Best Credit Lines in Singapore (2024)
HSBC Personal Line of Credit
- Borrow up to 8x of your monthly salary if your annual income is above S$120,000 or 4x of monthly salary if your annual income is lower than S$120,000, subject to a cap of S$200,000. Foreigners can only borrow up to 4x of monthly salary, capped at S$100,000.
- Prevailing interest rates are dependent on your banking relationship with HSBC.HSBC Premier customers: 12% p.a. HSBC Advance, Visa Platinum, or Revolution credit card customers: 16.5% p.a.All other customers: 18.5% p.a.
- Get access to cash via withdrawal from ATM, Funds Transfer via iBanking, swiping your debit card, or a complimentary Personal Line of Credit chequebook
- Enjoy a promotional balance transfer rate of 0% with processing fee of 1.5% (EIR 3.26% p.a.) for a tenure of 6 months for a min. loan amount of S$10,000
- Convert your available credit limit to an instalment plan with an interest rate from as low as 3.7% p.a. (EIR 7% p.a.) with no processing fees
- Min. monthly repayment: 3% of your outstanding balance or S$15, whichever is higher
- Min. interest charge: S$10
- Late payment fee: S$75
- Annual fee: S$60
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Late repayment fee: S$ 75
1. Go to HSBC's website and click the “Apply Now” button under Personal Loans
2. Fill out the application and submit all required documents
3. Wait for your HSBC Personal Line of Credit to be approved
1. Completed and signed Letter of Instruction
2. NRIC (front & back)
3. Notice of Assessment and CPF Statement
4. Latest 3 months' computerised pay slips
5. Latest 2 years' Notice of Assessment
6. Proof of billing address
UOB CashPlus
- New customers, 0% interest rate for a period of three (3) months with S$0 nominal fee; 0% interest rate for a period of six (6) months with either: S$160 nominal fee for approved credit limit of S$30,000 and below or nominal fee of 1.6% will be charged based on the approved credit limit for approved credit limit more than S$30,000; 0% interest rate for a period of twelve (12) months with either: S$300 nominal fee for approved credit limit less of S$30,000 and below or nominal fee of 3.0% will be charged based on the approved credit limit for approved credit limit more than S$30,000. Valid till 31 March 2024. Terms and Conditions apply.
- Prevailing interest rate of 20.9% p.a. applies after the promotion period
- Get ahead of your medical bills and manage your finances with interest as little as S$1 a day with UOB MediPlus. Low interest rates of 3.68% p.a. (EIR from 7.53% p.a.) + a 1% processing fee and the choice to repay between 12 and 36 months.
- Borrow up to S$200,000 or 6x your monthly salary (whichever is lower), if you earn above S$10,000 per month. Borrow up to 4x your monthly salary if you earn between S$2,500 and S$10,000 per month.
- Apply online and receive instant approval via MyInfo. Applications submitted from 8pm to 7am will be processed the next working day.
- 2% of current balance or S$30, whichever is higher, plus any overdue amounts.
- Receive a UOB CashPlus Visa Card and earn 10% cashback at participating merchants. Max. cashback capped at S$50 per month.
- Get up to 10% UOB$ cashback at participating merchants' outlets, including Cold Storage, Giant, and Cathay Cineplexes. More information on UOB$ Programme available here.
- Easy access to cash with 24/7 internet banking, UOB branches, a complimentary chequebook, and islandwide ATMs
- Complimentary chequebook: S$0.75 per SGD cheque issued
- Annual fee of S$120 waived for first year
- No fixed tenure
- Prevailing interest rate of 20.9% p.a. applies after the promotion period, calculated on a daily basis.
