Personal Overdrafts

Say goodbye to overdrawn account fees and have a convenient line of credit attached to your transaction account.

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An overdraft can be a convenient option if your account occasionally slips into the red or if you’re after a line of credit to use whenever you need it. It’s a line of credit that you can add to an everyday transaction account. Once you exhaust your available funds, you’ll be able to access an additional credit limit.

Find out how these accounts work in our guide below.

How does a personal overdraft work?

Personal overdrafts are a type of credit attached to an everyday transaction account. You will be approved for a set limit and be able to draw up to and including that limit whenever you need it. Your overdraft funds will only be accessed when the other funds in your account have been exhausted.

You may have to pay a fee to set up your overdraft, but you will pay any interest on your total balance – you will only pay interest on the amount you use. Once you put money back into your account, you will be able to use the more credit.

Compare personal lines of credit

We don’t have any personal overdrafts available for comparison, but you can compare a range of line of credit products in the table below.
Name Product Interest Rate From Effective Interest Rate Minimum Loan Amount Maximum Loan Amount Loan Tenure
Standard Chartered CashOne Personal Loan
Up to 4x fixed monthly salary, subject to a cap of S$250,000.
1 - 5 years
Receive up to S$1,088 cashback and S$160 Anniversary Cashback on your approved loan. Ends 31 March 2020.
Citibank Personal Loan
Up to 5 years
Receive cash starting at 4.55% p.a. (EIR 8.5% p.a.) on a 36-month loan tenure.

Compare up to 4 providers

How do I find the best personal overdraft account for me?

As with any financial choice you make, you should compare personal overdrafts to get the best possible deal. You’ll also want to pick the best loan for your personal financial situation.

  • Do you already have an account with the lender? You will need to have a transaction account with the provider to get a personal overdraft. If you don’t have an account yet, you will need to first set one up.
  • How much will it cost? Fees to look out for include upfront fees such as establishment fees and ongoing fees in the form of monthly or annual fees.
  • What interest rate will you be charged? Since a personal overdraft is an unsecured loan, variable interest rates generally apply. Most banks only ask that you pay interest on the money you use, but you’ll still want to find the best interest rate available.
  • Minimum requirements. Some lenders may set a minimum requirement for how much your personal overdraft loan should be. Compare your options so you don’t take out a higher credit limit than you need.
  • Application process. If you’re the type of person that is looking for a simple enrolment process, you’ll want to examine all of your options to find the simplest one for you.

Weigh up the benefits and drawbacks before you apply

  • You can avoid overdrawn account fees. If you find your account dipping into the red too often, an overdraft account will safeguard you against overdrawn account fees (up to your overdraft credit limit).
  • 24-hour access. With most personal overdrafts, you’ll have 24-hour access to your account, and most providers will give you a debit card for convenient spending and ATM withdrawals
  • You only pay for what you use. You’re only charged interest for what you’re using, helping you to save.
  • The account comes with interest. Like any unsecured loan, personal overdrafts come with interest rates. These rates will vary from lender to lender, so it’s important to compare your options to get the best deal.
  • Fees and charges can vary. There are also fees and charges attached to personal overdrafts. This can be anything from enrolment fees to account-keeping fees.

Is there anything you should avoid?

  • Overusing the account. Sometimes people overuse their personal overdrafts just because it is conveniently attached to their transaction account. If you apply for and get a personal overdraft, you should make sure you use it only when it’s necessary. Most personal overdrafts only charge interest on the money you use, so make sure to use only what you need and you can save yourself interest payments.
  • Taking the first loan you see. Make sure to compare personal overdrafts based on the applied fees and charges, the interest rates, and any requirements in order to get the best deal that suits your personal situation.

How you can apply for a personal overdraft

Once you compare the personal overdrafts available, you can start the application process. Each bank or lender will have their own application process and eligibility criteria.

Generally, to open a personal overdraft you must meet the following requirements:

  • Be a Singapore citizen or permanent resident with a valid Singapore address.
  • Be 21 or older.
  • Pass a credit evaluation to determine if you can afford the loan. That means the lender may require information regarding your employment and income as well as personal assets.

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