How fast can I get a loan?

The average approval time for a personal loan takes around 3 working days, with loan disbursement taking 5 to 7 working days. Some banks such as Standard Chartered are offering instant loan approval and disbursement for customers who apply through SingPass MyInfo.

Are there any benefits to taking a personal loan?

The main benefit of a personal loan is the low interest rates being offered by banks, relative to other debts such as credit card interest rates of around 28% or loans offered by unlicensed moneylenders. If you take advantage of promotional offers, you can get a personal loan with interest rates as low as 3.5% p.a.. Administrative charges such as one-time processing fees or annual fees can also be waived during promotional periods.Many banks also offer instant and digital loan approval, which means quick cash for you, as well as less documentation needed if you use MyInfo. Personal loan tenures also range between 12 to 84 months, giving you a longer time frame to pay off your loan.

Average personal loan S$10,000 to be repaid in 3 years

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Best Personal Loans with Low Interest Rates in Singapore in 2024

Find the best personal loans in Singapore from Singsaver's curated list of personal loans with the lowest interest rates.Compare various loans from banks such DBS, Standard Chartered, Citibank, HSBC, UOB, OCBC, CIMB, Maybank, and many more. Whether you're looking for personal loans with low interest rate, flexible repayment tenures, fast approval and loan disbursement, you can find the best personal loan for your financial needs. Apply online on Singsaver and get the funds you need.

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GXS

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OCBC

POSB

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Trust Bank

UOB

🎁 EXCLUSIVE DEAL THAT YOU WON'T FIND ELSEWHERE

S$1,000 Min Loan Instant Approval Up To 7-Year Tenure Instant Loan Disbursement

HSBC Personal Loan

Annual Interest Rate

EIR

% p.a.

Processing Fee

2 Offers Available

Get Bonus Voucher in 5 Days

S$50 eCapitaVoucher Application Incentive

Valid until

31 July 2024

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Apple iPhone 15 Pro 128GB (worth S$1,460) or S$1,000 Cash

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31 July 2024

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Apple iPad Air 13" WiFi 128GB (worth S$1199) or S$700 Cash

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31 July 2024

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Xiaomi TV Q2 65" or S$500 Cash

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Gift Options

S$50 eCapitaVoucher Application Incentive

Gift Options

Loan Tenure From 3 years to 5 years + loan amount from S$100,000 and above

Apple iPhone 15 Pro 128GB (worth S$1,460) or S$1,000 Cash

Loan TenureFrom 3 years to 5 years + loan amount from S$80,000 to S$99,999

Apple iPad Air 13" WiFi 128GB (worth S$1199) or S$700 Cash

Loan Tenure From 3 years to 5 years + loan amount from S$50,000 to S$79,999

Xiaomi TV Q2 65" or S$500 Cash

Loan Tenure From 3 years to 5 years + loan amount from S$35,000 to S$49,999

Ergotune Joobie (worth $599) or S$400 Cash via PayNow

Loan Tenure From 3 years to 5 years + loan amount from S$20,000 to S$34,999

Dyson V8 Slim Fluffy (worth S$509) or S$300 Cash via PayNow

Loan Tenure From 3 years to 5 years + loan amount from S$10,000 to S$19,999

S$50 Cash via PayNow

Terms and Conditions :

The information displayed above is for reference only. The actual rates offered to you will be based on your credit score and is subject to the provider’s approval.

Early repayment fee: 2.5 %
Late repayment fee: S$ 75

Step to Apply :

1. Go to HSBC's website and click “Apply Now” under Personal Loans

2. Fill out an application and submit the required documents

3. Wait for approval from HSBC

Required Documents :

1. NRIC (Front & Back)

2. For salaried employees: Last 3 months’ computerised payslip, or latest Income Tax Notice of Assessment with latest 1 month’s computerised payslip, or latest 6 months’ CPF statement (for Singaporeans or PRs)

3. For self-employed persons: Last 2 years’ Income Tax Notice of Assessment

Eligibility :

Minimum Age: 21 years old

Min. Annual Income: S$ 30000

Citizenship: Singaporean, Permanent Resident, Foreigner

How Does a Personal Loan Work?