- Late payment charges: S$120
- Overlimit fee: S$50
- Handling fee of S$40 for every returned cheque and S$30 for each stop cheque payment instruction
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Late repayment fee: S$ 120
1. Click “Apply Now” on UOB's website
2. Fill out the application and upload all necessary documents
3. Wait for an offer to be sent by UOB
4. You can also head to a UOB branch and apply for CashPlus
1. NRIC (front & back)
2. Image of your specimen signature that is clear and upright
3. Latest billing proof (within the last 6 months) as per your local home address (e.g. telephone or utilities bills, etc) if it differs from the address in your NRIC
4. Income documents
DBS Cashline
- Loan up to 4x your monthly salary or 10x if your monthly salary is more than S$120,000
- Link your Current/Savings account to your Cashline account to enjoy auto top-up service if your Current/Savings account balance falls below a pre-set level
- Transfer funds, withdraw cash, and pay bills with internet banking, ATMs, a chequebook, and AXS machines
- Use the credit limit for an interest-free loan with DBS Balance Transfer which offers 0% interest rate with a processing fee of 2.5% for 6 months tenure, or take up a Personal Loan from as low as 3.88% p.a and 1% processing fee (EIR 7.56% p.a)
- Annual fee of S$120 waived for first year
- Min. monthly repayment: 2.5% of your outstanding balance or S$50, whichever is higher
- Min. annual income: S$30,000
- Min. interest charge: S$10
- Late payment fee: S$120
- Annual fee: S$120
- Overlimit fee: S$40
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Late repayment fee: S$ 120
1. Apply via the online form on DBS' website or digibank online and mobile
2. Submit required documents and wait for approval from DBS
1. Photocopy of your NRIC (front & back)
2. Income documents (any ONE of the following)
a. Your latest 12 months' CPF Contribution History Statement
b. Latest Income Tax Notice of Assessment and Latest Computerised Payslip
c. Salary Crediting into DBS/ POSB Account
OCBC EasiCredit
- Get instant approval and cash when you apply with SingPass MyInfo
- Borrow: Up to 2x of your monthly salary if your annual income is between S$20,000 and S$29,999 Up to 4x of your monthly salary if your annual income is between S$30,000 and S$119,999 Up to 6x of your monthly salary if your annual income is S$120,000 and above
- Easy access to cash with mobile/internet banking, ATMs, and a chequebook
- Enjoy lower interest rates when you use your available EasiCredit limit for OCBC Cash-On-instalments or OCBC Balance Transfer
- If annual income is S$30,000 and above: Monthly min. repayment of 3% of the statement balance or S$50, whichever is higher
- If annual income is below S$30,000: Min. monthly repayment of 5% of outstanding amount or S$50, whichever is higher
- Annual Fee: S$120
- Late payment fee: S$120
- Returned cheque: S$40
- Stop cheque: S$30 if requested at bank/call centre; S$10 if requested via OCBC Digital app, Internet Banking or Phone
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Late repayment fee: S$ 120
1. Select the 'Apply online' button on OCBC's website
2. Complete the application form either manually or via SingPass MyInfo
3. Wait for OCBC to review your application
1. NRIC (front & back)
2. CPF contribution history statement (latest 9 months)
3. Latest 1 year income tax Notice of Assessment (NOA)
4. Latest computerised payslip
Citibank Ready Credit
- Attractive interest rate of 22.95% p.a.
- Flexible line of credit up to 4X your monthly income or up to 8X your monthly income if your annual income is S$120,000 and above. Subject to Citibank's approval.
- Enjoy an interest rate from as low as 3.45% p.a. (EIR 6.50% p.a.) by converting your available credit limit to a cash loan with Citi Quick Cash. Terms and Conditions apply.
- Get more savings when you transfer outstanding balances on any other bank’s credit card or credit line to your Citibank Ready Credit account
- Annual fee: S$120 (first year waiver)
- Late Payment charge: S$120
- Overlimit fee: S$40
- An interest rate of 28.95% will be applied in the event customer account is past due in the current month
- Min. Payment: If the current balance on your Citi Ready Credit (“CRC”) account, including minimum payment due under any Citibank instalment loan programs (“CRC Outstanding Balance”) is less than S$50, the minimum payment amount shall be equivalent to the current CRC Outstanding Balance. If the CRC Outstanding Balance is more than or equal to S$50, the minimum payment shall be the higher of: i. Sum of 1% of CRC outstanding balance plus minimum payment due under any Citibank instalment loan programs plus all other interest charges and late payment charges; or ii. S$50. Any CRC Outstanding Balance due and unpaid in respect of earlier CRC statements shall be added to the minimum payment due and payable under any current CRC statement.
