POSB Personal Loan Review: Personalised Interest Rates And Instant Approval

SingSaver team

SingSaver team

Last updated 31 March, 2024

A loan offering that recognises and rewards good credit habits.

Every Singaporean and PR would be all too familiar with POSB, and most of us grew up with it as the ‘standard issue’ bank account. One good thing about this is that you’ll see a seamless borrowing experience should you need immediate cash to deal with emergencies or big-ticket commitments. If you apply for the POSB Personal Loan online, instant approvals and cash disbursement are just some of the benefits you’d be reaping from this personal loan.

DBS/POSB customers who are in good credit standing may be in for something called ‘personalised interest rates’.

Table of Contents:

What the POSB Personal Loan can do for you

POSB Personal Loan product summary:

Interest rate: From as low as 2.68% p.a (EIR 5.43% p.a)
Loan tenures: Choice of 6 months to 5 years
Max. loan amount: Up to 10X of monthly income
Min. Loan Amount: $500
Approval time: Instant approval & cash disbursement for DBS/POSB customers

Pros Cons
Instant cash for POSB/DBS customers Low interest rates not guaranteed and is offered based on credit risk profiles
Personalised interest rates from as low as 2.68% p.a (EIR 5.43% p.a) High interest rate and processing fees for those with annual income of $20,000 - $30,000
Loan up to 10X your monthly salary  

Why you should choose POSB Personal Loan

#1: Personalised interest rate starting at 2.68%
Assuming your credit risk profile passes the eligibility criteria, POSB Personal Loan offers a very competitive rate from as low as 2.68% p.a (EIR 5.43% p.a). Since this is a personalised rate, no one will know your credit profile and interest rate offered to you except yourself.

#2: Instant cash for DBS/POSB customers
In any emergency that crops up, it sure doesn’t help if you’re made to wait around for cash solutions. New customers who are currently crediting salary into a DBS/POSB account and existing Cashline customers get to enjoy instant approval and disbursement when the loan is applied online. Be sure to use MyInfo to pre-fill your details and get the administrative hassle out of the way.

#3: Loan up to 10X of your monthly income
Another perk of the POSB Personal Loan is that it offers loan amounts of up to 10 times your monthly salary, if you are earning above $120,000 a year. That may be a viable resource to tap into for instances such as related expenses that would occur when moving into a new house. Otherwise, the maximum amount that you can loan is up to four times of your monthly income.

#4: Loans for lower annual income earners
The POSB Personal Loan is one of the few options on the market that lowers its eligibility criteria for the lower income bracket. The minimum annual income requirement for a POSB Personal Loan is $20,000, but there are two things to note. Firstly, the maximum loan amount is capped at $5,000. This helps ensure that borrowers do not take up loans that they can’t afford. Second, the interest rate for those earning between $20,000 and $30,000 is much higher, at 11% p.a (EIR 20.01% p.a) with 4% processing fee.

For whom is the POSB Personal Loan best?

Two groups of people come to mind here: DBS/POSB customers with healthy credit scores, and the lower income earners who need urgent cash to power through a difficult period.

What charges or fees should you look out for?

  • Processing fee: 1% of approved loan amount
  • Early repayment fee: $250 
  • Default interest: 27.8% p.a on DBS/POSB credit card full outstanding instalment amount; prevailing interest rate of 22.9% p.a or 29.8% p.a will be charged for DBS Cashline full outstanding instalment amount 
  • Late payment fee: $100 for credit card Personal Loan, $120 for Cashline Personal Loan

Eligibility criteria

  • 21 to 70 years of age
  • Minimum annual income for Singapore citizens, PRs, and foreigners with an existing Cashline and/or Credit Card account: $20,000

How to apply?

Click on the ‘Apply Now’ button in this article and complete the application form on SingSaver site. You might need to prepare the following documents for the application process:

  • Front and back of NRIC/Passport/Employment Pass
  • 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 
  • Self-employed: latest 1 year income tax Notice of Assessment

Read these next:
How to Get a Personal Loan in Singapore With a Bad Credit Score
5 Ways to Get the Highest Credit Score in Singapore
Top 6 Myths About Personal Loans, Busted
Understanding Interest Rates: How You Can Use It To Save Even More Money
A Guide To Bankruptcy In Singapore (And 3 Lessons To Learn)


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