A personal loan is an unsecured form of borrowing from banks or credit unions for various personal needs. Instead of pledging collateral, applicants only need to undergo a credit check and, if approved, receive a specified loan amount with an associated interest rate. Repayment occurs through fixed monthly instalments over a defined period.

Borrowers should be aware of potential fees and penalties. Timely repayments positively impact credit scores, making it crucial to review and understand the loan terms before acceptance.

What are Advertised Interest Rates?

Advertised interest rates refer to the publicly promoted rates that financial institutions, such as banks or credit card companies, display to attract potential borrowers. These rates are used in marketing materials, advertisements, and promotional campaigns to showcase the cost of borrowing or the return on savings or investments.

Advertised interest rates are typically the starting rates and may vary based on factors like the borrower's creditworthiness, the type of loan or account, and the prevailing market conditions. Consumers must carefully review the terms and conditions, as the actual rate they qualify for may differ from the advertised rate.

What are Effective Interest Rates?

Effective interest rates, commonly known as Annual Equivalent Rates (AER) or Annual Percentage Rates (APR), offer a comprehensive view of the total cost of borrowing or the genuine return on savings and investments. These rates go beyond nominal or advertised figures by incorporating additional fees and charges and considering the impact of compounding over a specified period.

For loans, the effective interest rate includes upfront costs, providing borrowers with a more accurate representation of the overall expense. Utilizing effective interest rates is crucial for making well-informed financial decisions, enabling individuals to compare various financial products more accurately and choose the option that best aligns with their financial goals.

Personal Loans with 0% Interest Rate

It is possible to apply for a personal loan with 0% interest. However, the qualifying requirements for these personal loans are much stricter. For instance, the borrower must attain a certain credit score, income level or employment history, among others.

Sometimes, the bank will require you to pay a high processing fee, so instead of paying the interest later on, you will be paying the bank upfront for the release of funds for your personal loan.

What is a Tenure Loan Period?

A "tenure loan period" typically denotes the duration a borrower commits to repaying a loan. This period is agreed upon between the borrower and the lender at the time of taking out the loan and is often expressed in months or years. The loan tenure is a critical part of a loan agreement, as it influences the monthly repayment amount and the total interest paid over the life of the loan.

Compare Personal Loan Repayment Rates in Singapore

Product	Loan Repayment Rate
HSBC Personal Loan	1 to 7 years
SCB CashOne Personal Loan	1 to 5 years
CIMB CashLite Personal Loan	1 to 5 years
UOB Personal Loan	1 to 5 years
DBS Personal Loan	6 months to 5 years
POSB Personal Loan	1 to 5 years
OCBC Personal Loan	1 to 5 years
Maybank Creditable Term Loan	1 to 5 years

Paying for Home Renovations

Personal loans can be a practical solution for financing home improvement projects. Whether it's remodeling a kitchen, adding a new room, or making necessary repairs, a personal loan provides a lump sum that can be used to cover the costs. This allows homeowners to enhance the value and comfort of their homes without tapping into other financial resources.

Settling Medical Expenses

Unforeseen medical expenses can place a significant financial burden on individuals and families. Personal loans can be used to cover medical bills or other healthcare-related costs. The flexibility of personal loans allows borrowers to address urgent medical needs without delay, providing a financial cushion during challenging times.

Covering Wedding Expenses

Weddings often come with substantial costs, including venue rental, catering, attire, etc. Personal loans offer a way for couples to finance their dream wedding or cover unexpected expenses that may arise during the planning process. The fixed repayment structure of personal loans also allows for better budgeting and financial management.

Debt Consolidation

Personal loans can be used to consolidate high-interest debts, such as credit card balances or multiple loans. By combining multiple debts into a single personal loan with a potentially lower interest rate, borrowers can simplify their financial obligations and reduce the overall repayment cost. This strategy can help manage debt more efficiently.

Paying Education Fees

Educational expenses, including tuition fees, textbooks, and other related costs, can be covered using personal loans. This option can be particularly beneficial for students or parents who need financial assistance to fund education. Personal loans provide a straightforward way to manage education-related expenses and ensure individuals can invest in their academic pursuits.

