Best personal loans in Singapore

What you need to know to find the right loan to meet your needs.

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The best personal loan is the one that meets your needs and circumstances. While one person might need a personal loan to buy a car, another might want to borrow to fund home renovation or consolidating debt. With a large number of options available, how should you try to find the best personal loan in Singapore for you? This guide will take you through what you need to know.

Best personal loans Singapore

Best for promotional interest rate: HSBC Personal Instalment Loan

HSBC Personal Instalment Loan

Go to site on HSBC's website
With HSBC, you could get a promotional interest rate from 3.7% p.a. (EIR 7% p.a.). T&Cs apply. This offer ends on 31 October 2020.

Best for cashback: Standard Chartered CashOne Personal Loan

Standard Chartered CashOne Personal Loan

Go to site on Standard Chartered's website
Apply now and you could get S$199 refunded to your loan account, which covers your first-year annual fee.

Best for lower earners: DBS Personal Loan

DBS Personal Loan

Go to site on DBS's website
If you earn at least S$30,000 p.a. you can apply for a loan with a term of up to 5 years.

Best for competitive rates for new customers: Citi Quick Cash Loan

Citi Quick Cash Loan

Go to site on Citibank's website
If you have never banked with Citibank before, you can get a special discount on the Citibank personal loan product, reducing your interest rates below what is charged for existing customers.

Best for fast approval: POSB Personal Loan

POSB Personal Loan

Go to site on POSB's website
Existing customers of POSB or DBS could take advantage of a very quick approval process. Everything is done online. You can receive instant approval upon meeting the requirements.

3 steps to finding the best personal loan in Singapore for you

  1. What do you need? Decide why you’re taking out the loan and what you need from it. For example, you might need the loan to buy furniture as well as a car and you want to be able to make additional repayments.
  2. What personal loan types are available? Compare the types of loan you want to apply for. Personal loans can be secured or unsecured, and can be taken out in the form of a line of credit or an overdraft facility. Compare different loan types according to their features and find one that offers you everything you need. Then, check the eligibility criteria to make sure you can apply for it.
  3. What does my loan cost? You need to find a loan you can afford. Look for upfront and ongoing fees and see how flexible the repayments are. Make sure the ongoing repayments will be manageable on your budget.

How to compare personal loans

When you want to apply for a personal loan, you should first compare multiple offerings so you can track down the right product. Ask yourself:

  • Do I want a secured or unsecured loan?
    If you get a secured personal loan, you stand to lose the asset you’ve used as a guarantee in the event you miss repayments. An unsecured personal loan, on the other hand, offers no such risk – if it turns out that you can’t meet your repayments, a lender can’t repossess your car or home. Unsecured loans typically attract a higher interest rate.
  • What are the advertised interest and effective interest rate (EIR)?
    Make sure you compare the Effective Interest Rate (EIR) before signing up to a personal loan. The EIR takes into account the actual interest rate you pay, plus, any other fees or charges involved in the loan. This gives you a more complete picture of the full cost of your loan. The advertised interest rate, on the other hand, won’t show you the ‘true’ interest rate of the personal loan.
  • What are the fees and charges of my loan?
    Some personal loans attract prepayment penalties, late charges that vary from loan to loan, and some even require you to pay application fees. Comparing these extra costs as they are important when you’re trying to determine the true cost of the loan.
  • What will the term of my loan be?
    While a lower interest rate might seem promising at first, you should also compare loan terms. Personal loan terms vary depending on the type you take out and the provider you choose, but it could be anywhere from one to 10 years. The shorter the loan’s duration, the less you pay in the form of interest over the lifetime of the loan.

Pros and cons of personal loans

  • Online applications are easy and can offer quick turnaround
    The application process is quick and the majority of lenders allow you to complete the whole process online. Some lenders, including major banks, offer same-day turnaround for personal loans.
  • Range of personal loans available
    You can choose from secured and unsecured personal loans as well as lines of credit, car loans and even peer-to-peer loans.
  • You can get access to a competitive interest rate
    If you compare the interest rates between personal loans and credit card, you’ll see why some people prefer personal loans over credit cards.
  • You may not be approved
    As some personal loans do not require any form of security, you can expect strict eligibility criteria. If you don’t have a good credit rating, your chances of approval are slim.
  • The loan purpose might be restrictive
    Depending on the type of personal loan you choose, you may be restricted as to how you can use it.

