Best Personal Loans in Singapore (2024)
Find the best personal loans in Singapore from Singsaver's curated list of personal loans with the lowest interest rates.Compare various loans from banks such DBS, Standard Chartered, Citibank, HSBC, UOB, OCBC, CIMB, Maybank, and many more. Whether you're looking for personal loans with low interest rate, flexible repayment tenures, fast approval and loan disbursement, you can find the best personal loan for your financial needs. Apply online on Singsaver and get the funds you need.
Standard Chartered CashOne Personal Loan
Valid until
01 May 2024
Valid until
01 May 2024
Valid until
01 May 2024
Valid until
01 May 2024
Valid until
01 May 2024
Valid until
01 May 2024
+ 6 other gift options
Valid until
01 May 2024
Valid until
30 April 2024
- Enjoy interest rates from as low as 2.88% p.a. (EIR: 5.84% p.a.) for longer tenures. Get instant loan approval and cash disbursement in as quick as 15 minutes to your designated bank account.
- Enjoy a 5-year annual fee waiver on your Standard Chartered Platinum Visa credit card
- Min. loan amount of S$1,000
- Max. loan amount of up to 4X monthly salary, capped at S$250,000
- Waiver of S$50 annual fee (from 2nd year till expiry of loan) if all instalments for the year are paid on or before the due date
- Read our full review of the Standard Chartered CashOne Personal Loan
- First year annual fee: S$199
- Early repayment fee: S$150 or 3% of the outstanding principal, whichever is higher
- Change of tenure: S$50 per change
- Late payment fee: S$100
Gift Options
- Promotion is valid for new and existing Standard Chartered personal loan customers
- Be the first 2 applicants at 12pm every day during the flash deal period to be approved for a loan with a min. value of S$15,000 and tenure of 3, 4, or 5 years to be eligible for reward
- Flash Deal reward will be received on top of existing promotional reward
- Remaining approved applicants will receive rewards from SingSaver Tiered Rewards Promotion
- Flash Deal promotion runs from 18 April 2024, 09:00 AM SGT to 1 May 2024
- Terms and Conditions apply
Gift Options
Loan Tenure From 3 years to 5 years + loan amount from S$80,000 and above
Loan Tenure From 3 years to 5 years + loan amount from $50,000 to $79,999
Loan Tenure From 3 years to 5 years + loan amount from $30,000 to $49,999
Loan Tenure From 3 years to 5 years + loan amount from S$20,000 to S$29,999
Loan Tenure From 3 years to 5 years + loan amount from $15,000 to $19,999
- Promotion is valid for new and existing SCB customers
- Apply and get approved for a loan with a min. value of S$8,000 and tenure of 3, 4, or 5 years to be eligible for rewards
- Choice of rewards varies depending on loan amount and whether applicant is a new or existing SCB customer:
- (S$8,000 – S$9,999): New customers will receive S$50 Cash via PayNow
- (S$10,000 – S$14,999): New customers will receive S$100 Cash via PayNow. Existing customers will receive S$50 Cash via PayNow.
- (S$15,000 – S$19,999): New customers will receive 1x Nintendo Switch Gen 2 (worth S$399) or S$240 Cash via PayNow. Existing customers will receive S$100 Cash via PayNow.
- (S$20,000 – S$29,999): New customers will receive 1x Ergotune Joobie (worth S$599) or S$300 Cash via PayNow. Existing customers will receive S$200 Cash via PayNow.
- (S$30,000 - S$49,999): New customers will receive 1x Apple iPad 10th Gen 10.9" WiFi 64GB (worth S$691.60) or S$540 Cash via PayNow. Existing customers will receive S$320 Cash via PayNow.
- (S$50,000 – S$79,999): New customers will receive 1x Airwheel SE3T Luggage (worth S$1,167) or S$740 Cash via PayNow. Existing customers will receive S$420 Cash via PayNow.
- (S$80,000 and above): New customers will receive 1x Apple iPhone 15 128GB (worth S$1,311) or S$1,040 Cash via PayNow. Existing customers will receive S$520 Cash via PayNow.
