- 3.88% p.a. Interest Rate
- 7.56% p.a. EIR
- Minimum Annual Income of $20,000 and above
- 1% Processing Fee
- Suitable for low income borrowers and people who need cash immediately
POSB offers one of the fastest cash disbursements among the local banks in Singapore. For customers with an Existing Cashline or Credit Cards with POSB or new customers whose salaries come via DBS/ POSB deposit accounts, the bank offers an instant payout on their personal loans for online applications. Other banks may process the loan request on the same day but only disburse the loan amount on the next day.
POSB also offers one of the lowest interest rates of 3.88% p.a. with EIR of 7.56% p.a. The bank offers a loan amount of 10 times a person’s monthly salary while the loan tenure varies between 12-60 months. A 1% processing fee will be applied. Should the loan amount be greater than $30,000, processing fees of up to $1000 will be waived. Most people will be able to qualify for a loan as the minimum annual income required is $20,000, one of the lowest income thresholds in the industry. However, it should be noted that the actual interest rate charged and final cost may differ for each individual as the banks will adjust based on the borrower’s portfolio.
- 8.31% to 8.55% p.a. Interest Rate and 15.92% to 18.88% p.a. EIR for borrowers with Annual Income of $30,000 and above
- 12.31% to 13.14% p.a. Interest Rate and 23.10% to 26.39% p.a. EIR for borrowers with Annual Income of $20,000 to $29,999
- Borrow up to 6x of monthly salary
- Processing fee of $100, $200 or 2% of loan amount (depending on the plan and the higher value)
- Loan Repayment Period of 12 – 60 months
- Suitable for middle income borrowers who want to repay the loan over a long period of time
OCBC offers an ExtraCash Loan with fixed monthly repayments for both Singaporeans and foreigners. Singaporeans need a minimum annual income of $20,000 to qualify while foreigners need to be earning at least $45,000 annually. They can borrow up to 6 times of their monthly salary.
Loan repayment period ranges from 12 to 60 months with fixed and regular monthly repayments, providing flexibility to the borrowers. Repayments can be done conveniently via online platforms, mobile banking, cheque deposit or at cash deposit machines.
OCBC ExtraCash Loan interest rates varies for different income levels. For borrowers of annual income $30,000 and above, interest rates range from 8.31% to 8.55% p.a. depending on loan tenures of 12 – 60 months, with higher rates for longer term periods. EIR ranges from 15.92% to 18.88% p.a. depending on loan repayment periods, with lower rates for longer term periods. A processing fee of $200 or 2% of approved loan amount, whichever is higher applies for all loan applications.
OCBC also offers ExtraCash Loan to borrowers of annual income $20,000 to $29,999. Interest rates range from 12.31% to 13.14% p.a. depending on loan tenures or 12 – 60 months, with higher interest rates for longer term periods. EIR then ranges from 23.10% to 26.39% p.a. for loan tenures of 12 – 60 months, with lower rates for longer term periods. Processing fee is around $100 for each application.
- Loan Repayment Period of 12 – 84 months
- 3.7% to 7.1% p.a. Interest Rate and 7% to 13% p.a. EIR for borrowers with Annual Income of $80,000 and above
- 4.8% to 7.1% p.a. Interest Rate and 9% to 13% p.a. EIR for borrowers with Annual Income less than $80,000
- Borrow up to 4x of monthly salary if Annual Income is between $30,000 to $120,000
- Borrow up to 8x of monthly salary if Annual Income is more than $120,000
- Processing fee of $88 will be waived and a $50 cashback given to online applicants
- Suitable for borrowers who are looking at a large loan amount to be paid over a long period of time
What stands out about HSBC’s personal loans is their much longer loan tenures of up to 7 years (most banks only offer a maximum of 5 years) and that they are waiving their processing fee of $88. They are also offering $50 cashback for online applications.
HSBC personal loans are available for Singaporeans with an annual income of $30,000 and foreigners with an annual income of $40,000. For borrowers with annual incomes of $30,000 to $120,000, they qualify for loan amounts 4x of their monthly salary. Borrowers with more than $120,000 annual income, they are eligible for loans 8x their monthly salary.
