Looking for a low-interest personal loan? POSB’s rates start from 1.99% p.a. (EIR 4.17%), among the most competitive options in Singapore.

If you're considering a personal loan in Singapore, POSB Personal Loan is a well-known name that often pops up — and for good reason. Jointly offered by DBS and POSB, this loan comes with attractive interest rates, fast approval, and minimal fuss. 

But how does it stack up in 2025 against other big banks? In this guide, we break down everything you need to know, from eligibility to application steps, so you can decide if it’s the right fit for your needs.

POSB Personal Loan is actually offered via DBS, Singapore’s largest bank. Whether you apply through the DBS or POSB website, you’re getting the same product, backed by the same terms, customer service, and reliability.

DBS has built a solid reputation for being secure, innovative, and customer-friendly, consistently ranking among the top banks in Asia. If you’re already a DBS or POSB customer, you’ll find the application process seamless, and your loan disbursement lightning fast (often credited within minutes).

The POSB Personal Loan is a solid all-rounder — fast, fuss-free, and backed by one of Singapore’s most trusted banks. While it doesn’t offer the absolute lowest effective interest rate, it stands out for convenience, especially if you already have a DBS/POSB account. Instant approval and disbursement give it an edge over competitors with slower processing times. It’s ideal for those who prioritise speed, reliability, and a seamless digital experience over shaving off a few basis points in interest.

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To apply for a POSB Personal Loan, you must meet the following criteria:

• Be a Singapore Citizen or Permanent Resident or a foreigner with an existing Cashline and/or Credit Card account

• Aged between 21 and 70 years old

• Minimum annual income of S$20,000

POSB Personal Loan offers tiered rates depending on your loan tenure. The nominal interest rate is the flat yearly rate applied to the principal amount, while the effective interest rate (EIR) reflects the true cost of the loan, factoring in fees and compounding over time.

When comparing loan options, the EIR is more important because it gives a clearer picture of how much you'll actually repay.

POSB Personal Loan interest rate table

Here’s a breakdown of POSB’s current rates as of 2025, for a loan of S$100,000:

*The interest rate and processing fee you receive will depend on your individual credit profile, and may differ from the rates shown or those offered to other applicants. Please refer to the actual rates presented during the online application with DBS/POSB.

Interest rates comparison table

POSB doesn’t offer the absolute lowest EIR, but it remains highly competitive. It’s particularly appealing if you already bank with DBS/POSB, thanks to same-day approvals and instant disbursements.

Here are the key fees you need to know about:

• Processing fee: 1% of approved loan amount

• Late payment fee: S$100 for Credit Card Personal Loan; S$120 for Cashline Personal Loan

• Cancellation fee: S$250

Fees comparison table

If you're an existing DBS/POSB customer with digibank access, you can apply and get approved within minutes. Funds are typically disbursed instantly to your POSB or DBS account.

New customers may take a bit longer, typically 1 to 2 working days, as the bank needs to verify documents and set up your profile.

• Instant approval and same-day disbursement for existing customers.

• Backed by DBS, with excellent customer service and digital tools.

• Choose between 1 to 5 years to suit your repayment needs.

• Competitive rates and minimal hidden charges.

Existing cardholders

1. Log in to DBS digibank.

2. Select “Apply for Personal Loan”.

3. Choose your preferred amount and tenure.

4. Confirm and submit — your loan may be approved instantly.

Non-card holders

1. Visit the DBS or POSB website and apply as a new customer.

2. Submit your identification and income documents.

3. Await approval (usually within 1–2 working days).

4. Receive funds directly in your new account.