A CPF personal loan allows Singaporeans and Permanent Residents who are 54 years old and above to utilise the savings in their CPF account as collateral for a personal loan. Despite its name, the loan isn’t offered directly by CPF, but by licensed moneylenders who offer borrowers the option to put up their CPF savings as collateral.

You can borrow up to six times your monthly income with competitive interest rates, ranging from 1% to 4% per month. You can choose a repayment period of six to 12 months, with the option to extend repayment until the age of 55.

As the credit you receive will be in cash, just like with any other personal loan, you can use it for basically any purpose. This includes medical bills, home repairs and renovations, as well as other financial emergencies.

Take note that CPF personal loans are not meant for funding a home purchase. Individuals who wish to use their CPF savings to purchase a home can utilise funds in their Ordinary Account (OA) to cover their down payment and monthly installments, without the need to take out a CPF personal loan.

To be eligible for a CPF personal loan, you need to:

• Be a Singaporean citizen or Permanent Resident who is at least 54 years old 

• Have a minimum salary of $2,000 a month

• Be able to withdraw at least $5,000 from your Ordinary Account (OA) or Special Account (SA)

You will need to provide the following documents:

• Identity card / NRIC

• Proof of residence (utility bill, a letter addressed to you, and or tenancy agreement)

• Proof of employment (employment letter of contract, certificate of employment, pay slips)

• SingPass (to log into CPF, HDB, IRAS website)

In Singapore, all licensed moneylenders can only charge up to 4% interest per month. Moreover, they can only impose a maximum late payment interest rate of 4% per month for each month the loan remains unpaid. It's important to note that this interest can only be applied to the overdue amount, not to the outstanding balance that is not yet due.

In addition, there are limitations on the fees licensed moneylenders are allowed to charge. These are:

• No more than $60 for each month of late repayment;

• A fee not exceeding 10% of the loan's principal amount when the loan is granted; and

• Legal costs are mandated by the court if the moneylender successfully claims for loan recovery.

Applying for a CPF personal loan in Singapore is simple. All you need to do is ensure that you are a CPF member and that your OA has enough savings for the loan you want to apply for. Once you have made sure of these two things, you can approach a licensed moneylender of your choice.

The CPF personal loan is a solid choice if you want more flexibility when it comes to repayment and collateral. Another perk is that the application process is quicker and more seamless than applying for a traditional bank loan, provided that you are a Singaporean or PR who is 54 years old and above and who meets the eligibility criteria.

Don’t meet the eligibility criteria for a CPF personal loan? Consider a bank loan that serves your purposes.

Younger Singaporeans and those who do not meet the eligibility criteria for a CPF personal loan may consider taking out a loan from one of the many established banks in Singapore.

• Min. age: 21

• Min. amount: S$200

• Min. annual income: S$20,000 (Only for Singaporeans/PRs)

• Interest rate: 1.88% (EIR 3.17% p.a.)

• Loan tenure: 2 to 60 months

• Early repayment fee: None

• Late repayment fee: 18% p.a. (On unpaid principal)

SingSaver’s take

The GXS FlexiLoan offers a flexible, accessible, and fully digital lending experience, ideal for individuals who may encounter difficulties with conventional bank loans. Backed by Grab and Singtel, GXS Bank's digital loan product caters to a wider audience, including those in early career stages or with lower earning potentials, by setting its personal loan threshold at S$20,000.

A significant advantage of the GXS FlexiLoan is the absence of early repayment fees for either partial or full payments—a common charge among many traditional banks. This policy incentivises borrowers to reduce their debt sooner and minimise interest accumulation. The entire loan application and management process is seamlessly handled through the GXS Bank app, offering a paperless solution tailored for digital-first users.

• Min. age: 21

• Min. amount: S$500

• Min. annual income: S$30,000 (Only for Singaporeans/PRs, S$60,000 for foreigners)

• Interest rate: 2.22% (EIR 4.22% p.a.)