Assess Your Needs

Identify the specific purpose of the loan, whether it's for home renovations, debt consolidation, or other expenses. Knowing your needs helps determine the loan amount and terms required.

Compare Interest Rates

Research and compare interest rates from various lenders. Remember, a lower interest rate reduces the overall cost of the loan. You may also consider fixed or variable rates based on your preference and financial situation.

Understand Fees and Charges

Be aware of additional fees, such as origination fees, prepayment penalties, or late payment charges. Understanding the full cost of the loan helps in making informed decisions. To do this, actively ask lenders about what other fees you should be aware of.

How can a personal loan help?

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Personal loans can come in handy during a period of cashflow difficulty. Some of such situations include sudden medical costs, weddings, funerals, divorces and more. Rest assured that the bank won’t require you to get personal on personal loans and share the reason for taking it up during the approval process.

What are the different types of personal loan interest rates?

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Advertised Interest Rate: The advertised rate, or nominal interest rate, is used when calculating the interest charge on your loan. For example, if you are considering a loan for $200,000 with a 6% interest rate, your annual interest charges will come up to $12,000 per year, or a monthly payment of $1,000.

Effective Interest Rate (EIR): The EIR reflects the true cost of borrowing to the consumer. This interest rate is usually higher than the advertised rate because it includes service fees, annual fees or one-time processing fees for processing and approving your loan application.

0% Interest Personal Loans: Some banks offer 0% interest rate personal loans for short-term loans. However, these tend to come with higher processing fees. This means that you will still be paying the bank for the loan, with the main difference being that the bank collects your money upfront rather than through interest payments in the future.

What’s the difference between the annual interest rate and effective interest rate (EIR)?

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The annual interest rate is the interest rate advertised by the bank. EIR is a better gauge of the interest rate you actually incur. The EIR is often higher than the annual interest rate because it factors in other costs such as transaction fees and administrative fees. They add to the final amount you pay.

Can foreigners apply for personal loans in Singapore?

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Yes, as long as you fulfil the eligibility criteria. These requirements can vary from bank to bank, but generally, personal loan applications for foreigners require you to:

Hold a valid Singapore employment pass
Have a residential tenancy agreement (or any other proof of your residential address in Singapore)
Produce a bank statement (reflecting account activities for the past 6 months)
Meet the minimum annual income requirement for foreigners (usually $40,000 to $45,000 p.a.)

Which Bank will provide personal loan easily?

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Granted, there are a lot of requirements you need to meet in order to qualify for a personal loan. Here are some of the banks that might make applying for a loan much more worth the effort:

DBS: DBS Bank offers a arnge of personal loan options to consider with borrowing amounts up to 4 times your monthly income and flexible repayment terms of up to 5 years
OCBC: OCBC provides competitive interest rates, loan amounts of up to 6 times your monthly salary and flexible repayment terms of up to 5 years
UOB: UOB offers a loan amount of up to 6 times your monthly salary with flexible repayment terms of up to 5 years
Standard Chartered: Standard Chartered Bank offers up to 4 times your monthly salary with flexible repayment terms of up to 5 years

What is the personal loan interest rate?

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The current personal loan interest rate ranges from 3.5% to 10.8% per annum. The interest rate varies across banks and depends on factors such as the loan tenure.

What are the fees I have to take note of when I take up a personal loan?

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Besides the processing fee that is charged, other fees involved when taking up a personal loan include:

Late payment fee: Charged if you miss your monthly repayment.
Early repayment fee or cancellation/termination fee: If you choose to repay your loan early, or cancel your loan.
Change of tenor: Fee incurred if you change your loan tenure.
Annual fee: To be paid every year (this fee could differ from the first year and subsequent years).

What if you don’t qualify for a personal loan?

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If ineligible for a personal loan, consider secured options, like offering collateral or involving a cosigner. Otherwise, work on improving your credit score, explore alternative lenders, such as online platforms or credit unions, and look into peer-to-peer lending. Negotiate with creditors for better terms or seek assistance from a credit counseling agency. Carefully assess each option and choose based on your needs and repayment ability, and consider seeking professional financial advice for guidance. If the need isn't immediate, focus on building an emergency fund.

