DBS Personal Loan Review

DBS Personal Loans come with competitive interest rates starting at 1.99% p.a. Couple that with a 1% processing fee and your total adds up to an EIR of 4.17% p.a. If you are wondering what EIR means, it stands for Effective Interest Rate, which reflects the true cost of borrowing, by accounting for the fees involved and compounding interest.

As for the loan duration, you’ll be able to arrange for a flexible tenure between a minimum of 6 months to a maximum of 5 years.

• Monthly Repayment: S$294

• Annual Interest Rate: 1.99%

• EIR: 4.43% p.a.

• Minimum Loan Amount: S$500

• Processing Fee: 1%

• Total Rewards: S$450

Minimum annual income

• S$20,000 for Singapore Citizens and Permanent Residents

• Foreigners with existing Cashline or Credit Card accounts are welcome to apply

Interest rates

• From 1.99% p.a.

EIR

• From 4.17% p.a.

Time to approval

• Instant, for DBS/POSB account holders

Loan tenure

• 6 months–5 years

Annual fee

• S$120

*Figures here are based on a loan of S$20,000 and retrieved from DBS’ Personal Loan Calculator.

DBS charges a one-time processing fee for all personal loans. Based on our example loan above of S$20,000, this will work out to be $200. DBS also charges an Early Termination Fee of S$250 for each personal loan, in cases where full repayment is made before expiry of the loan tenure. As for Late Payment Charges, Credit Card Personal Loans will incur a fee of S$100, while Cashline Personal Loan customers will incur a fee of S$120.

You'll need to meet some basic requirements to secure a DBS Personal Loan. Here's how to qualify:

• Minimum annual income of at least S$20,000

• Be a Singapore Citizen or Permanent Resident

• Be between the ages of 21 to 70

• Foreigners with existing Cashline or Credit Card accounts may also apply

If you don’t have a Cashline or Credit Card account, here are the mandatory documents you'll be required to provide:

• The front and back of your National Registration Identity Card (NRIC) 

• Either your latest 1 Year Income Tax Notice of Assessment (NOA) or your latest computerised salary payslip/Salary Crediting into POSB/DBS account

Of course, if you have SingPass, you may also apply online if all your financial and personal information on MyInfo is up to date.

Instant approval and disbursement for existing DBS/POSB customers

If you are an existing DBS/POSB customer, you'll receive cash upon approval of your DBS Personal Loan. The process is usually instant. Note that DBS Personal Loans requires you to have both a DBS/POSB deposit account and a Cashline/Credit Card account. The latter acts as a standby line of credit account where the credit limit is utilised for your loan.

Flexible loan amounts and tenures

You'll be able to get loan amounts up to 4 times your monthly salary, or even up to 10 times your monthly salary — if you have an annual income of S$120,000 and above. DBS' minimum loan amounts start from S$500, one of the lowest on the market. Another plus is DBS' flexible loan tenures, with 6 months being the minimum and 5 years being the absolute maximum.

Competitive interest rates and eligibility criteria

DBS provides some of the lowest interest rates, starting at 1.99% p.a. (EIR 4.17% p.a.). One thing to note about the EIR is that it tends to be lower the longer your tenure stretches, although this comes at the cost of an increased total repayment sum. DBS' eligibility criteria are easy to meet, since it has a low minimum annual income of S$20,000 and is open to the self-employed and individuals with commission-based jobs. 

Hefty fees that can add up over time

As with any Credit Line or Credit Card based account, hefty fees can accrue over time if you miss out on repayments. A finance charge of 27.8% p.a applies for Credit Card Personal Loans. For Credit Line Personal Loans, finance charges of 22.9-29.8% p.a. are applicable. DBS may decide to levy finance charges if the relevant instalment amount is not received by the payment due date, even if partial repayment has been made.

Early termination fee 

Wouldn't you pay off your personal loan early if you could? If you decide to terminate your loan early by making repayment ahead of schedule, you will incur an Early Termination Fee of S$250.