- Eligible applicants will only receive 1 reward from the above selection
- Promotion is valid until 2 May 2024
- Terms and Conditions apply
Gift Options
Loan Tenure From 3 years to 5 years + loan amount from $80,000 above to
Loan Tenure From 3 years to 5 years + loan amount from $50,000 to $79,999
Loan Tenure From 3 years to 5 years + loan amount from S$50,000 to S$49,999
Loan Tenure From 3 years to 5 years + loan amount from $20,000 to $29,999
Loan Tenure From 3 years to 5 years + loan amount from $15,000 to $19,999
Loan Tenure From 3 years to 5 years + loan amount from $10,000 to $14,999
Loan Tenure From 3 years to 5 years + loan amount from $8,000 to $9,999
- Promotion is valid for new and existing SCB customers
- Apply and get approved for a loan with a min. value of S$8,000 and tenure of 3, 4, or 5 years to be eligible for rewards
- Choice of rewards varies depending on loan amount and whether applicant is a new or existing SCB customer:
- (S$8,000 – S$9,999): New customers will receive S$50 Cash via PayNow
- (S$10,000 – S$14,999): New customers will receive S$100 Cash via PayNow. Existing customers will receive S$50 Cash via PayNow.
- (S$15,000 – S$19,999): New customers will receive 1x Nintendo Switch Gen 2 (worth S$399) or S$240 Cash via PayNow. Existing customers will receive S$100 Cash via PayNow.
- (S$20,000 – S$29,999): New customers will receive 1x Ergotune Joobie (worth S$599) or S$300 Cash via PayNow. Existing customers will receive S$200 Cash via PayNow.
- (S$30,000 - S$49,999): New customers will receive 1x Apple iPad 10th Gen 10.9" WiFi 64GB (worth S$691.60) or S$540 Cash via PayNow. Existing customers will receive S$320 Cash via PayNow.
- (S$50,000 – S$79,999): New customers will receive 1x Airwheel SE3T Luggage (worth S$1,167) or S$740 Cash via PayNow. Existing customers will receive S$420 Cash via PayNow.
- (S$80,000 and above): New customers will receive 1x Apple iPhone 15 128GB (worth S$1,311) or S$1,040 Cash via PayNow. Existing customers will receive S$520 Cash via PayNow.
- Eligible applicants will only receive 1 reward from the above selection
- Promotion is valid until 1 May 2024
- Terms and Conditions apply
Gift Options
Loan Tenure From 3 years to 5 years + loan amount from $12,000 above
- Promotion is valid for new and existing Standard Chartered customers
- Get approved for a loan with a min. value of S$12,000 and tenure of 3, 4, or 5 years
- Cashback received is based on 3x the interest on the first installment
- New Standard Chartered customers will receive an additional cashback of S$100
- Promotion is valid until 30 April 2024
- Terms and Conditions apply
The information displayed above is for reference only. The actual rates offered to you will be based on your credit score and is subject to the provider’s approval.
-
Early repayment fee: S$ 150
-
Late repayment fee: S$ 100
1. Go to Standard Chartered's website and click "Apply Now” button under Personal Loans
2. Fill out an application and submit all required documents
3. Wait for approval of personal loan from Standard Chartered
1. NRIC (Front & Back)
2. Salaried employees: Latest month’s computerised payslip or latest 6 months’ CPF contribution history statement
3. Self-employed individuals: Last 2 years’ Income Tax Notice of Assessment
4. Commission-based earners: Latest 3 months payslip or latest 6 months' CPF contribution history statement
CIMB Personal Loan
Valid until
21 April 2024
Valid until
21 April 2024
Valid until
21 April 2024
Valid until
21 April 2024
+ 4 other gift options
Valid until
21 April 2024
Valid until
31 May 2024
- Receive cash instantly upon approval
- Enjoy lowest interest rates from 2.80% p.a. (EIR 5.28% p.a.) when you get approved for a min. loan amount of S$30,000 and tenure of 3 years
- Min. loan amount of S$2,000
- Min. income for Singaporeans/PRs: S$20,000 p.a.
