POSB Personal Loan Promotions (2023)

Guest Contributor

Guest Contributor

Last updated 19 December, 2022

From offering affordable interest rates of as low as 2.88%, to promotional cashback rewards of 2% on approved amounts, POSB Personal Loan is one of the best loan products in Singapore.

Sometimes you just need a quick and fast source of financing to meet emergency expenses and pay off your debts. A low-interest loan is among the top options that you can turn to. 

Various credit arrangements are available at POSB and other banks in Singapore, but not all will be fast, convenient, have low interest and come with rewards. 

The POSB Personal Loan is among the options that POSB account holders can seek out during hard economic times. However, not every customer may be familiar with the details on loan eligibility,  interest rate, rewards, fees and penalties, among other helpful details. 

Find out more from our guide to make an informed decision on whether the attractive low-interest personal loan is the right path for your financial needs. 

What is the POSB Personal Loan?

POSB Personal Loan is one of the low-interest instant cash options in Singapore issued by POSB Bank, one of Singapore’s most established banks. 

It is convenient for almost every customer because you can apply online using your account details and get the cash credited instantly into your account. 

Additionally, it comes with a fixed repayment schedule making it easy for you to plan and manage your finances. Notably, it comes with a promotion code that gives you cashback after approval.

POSB Personal Loan rates and fees

Description Rates/fees
Applied Interest Rate starts from 2.88% p.a.
Effective Interest Rate starts from 5.79% p.a.
Loan processing fee 1%
Minimum loan amount S$500
Minimum annual income S$30,000
Loan tenure Up to five years
Available promotions upon approval 2% cashback for loans of S$10,000 and above
Maximum loan amount Ten times your salary for incomes above S$120,000
Late repayment penalty S$100 for credit card account and S$120 for Cashline Personal Loan
Full repayment penalty S$250

POSB Personal Loan eligibility

Here are the eligibility criteria used for POSB Personal Loan:


You must be between 21 to 75 years old to qualify for a POSB personal loan.


You must be a Singapore citizen or permanent resident to qualify for a loan. Or, if you are a foreigner, you can use your existing POSB Cashline or credit card account.

Annual income

For you to qualify, you must have a minimum annual income of S$30,000.

POSB Personal Loan interest rates 

As earlier noted, with POSB, you can enjoy an interest rate starting at 2.88% per annum inclusive of 1% loan processing charges.

However, this published interest rate is not constant and may differ from one customer to another. Your interest rate and fee offer will be displayed on your application and is determined according to your income profile and personal credit, based on the bank’s criteria. 

The maximum Effective Interest Rate (EIR) may go up to 20.01% p.a, depending on your loan amount, loan tenure, and personal credit history.

What are the AIR and EIR rates?

Applied Interest Rate (AIR)

AIR is the rate used to determine the amount of interest payable on your loan. It is calculated based on a simple interest method or flat rate basis by simply multiplying the applied interest rate by the principal for the loan tenure.

Effective Interest Rate (EIR)

EIR is the rate of interest reflecting the actual cost of borrowing. It is represented over a reducing balance basis, similar to home loans. Notably, it helps to compare these rates to ensure you get the best possible one. 

How to apply for the POSB Personal Loan

Here are the steps for applying for the POSB Personal Loan:

Step 1:  Log in using your iBanking or ATM/credit/debit card 

Step 2: Choose your desired amount and loan tenure.

Step 3: Apply for the amount online and receive the cash instantly.

You need a POSB account to receive your amount after approval. If you don’t have one, you can access the bank’s portal and apply for one instantly.

if you don’t have an existing Cashline or credit card account, you must provide the following documents:

  • An NRIC showing both front and back sides
  • Your CPF contribution statement of the last nine months or latest one year Income Tax Notice of Assessment or the latest payslip showing remittances into your POSB account

You can alternatively choose to provide your income documents via Myinfo on the Singpass portal. 

POSB Personal Loan promotion code

Besides the low interest rate offer, the POSB Personal Loan is accompanied by an exclusive online offer. You can use the promo code POSBPL and receive 2% cashback on your approved loan amount. 

