If you need a helping hand with your finances, taking out a personal loan could help you access instant cash to put toward bills, unexpected expenses, credit card account payments, or other day-to-day costs. In recent months, the COVID-19 pandemic has hit businesses and individuals hard, and more and more Singaporeans are reaching out for personal loans and other financial assistance.
But with so many moneylenders and banks on the market offering low monthly instalment repayment costs, competitive interest rates, and other great perks, finding the best deal to suit your needs isn’t always easy.
In this blog, we’ll walk you through where you can get the best personal loans on the market, what you need to think about when applying, and everything else you need to know about submitting a good application with the right income documents and up to date information.
Where to Get a Personal Loan Here in Singapore
Traditional banks are typically considered the primary lending option for personal loans in Singapore, which means they’ll probably be your first port of call when applying for a personal loan. However, just because you hold a bank account with a specific bank doesn’t necessarily mean they’ll offer you the best deal. Interest rates can vary dramatically between different lenders – and some might offer promotional interest rates or special offers, too. The table below compares loan details, such as loan amount, interest rate EIR, and loan tenor, between the most popular providers.
| Max. loan amount | Interest rate / interest rate EIR | Processing fees | Maximum loan tenor | Annual income requirements | |
| HSBC Personal Loan | $200,000 | From 3.4% (6.5% effective interest rate EIR) | $0 | 7 years | Minimum annual income: $30,000 |
| Standard Chartered CashOne Personal Loan | $250,000 (or 4 times your monthly income) | From 3.48% (7.3% effective interest rate EIR) | $0 | 5 years | Minimum annual income: $20,000 |
| DBS Personal Loan | 4-10 times your monthly income | From 3.88% (7.9% interest rate EIR) | $100 | 5 years | Minimum annual income: $30,000 |
| POSB Personal Loan | 10 times your monthly income | From 3.88% (7.9% effective interest rate EIR) | $100 | 5 years | Minimum annual income: $30,000 |
| Citibank Quick Cash Personal Loan (Existing Customers) | Max. loan amount dependent on salary | From 4.55% (8.5% interest rate EIR) | $0 | 5 years | Minimum annual income: $30,000 |
| Citibank Quick Cash Personal Loan (New Customers) | Max. loan amount dependent on salary | From 3.45% (6.5% interest rate EIR) | $0 | 5 years | Minimum annual income: $30,000 |
| Citibank Quick Cash 0% interest | Max. loan amount dependent on available credit limit | From 0% as a cash-on-instalment loan for 12 months or less (or 7.85% EIR) | $0 | 1 year | Minimum annual income: $30,000 |
| OCBC Cash-On-Instalment | Max. loan amount dependent on available credit limit | From 3.5% (6.96% interest rate EIR) | $100 | 5 years | Minimum annual income: $30,000 |
As you can see, there is a lot of variation between banks and moneylenders in terms of annual income or monthly salary requirements, processing fee costs, loan tenure, and more. There are even differences between the advertised interest rate, the effective EIR, and the overall personal loan interest payable. Finding the best personal loans will always be about pinpointing your unique requirements and properly understanding what you need. Let’s review which of these loans are the best fit for some borrowers with typical requirements.
1. HSBC Personal Loan – Best personal loan overall
HSBC’s flagship personal loans offer very competitive interest rates from 3.4% and fast in-principal approval within just one minute. If you are applying for a principal loan amount of $100,000 or less, HSBC also promises super-fast loan disbursement: with instant cash sent directly to your account within just one day of submission of your income documents (which may include ID and your latest income tax notice of assessment).
Key Features:
- Low personal loan interest rates
- Fast disbursement of funds
- Tried-and-tested reputation
Eligibility:
- Available to Singapore citizens, permanent residents, and foreigners
- Income must be above $30,000
Promos:
- Customers can get $100 cashback upon approval until 30 June 2021. The loan period must be 2 years or more.
2. Standard Chartered CashOne Personal Loan – Best personal loan promo
If you’re looking for personal loans that offer more than just great interest rates and low monthly instalment payments, the Standard Chartered CashOne Personal Loan is the best promotional deal on the market right now. Customers can enjoy up to $1,200 worth of cashback upon approval if applying before 30 June 2021. You will also be automatically entered into regular lucky draws just by choosing this lender.
Key Features:
- Borrow up to 4 times your monthly salary or $250,000
- Pay no processing fees whatsoever
- Get instant cash disbursed to any bank of your choice.
Eligibility:
- Available to Singapore citizens and permanent residents
- Income must be above $20,000
Promos:
- Get $1,200 in cashback
- Enter every $1,000 of your approved loan amount into a CashOne lucky draw offering amazing monthly cash prizes. Find out more here.