- Early termination fee: 3% of outstanding loan amount or S$250, whichever is higher
- Late payment fee: S$100
Gift Options
Loan Tenure From 3 years to 5 years + loan amount from S$80,000 and above
Loan Tenure From 3 years to 5 years + loan amount from S$50,000 to S$79,999
Loan Tenure From 3 years to 5 years + loan amount from S$30,000 to S$49,999
Loan Tenure From 3 years to 5 years + loan amount from S$15,000 to S$29,999
- Promotion is valid for new CIMB customers only
- Submit an application for a personal loan with a min. value of S$8,000 and tenure of 3, 4, or 5 years to be eligible for rewards
- Choice of rewards varies depending on loan amount:
- (S$8,000 - S$14,999): S$50 Cash via PayNow
- (S$15,000 - S$29,999): Dyson AM07 Tower Fan (worth S$459) or S$280 Cash via PayNow
- (S$30,000 - S$49,999): Apple iPad 10th Gen 10.9" WiFi + 1x AirTag Bundle (worth S$737) or S$600 Cash via PayNow
- (S$50,000 - S$79,999): Dyson V12 Detect Slim Fluffy (worth S$969) or S$750 Cash via PayNow
- (S$80,000 and above): Apple iPhone 15 128GB (worth S$1,311) or S$1,200 Cash via PayNow
- Promotion is valid until 21 April 2024
- Terms and Conditions apply
Gift Options
Loan Tenure From 3 years to 5 years + loan amount from S$80,000 and above
Loan Tenure From 3 years to 5 years + loan amount from S$50,000 to S$79,999
Loan TenureFrom 3 years to 5 years + loan amount from S$30,000 to S$49,999
Loan Tenure From 3 years to 5 years + loan amount from S$15,000 to S$29,999
Loan Tenure From 3 years to 5 years + loan amount from S$8,000 to S$14,999
- Promotion is valid for new CIMB customers only
- Submit an application for a personal loan with a min. value of S$8,000 and tenure of 3, 4, or 5 years to be eligible for rewards
- Choice of rewards varies depending on loan amount:
- (S$8,000 - S$14,999): S$50 Cash via PayNow
- (S$15,000 - S$29,999): Dyson AM07 Tower Fan (worth S$459) or S$280 Cash via PayNow
- (S$30,000 - S$49,999): Apple iPad 10th Gen 10.9" WiFi + 1x AirTag Bundle (worth S$737) or S$600 Cash via PayNow
- (S$50,000 - S$79,999): Dyson V12 Detect Slim Fluffy (worth S$969) or S$750 Cash via PayNow
- (S$80,000 and above): Apple iPhone 15 128GB (worth S$1,311) or S$1,200 Cash via PayNow
- Promotion is valid until 21 April 2024
- Terms and Conditions apply
Gift Options
From 3 years to 5 years + loan amount from $30,000 above
- Promotion is valid for new CIMB personal loan customers only
- Apply for a CIMB Personal Loan with min. amount of S$30,000 and tenure of 3 to 5 years and receive approval by 30 May 2024 to be eligible for lowered interest rates
- Promotion is valid until 31 May 2024
- Terms and Conditions apply
The information displayed above is for reference only. The actual rates offered to you will be based on your credit score and is subject to the provider’s approval. Terms and Conditions apply.
-
Early repayment fee: S$ 250
-
Late repayment fee: S$ 100
- Click "Apply Now" on CIMB Personal Loan Listing
- Complete the application via Singpass Myinfo and submit the required documents
- Wait for approval for CIMB
- NRIC (Front & Back)
- Salaried Employees: Latest computerised payslip or latest CPF/NOA statements
- Self-Employed: Latest 2 years' NOA
- Commissioned/Variable Income Earners: Latest CPF/NOA statements
UOB Personal Loan
Valid until
08 May 2024
Valid until
08 May 2024
Valid until
08 May 2024
Valid until
08 May 2024
Valid until
08 May 2024
Valid until
08 May 2024
Valid until
08 May 2024
Valid until
08 May 2024
Valid until
08 May 2024
Valid until
08 May 2024
Valid until
08 May 2024
Valid until
08 May 2024
- Enjoy interest rates as low as 2.88% p.a (EIR from 5.43% p.a.)
- No processing fees
- Get instant approval and cash disbursed into your UOB accounts for applications submitted between 8am and 9pm
- Min. loan amount of S$1,000
- Min. income for Singaporeans/PRs: S$30,000 p.a.
- Read our full review of the UOB Personal Loan
- Foreigners are not eligible for UOB Personal Loan
- Cancellation fee: S$150 or 3% of outstanding approved loan amount, whichever is higher
Gift Options
Loan Tenure From 1 years to 5 years + loan amount from S$80,000 and above
Loan Tenure From 1 years to 5 years + loan amount from $50,000 to $79,999
Loan Tenure From 1 years to 5 years + loan amount from $30,000 to $49,999
Loan Tenure From 1 years to 5 years + loan amount from S$20,000 to S$29,999
Loan Tenure From 1 years to 5 years + loan amount from $15,000 to $19,999
Loan Tenure From 1 years to 5 years + loan amount from $10,000 to $14,999
Loan Tenure From 1 years to 5 years + loan amount from $8,000 to $9,999
- Promotion is valid for new UOB personal loan customers
- Apply and get approved for a UOB Personal Loan to be eligible for rewards
- Choice of rewards varies depending on loan amount:
- (S$8,000 - S$9,999): S$100 Cash via PayNow
- (S$10,000 - S$14,999): S$180 Cash via PayNow
- (S$15,000 - S$19,999): Sony WF-1000XM5 Wireless Noise Cancelling Headphones (worth S$429) or S$300 Cash via PayNow
- (S$20,000 - S$29,999): Nintendo Switch OLED (worth S$549) or S$400 Cash via PayNow
- (S$30,000 - S$49,999): Dyson Supersonic™ hair dryer (worth S$699) or S$600 Cash via PayNow
- (S$50,000 - S$79,999): Apple iPad 10th Gen 10.9" WiFi 256GB (worth S$925.90) or S$780 Cash via PayNow
- (S$80,000 and above): Apple iPhone 15 128GB (worth S$1,311) or S$1,200 Cash via PayNow
- Promotion is valid until 8 May 2024
- Terms and Conditions apply
The information displayed above is for reference only. The actual rates offered to you will be based on your credit score and is subject to the provider’s approval.