How much can you borrow with a personal loan?

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The amount you can borrow with a personal loan in Singapore varies based on factors like creditworthiness, income, and lender policies, typically ranging from a few thousand dollars to tens of thousands. Generally, higher credit scores and incomes may qualify for larger amounts. It's advised to directly contact lenders to determine specific loan amounts and inquire about eligibility criteria and offerings.

What are the common eligibility requirements for a personal loan?

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Common eligibility requirements for a personal loan in Singapore include being between 21 and 65 years old, holding Singaporean citizenship, permanent residency, or a valid work permit for foreigners. Documentation such as identification papers, proof of income, and employment details is generally required during the application process.

Lenders typically set minimum income thresholds and assess applicants based on proof of employment, income stability, and creditworthiness. A good credit score enhances eligibility, while stability in employment and a manageable debt-to-income ratio are also key considerations. Prospective borrowers should review each lender's specific eligibility criteria before applying.

How does a U.S. Fed rate hike influence personal loan rates?

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A U.S. Fed rate hike typically leads to an increase in global interest rates, including those in Singapore. This results in higher borrowing costs for personal loans in Singapore, as local banks adjust their rates in response to changes in the global market influenced by the U.S. Federal Reserve's actions. Therefore, personal loan rates in Singapore are indirectly influenced by U.S. Fed rate hikes.

Bank Loan	Flat Annual Interest Rate (p.a.)	Effective Interest Rate (p.a.)	Processing Fees
HSBC Personal Loan	2.92%	5.50%	S$0
SCB CashOne Personal Loan	2.88%	5.84%	S$0
CIMB Personal Loan	2.80%	5.28%	S$0
UOB Personal Loan	2.88%	5.43%	S$0
	2.68%	5.43%	1% (S$300)
Citi Quick Cash Loan	3.45%	6.50%	S$0
OCBC Personal Loan	5.43%	11.47%	S$100

Best Personal Loans with Low Interest Rates in Singapore in 2024

HSBC Personal Loan

2 Offers Available

Quick Facts

HSBC Personal Loan

2 Offers Available

Quick Facts

UOB Personal Loan

Offer Available

Quick Facts

Standard Chartered CashOne Personal Loan

2 Offers Available

Quick Facts

CIMB Personal Loan

Offer Available

Quick Facts

DBS Personal Loan

Offer Available

Quick Facts

GXS FlexiLoan

Quick Facts

GXS FlexiLoan (Balance Transfer)

Quick Facts

POSB Personal Loan

Offer Available

Quick Facts

OCBC Personal Loan - Existing OCBC loan customers

Quick Facts

Trust Personal Loan

Quick Facts

Quick Facts

Comparison of the Best Personal Loans in Singapore

How Does a Personal Loan Work?

Guide to Personal Loan Interest Rates

What are Advertised Interest Rates?

What are Effective Interest Rates?

Personal Loans with 0% Interest Rate

What is a Tenure Loan Period?

Compare Personal Loan Repayment Rates in Singapore

What Can a Personal Loan Be Used For?

Paying for Home Renovations

Settling Medical Expenses

Covering Wedding Expenses

Debt Consolidation

Paying Education Fees

How To Pick The Most Suitable Personal Loans for You

Assess Your Needs

Compare Interest Rates

Understand Fees and Charges

Learn More About The Different Types of Personal Loans With SingSaver!

Let SingSaver Help You Make More Informed Decisions With Our Personal Loans Guide

Frequently Asked Questions

How can a personal loan help?

What are the different types of personal loan interest rates?

What’s the difference between the annual interest rate and effective interest rate (EIR)?

Can foreigners apply for personal loans in Singapore?

Which Bank will provide personal loan easily?

What is the personal loan interest rate?

What are the fees I have to take note of when I take up a personal loan?

What if you don’t qualify for a personal loan?

How much can you borrow with a personal loan?

What are the common eligibility requirements for a personal loan?

How does a U.S. Fed rate hike influence personal loan rates?

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