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Personal Loans In Singapore With The Lowest Interest Rates 2024

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When you need a loan for any of the personal reasons and don’t want to give any asset of yours as security, you can apply for the personal loan

This unsecured loan is used mostly when you want money for a home, home renovation, medical emergency, car, education or for any other usage. You don’t have to justify the reasons to take it and this loan is processed quickly. 

Rate of interest on a personal loan can range anywhere between 3.5% to 11% per annum. The interest rate is decided based on the loan tenure, monthly repayment amount and the duration and hence, do consider them when applying. 

Here is an article that would summarize things that you need to take into consideration when you apply for it.

Best Personal Loans in Singapore (2022)

Here is the list of current interest rates offered by the most popular loan providers in Singapore.

 Personal Loan Interest Rate Processing Fee
 HSBC Personal Loan 3.7% to 3.8% (EIR from 7%) None
 Citibank Quick Cash From 3.99% (EIR from 7.5%) None
 POSB / DBS Personal Loan From 3.88% (EIR from 7.56%) 1%
 Standard Chartered CashOne 3.88% (EIR from 7.67%) Waived
 UOB Personal Loan 3.68% (EIR from 7.21%) 1%
 OCBC Cash-on-Instalments 4.7% (EIR from 9.06%) 1%
 HL Bank Personal Loan From 3.88% (EIR from 8.78%) 1.5% or $100
 OCBC ExtraCash Loan From 5.42% (EIR from 10.96%) 2% or $200

In this table, there are a few terms which are as follow: 

  • EIR: Effective interest rate (p.a EIR) is the closest reflection of the cost as it takes other fees like processing fee and loan repayment scheme into consideration.
  • Processing Fee: This is a hidden cost of personal loan and is worth the attention. This amount is decreased from the principal amount of the loan. For example: If a borrower wants to take a loan of $10,000 then processing fees for it will be $100 (or 1%) and the amount you will get in hand will be $9,900 only. It ultimately reduces your fund and adds up to the cost borrowed.
  • Interest Rate: It’s the additional amount you will have to pay for taking the loans. The numbers vary, depending on who you are, the amount you want to borrow, and the duration of the loan. Banks often decide the personal loan interest rates when you apply, so you will be able to see the final interest rate only after the approval.

What Are Some of the Main Considerations of a Personal Loan?

When you choose a personal loan, you need to take the following considerations before making a final decision. 

• Choice of loan tenures

In Singapore, most of the banks give you a loan for a minimum of 12 months, even if you can repay it in lesser duration. This is done to ensure that they receive the interest fees from the borrower. A prepayment charge is taken if you try to repay it in a shorter duration then decided.

Hence, it is suggested that the person looking out for loans should consider different options when they require cash. Having said that, you must always remember that the ideal loan tenure is to keep it as short as possible taking your income into view so that you have to pay the lowest interest rate possible.

• Fixed monthly repayment and repayment period

Monthly repayment and the repayment period are fixed as per the borrower’s need. Make sure to consider whether the loan provider is flexible as per your requirement (income, expenditure, etc.) or the terms are stringent. Make sure you consider your annual income when fixing the amount.

• Interest rates, barring late fees or other penalties

All the personal loans in Singapore comes with a fixed interest rate, late fees and other penalties. Read about them carefully and evaluate if it is too high in regards to your income.

Just in case you miss a payment, it should not cause a big problem for you financially. This is the most important thing to take into consideration while taking a loan. Though the personal loan interest rates are decided and can vary according to the loan tenure and amount of loan, it should be evaluated properly that is
ideal and not too much as per the market rate.

• Minimum loan amount

Some personal loans provider has a fixed minimum loan amount that one can take. Make sure that you research it well and consider taking a loan with a provider that does not force you to take more loan, citing as a condition.

How to Choose the Best Personal Loan in Singapore

When you are sure that you want to take a loan from a bank or money lender, you might want to know what is the right offer for you. Below are some of the considerations you can take to make the right decision.

  • Total Cost: You must calculate how much loan you want to take. What will be the total cost that you will have to repay? Will you be able to pay it with the minimum annual income you have right now? Take the minimum loan possible to avoid giving a huge amount as repayment.
  • Monthly Payment: When applying for a personal loan, make sure you can repay the monthly instalment on time. However, don’t divide it into a very long period. Evaluate it by looking into your minimum annual income and decide the best time in which you can easily pay it without feeling burdened.
  • Balance: What is the balance loan amount? How do you plan to repay it with your present income? When you have answers to these questions you can make sure that you choose the right loan.


Answering here few of the generally asked questions from people who are interested in applying for a loan in Singapore:

  • Types of Personal Loans Available in Singapore

There is various type of loans available in Singapore that a person can take

There are some of the common loans available in the market that many of the lenders provide. There are some other loans as well, but they are not usually this common and may not be available with the majority of lenders. 

  • Alternatives to Personal Loans: Specific Use Loans

There is a certain alternative to personal Loans. Singapore has many licensed moneylenders that provide loans like education loan, wedding loan, car loan, renovation or home loan. These are tailored as per the requirement and based on its usage. You can’t use these loans for any other purpose though.

  • Can I use a personal loan to buy a car?

Yes, you can use this loan for any purpose like for buying a car, house, in medical emergencies, renovations or using it for education purposes. It doesn’t come with any restrictions.

  • Is it better to use a credit card or a personal loan to pay for my honeymoon?

Credit card is always a better option for the short-term requirement. Personal loans are generally helpful when people need time to repay. If you can pay the money back soon then a credit card is a better option.

  • Term loan vs credit line — which should you choose?

Loans are better for a huge, one-time investment, for example, when you want to take a car or house. Line of credit, on the other hand, is better for ongoing unanticipated or small expenses or to not have a gap between cash flow or income.

  • Effective Interest Rate (EIR) vs Flat Interest Rates?

Flat interest rates are the specified interest rates on your loan while the effective interest rates are the true rate that you will pay. The difference between the two is that the flat interest rate does not consider the compounding.

Before you apply for a loan in Singapore, make sure that your motive is clear before applying for it. It is also necessary to take pros and cons into consideration before taking one and also look into one’s circumstances to make sure that you don’t make it a burden upon yourself.

Loan Advisor can help you choose the best personal loan providers. It is a Singapore loan comparison site where you can search for the suitable option. By simply filling out a form on their website you can get the best quote available in the market for free.

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