The bank has a very fast approval process as customers will be able to know the status of their loan submissions within a minute (online). The interest rate for applications with an annual income of at least $80,000 range from 3.7% to 7.1% p.a., EIR of 7% to 13% p.a. with higher rates for shorter terms. Loan applicants with an annual income of less than $80,000 will receive interest rates of 4.8% to 7.1% p.a. and EIR of 9% to 13% p.a. with lower rates for longer terms. HSBC’s interest rates for short term loans are not as friendly as compared to other banks. However, HSBC might be the bank for you if one is looking for a large loan amount to be paid over long period of time.
- Borrow up to 2x monthly salary (Annual Income $20,000 to $29,999), borrow up to 4x monthly salary (Annual Income $30,000 and above), borrow up to 8x monthly salary (Annual Income $120,000 and above)
- Loan Repayment Period of 12 – 60 months
- 9.80% to 10.80% p.a. Interest Rate and 20.92% to 27.56% p.a. EIR (Annual Income $20,000 to $29,999), 6.88% to 8.58% p.a. Interest Rate and 12.75% to 19.34% p.a. EIR (Annual Income $30,000 and above), 4.98% p.a. Interest Rate and 7.76% to 9.52% p.a. EIR (Annual Income $120,000 and above)
- Processing fee of $199 for the first year (waived for online applications), and $50 for each subsequent year (can be waived if borrowers made timely repayments)
- Suitable for borrowers who are looking for large loan amounts with low interest rates
Standard Chartered provides loans for Singaporeans with a minimum annual income of $20,000 and $60,000 for foreigners with an employment pass. They are able to provide cash a day after the loan approval and offer several rebates and cashbacks which will be explained below.
The bank offers a maximum loan amount of 2x monthly salary for annual income below $30,000 and their minimum required loan amount is $1,000. Processing fee of $199 applies for the first year (waived for online applications), and $50 for each subsequent year (which can be waived for borrowers who make repayments on time).
For borrowers with an annual income of $120,000 and above, they can borrow up to 8x of their monthly salary. Standard Chartered charges a flat interest rate of 4.98% p.a. and EIR of 7.76% to 9.52% for larger loans of up to $50,000.
For borrowers with an annual income of $30,000 and above, they can borrow up to 4x of their monthly salary. Interest rates are at 6.88% to 8.58% p.a. for loan tenures of 1 to 5 years with longer loan tenures having lower interest rates. EIR for the loans range from 12.75% to 19.34% p.a. and again, with lower percentages for longer loan tenures.
For borrowers with an annual income of $20,000 to $29,999, they can borrow up to 2x of their monthly salary. Interest rates range from 9.80% to 10.80% p.a. with lower rates for shorter terms. EIR however, is the opposite. EIR ranges from 20.92% to 27.56% p.a. with higher rates for shorter terms.
Standard Chartered also provides cashback to their clients. Maximum cashback amount of $2,088 for new Standard Chartered clients and a maximum cashback amount of $1,088 for existing clients.
- 4.55% to 4.94% p.a. Interest Rate and 8.50% to 9.00% p.a. EIR for loan tenures of 12 – 36 months
- 5.72% to 5.79% p.a. Interest Rate and 10.50% p.a. EIR for loan tenures of 4 – 5 years
- $1,000 minimum loan amount
- Borrow up to 4x monthly salary
- No processing fees
- 1 hour approval time (for applications submitted before 5pm)
- Suitable for borrowers who are looking for small personal loans with short loan tenures
- Best rates for 3-year loans: Low 4.55% p.a. Interest Rate and 8.50% EIR for 3-year loan tenures
Citibank personal loans are most suitable for borrowers who are looking for small personal loans with a short loan tenure of 3 years. For loan tenures of 12 – 36 months, interest rates range around 4.55% to 4.94% p.a. and EIR is around 8.50% to 9.00% p.a., with the lowest rates available for 3-year loans. This is one of the lower and more competitive rates as compared to other banks in Singapore. For example, taking a 3 year loan from Citibank will have an interest rate of 4.55% p.a. and an effective interest rate of 8.50% p.a.. Other loan tenures have slightly higher interest rates, such as 5.79% p.a. interest rate and 10.50% p.a. EIR for a 5-year tenure.