-
Early repayment fee: S$ 150
-
Late repayment fee: S$ 100
1. Click “Apply Now” on UOB's website
2. Fill out the application and upload all necessary documents
3. Wait for an offer from UOB
Note: Get instant approval and cash disbursed into your UOB accounts for applications submitted between 8am and 9pm
- NRIC (Front & Back)
- For salaried employees: Last 3 months’ computerised payslip; or Latest Income Tax Notice of Assessment with latest 1 month’s computerised payslip; or latest 6 months’ CPF statement (for Singaporeans or PRs)
- For self-employed persons: Last 2 years’ Income Tax Notice of Assessment
HSBC Personal Loan
Valid until
30 April 2024
Valid until
30 April 2024
Valid until
30 April 2024
Valid until
30 April 2024
Valid until
30 April 2024
Valid until
30 April 2024
Gift Options
Loan Tenure From 3 years to 5 years + loan amount from S$100,000 and above
Loan TenureFrom 3 years to 5 years + loan amount from S$80,000 to S$99,999
Loan Tenure From 3 years to 5 years + loan amount from S$50,000 to S$79,999
Loan Tenure From 3 years to 5 years + loan amount from S$35,000 to S$49,999
Loan Tenure From 3 month(s) to 5 month(s) + loan amount from S$20,000 to S$34,999
Loan Tenure From 3 years to 5 years + loan amount from S$10,000 to S$19,999
- Promotion is valid for new and existing HSBC customers
- Submit an application for a personal loan with a min. value of S$10,000 and tenure of 3, 4, or 5 years to be eligible for rewards
- Choice of rewards varies depending on loan amount:
- (S$10,000 - S$19,999): S$50 Cash via PayNow
- (S$20,000 - S$34,999): Dyson V8 Slim Fluffy (worth S$509)
- (S$35,000 - S$49,999): Sony PlayStation® 5 (Digital Version) (worth S$669)
- (S$50,000 - S$79,999): Apple iPad 10th Gen 64GB + AirPods Pro Gen 2 bundle (worth S$1,057.30)
- (S$80,000 - S$99,999): Dyson 360 Vis Nav™ Robot Vacuum (worth S$1,649)
- (S$100,000 and above): Apple iPhone 15 Pro 256GB (worth S$1,825.75)
- Promotion is valid until 30 April 2024
- Terms and Conditions apply
The information displayed above is for reference only. The actual rates offered to you will be based on your credit score and is subject to the provider’s approval.
-
Early repayment fee: 2.5 %
-
Late repayment fee: S$ 75
1. Go to HSBC's website and click “Apply Now” under Personal Loans
2. Fill out an application and submit the required documents
3. Wait for approval from HSBC
1. NRIC (Front & Back)
2. For salaried employees: Last 3 months’ computerised payslip, or latest Income Tax Notice of Assessment with latest 1 month’s computerised payslip, or latest 6 months’ CPF statement (for Singaporeans or PRs)
3. For self-employed persons: Last 2 years’ Income Tax Notice of Assessment
DBS Personal Loan
Valid until
30 June 2024
- Enjoy personalised rates from as low as 2.88% p.a. (EIR 5.79% p.a.)
- Borrow up to 4x your monthly salary if you earn less than S$120,000 annually, or up to 10x if you earn more than S$120,000 annually
- Min. loan amount of S$500
- Min. income for Singaporeans/PRs: S$30,000 p.a.