Interest rates may vary

Though interest rates of 1.99% p.a. sound good on paper, do be mindful that interest rates can vary based on your personal income and credit profile. This is especially true for those with a lower minimum annual income. For example, if your annual income is below S$30,000, your interest rates for your five-year loan will be 11% p.a. (EIR 20.01% p.a.).

• Those with high minimum annual incomes: If you have an annual income of S$120,000 or above, you'll be able to borrow up to 10x your monthly salary. This will allow you to free up some cash, which you can then repay at a tenure between 6 months to 5 years.

• Those seeking short loan tenures and small loans: Sometimes, all you need is a little help. For those seeking short tenures, DBS Personal Loans's tenures start at just 6 months. For individuals looking to borrow small sums, the minimum sum you can loan from DBS is S$500. Combine the two and you'll be making a monthly repayment of S$42.50 over 6 months, adding up to a total repayment of S$514.95.

• Self-employed or commissioned-based employees: The process of searching for and being eligible for personal loans can be tough for individuals with variable incomes. For DBS Personal Loans, being a self-employed or commissioned-based employee is not an issue, if you are able to furnish the bank with your latest 1 Year Income Tax Notice of Assessment (NOA). 

DBS offers several convenient ways for you to make your loan repayments.

• DBS digitbot: Do note that authentication via your iBanking login or Card & PIN is required before the bank can proceed with your request. Another important thing to remember is that processing times for full loan repayment can take up to 3 working days, so do be sure to submit your request early.

• Internet banking: Another way you can repay loans is by adding a new GIRO arrangement. Do note that processing time for such payments will take up to 7 days. You can also make repayments directly by adding a new billing organisation by selecting "DBS TFL/SL/POSB LA" on the drop-down bar. Such arrangements have the benefit of only taking 3 days to process. Alternatively, you may also complete and submit a Repayment Slip.

• Cheque: Drop your cheque into the Quick Cheque Deposit Box after providing your TFL/SL/CL account number and Passport/NRIC for reference.

• Cash: You can provide over-the-counter cash repayments at any DBS/POSB branch.

• Telegraphic or Wire Transfer: Add a new beneficiary under "DBS BANK, Current Account 003-957600-5" for bank transfers or do a SWIFT transfer with this SWIFT reference code: DBSSSGSG.  

There is no restriction on what you can use your personal loans for. You may choose to use the funds for:

• Home renovations: Moving into an older resale flat? Some home improvement works may be in order. Having extra funds will help to tide you over until you are ready to move in or until your financial situation stabilises.

• Urgent home repair expenses: Slabs of spalling concrete from the ceiling crashing to the ground? Popped or cracked tiles? All these require urgent repair for safety reasons. Securing a personal loan can assist with cash flow issues.

• Medical bills: Unexpected medical expenses can wreck your finances. Taking out a personal loan is a quick way to finance your medical treatment until you are well enough to take charge of your personal finances again.

• Tertiary tuition fees: Paying for higher education can be costly. Borrowing money over a period of time can ensure that there will always be a sum set aside to pay for your child’s education.

• Wedding expenses: With the average wedding in Singapore costing between S$30,000 and S$50,000, it’s no surprise that some couples may need a little financial cushion to ease some of their worries during this stressful time. 

• Funeral expenses: Similar to unexpected medical expenses, an unexpected death can result in funeral expenses that may wreak havoc on your finances. A personal loan can help you manage your finances during this difficult period.

• Big-ticket purchases: Whether you’re saving up for a new car or looking to pay off the downpayment for your new home, a personal loan can help you get there faster, if you have the financial discipline required for making repayments on time. 

If you’re interested in applying for the DBS Personal Loan, here are the steps to follow:

• Click on the “Apply Now” button.

• Follow the on-screen prompts to complete and submit your loan application through SingSaver to enjoy exclusive promotions.