Citibank offers loans to both Singaporeans and foreigners. Singaporeans need to have a minimum annual income of $30,000 while foreigners need a minimal annual income of $42,000.
Aside from the rather attractive rates for smaller loans and shorter loan tenures, Citibank does provide loan tenures of 4 – 5 years. Interest rates will range from 5.72% to 5.79% p.a. and EIR will be at 10.50% p.a.. Minimum loan amount is at $1,000 and borrowers can obtain up to 4x of their monthly salaries. Approval time is said to be an hour, as long as the loan application is made before 5pm.
- 4.99% p.a. Interest Rate and 9.48% to 10.88% p.a. EIR for online applications during promotional period
- Loan tenures of 12 – 60 months
- 1% processing fee
- $1,000 minimum loan amount
- Processing time may take a few working days
- Require borrowers to have a UOB CashPlus account or UOB credit card
- Best personal loan promotion package
UOB offer loans for customers under programmes of UOB CashPlus Personal Loan (CPPL) or UOB Credit Cards Personal Loan (CCPL) with fixed monthly repayments. Minimum loan amount is $1,000 and the loan tenure ranges from 12 – 60 months. Borrowers can apply for up to 6x of their monthly salary. A processing fee of 1% and a flat interest rate of 4.99% p.a. applies for all loan applications made online. EIR ranges from 9.48% to 10.88% depending on the loan repayment period. The shorter the loan tenure, the higher the EIR.
Consumers need to have a UOB CashPlus account or a UOB credit card in order to attain the loan as the money will be disbursed there. However, UOB loan processing may take a few working days which makes it unsuitable for borrowers who are urgently in need of cash.
- 4.50% p.a. Interest Rate (subject to individual’s risk profile) and 8.21% to 8.41% p.a. EIR
- Loan tenures of 1 – 5 years
- $1,000 minimum loan amount
- Bank’s financing is capped at 80% of borrower’s credit limit
- Good for short term 1-year loans with lower interest rate of 4.50% p.a. (depending on individual)
CIMB’s CashLite loans offers flexible loan tenures of 1 – 5 years with low interest rates of 4.50% p.a. (subject to individual’s risk profile) and EIR of 8.21% to 8.41% p.a.. However, the minimum loan amount is $1,000 and the bank’s financing is capped at 80% of the borrower’s credit limit. Borrowers must also be a CIMB cardmember.
After comparing with the other banks, CIMB offers a great deal for 1-year loans with their low interest rates. For example, if one borrows a CashLite loan of $20,000 from CIMB with a repayment period of 12 months at an interest rate of 4.50% p.a. (and EIR 8.21% p.a.), the cost of the loan is only $900.
- Fixed monthly repayments for loan tenures up to 7 years
- Interest saving with reducing balance method
- Processing fees are 3% of loan amount, or $150, whichever is higher
- 12% p.a. Interest Rate for 12 – 60 month loans, 15% p.a. Interest Rate for 72 – 84 month loans
- EIR at 13.86% p.a. to 18.72% p.a. depending on loan tenure, with 60-month loan having lowest EIR of 13.86% p.a.
- Suitable for borrowers looking for 3 – 5 year loans
BOC offer personal loans with fixed monthly repayment periods of up to 7 years, which is longer than what most banks in Singapore offer. Another point of differentiation for BOC is that they provide interest saving with reducing balance method. This means that the bank calculates interest based on a reducing balance method of collating interest amount on the principal balance. In short, interest fee reduces with each repayment of the loan.
Processing fees are 3% of approved loan amount, or $150, with the bank taking the higher amount. Interest rates of 12% p.a. applies for 12-month to 60-month loans. For loans of 72-month to 84-month, interest rates are higher at 15% p.a.. EIR will be 18.72% p.a. for 12-month loans, 15.73% p.a. for 24-month loan, 14.69% p.a. for 36-month loan, 14.18% p.a. for 48-month loans, 13.86% p.a. for 60-month loans, 17.05% p.a. for 72-month loans and lastly, 16.89% p.a. for 84-month loans.
