POSB Personal Loan

Low interest rate for excellent credit profile customers, Great for instant cash disbursal



  • Instant cash disbursements for POSB/DBS customers
  • Loan up to 10x of your monthly income
  • Personalised interest rates from as low as 3.88% p.a (EIR 7.56% p.a)


  • Low interest rates are not guaranteed as it is based on credit risk profiles
  • Upfront processing fees
Summary of Product
Interest Rate: From as low as 3.88% p.a (EIR 7.56% p.a)
Loan Tenures: Choice of 1 year to 5 years
Max. Credit Limit: Up to 10x of monthly income
Min. Loan Amount: S$500
Turnaround Time: Instant approval & cash disbursement for DBS/POSB customers

Table of Content

Why should you choose POSB Personal Loan?

Low interest rate from 3.88% p.a (EIR 7.56% p.a) for excellent credit profile users

Both POSB and Standard Chartered Bank offer a very competitive rate starting from 3.88% p.a (EIR 7.56% p.a). And what makes them different is that POSB offers this rate only if your credit risk profile is great. In other words, you may not be getting this rate at all if your credit scores don’t hit the mark.

How would you then know the interest rate that will be offered to you? Since this is a personalised score, no one will know except for yourself. All you have to do is to log in to your account after you hit “Apply Now” on their site. There, you will see the interest rates offered by them.

Instant cash disbursement for POSB/DBS customers

They pride themselves to approve fast and disburse cash immediately into their customers’ account. By customers, we mean existing credit line or credit card customers or new customers who are currently crediting their salary to their POSB/DBS accounts. This is a great feature especially since some of us will need cash urgently at some point of time.

But bear in mind that their system does not run 24/7. There is a downtime daily from 11.45pm to 8.00am, so your application will only get processed the next day.

Loan up to 10x of your monthly income

Another great thing about POSB is that they offer a loan of up to 10x of your monthly income. But similar to other banks, this is dependent on your monthly income. The option of 10x loan amount is only offered to you if you are earning S$120,000 a year. Otherwise, the maximum amount that you can loan is up to 4x of your monthly income.

This is one of the few banks that offer loans for annual income earners of S$20,000 - S$30,000

Yes, the minimum monthly income requirement for POSB Personal Loan is S$1,667. But there are two things for you to note. Firstly, the maximum loan amount is capped at S$5,000. This helps to ensure that people do not take up loans that they can’t possibly afford. Secondly, the interest rates for these income bracket is much higher. And I mean, way much higher. As an illustration, for a 5 year tenure, the rate that you’ll get is 11% p.a (EIR 20.01% p.a) with 4% processing fee.

Is POSB Personal Loan the best option for you?

Absolutely, if your credit scores are excellent or if you are looking for instant disbursement of cash into your account.

If you do not fall in either of the category above, hare some other loans for your consideration depending on your profile:

  • HSBC is currently offering exclusive rate from 4% p.a (EIR from 7.5% p.a).
  • Standard Chartered is your best option as they offer 3.8% p.a (EIR from 7.63% p.a) for all loan amount and tenures.
  • OCBC is offering you a promotional rate of 5.8% p.a (EIR from 12.11% p.a).

  • Note that your eligibility for approval is at the discretion of each bank.


    Who can apply?

    Age Requirement 21 - 65 years old
    Income Requirement Singaporeans/PRs: S$20,000 of annual income

    What charges or fees should you look out for?

    Processing fee 1% of approved loan amount
    Late Payment fee S$100 for Credit Card Personal Loan
    S$100 for Cashline Personal Loan
    Early Termination fee S$250
    Finance charge If the instalment amount is not made by due date,
  • 26.8% p.a will be charged for DBS/POSB Credit Card full outstanding Instalment Amount;
  • Prevailing interest rate of 20.5% p.a or 29.8% p.a will be charged for DBS Cashline full outstanding Instalment Amount
  • How to apply?

    If you are an existing POSB/DBS customer, all you need is to log in to you iBanking/mBanking/ATM or debit/credit cards and submit the short application.

    Otherwise, here’s what you will need during the application process:
    • Front and back of NRIC/FIN/Passport number
    • For salaried employees,
      • Past 9 months’ of CPF Contribution History statement (if Singaporean/PR); OR
      • Latest Income Tax Notice of Assessment; OR
      • Latest computerised payslip or salary crediting into your DBS/POSB account
    • For self-employed,
      • Latest Income Tax Notice of Assessment

    Appendix: Summary of Interest Rate for all tenures

    For Customers with Annual Income >S$30,000
    Loan Tenure Flat Interest Rate (p.a) Effective Interest Rate (p.a) Processing Fee Monthly Instalments
    1 year 3.88% 8.89% 1% S$1,731.33
    2 years 3.88% 8.2% 1% S$898.00
    3 years 3.88% 7.9% 1% S$620.22
    4 years 3.88% 7.71% 1% S$481.33
    5 years 3.88% 7.56% 1% S$398.00
    For Customers with Annual Income S$20,000 - S$30,000
    Loan Tenure Flat Interest Rate (p.a) Effective Interest Rate (p.a) Processing Fee Monthly Instalments
    1 year 11% 26.62% 4% S$462.50
    2 years 11% 23.26% 4% S$254.17
    3 years 11% 21.74% 4% S$184.72
    4 years 11% 20.75% 4% S$150.00
    5 years 11% 20.01% 4% S$129.17
    *Note that the above monthly repayment is based on the calculation of S$20,000 loan amount, unless otherwise stated.
    Looking for other personal loans? Check out the Best Personal Loans in Singapore 2019.