What to keep in mind when looking for the best personal loan?

While personal loans are helpful in many scenarios, it’s in your best interest to avoid certain traps and pitfalls.

  • Read the fine print.
    Scrutinise all your options carefully right from the start and remember to look for ongoing account-keeping fees, early repayment fees and late payment fees. Read the terms and conditions document from start to finish.
  • Check if the lender is licenced.
    There are some credit brokers and providers in Singapore that operate illegally. If you wish to safeguard your interests, it is best that you do your research to avoid borrowing from these lenders.
  • Don’t take on a loan you can’t afford.
    When borrowing money, it’s important to understand exactly what your repayments will be and for how long you will need to commit to re-paying the loan. If you can’t comfortably afford a loan, don’t be tempted to consider this type of borrowing.

How to apply for a personal loan

You can use Finder Singapore to compare personal loan rates, fees, charges and term periods of different personal loans. Once you find a loan you wish to apply for, proceed to the lender’s website by clicking Go to site.

Remember that lenders will want to ensure your ability to repay a loan before they lend you any money. As a result, they might want to take a look at your credit file and may also ask for copies of your payslips, details of other loans you have, credit card bills and bank account statements.

DBS Personal Loan

DBS Personal Loan

From

3.88 % p.a.

rate

  • Borrow from S$500
  • Repayment flexibility, subject to lending criteria
  • Instant approval

DBS Personal Loan

Apply today to get approved for up to 10X your monthly salary over 5 years.

  • Max. loan amount: Up to 10x fixed monthly income
  • Loan tenure: 1 - 5 years
  • Approval duration: Instant approval
  • Effective Interest Rate: 7.56% - Apply today and you could get an interest rate as low as 3.88% p.a.
  • Fees: 1% processing fee
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Promoted

Compare personal loans

Name Product Interest Rate From Minimum Loan Amount Maximum Loan Amount Processing Fee
DBS Personal Loan
3.88% 

EIR: 7.56%

S$500
Up to 10x your monthly salary
1% processing fee
Apply today and you could get an interest rate as low as 3.88% p.a. (EIR 7.56% p.a), plus a 1% processing fee. Loans of up to 10x your salary may be available.
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
Apply by 20 July 2020 to receive Cashback equivalent to 50% of your first month's instalment loan amount. T&Cs apply.
POSB Personal Loan
3.88% 

EIR: 7.56%

S$500
Up to 10x your monthly salary
Based on your personal credit and income profile
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.
HSBC Personal Instalment Loan
3.7% 

EIR: 7%

S$1,000
S$200,000
S$88
Get an S$88 processing fee waiver if you apply by 31 October 2020. T&Cs apply.
Citi Quick Cash Loan
4.55% 

EIR: 8.5%

S$1,000
S$100,000
S$0
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.
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Frequently asked questions

Read more on this topic

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  • DBS Debt Consolidation Plan DBS offers a debt consolidation plan with a flexible loan tenure and promotional interest rate.
  • DBS Balance Transfer Review Access short term financing with 0% interest for up to 12 months with DBS Balance Transfer.
  • DBS Personal Loan Review Repay your personal loan over a period of up to five years with DBS.
  • POSB Personal Loan Review Take advantage of a fast approval process for a personal loan with POSB.
  • HSBC Personal Instalment Loan Get a quick decision in-principle on your personal loan of up to seven years with HSBC.
  • Standard Chartered CashOne Personal Loan Review Find out what you need to know about Standard Chartered CashOne Personal Loan. Get competitive rates and a loan that’s matched to your needs.
  • Citi Quick Cash Loan Review If you’re looking for a loan to meet any type of expenses, Citi Quick Cash Loan could be an option to consider. Existing Citibank customers with a Citi Credit Card or a Citibank Ready Credit can apply to convert their unused credit limit to cash in their Citi Deposit Account. This needs to be paid back in monthly instalments, along with your regular credit card payments.
  • What is a processing fee on a personal loan? Learn how lenders apply processing fees, how much they cost and where to find a personal loan without this fee.
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