3. DBS Personal Loan or POSB Personal Loan – Fastest loan disbursement
If you need to pay off a personal credit card account quickly or cover some unexpected costs fast, you’ll struggle to find a loan that offers faster disbursement of funds than the POSB, and DBS Personal Loan deals available right now. Both options have an advertised interest rate of just 3.88%, a relatively low processing fee of just $100, and some very favourable terms.
Key Features:
- Low monthly payment and monthly interest costs
- Loan tenure options up to 5 years available
- Take out a loan from a trusted provider
Eligibility:
- Available to Singapore citizens and permanent residents
- Income must be above $20,000
4. Citibank Quick Cash Personal Loans – Best short term loans
CitiBank Quick Cash loans are amazing options for borrowers who need short-term loans on account of their customizable loan tenor options, fast cash disbursement, and lower-than-average borrowing limits. You can get your hands on personal loans as small as $1,000 and even enjoy zero processing fees if you are an existing Citi customer. However, the rules may differ slightly for new customers.
Key Features:
- Borrow practically any loan principal from $1,000, dependent on salary
- Great interest rates apply to all loan period options
- Existing Citi customers don’t have to pay a processing fee
Eligibility:
- Available to Singapore citizens and permanent residents
- Income must be above $30,000 (or $42,000 for foreigners)
- Rules are slightly different for existing and new customers
Promos:
- Loans arranged via the Citi Mobile app may be eligible for a GrabFood Voucher of between $50 and $400
5. Citibank Quick Cash 0% Interest – Cheapest 1 year loan
Borrowers looking for the cheapest of the cheap should consider a Citibank Quick Cash loan with 0% interest. This Citi product is offered as a cash-on-instalment loan enabling you to borrow using an existing line of credit. You’ll need to set up a Citi credit card or Citibank Ready Credit account first to apply. However, you could save more in the long-term – and will benefit from fast approval, too.
Key Features:
- 0% flat interest rate available on cash-on-instalments loans for up to one year
- Enjoy loan approval within just one hour
- Get a fixed effective interest rate of just 7.85%
Eligibility:
- Available to Singapore citizens, permanent residents, and foreigners
- Income must be above $30,000 (or $42,000 for foreigners)
- Rules are slightly different for existing and new customers
Promos:
- Loans arranged via the Citi Mobile app may be eligible for a GrabFood Voucher of between $50 and $400
6. OCBC Cash-On-Instalment – Best cash-on-instalment loan
If you’re an OCBC account holder, you can get cash from your unused or available credit limit by opting for an OCBC Cash-On-Instalment loan. This enables you to effectively turn your available credit limit into cash without preparing and providing complex income documents as part of a standard personal loan application. You can also enjoy an amazing annual interest rate of 3.5% per annum.
Key Features:
- Rely on your available credit limit for extra cash
- Bypass complex application processes and document preparation
- Enjoy cash flow certainty with fixed monthly instalment repayments for up to 5 years
Eligibility:
- Available to over-21s only
- Income must be above $20,000 for Singapore citizens or permanent residents (or $45,000 for foreigners)
Promos:
- Get up to $480 in cashback when you apply online via the OCBC website.
7. Standard Chartered CashOne – Best personal loan for low-income borrowers
A Standard Chartered CashOne personal loan is a great choice for borrowers with a lower annual income, as it’s one of only a few bank loans on the market with a lower-than-average income requirement of just $20,000. Add to that no processing fee and a maximum principal of $250,000 or 4 times your monthly salary, and you’re looking at a seriously good loan deal indeed.
Key Features:
- Take advantage of the bank’s processing fee waiver
- Enjoy a low minimum income threshold and great interest rates
- Borrow for anywhere up to 5 years
Eligibility:
- Available to Singapore citizens and permanent residents
- Income must be above $20,000
Promos:
- Over S$50,000 of Cash Prizes to be Won
8. HSBC Personal Loan – Best personal loan for foreigners/expats
HSBC offers both personal loans and personal line of credit instalment plans that are great for foreigners and expats living in Singapore due to their low-interest rates starting from just 3.4% and relaxed restrictions on supporting documents. You can also enjoy fixed monthly payments for anywhere between 1 and 7 years.
Key Features:
- Borrow for up to 7 years
- No supporting documents are required to apply
- Tried-and-tested reputation
Eligibility:
- Available to Singapore citizens, permanent residents, and foreigners
- Income must be above $30,000
Promos:
- Customers can get $100 cashback upon loan approval until 30 June 2021. The loan tenure must be 2 years or more.
What to Consider When Taking Out Personal Loans – Low Interest Rate, Monthly Repayment Costs, and More
Whether you’re applying for traditional personal loans or looking to use your available credit limit as extra cash, there are a number of important things to consider. You should think especially carefully about:
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Loan principal
Consider how much you need to borrow and how much you can realistically afford to repay.