- Apply via SingSaver and get your loan approved and disbursed instantly into your DBS/POSB account
- Those earning S$20,000 to S$30,000 annually may be eligible for DBS/POSB loan at a higher annual interest rate and processing fee
- You will need to have an existing eligible (i) DBS/POSB credit card and/or Cashline account, and (ii) an existing eligible DBS/POSB deposit account for the loan application
- Processing fee: From 1% of the approved loan amount
- Early repayment fee: S$250
- Late payment fee: S$100 for personal loan on DBS/POSB credit card, S$120 for personal loan on DBS/POSB Cashline
Gift Options
- Promotion is valid for new and existing DBS / POSB customers
- Apply for a DBS / POSB Personal Loan with min. loan amount of S$10,000 and tenure of 24 months and above using promo code POSBPL to be eligible for reward
- eCapitaVoucher reward is based on approved loan amount:
- Loan amount of S$10,000 to S$29,999 will be eligible for S$50 eCapitaVoucher
- Loan amount of S$30,000 to S$49,999 will be eligible for S$100 eCapitaVoucher
- Loan amount of S$50,000 and above will be eligible for S$300 eCapitaVoucher
- Promotion is valid until 30 June 2024
- Terms and Conditions apply
-
Early repayment fee: S$ 250
-
Late repayment fee: S$ 100
1. Go to DBS site and click “Apply now” under Personal Loans
2. Log in using your card or ibanking details
3. Fill out and submit all required documents
4. An SMS will confirm if your loan has been approved
5. An approval letter will be mailed to you as well
Note: Applications can be done also via Singpass Myinfo on DBS' website
1. NRIC (Front & Back)
2. CPF contribution history statement (latest 12 months)
3. Latest 1 year Income Tax Notice of Assessment (NOA)
4. Latest computerised payslip or salary crediting into a DBS/POSB account
GXS FlexiLoan
- Interest Rates from 2.99% p.a. (EIR from 5.67% p.a.)
- Apply in-app and get your funds in minutes
- A standby revolving credit line which you can draw multiple loans from, from as low as S$200
- Customisable loan tenure from 2 to 60 months depending on loan amount selected
- Repayment is done in equal monthly instalments
- Ability to choose your preferred repayment date
- Save on interest when you repay early
- Interest is computed on a daily non-compounding basis
- In-app reminders to repay on time and avoid late interest charges
- Effective Interest Rate (EIR) is calculated based on an average loan amount of S$10,000 with a 36-month repayment period, from 1 Jan 2023 to 1 Jan 2026. T&Cs apply.
- Late interest is chargeable upon late repayment
-
Early repayment fee: S$ 0
-
Late repayment fee: S$ 0
1. Download the GXS app.
2. Click "Sign Up" for GXS FlexiLoan
3. Get your funds within minutes upon approval.
POSB Personal Loan
Valid until
30 June 2024
- Enjoy personalised rates from as low as 2.88% p.a. (EIR 5.79% p.a.)
- Borrow up to 4x your monthly salary if you earn less than S$120,000 annually, or up to 10x if you earn more than S$120,000 annually
- Min. loan amount of S$500
- Min. income for Singaporeans/PRs: S$30,000 p.a.
- Apply via SingSaver and get your loan approved and disbursed instantly into your DBS/POSB account
- Those earning S$20,000 to S$30,000 annually may be eligible for DBS/POSB loan at a higher annual interest rate and processing fee
- You will need to have an existing eligible (i) DBS/POSB credit card and/or Cashline account, and (ii) an existing eligible DBS/POSB deposit account for the loan application
- Processing fee: From 1% of the approved loan amount
- Early repayment fee: S$250
- Late payment fee: S$100 for personal loan on DBS/POSB credit card, S$120 for personal loan on DBS/POSB Cashline
Gift Options
- Promotion is valid for new and existing DBS / POSB customers
- Apply for a DBS / POSB Personal Loan with min. loan amount of S$10,000 and tenure of 24 months and above using promo code POSBPL to be eligible for reward
- eCapitaVoucher reward is based on approved loan amount:
- Loan amount of S$10,000 to S$29,999 will be eligible for S$50 eCapitaVoucher
- Loan amount of S$30,000 to S$49,999 will be eligible for S$100 eCapitaVoucher
- Loan amount of S$50,000 and above will be eligible for S$300 eCapitaVoucher
- Promotion is valid until 30 June 2024
- Terms and Conditions apply
-
Early repayment fee: S$ 250
-
Late repayment fee: S$ 100
1. Download an application form on POSB's website
2. Fill it out and apply online or in-person at one of the bank's branches
3. Wait for an offer from POSB
1. NRIC (Front & Back)
2. Salaried employees: Latest 9 months’ CPF contribution history statement OR latest 1 year Income Tax Notice of Assessment or latest computerised payslip or salary crediting into DBS/POSB account
3. Self-employed individuals: Latest 1 year Income Tax Notice of Assessment
OCBC Personal Loan - Existing OCBC loan customers
- Existing OCBC loan customers will enjoy interest rates starting from 4.7% p.a.
- Min. loan amount: S$1,000
- Min. income for Singaporeans/PRs: S$30,000 p.a.
- Min. income for Foreigners: S$45,000 p.a.
