How to Refinance a Personal Loan in Singapore

Thinking about refinancing your personal loan in Singapore? Whether you're looking to lower your interest rate, reduce your monthly repayments, or combine several loans into one, refinancing could be a smart money move. 

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In a nutshell, refinancing a personal loan means taking a new loan (ideally at a better rate) to pay off your existing one.

This new loan can come from the same bank or a different lender. The goal? Better terms like a lower interest rate, a longer repayment period (for smaller monthly instalments), or even combining multiple loans into one.

People usually refinance a loan to:

• To get a lower effective interest rate (EIR).

• To reduce their monthly repayments.

• To consolidate multiple loans into one, simpler payment.

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1. Check current personal loan rates

Personal loan EIRs in Singapore typically range from 3.2% to 7.5%.

• DBS Bank: Offers personal loans with interest rates starting from 1.99% per annum, with an EIR of 4.17% per annum.

• Standard Chartered Bank: Provides personal loans with interest rates starting from 1.90% per annum, with an EIR from 3.63% per annum.

• CIMB Bank: Offers personal loans with interest rates from 2.68% per annum, with an EIR from 5.06% per annum.

• UOB Bank: Provides personal loans with interest rates from 2.88% per annum, with an EIR from 5.43% per annum.

If you're currently paying 6.5% and see a bank offering 3.5%, you could save a fair bit over time.

Use SingSaver’s personal loan comparison tool to view the latest rates side-by-side.

2. Check if you qualify for a new personal loan

Want to see if you qualify without affecting your credit score? Good news, pre-qualification lets you do just that. Essentially, it’s a way to check if you qualify for a loan without properly applying for it just yet.  

It gives you an estimate of the loan amount, interest rate, and repayment terms you might be eligible for, all without submitting a formal application or triggering a credit inquiry.

Banks like OCBC, Standard Chartered, DBS and UOB let you apply via MyInfo/SingPass, speeding up the process and minimising paperwork.

3. Factor in refinancing costs

Before jumping in, look at the total cost:

Early repayment fee (from your current loan) e.g : 

• Standard Chartered Bank: Charges an early redemption fee of S$150 or 3% of the outstanding principal, whichever is higher.

• HSBC Bank: Imposes an early repayment fee of 2.5% of the redemption amount

Processing fee for the new loan e.g: 

• DBS Bank: Charges a processing fee of 1% of the approved loan amount.

• UOB Bank: Offers personal loans with zero processing fees for all tenors.

• HSBC Bank: Applies a processing fee of 1%, subject to a minimum of $88.

Don’t just focus on monthly payments. Compare total interest + fees to see if you’re really saving money.

4. Submit a new loan application

To apply, you’ll typically need the following documents:

• NRIC (front and back)

• Latest payslips or income documents (or Notice of Assessment)

• Credit Bureau Singapore (CBS) report (this shows your current debts)

Singapore lenders are required by MAS (Monetary Authority of Singapore) to assess your total debt obligations.

5. Use the new loan to pay off your existing loan

Depending on the lender, repayment can happen in two ways:

• Manual: You receive the funds, then use them to repay your old loan yourself.

• Automatic: Some banks handle the switch fully.

Either way, make sure your old loan is fully paid off.

6. Confirm the old loan is closed

Don’t assume it’s settled. Always request a closure letter or email confirmation from your previous lender.

Check your bank app or statement to ensure there's no remaining balance, or you might get hit with late fees later.

7. Start making payments toward the new loan

Set up GIRO or credit card auto-payment to ensure you never miss a due date.

Prompt payments = good credit score = more borrowing power later (if needed).

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Not all banks offer direct refinancing. Some will give you a lump sum to manually pay off your existing loan, while others handle the transition seamlessly.

Always double-check with the lender on their specific process.

Common banks offering personal loans in Singapore include:

• HSBC

• Standard Chartered

• DBS/POSB

• OCBC

• UOB

• Citibank

Compare offers to find the best rate and terms for your needs.

Not sure if you’re ready to refinance your loan? Take a look at the list below to check if it’s right for you: 

• Your credit score has improved e.g. you cleared credit card debt or started paying on time.

• You want lower monthly payments or a longer loan tenure.

• You now qualify for a lower interest rate than before.

• You plan to pay off your loan faster with a shorter tenure.

• You want to consolidate several loans into one manageable payment.

Excited but unsure if you tick all the boxes? Take a look at the list below to determine if you’re ready to refinance your loan: 

• Your new interest rate isn’t better than your current one.

• Your credit score has dipped due to missed payments.

• You’re near the end of your current loan — refinancing may not save enough to justify the fees.

• The processing fees on the new loan are too high.

• You haven’t calculated total interest saved, just monthly payments, which can be misleading.

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