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Types of Loans

Getting a loan gives you access to money when you need it, and you can get one to serve just about any purpose.

The kind of loan you should look for depends on what you want the money for, because different loans serve distinctly different purposes and they come with varied features. You might, for example, require a student loan to pay tuition fees, a car loan to buy a car, a personal loan to go on a vacation, or a home loan to buy a home.

How does a loan work?

While different types of loans offer different features and take different factors into account, one aspect remains the same: you borrow money, and you repay it in installments over a period of time along with any interest, fees, and charges that it attracts.

You can get a fixed rate personal loan either as secured or unsecured.

Compare your personal loan options and apply securely

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 31 December 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 November 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 upon approval. Offer ends 31 December 2021. T&Cs apply.
DBS Personal Loan
2.88%

EIR: 5.79%

S$500 – Up to 10x your monthly salary
1% processing fee
Apply today and receive an interest rate from 2.88% p.a. (EIR 5.79% p.a), plus a 1% processing fee. Loans of up to 10x your salary may be available.
POSB Personal Loan
2.88%

EIR: 5.79%

S$500 – Up to 10x your monthly salary
1% processing fee
Enjoy a fast approvals service and an interest rate starting at 2.88% p.a. (EIR 5.79% 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

What are the types of loans available in Singapore?

Loan typeWhat is it?Loan amountLoan termsEligibilitySpecial features
Secured personal loanA loan used to purchase an asset that is used as a guarantee or a loan used for any purpose that requires a guaranteeAs much as 100% of the collateral1 to 7 years or longer
  • Over 21
  • Good credit
  • Regular income
  • Guarantee meets criteria
Lower interest rate than an unsecured personal loan
Unsecured personal loanA loan that can be used for almost any purposeTypically up to 2 – 4 times your monthly income, depending on your annual income1 to 7 years
  • Over 21
  • Good credit
  • Regular income
Funds can be used for almost any purpose
Car loanA loan specifically designed to purchase a new or used car60 – 70% of the cost, depending on the vehicle’s OMV1 to 7 years
  • Over 21
  • Good credit
  • Regular income
  • Annual income >S$20,000
  • Vehicle meets criteria
You can get a car loan for vehicles up to 10 years old
Short term loanA loan up to a few thousand that is typically repaid by your next paydayS$500 – S$10,0004 to 8 weeks
  • Over 21
  • In employment and receiving an income
Can receive funds within the hour. No credit checks
OverdraftA type of credit attached to a transaction accountTypically up to 2 – 4 times your monthly income, depending on your annual incomeOngoing
  • Over 21
  • Transaction account in good standing
Access it any time from your transaction account
Line of creditA maximum credit limit you can draw up to and includingTypically up to 2 – 4 times your monthly income, depending on your annual incomeOngoing
  • Over 21
  • Good credit
  • Regular income
Only repay what you borrow

How do I decide between my loan options?

If you aren’t sure which loan type will be right for you, ask yourself the following to narrow down your options:

  • How much do you need to borrow? The loan types have varying funds that will be available, and each lender will offer a different maximum and minimum loan amount. Make sure how much you need to borrow falls within that range.
  • How long do you need the loan for? Each loan type has different loan terms. Find out what lenders are offering and pick a loan that offers an affordable repayments period.
  • When do you need the money? Some lenders can have the funds to you sooner than others, and some loan types lend themselves to quick turnaround. For example, short term loans. Find out how long it will take to receive your funds.
  • Do you want the option to access more money? Topping up a fixed amount loan, such as a secured or unsecured personal loan or a car loan, is difficult and usually involves you taking out another loan. If you think you might need additional funds, opt for an overdraft or line of credit.

Is there anything you should avoid?

  • High interest rates. Some loans come with exorbitant interest rates, and in some instances, you might have to end up paying more in the form of interest than what you originally borrowed. These are situations you should avoid, and requires that you compare interest rates of loans before you apply.
  • High fees and charges. Almost all loans types attract some or the other kind of fees and charges, and it is best that you find out about these at the onset. Avoid taking a loan without addressing this aspect, and compare application fees, processing fees, early settlement fees, late payment charges and all other applicable fees and charges.


Before you apply for any kind of a loan, know that you always have options in terms of lenders and comparable offerings. As a result, compare a few before moving forward with the application process.

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