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    Best Personal Line of Credit in Singapore

    A personal line of credit is a credit arrangement between a lender and a borrower, wherein the lender extends a credit facility to the borrower with a predetermined limit.

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    Compare Personal Line of Credit from different banks

    Bank Interest Rate Annual Fee Annual Income Requirement Maximum Credit Limit
    HSBC Personal Line of Credit 12% p.a. and above S$60 S$30,000 and above Up to 6x your monthly income
    Citi Ready Credit 20.95% p.a. and above S$100 (Waived for 1 year) S$30,000 and above Up to 4x your monthly income
    Maybank CreditAble 19.8% p.a. S$80 (Waived for 2 years) S$30,000 and above Up to 4x your monthly salary
    DBS Cashline 19.8% p.a. to 29.8% p.a. S$100 (Waived for 1 year) S$20,000 and above Up to 10x your monthly income, up to a maximum of S$200,000
    UOB CashPlus 19.98% p.a. and above (Effective from 1 July 2018) S$100 (With effect from 1 July 2018) S$30,000 and above Up to 6x your monthly salary
    OCBC EasiCredit 19.98% p.a. and above S$80 (Waived for 1 year if annual income is S$30,000 or more) S$20,000 and above Up to 6x your monthly salary
    CIMB CashLite 8.21% p.a. and above - - Up to 80% of the credit limit available
    BOC MoneyPlus Line of Credit 22.80% p.a. or 28.55% p.a. S$100 S$1,700 per month and above Up to 4x your monthly income

    How a Personal Line of Credit Works?

    This credit facility allows you to draw and redraw money within the approved credit limit till the maturity of the loan. This is an ideal credit arrangement for those who have frequent need for liquidity. You can not only withdraw money whenever you want till your loan tenure expires but also vary the borrowing amount depending on your immediate need. You can use it to solve your short-term and long-term financial needs.

    Advantages of Personal Line of Credit

    • Get ready access to extra cash.
    • Enjoy flexible repayment options.
    • Interest is charged only on the amount used.
    • Enjoy quick approval.
    • Usually, interest charged is lower than credit cards.
    • Revolving nature of debt means that you can draw and redraw from the same credit line multiple times.
    • Borrowed funds can generally be used for any purpose.

    Things You Need to Remember Before You Apply for a Personal Line of Credit

    • Interest rates charged could be higher than what is charged for secured and unsecured term loans.
    • Drawing any amount more than the credit limit will attract over-limit fees and penalty rates.
    • A poor credit score lowers your chances of securing a personal credit line.
    • You’ll have to pay annual fees irrespective of whether you have used your credit line or not.
    • Having ready access to cash can increase your temptations to overspend.
    • If you continue to revolve your credit line without making payments in full, your credit score can be badly affected.

    Best Long-Term Personal Credit Line*

    DBS Cashline

    • Low interest rate of 0.05% per day.
    • Make withdrawals anytime you want.
    • Up to 10 times your monthly income can be borrowed.
    • Get Grab vouchers worth S$80 when you charge S$850 or more in the first two months. Offer is valid till 30 June 2018.
    • No fixed tenure.
    • No early repayment charge.
    • Pay a minimum monthly fee of 2.5% of the outstanding balance, subject to a minimum charge of S$50.

    Best Short-Term Personal Credit Line*

    HSBC Personal Line of Credit

    • Interest starts from 12% p.a.
    • Ideal for short-term cash needs.
    • No over-limit fee.
    • Minimum monthly payment due is 3% of the outstanding balance or S$15, whichever is lower.
    • Up to S$100,000 can be borrowed.
    • 6-month and 12-month short-term tenures are available.
    • Processing fee waiver on 12-month tenure.

    *The products mentioned here are chosen from all the available options in Singapore. Terms like “popular”, “best”, or “Top” do not indicate any special favour shown towards any product in particular.

    Eligibility Criteria and Documents Required for Foreign Applicants

    Eligibility Criteria Documents Required
    • Minimum annual income criteria starts from S$40,000 p.a., depending on the lender, if you have an employment pass which is valid for at least six months.
    • 21 years and above.
    • Employment pass, work permit or student pass, and passport.
    • Latest computerised payslips OR CPF contribution history OR latest income tax documents depending on the income category you belong to.
    • Local proof of address which could be your rental agreement or utility bill.

    Personal Line of Credit Vs Personal Loan

    A personal line of credit gives you easy access to cash. When you apply for one, your lender will extend a credit line with a pre-approved credit limit. An unsecured term loan, commonly known as a personal loan, is a loan with a fixed tenure and fixed monthly instalments. There is no minimum payment due. You have to pay the instalment amount in full if you want to avoid additional borrowing charges.

    Personal Line of Credit Vs Credit Card

    With a credit line, you can borrow whenever you want through an ATM, a cheque, online banking, or mobile banking, as long as you don’t exceed the credit limit. A credit card is also a revolving debt facility that allows you to pay for your expenses on a monthly basis. You can also borrow cash in times of emergency. Most lenders, however, charge a higher interest rate for cash advances. No additional interest will be charged if you settle the full outstanding balance every month within the due date.

    FAQs

    Q. Can I utilise the full credit limit available to me?

    A. It depends. For instance, with DBS Cashline you can utilise the full credit limit but with CIMB CashLite, you can borrow up to 80% of your credit limit.

    Q. Can I draw more than my credit limit?

    A. Most lenders allow you to borrow more than your approved credit limit. You’ll, however, be charged an over-limit fee and higher interest rates.

    Q. Is early repayment/termination possible?

    A. Yes, most lenders will allow you to prepay your loan before the maturity of the loan. For example, if you want to prepay your CIMB CashLite credit line, you’ll have to pay 3% of the outstanding balance, subject to a minimum of S$250.

    Q. How long does the process of approval take?

    A. The process of approval usually takes 2 to 3 business days. But, if your documents aren’t in order or the bank requires more clarifications, more time may be required. Talk to the lender in details before applying.

    Q. What are the common modes of repayment?

    A. Some of the common modes of repayment are online banking, ATMs, FAST, GIRO, iNETS, mobile banking, bulk cash deposit machines, SAM SingPost, and cheques.

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