What’s the Average Personal Loan Interest Rate in Singapore?

|Posted by | Personal Loans
Tags: ,

Woman comparing personal loan interest rates

When you’re shopping for a personal instalment loan, the personal loan interest rate is one of the most important things to consider. This determines the fixed monthly repayment amount you have to be able to afford for the duration of the loan.

The average flat interest rate in the market today is around 6% p.a. The actual rate offered by the bank can vary by loan amount, loan tenure, annual income, existing or new bank relationship and credit worthiness. This is important to remember and this is also why personal loan interest rates differ person to person, bank to bank. 

The current lowest rate in the market is 3.7% p.a offered by HSBC Personal Loan for borrowers with annual income of at least S$80,000.

For borrowers with annual income less than S$80,000, the lowest rate in the market is 3.88% p.a., currently offered by Standard Chartered CashOne and POSB Personal Loan. While the Standard Chartered CashOne Loan rate is guaranteed upon approval, the POSB Personal Loan rate depends on the borrower’s credit history. 

Below are examples of how much you can save in interest and fees payments by picking the loan offer with lowest flat interest rate.

Personal loan interest rate

*Rate available only on SingSaver platform
**Rate varies depending on credit profile

If you’re looking for a S$10,000 loan over a 24-month period, and earn between S$30,000 and S$80,000 then the OCBC Personal Loan is the best option for you. It comes with a zero percent flat interest rate (which means you pay no interest over the 24 months) and has the lowest monthly repayment of S$416.67. But take note of any special charges like annual fees or one-time processing fees. In this case, the OCBC Personal Loan comes with a one-time processing fee of 9% of the total loan amount (S$900), so factor that in your overall calculation.   

For annual incomes over S$80,000

But if you’re looking for a S$20,000 loan to be repaid over 36 months, and earn above S$80,000 annually, then the HSBC Personal Loan is the best option for you. It has the lowest flat interest rate of 3.7% per annum and has the lowest monthly repayment of S$617.22. Once again, take note of any special charges. In this case, it comes with a one-time processing fee of S$88, but this has been waived by the bank. Here’s how it works out: 

Comparison table for best personal loan interest rates for those with annual income above S$80,000

*Rate available only on SingSaver platform
**Rate varies depending on credit profile

Summary

It’s important to compare personal loan interest rates because it can shave thousands of dollars in interest paid over the loan tenure. Read our guide into the best personal loans in Singapore. Remember not to take the first personal loan you come across. Compare and study the market for the best personal loan based on your loan amount, loan tenure, credit history and annual income.

Compare best instalment personal loan interest rates on SingSaver 

 

What to read next:

Guide to the Best Personal Loans in Singapore
SCB Funds Transfer Review: Great to Pay Off Credit Card Debt
4 Ways to Pay Off Credit Card Debt
Four Types of Personal Loans: What You Need to Know
3 Ways to Better Manage Credit Card Debt in Singapore

 


Rohith Murthy


By Rohith Murthy
Rohith leads SingSaver, a financial comparison site aimed at helping consumers in Singapore save money and time by finding the right financial products.