years, one of the longest in the market. You’ll enjoy a flat interest rate as low as 6.48% p.a. and an effective interest rate as low as 13.86% p.a. You could enjoy higher savings on interest payments as the bank employs the reducing-balance method for interest calculation. The loan could cost you as little as S$6 per day. You’ll also get a complimentary standby line of credit with this loan. It could help take care of your daily expenses. Until the expiry of your $martLoan credit facility, you’ll enjoy the same rate on your MoneyPlus line of credit. You’ll also have the option to reschedule the loan.
|Interest rate||Processing fee|
|Starts from 6.48% p.a.||3% (min. S$150)|
*The products listed above are chosen from all the personal loans available in Singapore. Terms like “popular”, “best”, or “top” do not indicate any special favour shown towards any product in particular.
Usually, if you meet the eligibility criteria set by your lender, your loan application will be approved within 1 to 7 business days. Some banks also offer instant approvals and less-than-a-day disbursals.Read More
The interest rates of personal loans are lower than credit cards or payday loans. The interest rates are even lower during promotional periods. Rates can be further lowered if you have a good credit score.Read More
Even if you have an annual income as low as S$20,000, you can get an unsecured loan from leading banks in Singapore. For incomes lower than this, you can depend on licensed moneylenders and pawnbrokers.Read More
Your monthly repayment depends on loan interest rate and tenure. Longer tenures and lower rates mean low repayment. But shorter tenures and/or higher rates mean high repayments.Read More
These loans are not just useful to fund a wedding, pay for hospital bills, or go on vacations. You can also take an unsecured loan and use it for investments. Just make sure you are not taking too high a risk.Read More
Many lenders offer special promotional deals and joining benefits ranging from cashback, lower interest rates, and gifts on personal loans. Look out for these deals and time your application accordingly.Read More
|Age||21 – 65 years|
|Nationality||Singaporeans, Permanent Residents, Foreigners*|
|Balance-to-income ratio(BTI)||12 times the monthly income.|
*Foreigners generally are not offered personal loans, except by some banks.
Personal loans in Singapore offer low interest rates which can help you save on your repayments and plan your budget accordingly. The table below shows the interest rates for such loans:
|Loan||Interest Rates (p.a.)|
|HSBC Personal Loan||3.7%|
|DBS/POSB Personal Loan||3.88%|
|Citi Personal Loan||4.55%|
Foreigners residing in Singapore can also get personal loans for their emergency needs. However, there aren’t many banks that give unsecured loans to foreigners. HSBC, Citi, OCBC and Maybank are prominent among the banks that give personal loans to foreigners. Foreign nationals have to show a higher annual income – between S$40,000 and S$60,000 – to borrow from a Singaporean bank. The tenures available to them might either be smaller – between 2 and 3 years – or pegged to the validity of their Employment Pass or Work Permit. Though there is no discrepancy on the interest rates offered to citizens/PRs and foreigners, it might be best to check with the bank on the personal loan interest rates for foreigners.
If you have a poor credit score, it is quite likely that banks will refuse to give you a personal loan. So, what do you do? For starters, try to pay off all your debts before you get a personal loan.
You can request the banks to restructure your debts so that it is easier for you to pay them back. If the banks are convinced that you cannot repay right away, they might extend the loan tenure or reduce the interest rates.
You can borrow a small amount from the bank and repay it in small instalments. This way, you can rebuild your credit history. Also, it shows the banks that you can repay the loan amount even with a bad credit score.
Banks are not the only institutions that lend you money. You can approach any licensed non-banking institution in Singapore for a loan. These companies will also look into your credit history, but they might have different guidelines for approving or disapproving an application. These institutions can also offer loan programmes, which can be helpful for you.
Moneylenders can give you short-term and long-term loans with flexible repayment options. However, the interest rates are much higher (4% to 15% per month) than the ones offered by the banks. The reason being that they rely completely on high-rewards and high-risk loans.
When you request banks to restructure your debts, they will provide you with the option to consolidate. A Debt Consolidation Plan (DCP) consolidates all your unsecured lines of credit such as credit cards or loans across various financial institutions with one participating bank.
To get this plan, you must earn at least S$20,000 to below S$120,000 per year and your outstanding debt must be more than 12 times your monthly salary.
Most banks in Singapore such as DBS, POSB, Citi, HSBC, and Standard Chartered provide DCPs to its customers. To know about the DCP loans in detail, check out our debt consolidation plans main page here.
You can make payment towards your monthly dues using any of the following modes:
You have to pay the full instalment amount for term loans. However, for DCPs, personal lines of credit, and overdraft facilities, you may just pay the minimum amount due in order to roll over the loan to the next month. However, interest will be charged on the outstanding balance on a daily basis.
Interest rates: This will directly contribute to the total repayment on the loan. Look for the Effective Interest Rate (EIR) of a loan, which is the actual cost you will have to bear. This is a combination of the processing fees and the applied or flat rate. Higher rates will increase your debt burden, but a good credit history will help you get lower rates.
Credit score: Your credit report consists of a credit score and a risk rating. The credit score is a number ranging from 1,000 to 2,000, and the risk rating ranges from AA to HH. Banks usually prefer seeing scores of over 1,844 and a risk rating of AA or BB. This indicates how likely you are to repay the loan and not default on it.
Total Debt Servicing Ratio (TDSR): This is the amount of debt you have versus your income. As per regulations, the TDSR for a borrower cannot exceed 60% of their gross monthly income. This is to ensure that you are not overburdening yourself with debt that you cannot honour. This ratio will be used by lenders to decide the quantum of loan they should give you.