While the interest rates may be higher than some banks, BOC’s reducing balance method interest calculation slightly balances the cost of the loan. BOC’s $mart loan Is more suitable for borrowers who are looking for 3 – 5 years loan as their interest rates are generally lower for those loan tenures.
Getting a loan in Singapore can be daunting and confusing, especially if it is a large loan or your first loan. There may be questions on your mind. The following FAQ is curated by Money Kinetics to help you. If you have any other questions, feel free to drop us a note!
What are Personal Loans?
Personal loans are common in Singapore and are offered by local banks and financial institutions. Personal loans can be used for any expenses and can be helpful during emergencies. These loans are usually either secured or unsecured. Secured loans require collateral while unsecured loans do not require collateral. Collaterals can be the borrower’s car or property.
How Much Will I Be Able to Borrow?
Depending on the borrower’s income, applicants can borrow at least 4 times, or up to 10 times the amount of their income. Banks and financial institutions will evaluate the borrower’s financial status and credit score before disbursing the loan.
For example, if you are making a monthly income of $2,500, you will usually qualify for a loan ranging from $10,000 to $25,000. The final loan amount may vary based on individual’s credit score, debts and other factors.
Where Can I Get Personal Loans in Singapore?
One can get a personal loan from banks and financial institutions in Singapore. The banks mentioned above such as POSB, OCBC, UOB and more all offer personal loans at their own interest rates with processing fees. Interest rate per annum ranges from 3.88% to 15% while EIR ranges from 7.56% p.a. to 26.39% p.a.. Certain banks may have different promotional packages at different periods so it will be best to check their website before applying.
However, banks tend to require longer processing time due to the many departments it needs to go through. For some people who urgently need cash for emergencies or is unable to secure loans from banks due to various reasons, they may choose to borrow from licensed moneylenders in Singapore. Worry not, these moneylenders are definitely not loan sharks and are approved by the Ministry of Law. They are not the kind that go around hanging pig heads and splashing paint. They are an alternative to banks as they may be more lenient, though they may have higher interest rates.
Who Can Get Personal Loans in Singapore?
Each bank will have their own loan eligibility requirements. Generally, applicants will have to be between 21 to 65 years old, with a stable job or a proof of income. Below is a short summary of the age and income requirements of the banks in Singapore.
POSB Personal Loan Criteria: Applicants to be between 21 and 65 years old, with minimum annual income of $20,000 and above.
OCBC Personal Loan Criteria: Borrowers to be at least 21 years old, with a minimum annual income of $20,000. Foreigners applying for the loan will require an annual income of at least $45,000.
HSBC Personal Loan Criteria: Applicants to be 21 to 65 years old, with a minimum annual income of $30,000. Foreigners and self-employed borrowers will need to have an annual income of $40,000.
Standard Chartered Personal Loan Criteria: Applicants have to be aged between 21 to 65, with an annual income of $20,000. Minimum annual income required for foreigners with an employment pass is $60,000.
Citibank Personal Loan Criteria: The minimum age to apply is 21 years old, and applicants need to have a minimum annual income of $30,000. For foreigners, the minimum annual income is $42,000.
UOB Personal Loan Criteria: Applicants have to be at least 21 years of age. For applicant who are 45 years old and below, they need to have a minimum annual income of $20,000. If they are 46 to 55 years old, annual income needs to be at least $30,000.
CIMB Personal Loan Criteria: Applicants have to be 21 years old and above. Minimum loan amount is $1,000 and the bank has capped the maximum borrowing amount at 80% of the borrower’s credit limit.
Bank of China (BOC) Personal Loan Criteria: Applicants have to be between 21 to 65 years old, with a minimum income of $1,700 per month.
Applicants who fall between the above criteria are eligible to apply, though the final loan amount and approval varies for each individual. Foreigners who want to get a personal loan from the banks usually need to have a higher annual income.
Where Can I Find Good Personal Loan Terms?
“Where and how can I find the best terms for my loan?” This is the thought that crosses the minds of many applicants. If you are planning to get a loan, you will probably want to get one with the best rates and packages. With so many banks and financial institutions in Singapore, it can get pretty tough choosing the best financial partner to work with. We have done our research and listed out all the details from each bank for you to compare here.
