
- Quick application
- Borrow up to $200,000
- Apply once and receive multiple personalised loan offers
- Requirements to apply: 18-70 years old, Minimum monthly income of $1,200, Salaried Singaporean / PR / EP holder
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Updated
This guide will take you through all of the features and costs you need to consider when sorting through your personal loan options so you can be confident when making your decision.
A personal loan lets you borrow a fixed amount of money for a set time period, typically at a fixed rate of interest. This type of loan is a secured or unsecured line of credit of up to S$250,000 over one to seven years. You can use the money for a range of purposes, such as consolidating debt, paying for a wedding or even taking a holiday.
Personal loans are an agreement between you and a lender for you to have a certain amount of money and pay it back over time, plus interest. A personal loan can be a more affordable way to borrow money than a credit card, if you’re looking to borrow a lump sum over an agreed timeframe.
Here is how personal loans work:
Application and approval.You can apply for a personal loan from a bank, credit union or standalone lender online, over the phone or in-branch, depending on what application types the lender offers. The time it takes to be approved depends on the lender, but it can range from anywhere between 60 seconds to a week or two.
Loan contract. When you are approved for a loan, you will need to agree to a loan contract that sets out certain terms. These terms include how long you’ll have to repay the loan, what fees you’ll need to cover, and the rate of interest you’ll be charged on your loan amount.
Loan terms. Your loan terms will be set out in your loan contract. Loan terms generally range between one and seven years.
Loan costs. Lenders agree to lend you money in exchange for interest, which is usually at a fixed rate in Singapore. Other loan costs may include establishment fees, monthly fees and annual fees. You should also check if you will be charged fees for repaying your loan early or making additional repayments.
Loan types.There is a wide variety of personal loans available in the market, each with varying terms and features. For instance, when you apply for a car loan the lender usually requires that the entire loan amount is used for the car purchase and the car to be used as security in case you default on the loan. An unsecured personal loan, on the other hand, is more flexible and you won’t have to use an asset to secure the loan.
There is a wide range of personal loans available in Singapore to those who have stellar credit, average credit or bad credit. Find out what loan may work for you with the below options.
When comparing your personal loan options, it’s helpful to keep in mind the range of features that are available with these loans. When comparing, here are some of the questions you’ll need to ask.
The interest rate and fees you are charged depend on the loan you apply with (you can compare these on the table above), but each loan type comes with similar costs, and understanding these can help you compare personal loan options.
Your interest rate will typically be fixed. At the time of writing, the average EIR is 12.6% p.a. It’s important to keep in mind interest rates can fluctuate from 8% p.a up to 30% p.a. (or more depending on your credit score).
While comparing the personal loans available in Singapore, you’ll encounter at least two distinct interest rates attached to each loan. Here’s what they mean and how they differ:
Hence, if you are considering a personal loan, you should definitely pay attention to the EIR – which is the one you have to pay.
There are three types of fees you should expect: Upfront fees (establishment and application fees), ongoing fees (monthly, annual or direct debit fees) and fees that are charged if you default on the loan or miss a repayment. Do note that the lender might not necessarily charge you all these fees, so make sure to check with them before applying.
To get an estimate of your borrowing power, input your loan amounts into a personal loan calculator on the lender’s website to see what the monthly repayments will approximately be.
There is no way to guarantee your approval for a personal loan, but giving yourself the best chance at being approved starts with meeting the eligibility criteria set by the lender. To further your chances of being approved, keep the following in mind:
Eligibility for personal loans depends on a few different things:
Crunch some numbers to figure out how much you need to borrow and how much you can afford to pay back each month. Also, compare different types of loans to find the one that suits your needs best.
Look for lenders that offer the type of loan you need and eligibility requirements you can meet. Then compare factors like rates, fees and terms.
After you narrow down your choices, check if the shortlisted lenders supports preapprovals. With preapprovals, you can learn which rates and terms you might get without making an application that can affect your credit score.
After you decide on a lender, follow the steps to complete the full application and submit the required documents to verify your income.
Each bank and institution have their own criteria that you’ll have to meet when submitting a loan application.
Loan name | Funds disbursement |
---|---|
Standard Chartered CashOne | ~15 minutes |
HSBC Personal Line of Credit | ~5 business days |
POSB Personal Loan | Instant |
OCBC ExtraCash Loan | Instant |
UOB Personal Loan | Instant |
Citibank QuickCash (For existing customers) | ~15 minutes |
HL Bank Personal Loan | ~ 7 to 14 business days |
If you are in need of urgent cash, it is advisable to check how long it will take to receive your loan amount before you apply.
Some lenders offer different interest rates to different borrowers depending on how risky they are to lend to. This is what’s called “risk-based pricing”. Lenders that use risk-based pricing may use your credit score as an indicator of how risky you are to lend to.
Elizabeth Barry is lead editor for Finder's global financial niches which includes banking, crypto and investments. She has written about finance for 10 years and is regularly featured in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review.
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Finder surveyed 1,008 Singaporeans aged 16 and above and found that nearly 1 in 3 have taken out a loan in the past 12 months.
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