Things To Consider When Choosing A Personal Loan In Singapore

Ashwika Goswami

Ashwika Goswami

Last updated 17 April, 2024

Selecting the right personal loan for your needs is undoubtedly an important and daunting decision. Here's what to consider before making up your mind.

We often consider a low interest rate to be the most important factor when applying  for a personal loan. Low interest rates, after all, can significantly impact the total cost of your loan and how manageable your monthly payments will be. Nevertheless, there are several other factors that are important to consider as well, and when taken into account, these factors help determine just which bank offers the best personal loan for your financial needs.

Table of contents

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✨#UnlockYourDreams Promo✨: Apply for a CIMB Personal Loan and fulfil the specific eligibility requirements for a chance to win a Hustler Hannah Starter Pack (worth S$5,307.95) or a Reno Ryan Starter Pack (worth S$5,641.40) or a WanderLust Wendy Travel Starter Pack (worth S$5,668.60) on top of our existing rewards. Valid till 13 June 2024, 11.59pm. T&Cs apply.

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SingSaver Exclusive Offer: Receive a Macbook Air 256 GB 13 Inch M2 Chip (worth S$1,613.80) or a Dyson V12s Detect Slim Submarine™ Complete (worth S$1,449) or a PlayStation 5 (Disc Version) (worth S$799) or a Dyson AM07 Tower Fan (worth S$459) or up to S$1,200 Cash when you get approved for a CIMB Personal Loan with a min. loan amount of S$8,000 and tenure of 3 to 5 years. Applicable to new customers only. Valid till 31 May 2024. T&Cs apply.


Factors to consider when getting a personal loan

Interest rate

The interest rate is a pivotal factor in determining the overall affordability of your personal loan. A lower interest rate is generally preferable when comparing loan offers from different banks, as it means you'll pay less in interest charges over the life of the loan. Interest rates depend on numerous factors, including your creditworthiness, where better credit scores typically lead to lower rates, the loan quantum and various other market conditions.

The CIMB Personal Loan offers an attractive interest rate as low as 2.80%* p.a. (EIR from 5.28%). Transparency is a key highlight here, since knowing the exact rate at which you'll be borrowing helps you make an informed financial decision. Many loan providers only publish their lowest rate offered without details on how you can obtain that rate. However, the CIMB Personal Loan is far more transparent, with all their loan interest rates openly published on the CIMB website, such that it is easy for you to understand. Check out our page on the CIMB Personal Loan to easily figure out the interest rate you will be receiving based on the approved loan amount and tenure.

Processing fee

Processing fees, too, can add to the cost of borrowing. Processing fees are charges levied by lenders to cover the administrative costs of processing your loan application. While certain loan providers are known to impose substantial processing fees—a factor that can significantly increase the overall cost of your loan—this is not the case with the CIMB Personal Loan, which stands out with its offer of a hassle-free experience with no processing fees for any approved loan amount above S$5,000. This means you can avoid unnecessary expenses, and ensure that your loan more cost-effective.

Loan amount

Personal loans are versatile financial tools that can be used for various purposes. Whether you need funds for education, home renovation or a medical emergency, a personal loan can provide the financial flexibility you need. This is where the loan amount comes into play.

With the CIMB Personal Loan you can borrow up to 8 times* your monthly income. This flexibility makes sure that you have access to the funds you require to meet your diverse financial goals.

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Discover the advantages of a CIMB Personal Loan

The CIMB Personal Loan is truly an optimal option for prudent borrowers, presenting competitive interest rates, no processing fees, substantial loan allowances, and an attractive cashback offer in one neat package. The application process is entirely online, efficient enough that it can be completed in under 10 minutes. There's no requirement to download an application, nor is there a prerequisite to hold a CIMB bank account or credit card prior to application.

That’s exactly how hassle-free it is. Apply online today!

CIMB_PL_KV3_BLOGARTICLE_800x250

✨#UnlockYourDreams Promo✨: Apply for a CIMB Personal Loan and fulfil the specific eligibility requirements for a chance to win a Hustler Hannah Starter Pack (worth S$5,307.95) or a Reno Ryan Starter Pack (worth S$5,641.40) or a WanderLust Wendy Travel Starter Pack (worth S$5,668.60) on top of our existing rewards. Valid till 13 June 2024, 11.59pm. T&Cs apply.

CIMB_PL_TIERED_BLOGARTICLE_800x250 (2)

SingSaver Exclusive Offer: Receive a Macbook Air 256 GB 13 Inch M2 Chip (worth S$1,613.80) or a Dyson V12s Detect Slim Submarine™ Complete (worth S$1,449) or a PlayStation 5 (Disc Version) (worth S$799) or a Dyson AM07 Tower Fan (worth S$459) or up to S$1,200 Cash when you get approved for a CIMB Personal Loan with a min. loan amount of S$8,000 and tenure of 3 to 5 years. Applicable to new customers only. Valid till 31 May 2024. T&Cs apply.

 

Content sponsored by CIMB Bank Berhad, Singapore Branch (“CIMB”). The information shared above is provided strictly on a non-reliance basis and does not constitute any form of advice from SingSaver or CIMB. You should make your own assessment of your financial situation and needs.

*T&Cs apply. Refer to the
CIMB Personal Loan page for more information.

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FINANCIAL TIP:

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

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