You have successfully logged out.

We will send you an email with instructions to reset your password.

Personal Loan Guide

When you need to borrow money, you approach a financial institution or moneylender to get a personal loan or a line of credit. The lender will decide the loan amount (known as the principal amount) based on your annual income.

Personal loans in Singapore are unsecured loans, which means you don't have to put up any collateral when you borrow money.

There are many terms when you borrow money, such as interest rates, loan tenure, drawdown terms, repayment fees and any other fees and charges. These varies from lender to lender.

Generally, there are three types of personal loans that you can apply for:

  1. Personal Instalment
  2. This type of loan gives you the sum agreed by you and the lender upfront, thereafter requiring you to make fixed monthly payments. This helps you anticipate and plan for your payments.

  3. Credit Line
  4. Credit line gives you access to a line of credit with a limit based on your annual income. You only pay for what you use.

  5. Balance Transfer
  6. This loan type allows you to transfer any outstanding credit balances into one account. Some lenders give you a grace period (also known as interest free period) of six to twelve months where you pay 0% interest.

Singaporeans use personal loans for various reasons. They include the following:

  • Education fees for your children
  • Medical emergencies
  • Family emergencies
  • Making a down payment for a wedding
  • Transferring outstanding credit balances for lower interest rates

In Singapore, you are required to be between 21 and 65 years old, and a Singapore citizen, Permanent Resident (PR) or hold an employment pass.

Ensure that you have all documentation in order for a successful personal loan application. Most banks require the following:

  • Proof of identity: Your Singapore Identification (IC) card or Employment Pass (EP) and Passport
  • Proof of address: Documentary evidence of your residential address (for example, utility bills with your name and address)
  • Proof of income: Your CPF (Central Provident Fund) statement or personal passbook showing regular income the last 3 to 6 months

Your credit history plays a big part in your loan approval as well. You need a good credit history to show that you can repay your loan. Banks have access to it, and take this as part of their evaluation process.

Expatriates that have P1, P2 or Q type Singapore Employment Passes or Singapore Permanent Residents can easily apply for personal loans from the banks.

If you're new in Singapore, try to be realistic with your expectations in getting quick approval for a personal loan with a bank. Since personal loans are unsecured, banks need more time to assess if you will be able to repay your loans.

You can try applying for a personal loan with a consumer finance company or private moneylenders, as some specialise in loans for foreigners.

  1. Credit history, interest rates and loan approval
  2. Before your loan application is approved, a thorough credit check is done to make sure that you are able to repay your loan. A poor credit history could lead to higher interest rates or loan rejection. You should always maintain a good credit history.

  3. Additional fees and charges
  4. It's important to check what the additional fees and charges that the lender imposes. The most common fees are annual fees, handling and administrative fees, repayment charges and any late payment fees.

    Because Singapore's market is highly competitive, some lenders waive off certain charges completely, such as the annual fees.

  5. Flat Interest Rates vs. Effective Interest Rates (EIR)
  6. There are two types of loan categories: term and revolving. Generally, term requires a longer commitment than revolving. But they also differ in interest rates charged.

    Term loans use Flat Interest Rates, where a monthly flat interest is charged on the original loan amount.

Compare and Apply in 3 Steps

Why choose

100% free
Quick and easy
Impartial and independent is your go-to website for finding credit cards and personal loans in Singapore. Use our comparison tools to get unbiased, up-to-date information on personal finance products.

Testimonial person
I used to be scared of credit cards, but made me realise there's nothing to worry about you didI pay my bill on time.
Andrea Tay, Singapore

Save Money in Singapore

Subscribe to our free weekly newsletter for tips on how to save money in the world's most expensive city

Latest news

Read the latest news about financial products in Singapore and the best money saving tips. See all news