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Late repayment fee: S$ 120
1. Head to Citibank's website and apply via SingPass MyInfo or manually filling in a form
2. Submit the required documents
3. Wait for approval from Citibank
1. A copy of your NRIC (front & back) or work permit (with minimum 6 months validity)
2. A copy of your utility bill, telephone bill, or bank statement with your name and address
3. Income Tax Notice of Assessment
4. Latest original computerised payslip
What is the purpose of a credit line?
A credit line (also known as line of credit) is a type of unsecured loan that allows you to draw on funds when you need it, at up to 4 times your monthly income. Unlike a personal loan where you lock in your loan amount, tenure and interest rate upfront, a credit line charges interest only on the amount you drew down. You also pay fees for opening and maintaining a credit line.
Why do people use a credit line?
A credit line provides flexibility, especially when you need to borrow money multiple times. Rather than taking up a few different personal loans, a credit line allows you to borrow from the same credit account up until the given credit limit.
Read more: 3 advantages of a credit line and how they can benefit you.
What are the downsides to using a credit line?
A credit line could lead to over-borrowing. There are a couple of situations where a credit line might not be ideal:
- You know how exactly much you need to borrow and you know there won’t be stark changes to the situation that called for the loan.
- You are a spendthrift or if you lack discipline. Having access to additional funds that you might not require could tempt you to borrow more than you need. With no fixed repayment period, you could end up snowballing your interest by delaying repayments.
In such scenarios, a personal loan could do the trick.
What are the tenures and maximum APR for each loan?
Credit Line | Min. Repayment | Max. Repayment | Max. APR | Total Loan (Based on S$10k across 1 year) |
HSBC Personal Line of Credit | 1 year | 5 years | 18% | S$11,850 |
UOB CashPlus | 1 year | 5 years | 23% | S$12,400 |
Maybank CreditAble | 1 year | 5 years | 20.12% | S$10,900 |
DBS Cashline | 1 year | 5 years | 32.90% | S$12,980 |
OCBC EasiCredit | 1 year | 5 years | 32.90% | S$12,980 |
Citibank Ready Credit | 1 year | 5 years | 21.89% | S$12,095 |
Latest Credit Line News
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What is a Credit Line (also known as Line of Credit) and how does it work?
A credit line, or a personal line of credit, is an amount of money that you can borrow from the bank when the need arises. You can draw money from this amount until the limit is reached. Much like having a credit card, you have a maximum credit limit on your credit line and may be charged an annual fee. A credit line is also often bundled with a personal cheque book and an ATM or debit card for cash issues and withdrawals.
What are the advantages of having a line of credit?
A line of credit allows you to access the credit facility multiple times. This is unlike a personal loan that provides you with a single loan amount. A line of credit also allows you to borrow only what you need. You have the option to choose a repayment term that is manageable for yourself.
Check out the article on 3 advantages of a line of credit and how you can benefit.
What is the difference between the loan and a line of credit?
A line of credit is different from a regular personal loan; the latter provides you with cash upon approval, whereas a credit line allows you to withdraw cash via an ATM or complimentary cheque book whenever you need it, although you can also start using it upon approval.
A credit line can also offer flexibility when it comes to the minimum payment. For example, some of the credit lines from banks offer a minimum payment option of 3% of outstanding balance rather than a fixed amount. This keeps payments more manageable.
What are some of the limitations of a line of credit?
While a credit line gives you flexibility to draw on the funds only when you need it, the interest rates charged for a line of credit is higher than other loan options, such as a personal loan. A personal loan offers interest rates from 3.5% to 10.8% p.a., lower than the 18% to 22% p.a. charged for a credit line. Also, not all banks offer foreigners the option to apply for a line of credit.
What is the limit on your credit line?