- Processing fee: 1% of the approved loan amount
- Termination fee: 3% of outstanding principal or S$150, whichever is higher
-
Early repayment fee: S$ 250
-
Late repayment fee: S$ 100
1. Head to OCBC's website and click "Apply now". Log in with your OCBC Internet Banking details thereafter.
2. Verify your personal particulars and submit the loan application
3. After approval, an SMS or email will be sent to you
1.. NRIC (Front & back)
2. CPF contribution history statement (latest 9 months)
3. Latest 1 year Income Tax Notice of Assessment (NOA)
4. Latest computerised payslip or salary crediting
*No additional documents required for existing EasiCredit or Credit Cards customers
Comparison of the Best Personal Loans in Singapore
Bank Loan |
Flat Annual Interest Rate (p.a.) |
Effective Interest Rate (p.a.) |
Processing Fees |
Estimated Monthly Payment |
3.60% |
6.50% |
S$0 |
S$920 |
|
2.88% |
5.84% |
S$0 |
S$905.33 |
|
2.80% |
5.28% |
S$0 |
S$918 |
|
2.88% |
5.43% |
S$0 |
S$904.93 |
|
2.88% |
5.79% |
1% (S$300) |
S$930.33 |
|
3.45% |
6.50% |
S$0 |
S$919.47 |
|
5.43% |
11.47% |
S$100 |
S$1,145.71 |
How Does a Personal Loan Work?
A personal loan is an unsecured form of borrowing from banks or credit unions for various personal needs. Instead of pledging collateral, applicants only need to undergo a credit check and, if approved, receive a specified loan amount with an associated interest rate. Repayment occurs through fixed monthly instalments over a defined period.
Borrowers should be aware of potential fees and penalties. Timely repayments positively impact credit scores, making it crucial to review and understand the loan terms before acceptance.
Guide to Personal Loan Interest Rates
What are Advertised Interest Rates?
Advertised interest rates refer to the publicly promoted rates that financial institutions, such as banks or credit card companies, display to attract potential borrowers. These rates are used in marketing materials, advertisements, and promotional campaigns to showcase the cost of borrowing or the return on savings or investments.
Advertised interest rates are typically the starting rates and may vary based on factors like the borrower's creditworthiness, the type of loan or account, and the prevailing market conditions. Consumers must carefully review the terms and conditions, as the actual rate they qualify for may differ from the advertised rate.
What are Effective Interest Rates?
Effective interest rates, commonly known as Annual Equivalent Rates (AER) or Annual Percentage Rates (APR), offer a comprehensive view of the total cost of borrowing or the genuine return on savings and investments. These rates go beyond nominal or advertised figures by incorporating additional fees and charges and considering the impact of compounding over a specified period.
For loans, the effective interest rate includes upfront costs, providing borrowers with a more accurate representation of the overall expense. Utilizing effective interest rates is crucial for making well-informed financial decisions, enabling individuals to compare various financial products more accurately and choose the option that best aligns with their financial goals.
Personal Loans with 0% Interest Rate
It is possible to apply for a personal loan with 0% interest. However, the qualifying requirements for these personal loans are much stricter. For instance, the borrower must attain a certain credit score, income level or employment history, among others.
Sometimes, the bank will require you to pay a high processing fee, so instead of paying the interest later on, you will be paying the bank upfront for the release of funds for your personal loan.
What is a Tenure Loan Period?
A "tenure loan period" typically denotes the duration a borrower commits to repaying a loan. This period is agreed upon between the borrower and the lender at the time of taking out the loan and is often expressed in months or years. The loan tenure is a critical part of a loan agreement, as it influences the monthly repayment amount and the total interest paid over the life of the loan.
Compare Personal Loan Repayment Rates in Singapore
Product |
Loan Repayment Rate |
1 to 7 years |
|
1 to 5 years |
|
1 to 5 years |
|
1 to 5 years |
|
6 months to 5 years |
|
1 to 5 years |
|
1 to 5 years |
|
1 to 5 years |
|
1 to 7 years |
What Can a Personal Loan Be Used For?
A personal loan can be a helpful financial tool in times of financial need or when pursuing major life events. It offers individuals the flexibility to address various expenses and goals.
Paying for Home Renovations
Personal loans can be a practical solution for financing home improvement projects. Whether it's remodeling a kitchen, adding a new room, or making necessary repairs, a personal loan provides a lump sum that can be used to cover the costs. This allows homeowners to enhance the value and comfort of their homes without tapping into other financial resources.