• Loan tenure: 3 to 60 months

• Early repayment fee: 3% (On outstanding principal amount)

• Late repayment fee: 27.9% p.a. (On unpaid principal)

SingSaver’s take

Trust Bank's Instant Loan is ideal for those who already hold a Trust Bank credit card with an adequate credit limit. Its digital-first approach allows for incredibly fast approval and disbursement, often within 60 seconds, with funds directly deposited into your Trust savings account. This speed is unparalleled by many traditional banks. 

Furthermore, it's a strong contender for individuals facing genuine financial emergencies, such as unexpected medical bills or urgent home repairs, who require almost immediate access to funds.

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• Min. age: 21

• Min. amount: S$500

• Min. annual income: S$20,000 (Only for Singaporeans/PRs, foreigners with existing cashline and/or credit card account with POSB can also apply)

• Interest rate: 1.99% (EIR 4.17% p.a.)

• Loan tenure: 6, 12, 24, 36, 48 or 60 months (Only for Singaporeans/PRs taking up loan amounts above S$3,000, choose from 6, 12 or 24 months for foreigners and loan amounts below S$3,000)

• Early repayment fee: 1.5% (Of outstanding loan amount)

• Late repayment fee: S$100 (For credit card account, S$120 for cashline customers)

SingSaver’s take

For existing POSB/DBS customers, particularly those who have their salaries credited to a POSB/DBS account, the POSB Personal Loan offers significant advantages. Often, instant approval and immediate fund disbursement directly into your POSB/DBS account are possible, which is invaluable in genuine emergencies.

An additional benefit is POSB/DBS's low minimum annual income requirement of S$20,000 for Singaporean citizens and PRs. This threshold is lower than the S$30,000 or higher requirements of many other major banks in Singapore, making the loan accessible to a broader range of individuals. In essence, the POSB Personal Loan stands out as an excellent option for existing POSB/DBS customers who prioritize quick access to funds, competitive rates, and the dependable service of a prominent local bank.

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• Min. age: 21

• Min. annual income: S$30,000 (Only for Singaporeans/PRs, S$42,000 for foreigners)

• Advance amount: 4X to 8X of monthly income

• Additional fees: None

• Repayment terms: 12 to 60 months

• Funding time: Next working day (Only for Citi account holders, within 5 working days upon approval for non-Citi account holders)

SingSaver’s take

The Citi Quick Cash loan is particularly suitable for existing Citibank credit card or Ready Credit customers who are facing urgent expenses or unexpected financial needs, as it allows them to convert their available credit limit into cash with minimal fuss. This loan is also beneficial for individuals who prefer structured repayments as it offers fixed monthly installments over a chosen tenure.

Existing Citi account holders can often receive funds almost instantly or the next working day, while non-Citi account holders can expect the funds within a few business days. The application process is also streamlined and can often be completed without additional documentation through the Citi Mobile App or online, making it a convenient option for immediate financial needs.

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• Min. age: 21

• Min. annual income: S$20,000 (Only for Singaporeans/PRs, S$45,000 for foreigners)

• Advance amount: Up to 6X of monthly income

• Additional fees: S$100 (Only for those with an annual income between S$20,000 and $29,999, one-time processing fee of S$200 or 2%, whichever is higher, for those with an annual income of S$30,000 and above)

• Repayment terms: 12 to 60 months

• Funding time: Instant (Only for online applications)

SingSaver’s take

The OCBC Extra Cash Loan is well-suited for those with a one-time borrowing need who prefer the predictability of fixed monthly repayments. The key benefits of the OCBC Extra Cash Loan include fast approval and disbursement, especially for existing OCBC customers applying via MyInfo, with funds potentially disbursed instantly or within a few working days. 

Borrowers can make fixed repayments over a flexible tenure of 12 to 60 months, allowing for easy budgeting and financial planning. While a processing fee applies, the transparency in interest rates and the option for online application enhance convenience for borrowers seeking a structured personal loan.