This cashback reward is only available to loans of S$10,000 and above, and is valid till 30 June 2022. However, the cashback reward is not valid for applications through other offline channels.

POSB loan calculator

When applying for the POSB Personal Loan, you need not worry about how much you need to pay in terms of interest. The POSB website has a monthly repayment calculator to help you work this out.

What are the benefits of a POSB Personal Loan?

In addition to the low interest and the promotion reward code, the POSB Personal loan comes with many benefits. Here are some benefits you will enjoy from the loan:

Instant approval

By instant, we mean within 24 hours of application. As compared to a POSB home loan that can take up to three weeks for approval, a personal loan takes much less time. 

Therefore, it is suitable for anyone wishing to meet emergency financial needs and other urgent payment needs. If you have a strong credit rating, lenders will have no problem with approving your personal loan.

Affordable fixed repayments

The POSB personal loan is repayable within one to five years of monthly instalments. It also has a low EIR of 5.79% per annum.

Notably, it allows the General Interbank Recurring Order (GIRO), which is a convenient and paperless method of repayment that allows you to make hassle-free payments through your banking account. This allows you to plan and manage your finances effectively.

Huge loan limits

The personal loan allows you to get high cash amounts of up to four times your monthly salary and ten times your annual salary if your annual income is S$120,000 and above.

Therefore, this allows any customer to finance big projects that require more finances. Also, you can conveniently pay off other debts when they’re due. 

Does not require collaterals

A POSB Personal Loan does not require any collateral, so you do not need to provide any assets as backing to secure the loan.  

This simplifies the application process and offers flexibility when you are seeking a loan to meet your immediate needs.


A personal loan does not limit how you will use it. For example, you can use it to remodel your house, purchase an iPhone, finance your wedding or a holiday.

In addition, you can use a single loan for various purposes and are not limited to a single use. This flexibility allows you to meet multiple financial needs using a single loan.


Not to forget, the POSB personal loan comes with a 2% cashback promotion for all loans above S$10,000. You can save considerably by signing up for the POSB Personal Loan during this promotional period. 

Limitations of POSB Personal Loan

The POSB Personal Loan comes with many benefits. However, you may still encounter some challenges. Here are some drawbacks you may likely encounter:

High penalties and fees

The personal loan charges a late repayment penalty of S$100 for credit card accounts and S$120 for Cashline accounts. Likewise, a full repayment penalty of S$250 is charged on early repayments. 

Additionally, the loan does not also allow partial repayments. This may cause financial strain during unforeseen events.

May increase your debts

Most of the time, borrowers may apply for a personal loan to get off credit card debts. However, this may not be the solution since you may fail to address the causes of such debts. 

Also, using personal loans to settle credit card loans will lower your credit rating. People with overspending habits are more likely to incur more charges rather than solve their debt problems.

Things to keep in mind when applying for POSB Personal Loan

Now that you are aware of the benefits and drawbacks of a POSB personal loan, here are tips to help you choose your best plan:

  • Ensure you borrow an amount that you can pay off comfortably. 
  • Check the terms and conditions before applying for the loan.
  • Use the monthly repayment calculator to check your required monthly repayments to avoid penalties.


POSB Personal Loan is one of the low-interest loans in Singapore that allows you to get cash instantly. It comes with many benefits ranging from its versatility to promotions. Importantly, when comparing POSB’s personal loan with other loan categories, the personal loan has more benefits. However, you may end up incurring penalties due to poor financial planning and unforeseen events. Therefore, you should always ensure that applying for the loan will work for you, and not against you. 

Borrowing for your short-term and long-term goals? Check out the best personal loans available for a range of needs.  

Read these next:

Best Personal Loans To Ease Your Cash Flow In Singapore (2022)
All The Legal Loan Limits You Need To Know About In Singapore
Are You Ready to Get a Car Loan in Singapore?
4 Times In Life You Should Consider Getting a Personal Loan
7 Mistakes That Ruin Your Credit Score in Singapore


Use a personal loan to consolidate your outstanding debt at a lower interest rate!

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