In our comparison, we have stated which banks offer the best loans for which purpose. For example, POSB offers personal loans suitable for low income borrowers or Citibank, where they offer attractive small personal loans with short loan tenures. In order to choose the loan that suits you the most, you have to be clear of your purpose of borrowing, the amount that you need to borrow and the amount of time that you plan to take to repay. Do not overborrow because of good interest rates of promotional packages.
You can apply for a loan at the banks in person or you can choose to apply from online websites. Keeping up with technology and wanting to increase convenience for their consumers, banks and financial institutions have updated their websites and made online loan applications possible. This means that no time will be wasted queuing and the time needed to apply becomes shorter. Do take note to have all the required documents (such as proof of income) to expedite the application process.
However, do note that when you are making an application, be it online or at the bank itself, there should be a clear contract that includes the details and terms of the loan. If your application process does not require an official contract with the bank or lender’s name, or does not require any proof of income from you, the lender is probably illegal. One needs to have a stable income in order to secure a loan.
How Do They Calculate Personal Loan Eligibility Requirements?
Banks and licensed lenders in Singapore offer loans to applicants who have a full-time job in Singapore, or to foreigners who have an employment pass. The final approved loan amount is based on the individual’s credit score and individual records.
Generally, one can borrow at least 4x, and up to 10x of their monthly salary.
How Much Can I Borrow?
The amount that one can borrow depends on their monthly salary and their credit score. If you plan to borrow from a bank and you earn an annual income of $20,000, you will usually qualify for a loan of up to 4x your monthly salary. If your annual income is higher, you may qualify for a larger loan amount.
For example, Benjamin is a young working adult in his twenties. He receives a monthly salary of $3,500 and he decides to apply for a personal loan to cover some of his expenses. Assuming that he has no other outstanding debts, he should qualify for a loan of at least $14,000, which is 4x of his monthly salary. Depending on the bank he chooses and his individual profile, he may qualify for a loan of $35,000.
I Heard About Credit Scores, But What Are They? How Will They Affect Me?
Credit scores are evaluated when one is applying for a loan with a bank or a financial institution. Each individual will have their own credit score. The credit score measures how likely one will be able to repay their debt. It considers how often one makes their loan repayments and how timely they are with it. The more punctual one is with their repayments, the better the credit score.
However, it does not mean that one will have a good credit score if they have never taken a loan before. In fact, if a person has never taken a loan before, their credit score might be ambiguous. Credit scores are only generated after one has taken a loan and is then calculated based on the punctuality of the repayments. If one has never taken a loan before, the institutions and banks are unable to determine if you can make timely repayments.
In most cases, it will be easier for people with good credit scores to secure a loan or to secure larger loans. It is less risky for these financial institutions to lend them money.
I Have A Bad Credit Score. Is There Anything I Can Do to Improve It?
If one already has a bad credit score from your previous loans, do not worry as there are ways to improve the score. Late payments hurt credit score the most. To ensure that one can make timely repayments, allocate your funds and salary well. Divide your salary into your different needs and wants and be strict with your spending to prevent overspending. Set payment reminder, stop getting more loans and construct a payment plan to ensure that you have enough funds for your loan repayments. Nonetheless, fixing an individual’s credit score is not a quick process and requires time and discipline.
I Have Tried Applying A Loan For A Few Times But Have Been Getting Denied. Why Is It So?
The most common reason why a loan application is rejected is because of bad credit score and bad credit history. With a bad credit score, the banks will note that the borrower may not be able to make timely repayments. It will be risky for banks to approve a loan to you.
The second reason could be that you fall short of the banks’ requirements. Each bank has their own criteria such as minimum annual income and loan tenure period.
The last reason could be that you are already taking too many loans. In Singapore, each individual’s loan repayments should not exceed 60% of your net salary. This is based on the Total Debt Servicing Ratio (TDSR) which is established by the Monetary Authority of Singapore (MAS) in 2013. The objective is to make sure that everyone does responsible lending and borrowing. If your monthly repayment is already very high, banks and financial institutions may not approve of your loan.
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