The limit on your credit line can go up to 4 times the monthly income for the typical borrower. However, if your annual salary is on the higher end (e.g. S$120,000 annually), it may go up to 8 times your monthly income. Unlike a personal loan, your credit line is not disbursed to you directly. This makes a credit line more flexible, as you only borrow what you need, especially when you realise you do not need the full loan amount.
Should I apply for a personal line of credit for my small business?
A personal line of credit can be a loan option to consider if you have plans to borrow money periodically. It also provides you with flexible repayment terms. However, there are also other loan options available - in this case, there are SME loans available for small businesses in Singapore.
How do you repay a line of credit?
Unlike a personal loan, a line of credit typically has flexible repayment schemes. With a line of credit, you can withdraw cash whenever you need, and the flexibility also comes in the form of repaying early without incurring additional fees.
Some banks allow you to continue the line of credit as long as you just pay off the interest for the amount of credit borrowed. Others, however, require you to pay off both the interest and principal (amount borrowed) at the end of the loan term.
There are a few ways for you to make your repayments, though this differs from bank to bank. These ways include:
- Internet banking (iBanking)
- AXS
- ATMs
- Cheque deposit
- Cash repayment at bank branches
- SingPost branches
- SingPost S.A.Ms
Which bank offers the best personal line of credit?
Not all banks offer a personal line of credit. Banks that offer a credit line include: UOB, DBS, OCBC, Citibank, HSBC and Maybank. To decide on the credit line that is best for you, you can compare by:
- Annual fee
- Prevailing interest rate
- Minimum monthly repayment
You can also filter based on the provider. For example, you may choose the bank that you do most of your banking with, or a new one that offers new-to-bank promotions such as cashback or lower interest rates.
Who should choose a personal line of credit?
People with periodic, short term need for funds. Upon approval of the credit line, you can withdraw from this loan amount whenever you need the money. For example, small and medium sized enterprise (SME) owners or day traders could choose to get a credit line to fit their short term liquidity needs with repayment flexibility.
What are the fees incurred when you get a line of credit?
- Annual fee: S$60 to S$120
- Late payment charges: S$75 to S$125
- Overlimit fee: S$40 to S$50
- Handling fee/returned cheque: S$40
How much can I borrow from a personal line of credit?
Banks and financial institutions offer personal lines of credit in amounts ranging from 2 to 8 times your monthly salary. This loan amount depends on your monthly salary, citizenship, as well as your repayment record.
Tips for using a line of credit
Here are some tips to keep in mind when using a line of credit:
- Ensure that the line of credit you apply for is sufficient as there are fees incurred when you borrow over the limit
- Borrow only what you need because interest will be charged on the credit used
- Take note of other charges that you could incur
- Make early payments if possible to reduce future interest payments
- Keep a lookout for ongoing promotions
What is the interest rate for a personal line of credit?
The prevailing interest rate for a personal line of credit usually ranges from 18% to 22%. This is lower than the 26% to 28% charged by credit cards. However, some banks and financial institutions also offer low interest rates or interest-free deals for the first few months.
When not to use a line of credit?
If you are already sure about the amount of money you need to borrow, you could consider taking a personal loan instead. A personal loan offers interest rates lower than the interest rates for a credit line. Currently, the personal loan interest rate ranges from 3.5% to 10.8% per annum. This interest rate varies across banks and depends on factors such as the loan tenure. There are also various promotions for personal loans, offering perks such as cashback or lower interest rates.
Who shouldn't apply for a personal line of credit?
There is no fixed repayment period for a personal line of credit. This allows you to continuously borrow from the credit line as long as you don't exceed the credit limit. However, if you are a spendthrift who tends to spend more than you earn, you could consider applying for a personal loan instead. A personal loan has a regular repayment schedule in place and this would help you to avoid over-borrowing.
What are the eligibility criteria and requirements for getting a line of credit?
To apply for a credit line, you have to be:
- At least 21 years old
- Minimum annual income of S$30,000 (for Singapore citizens or Singapore Permanent Residents). If you earn between S$20,000 - S$29,999 banks such as DBS and OCBC still offer credit lines, at a higher prevailing interest rate.
Some credit lines are also only available to Singapore citizens or Singapore Permanent Residents.