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How much can I borrow with a personal loan?

Need a personal loan but not sure how much you can get? Find out how much you can borrow from a range of online lenders.

Personal loans fill the gap when you need to pay for something big but don’t have the savings to cover the expense. But, before you submit an application with a lender, it’s a good idea to know how much you can borrow. Applying for an excessive amount can lead to your application being rejected or see you stuck with repayments you can’t afford.

This guide will take you through what you need to know about working out how much you can borrow with a personal loan so you can get the right loan for you.

How much can I borrow with a personal loan?

There are a few considerations that come into play when determining how much you can borrow with a personal loan, including how much you can afford to repay and your loan purpose. But in terms of how much you can apply to borrow, it comes down to the type of loan you apply for.

Unsecured personal loans usually offer loan amounts up to 4 times your monthly income, while secured personal loans depend mostly on the value of your collateral. Car loans usually offer loan amounts up to 60% or 70% of the purchase or valuation price, depending on the vehicle’s OMV.

Borrowing limit for unsecured loans

Unsecured loan refers to any loan without any attached collateral. Some examples of unsecured loans are:

  • Credit card debts
  • Credit lines
  • Personal loans
  • Education loans
  • Renovation and furnishing loans

Depending on the issuing bank, most individual credit cards and credit lines restrict your credit limit to either two or four times your monthly income.

To help Singaporeans avoid accumulating excessive debts, the Monetary Authority of Singapore (MAS) has capped the total amount of unsecured loans an individual can have to 12 times their monthly income (implemented since 1 June 2019).

Any further attempts to borrow after the cap is met will be automatically declined. In other words, you’ll not be able to apply for a new credit card, unsecured facility or increase in credit limit. You’ll also be barred from using your existing credit card or draw down on your unsecured facilities. These limitations will also apply if your total unsecured debt exceeds the borrowing limit for 3 consecutive months or if you’re 60 days past due on any credit card or unsecured facility payments.

What do lenders consider when deciding how much I can borrow?

Lenders consider several key pieces of information when approving your loan amount:

  • Your loan purpose. If you’re applying for a loan to borrow a car, the loan amount will be tied to the car’s value. If you’re applying to consolidate debt, this will also be tied to how much debt you have. Lenders will also consider how risky the loan purpose is. For example, taking out a loan to go on holiday is riskier than buying a car.
  • Your income and financials. Your ability to afford the repayments is determined by how much you earn and your current outgoings, such as expenses and other debt commitments. You will need to provide information about these as well as financial statements. The lender will also check your credit report.
  • Debt-to-income ratio. If you already have a significant amount of debt, a lender may see you as a liability and will be less likely to lend money to you. Try paying down your existing debts before taking out another loan if you think this might be an issue.

Compare loan amounts from different lenders in Singapore

Name Product Interest Rate From Loan Amount Processing Fee
Standard Chartered CashOne Personal Loan
3.48%

EIR: 6.95%

S$1,000 – Up to 4x your monthly salary, subject to a cap of S$250,000
S$0
Get up to $1,200 cashback and Interest Rate as low as 3.48% p.a. (EIR 6.95% p.a.). T&Cs apply. Valid till 30 September 2021.
UOB Personal Loan
3.4%

EIR: 6.22%

S$1,000 – Up to 95% of your available credit limit
S$0
Get up to S$600 Cashback if you choose a loan of S$30,000 or more with a term between three and five years. This online offer ends on 30 September 2021.
HSBC Personal Instalment Loan
3.4%

EIR: 6.5%

S$1,000 – S$200,000
S$88
Apply online and get cashback of up to SGD3,100 on approval. Offer ends 30 September 2021. T&Cs apply.
DBS Personal Loan
3.88%

EIR: 7.56%

S$500 – Up to 10x your monthly salary
1% processing fee
Apply today and receive an interest rate from 3.88% p.a. (EIR 7.56% p.a), plus a 1% processing fee. Loans of up to 10x your salary may be available.
POSB Personal Loan
3.88%

EIR: 7.56%

S$500 – Up to 10x your monthly salary
1% processing fee
Enjoy a fast approvals service and an interest rate starting at 3.88% p.a. (EIR 7.56% p.a), plus a 1% processing fee.
Apply for a Personal Loan with Lendela
Apply for a Personal Loan with Lendela
5.3%

EIR:

S$1,000 – S$100,000
0
Receive a customised personal loan that meets your financial needs.
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Compare up to 4 providers

How can I get the loan amount I need?

When you need to borrow a large amount, there are no guarantees that you’ll get the funds you’re looking for. However, following some of these tips may help you score the loan amount you need.

  • Improve your credit score. Putting yourself in a better credit position and proving yourself as a reliable borrower may help convince lenders to approve you for a higher loan amount.
  • Reduce your debt. Paying down your existing debts will lower your expenses and show that you can afford to take out a new loan.
  • Consider offering security. A secured personal loan, where you secure the loan with a car or asset such as a term deposit, can help improve your chances of being approved for the loan amount you need.

How to compare lenders beyond the maximum loan amount offered

There’s a lot more to a loan than just the maximum amount you can borrow. Keep these factors in mind when comparing your options.

  • Interest rate. Check if the rate is fixed or variable and make sure it is competitive when you compare it with other similar loans. Personal loans typically come with fixed interest rates.
  • Fees and other charges. Look for up-front fees such as processing fees as well as ongoing fees such as annual fees. The effective interest rate will give you an idea of the true cost of the loan as it incorporates the interest rate as well as the fees you will be charged.
  • Loan terms. You’ll generally find loan terms of between one and seven years. You can use a personal loan repayment calculator to ensure the loan terms you select will leave you with repayments you can afford. Most online lenders have a loan repayment calculator on their website for you to get an idea on how your repayments would look like should you commit to one.

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