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Interest rate
The loan’s annual interest rate, EIR, and total amount of interest payable should be affordable and fair.
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Application speed
Review application and processing times to make sure you’re getting your money fast enough. Many licensed moneylenders offer instant cash if you need a loan early, but this isn’t always the case with more traditional banks.
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Loan tenure
Think about how long you’d like to borrow the money for – and how long it might take you to pay it back.
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Processing fees
Additional charges and processing fees are not uncommon. Compare deals that offer a processing fee waiver, and don’t forget to factor any hidden fees into your overall cost calculations.
When Is a Good Time to Get a Personal Loan?
Personal loans can act as a monetary lifeline when you’re facing a financial emergency. Whether you’re deep in credit card debt, finding it hard to repay medical bills or unforeseen costs, or simply struggling to pay your monthly bills, a personal loan can help you to get back on your feet.
In short, personal loans are a great solution to any period of cashflow difficulty you may face, including:
- Sudden medical bills
- Weddings
- Funerals
- Divorces
- Unforeseen costs
- Credit card debt
- Much more
What Are the Alternatives to Banks When Applying for Personal Loans?
Traditional banks are probably the first place that comes to mind when considering applying for personal loans, but there are other options available. Licensed moneylenders and other financial institutions offer fast loan approvals and competitive interest rates – and might even turn out to be a better fit for your unique circumstances. You should always consider alternatives like:
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Personal loans offered by licensed moneylenders
Licensed moneylenders tend to offer faster loan approval times than banks, making them a great choice for anyone who needs quick cash.
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Foreigner loans
If you’re not a Singapore citizen or permanent resident, a foreigner loan might be a better fit for your unique circumstances. With most lenders, all you need is proof of ID, an eligible salary, and an employment pass to apply.
FAQs – Where to Get the Best Interest Rate, Monthly Repayment Costs, and More
1. Which bank is best for personal loans in Singapore?
This will always depend on how much you want to borrow, how long, and your unique situation. HSBC is our top bank right now for an all-around excellent personal loan, but if you need fast cash or have specific requirements, you should always compare the market. You might want to consider licensed moneylenders, too.
2. How much personal loan can I get?
Depending on your preferred bank or moneylender, you can usually borrow between 4 and 10 times your monthly salary.
3. Can I get a personal loan even with a poor credit score?
Yes – having a bad credit rating does not necessarily mean you cannot apply for a personal loan. Compare loan deals from licensed moneylenders, who tend to look more favourably upon a bad credit history than banks.
4. Where can I apply for a personal loan in Singapore?
You can apply either through banks and licensed moneylenders directly, or by using Loan Advisor’s loan comparison service to pin down the best interest rates and most attractive moneylender deals first.
5. Where can I get the best interest rate and monthly instalment repayment costs?
Personal loan interest rates will always vary from lender to lender. You should always try to secure the best annual interest rate currently on the market by comparing rates between providers and seeking out any promotional offers or special deals.
6. Can I use a personal loan to purchase a property or fund home renovations?
Yes. Personal loans are very flexible, and you are usually free to use the funds for whatever purpose you please. That said, it might be worth considering property-specific home loans and/or renovation loans if your primary purpose for borrowing is to put down a cash deposit or downpayment on a new home or renovate an existing property. You can compare home loans, renovation loans and personal loans from licensed moneylenders quickly and easily using Loan Advisor.
Conclusion – How to Find the Best Personal Loan in Singapore
If you want to secure the best personal loan to meet your unique needs here in Singapore, there are a few keys things you’ll need to consider. Let’s quickly review the most important factors:
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Choose a sensible and realistic loan amount.
Think carefully about how much you need to borrow and what kind of repayments you can afford.
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Compare the best interest rates.
Know the difference between annual interest rate, EIR, and interest payable and shop around for the best rates.
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Determine how long you’d like to borrow for.
Not all banks and lenders offer long or short-term loans. Figure out what loan tenor you need and narrow down your options accordingly.
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Consider how quickly you need the money.
If instant cash is a big concern, you might be better off using a licensed moneylender rather than a bank.
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Don’t forget about fees.
Most banks charge a processing fee, while others might require you to pay an early repayment fee if you decide to repay the loan early.
Whether you need home loans, education loans, renovation loans or a standard personal loan with a flexible loan tenor tailored to meet your needs, our loan comparison service can help you find the perfect loan deal in three easy steps.
What’s more, Loan Advisor searches and compares quotes from licensed moneylenders in Singapore only, meaning you’re much more likely to find deals that offer instant approval, low interest rates, no processing fee, and other great perks.
