Flexible monthly repayment: With balance transfers, you can choose how much to repay every month, beyond a minimum monthly sum (usually 1% to 3% of your outstanding balance), before the end of the repayment period. A personal loan requires you to repay a fixed monthly fee every month until the length of the repayment period ends. For example, say your balance transfer amount is S$10,000 and your repayment period is over 6 months. If your minimum monthly payment is S$100, then for the first 5 months you only need to pay S$100, but on the 6th month, you can repay the remaining S$9,500 at one go.
One-time processing fee: For balance transfer offers, banks usually charge a one-time processing fee of between 1% to 5% of your approved amount. For a personal loan, this is usually between 1% to 2%.
Length of the repayment period: Balance transfer repayment periods in Singapore are shorter and typically range from 3 to 24 months, while a personal loan can be between 1 to 5 years.
Applied interest rate: Typically banks in Singapore offer a 0% interest rate for a balance transfer at the start. For a personal loan, this can be between 4.5% to 7%.