Settling Medical Expenses
Unforeseen medical expenses can place a significant financial burden on individuals and families. Personal loans can be used to cover medical bills or other healthcare-related costs. The flexibility of personal loans allows borrowers to address urgent medical needs without delay, providing a financial cushion during challenging times.
Covering Wedding Expenses
Weddings often come with substantial costs, including venue rental, catering, attire, etc. Personal loans offer a way for couples to finance their dream wedding or cover unexpected expenses that may arise during the planning process. The fixed repayment structure of personal loans also allows for better budgeting and financial management.
Debt Consolidation
Personal loans can be used to consolidate high-interest debts, such as credit card balances or multiple loans. By combining multiple debts into a single personal loan with a potentially lower interest rate, borrowers can simplify their financial obligations and reduce the overall repayment cost. This strategy can help manage debt more efficiently.
Paying Education Fees
Educational expenses, including tuition fees, textbooks, and other related costs, can be covered using personal loans. This option can be particularly beneficial for students or parents who need financial assistance to fund education. Personal loans provide a straightforward way to manage education-related expenses and ensure individuals can invest in their academic pursuits.
How To Pick The Most Suitable Personal Loans for You
Selecting the most suitable personal loan requires careful consideration. Here's a guide on how to pick the right personal loan for your needs:
Assess Your Needs
Identify the specific purpose of the loan, whether it's for home renovations, debt consolidation, or other expenses. Knowing your needs helps determine the loan amount and terms required.
Compare Interest Rates
Research and compare interest rates from various lenders. Remember, a lower interest rate reduces the overall cost of the loan. You may also consider fixed or variable rates based on your preference and financial situation.
Understand Fees and Charges
Be aware of additional fees, such as origination fees, prepayment penalties, or late payment charges. Understanding the full cost of the loan helps in making informed decisions. To do this, actively ask lenders about what other fees you should be aware of.
Evaluate Repayment Terms
Consider the loan tenure and monthly repayment amounts. Shorter tenures generally result in higher monthly payments but lower overall interest costs, while longer tenures offer lower monthly payments but may incur higher total interest expenses.
Check for Flexibility
Look for lenders that offer repayment flexibility. This flexibility can be crucial in managing your finances efficiently, as it allows you to make extra payments or pay off the loan early without incurring penalties.
Read the Fine Print
Thoroughly review the loan agreement's terms and conditions. Pay attention to any hidden clauses or conditions that may affect the overall cost or terms of the loan. Don't hesitate to ask questions to lenders to clarify areas you are unsure about so you become more confident in understanding the agreement before signing.
Frequently Asked Questions
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How can a personal loan help?
Personal loans can come in handy during a period of cashflow difficulty. Some of such situations include sudden medical costs, weddings, funerals, divorces and more. Rest assured that the bank won’t require you to get personal on personal loans and share the reason for taking it up during the approval process.
What are the different types of personal loan interest rates?
Advertised Interest Rate: The advertised rate, or nominal interest rate, is used when calculating the interest charge on your loan. For example, if you are considering a loan for $200,000 with a 6% interest rate, your annual interest charges will come up to $12,000 per year, or a monthly payment of $1,000.
Effective Interest Rate (EIR): The EIR reflects the true cost of borrowing to the consumer. This interest rate is usually higher than the advertised rate because it includes service fees, annual fees or one-time processing fees for processing and approving your loan application.
0% Interest Personal Loans: Some banks offer 0% interest rate personal loans for short-term loans. However, these tend to come with higher processing fees. This means that you will still be paying the bank for the loan, with the main difference being that the bank collects your money upfront rather than through interest payments in the future.
What’s the difference between the annual interest rate and effective interest rate (EIR)?
The annual interest rate is the interest rate advertised by the bank. EIR is a better gauge of the interest rate you actually incur. The EIR is often higher than the annual interest rate because it factors in other costs such as transaction fees and administrative fees. They add to the final amount you pay.
How fast can I get a loan?
The average approval time for a personal loan takes around 3 working days, with loan disbursement taking 5 to 7 working days. Some banks such as Standard Chartered are offering instant loan approval and disbursement for customers who apply through SingPass MyInfo.
Are there any benefits to taking a personal loan?
The main benefit of a personal loan is the low interest rates being offered by banks, relative to other debts such as credit card interest rates of around 28% or loans offered by unlicensed moneylenders. If you take advantage of promotional offers, you can get a personal loan with interest rates as low as 3.5% p.a.. Administrative charges such as one-time processing fees or annual fees can also be waived during promotional periods.
Many banks also offer instant and digital loan approval, which means quick cash for you, as well as less documentation needed if you use MyInfo. Personal loan tenures also range between 12 to 84 months, giving you a longer time frame to pay off your loan.
Can foreigners apply for personal loans in Singapore?