Processing fee: This is an amount between 1% to 3% of the approved loan amount, that is charged by banks as administrative fees for processing the loan application.
Annual fee: This is applicable only on personal line of credit. It is a yearly fee similar to credit card annual fees, charged for the maintenance of the account instead of the processing fee.
Prepayment fee: This is the fee charged if you make a full or partial payment of the loan amount ahead of tenure completion. It generally ranges from 2% to 5% of the remaining amount in the loan account. It is also known as early repayment fee, partial payment fee or foreclosure fee.
Late payment fee: This is a fee charged when you delay on your repayments. If your due date for payment is 30 June and you make your payment only on 3 July, that is a late payment. Late payments will also attract higher interest rates.
Loan cancellation fee: This is applicable if you cancel your loan application after approval. It ranges from 2% to 5% of the loan amount.
Overdue interest charges: If you fail to pay multiple instalments on time, or delay them regularly, you will be asked to pay overdue charges.
BankBazaar provides you with details about the best loans available in the market. You can check eligibility for a particular loan through our site and then ask for a customised quote.Depending on your nationality, type of employment, annual income, age, bank/s with which you have an account, bank/s from which you already have a credit card, and some other basic criterion, you’ll get a customised list of loans that are best suited to your needs.As soon as you select one and apply for it, you’ll be prompted to fill out an online form. Once you have validated and saved the details, you’re ready for your loan.
Q. Can You Take a Loan With a Bad Credit Score?
A bank may offer a lower rate of interest on its personal loans although the screening process may be rigorous. Money lenders are more flexible and may let you borrow even with less than impressive credit scores. But they usually charge a higher rate of interest
Q. How will I know when my repayment due date for my personal loan is?
Your due date for monthly repayments would be mentioned in the notification letter that is posted to you by the bank. Usually, your first monthly repayment date will fall on the same date from your loan approval date. The date will remain the same for the coming months unless it says something else in the notification letter.
Q. What are the steps involved in personal loan approval from a bank?
You can apply for a personal loan using the following steps: Visit the desired bank’s website.
Q. There are plenty of financial banks and institutions. How do I decide which bank to take a personal loan from?
When you are applying for a personal loan, you will need to keep in mind that banks will have interest charges, processing fee, pre-closure charges, late payment fee and other charges. These charges that are applicable on a personal loan will vary from one bank to another.It is advisable to first compare the details from all available banks, to get an understanding of the above charges and the clauses associated with them. Post this, you can opt for a bank that gives you the best deal.
Q. I am not sure about the amount that I need to repay on a monthly basis. Where can I find this information?
The amount you need to repay in monthly instalments will usually be mentioned in the notification letter you would have received from the bank. However, if this is not available, you can dial the bank’s hotline number to obtain information about your monthly repayments. The hotline number can be obtained from the respective bank’s website. Apart from this, you can estimate the amount required through a personal loan calculator, and ensure that you keep the money aside every month.
Q. Will my credit score be affected if I default on my personal loans?
Yes, your credit score and rating will depreciate if you default on your personal loan repayments. Banks and financial institutions will gauge your loan repayment capacity using your credit history. It is crucial that you maintain a good credit score as this will help you secure a loan in the future without any hassles.
Q. Can I opt for a personal loan pre-closure?
Yes, you can opt for a personal loan pre-closure. Most banks will require you to give a written communication or notice stating your request. Banks will also levy pre-closure charges or early repayment fees depending on the loan amount and tenure.
Q. I have applied for a personal loan but haven’t yet received any updates from the bank. What should I do?
Banks or financial institutions will have complete discretion on whether a loan can be granted to an individual or not. If you qualify for a personal loan and if you have applied online, you will receive an email or notification once your loan is approved by the bank. Certain banks may also allow you to check your application status online. Alternatively, you can call the bank’s hotline number to obtain information about the status of your loan.
Q. How do personal term loans work?
A term loan has a fixed repayment schedule. The tenure usually ranges from 1 year to 5 years. Interest is charged on the borrowed amount on a fixed or floating basis. The entire amount due is usually broken down into equal instalments to be paid at regular intervals. The interest rates are usually lower than that of revolving loans.
Q. How does personal line of credit work?
A personal line of credit is a type of revolving credit that can give you ready access to liquidity. As per the agreement between you and your lender, a borrowing limit is set. You’ll be allowed to borrow any amount within that limit. By paying the minimum amount due, you can roll the outstanding balance to the next month and borrow again.
Q. How does secured overdraft work?
The limit and interest rates charged on this credit facility will depend on the value of the asset pledged by you. Although a credit score is still important, the value of the asset is generally the clinching factor. Interest rates will only be charged on the amount of the credit utilised. There is no drawdown amount. This is also usually a revolving credit.
Q. How do debt consolidation plans work?
You can use this arrangement to consolidate debts from your outstanding unsecured credit lines. Instead of handling multiple repayments and interest rates, you only have to deal with one loan and one repayment. The interest rates are usually lower. You can apply for a debt consolidation plan only at one financial institution at a time. You may refinance your debt with another institution after 3 months. Minimum payment has to be made towards the existing credit lines until the plan is set up.
Q. How does a balance transfer on personal loan work?
With this facility, you can transfer outstanding balance on multiple cards or loans into a single card or loan. This facility is aimed at increasing your interest savings and reducing your debt liabilities substantially. This deferred interest plan usually offers you a 0% interest for a limited period and comes with a low processing fee.