Cheap personal loans

Want access to credit without overspending on rates and fees? Find out what cheap personal loans are available.

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If you’re in the market for a personal loan, one of the most important features to factor into your search is how competitive the loan is. In this guide, we take you through what to look for when seeking cheap personal loans, and what to consider before you apply.

Cheap personal loan features to compare

  • Repayment flexibility: Check if you can make additional payments. If you are, check if there is a fee involved.
  • Loan term: Lenders will have a range of different terms. Some will offer 5 years, while others 7-10.
  • Type of interest rate: Ensure you are aware if your loan is fixed or variable. These have different features.
  • Loan amount: Before applying for a loan, check to see the minimum and maximum lending amounts, ensuring they meet your needs.

Compare cheap personal loans

Name Product Interest Rate From Effective Interest Rate Minimum Loan Amount Maximum Loan Amount Loan Tenure
HSBC Personal Loan
Up to 7 years
Get S$108 cashback plus an S$88 processing fee waiver if you apply by 30 April 2020. T&Cs apply.
Standard Chartered CashOne Personal Loan
Up to 4x fixed monthly salary, subject to a cap of S$250,000.
1 - 5 years
Take advantage of 50% cashback on your first month’s loan instalment, resulting in a S$199 refund on your loan account. Offer ends 30 June 2020.
Citi Quick Cash Loan
Up to 5 years
Get cash starting at 4.55% p.a. (EIR 8.5% p.a.) on a 36-month loan tenure. The interest you pay will vary depending on factors such as your credit score.

Compare up to 4 providers

How cheap is a “cheap” personal loan?

This depends on the type of loan you are looking for. For example, a secured car loan will have lower rates than an unsecured personal loan. Here is a rate guide for each loan type:

  • Secured car loans. Rates can go as low as 2% p.a. or as high as 3.9% p.a.
  • Unsecured personal loans. Rates for unsecured personal loans vary between 8% p.a. to 17% p.a.

How do you find out if a personal loan is competitive?

You need to compare more than the interest rate to make sure a loan is competitive. Look at:

  • Upfront and ongoing fees. These fees will be added on to your principal loan amount, and will, therefore, affect your repayments and the interest you have to pay.
  • The effective interest rate. This rate incorporates fees as well as the interest rate to show the true cost of the loan.

What else should you consider besides the cost of the loan?

Besides the interest rate, effective interest rates and fees, consider the following:

  • Repayment flexibility. Check whether you will be able to make additional repayments, or pay off the entire loan amount early, without a penalty.
  • Loan terms. Some lenders offer shorter loan terms up to 5 years, while others offer 7 to 10 years.
  • Type of interest rate. Your loan can either be fixed or variable, and both rates come with different features.
  • Loan amount. Check what the minimum and maximum borrowing amounts are and if these meet your needs.

Are you eligible for a personal loan?

Lenders have different criteria to determine a customer’s eligibility for loans. Generally, to be eligible for a personal loan you need to be over the age of 21, be a Singapore citizen or permanent resident and be earning a regular income. You then need to prove your ability to manage the loan by providing income, asset and employment information. If you want a secured personal loan, you will need to provide details of what you intend to use as security, and this secured asset will also have to meet certain eligibility criteria.

How to apply for a cheap personal loan

The specific information you will be required to submit will differ between lenders, but it will be similar to the following:

  • Personal details, including your name, contact details and proof of identity.
  • Details of your employment, including income and type of employment.
  • Your employer’s name and contact details.
  • Financial details, including your assets and debts.

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