Yes, as long as you fulfil the eligibility criteria. These requirements can vary from bank to bank, but generally, personal loan applications for foreigners require you to:
- Hold a valid Singapore employment pass
- Have a residential tenancy agreement (or any other proof of your residential address in Singapore)
- Produce a bank statement (reflecting account activities for the past 6 months)
- Meet the minimum annual income requirement for foreigners (usually $40,000 to $45,000 p.a.)
Which Bank will provide personal loan easily?
Granted, there are a lot of requirements you need to meet in order to qualify for a personal loan. Here are some of the banks that might make applying for a loan much more worth the effort:
- DBS: DBS Bank offers a arnge of personal loan options to consider with borrowing amounts up to 4 times your monthly income and flexible repayment terms of up to 5 years
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OCBC: OCBC provides competitive interest rates, loan amounts of up to 6 times your monthly salary and flexible repayment terms of up to 5 years
- UOB: UOB offers a loan amount of up to 6 times your monthly salary with flexible repayment terms of up to 5 years
- Standard Chartered: Standard Chartered Bank offers up to 4 times your monthly salary with flexible repayment terms of up to 5 years
What is the personal loan interest rate?
The current personal loan interest rate ranges from 3.5% to 10.8% per annum. The interest rate varies across banks and depends on factors such as the loan tenure.
Are personal loans good for your credit score?
A personal loan can help you clear your debts and have more manageable repayments at lower interest rates. The personal loan can have a positive effect on your ability to manage debt responsibly, as long as you make repayments on time and pay off the full amount required during the term of the loan. This could then help to improve your credit score.
What are the fees I have to take note of when I take up a personal loan?
Besides the processing fee that is charged, other fees involved when taking up a personal loan include:
- Late payment fee: Charged if you miss your monthly repayment.
- Early repayment fee or cancellation/termination fee: If you choose to repay your loan early, or cancel your loan.
- Change of tenor: Fee incurred if you change your loan tenure.
- Annual fee: To be paid every year (this fee could differ from the first year and subsequent years).
How do banks or financial institutions decide my loan amount?
Banks look at a variety of factors when deciding on your loan amount. These include your your income level, credit score, your Total Debt Servicing Ratio (TDSR), your existing credit facilities, and more.
Can we take personal loan from CPF?
CPF is typically not used for personal loans however under certain circumstances you are able to use your CPF savings to help finance some of your personal expenses such as:
- Financing your home to pay for down payments, monthly mortgage payments and other home-related expense
- Paying for your education expenses and fees
- Even if you are able to take a personal loan using your CPF, it is not a straightforward process and it has its own eligibility criteria you need to meet.
Why is it so hard to get a personal loan?
Getting a personal loan is not an easy process as lenders have to mitigate the risk of loss they might incur from borrowers defaulting on payments which can be determined by looking at your credit score, income and employment status.
What if you don’t qualify for a personal loan?
If ineligible for a personal loan, consider secured options, like offering collateral or involving a cosigner. Otherwise, work on improving your credit score, explore alternative lenders, such as online platforms or credit unions, and look into peer-to-peer lending. Negotiate with creditors for better terms or seek assistance from a credit counseling agency. Carefully assess each option and choose based on your needs and repayment ability, and consider seeking professional financial advice for guidance. If the need isn't immediate, focus on building an emergency fund.
How much can you borrow with a personal loan?
The amount you can borrow with a personal loan in Singapore varies based on factors like creditworthiness, income, and lender policies, typically ranging from a few thousand dollars to tens of thousands. Generally, higher credit scores and incomes may qualify for larger amounts. It's advised to directly contact lenders to determine specific loan amounts and inquire about eligibility criteria and offerings.
What are the common eligibility requirements for a personal loan?
Common eligibility requirements for a personal loan in Singapore include being between 21 and 65 years old, holding Singaporean citizenship, permanent residency, or a valid work permit for foreigners. Documentation such as identification papers, proof of income, and employment details is generally required during the application process.
Lenders typically set minimum income thresholds and assess applicants based on proof of employment, income stability, and creditworthiness. A good credit score enhances eligibility, while stability in employment and a manageable debt-to-income ratio are also key considerations. Prospective borrowers should review each lender's specific eligibility criteria before applying.
How does a U.S. Fed rate hike influence personal loan rates?
A U.S. Fed rate hike typically leads to an increase in global interest rates, including those in Singapore. This results in higher borrowing costs for personal loans in Singapore, as local banks adjust their rates in response to changes in the global market influenced by the U.S. Federal Reserve's actions. Therefore, personal loan rates in Singapore are indirectly influenced by U.S. Fed rate hikes.