10 Best Banks for Personal Loan 2021

10 Best Banks for Personal Loan 2022

The average bank loan in Singapore you can get is enough to pay for virtually a new vehicle, college fees, and other products in the same range. However, these products change in interest rates and loan amounts yearly or within every few years, and it has changed for the better this year.

If you have yet to find the best banks for your personal loan, we’ve got the perfect list just for you. You can keep this table and our analysis handy to save yourself time in finding the perfect financing.

Bank and Product Flat Interest Rate Effective Interest Rate Total Loan Amount Processing Fee Monthly Payments
Standard Chartered CashOne 3.48% 7.3% S $11,044 S $0 S $307
HSBC Personal Loan 3.4% 6.5% S $11,020 S $0 S $306
HL Bank Personal Loan 3.88% 8.32% S $11,164 S $150 S $310
UOB Personal Loan 4.25% 7.96% S $11,275 S $0 S $313
Citibank Quick Cash (New Borrowers) 4.55% 8.5% S $11,365 S $0 S $316
DBS Personal Loan 3.88% 7.9% S $11,164 S $100 S $310
POSB Personal Loan 3.88% 7.9% S $11,164 S $100 S $310
OCBC ExtraCash Loan 5.43% 11.47% S $11,629 S $100 S $323
Citibank Quick Cash (Existing Borrowers) 4.55% 8.5% S $11,365 S %0 S $316
OCBC Cash-On Installments 4.7% 9.46% S $11,410 S $100 S $317

*All information in this table assumes a $10,000 total personal loan amount principal payable in 3 years. Based on data retrieved from February 2021. Learn more about it in the next section.

Terms To Guide You Through The Best Deals

Two interest rates and processing fees? They might sound intimidating enough to confuse you, but we’ll explain these terms to you in the simplest way possible. Allow us to explain them in this short and easy-to-understand section.

Flat Annual Interest Rate

Banks and financial institutions love advertising their personal loan flat interest rate. While they might look impressively low, it’s the “floor” rate (or “flat” rate) that only preferable borrowers receive. In this light, if you have an excellent credit history and score, you might hit close to or even the flat rate. Otherwise, you can expect to receive an interest rate above the flat rate and effective interest rate.

Effective Interest Rate (EIR)

This figure is the average interest rate borrowers receive with successful personal loan applications. It isn’t the “ceiling” interest rate. For example, if you’re a borrower with good to average credit scores (from CC-EE), you will mostly receive the effective interest rate with your successful loan application. Truthfully, banks and financial institutions keep EIR rate derivations, which means only they can give you the most accurate interest rate figures.

Processing Fee

If you’ve worked in a bank or financial institution, you’ve seen that so much paperwork, accounting, and other processes happen before borrowers can receive their loan. Doing this ensures that both banks and borrowers have respected the loan contract’s terms and conditions. The processing fee pays for the bank’s due diligence, credit score investigation, and other administrative procedures.

Monthly Payment

Monthly payments are the easily-recognizable term among the bunch because it’s the amount you’ll pay for your financing monthly or on regular periods. Banks and financial institutions have varying monthly payment amounts.


The Top 8 Banks For Personal Loan This Year

Without further ado, here are all the best personal loans available from Singapore’s top banks. While only eight excellent banks are present, you can refer to ten excellent financial products we’ve listed for you.

1. Standard Chartered Cashone

  • About This Product

The SC Cashone gives you up to 4x your monthly income up to S $250,000. You can enjoy 0% interest on your first-year with only 4.5% processing fees.

SC Cashone gives you 5 years to pay for the entire financing.

  • Available Promotions

You can get up to S $400 cash through your PayNow account and up to S $1,288 from SCB once your loan gets approved. This promo is only available from 18 January – 28 February 2021.

Promo is valid from 1 February – 22 February 2021.

  • Who Are Eligible For Their Personal Loan Offers?

The SC Cashone is available only for Singaporeans and PRs with a minimum yearly income of S $20,000. It’s open to anyone who is a new or existing SC account holder.

2. HSBC Personal Loan

  • About This Product

Get up to S $200,000 personal loan amounts with a 3.4% yearly interest rate. Borrowers have to borrow a minimum of S $5,000. The entire financing is payable for 7 years only.

  • Available Promotions

You can get up to S $88 cashback and 5 S $20 Grabfood vouchers upon loan application approval as of this writing until 31 March 2021

  • Who Are Eligible For Their Personal Loan Offers?

Available only for Singaporeans and PRs with a minimum yearly income of S $30,000.

3. HL Bank Personal Loan

  • About This Product

You can get up to 4 times your monthly salary without limitations. Borrowers can pay for the loan for up to 5 years. The bank allows early repayments beyond one year of loan repayment. Then, you’ll need to pay for a flat S $150 processing fee.

  • Who Are Eligible For Their Personal Loan Offers?

Singaporeans and PRs earning S $30,000 are the only ones eligible for the financing.

4. UOB Personal Loan

  • About This Product

Borrowers have to borrow a minimum of S $10,000 and pay the entire loan up to five years. The financing has a flat interest rate of up to 4.25%

  • Available Promotions

UOB Credit Card members do not need to pass requirements when applying for the UOB personal loan. New UOB account owners have instant approval if they submit between 8 am-8 pm.

  • Who Are Eligible For Their Personal Loan Offers?

Singaporeans and PRs with a minimum annual income of S $30,000.

5. CITI Quick Cash

Citibank Quick Cash (New Borrowers)

  • About This Product

Borrowers must take out a minimum loan amount of S $20,000, which they can pay for 2-5 years with 3.99% yearly interest (EIR = 7.5% per year)

No processing fees. However, all applicants must open a Citibank Ready Credit or Citi Credit Card.

  • Available Promotions

For all one-year tenure loans, the borrower can have a flat 0% interest rate with only 3.5% processing fees.

  • Who Are Eligible For Their Personal Loan Offers?

Only Singaporeans and PRs with a minimum income of S $30,000 yearly can use Citibank’s Quick Cash for new members.

Citibank Quick Cash (Existing Borrowers)

  • About This Product

A no processing fee Quick Cash loan for existing customers. All its features are similar to Citibank’s Quick Cash available for new borrowers. Borrowers can enjoy a 4.55% starting interest rate with an EIR of 8.5%

  • Who Are Eligible For Their Personal Loan Offers?

Citibank’s Quick Cash loan is only available for borrowers with existing accounts, are Singaporeans or PRs, and earn beyond S $30,000 per year.

6. DBS Personal Loan

  • About This Product

With DBS’ personal loan, borrowers only deal with a 3.88% interest rate (EIR = 7.9%) and an S $100 flat loan processing fee. Borrowers must pay the personal loan within 5 years.

  • Available Promotions

If you’re an existing DBS or POSB account owner, you can directly receive instant cash disbursement into your account after your loan application approval.

  • Who Are Eligible For Their Personal Loan Offers?

Singaporeans and PRs with a minimum income of S $30,000 are the only ones who can use the financing service.

7. POSB Personal Loan

  • About This Product

All borrowers can enjoy a low per annum interest rate of 3.88% with an EIR of 7.9%. Additionally, they only need to pay a flat S $100 processing fee.

  • Available Promotions

Like DBS’ Personal Loan, borrowers can receive instant cash disbursement if they’re an existing DBS and POSB account owner.

  • Who Are Eligible For Their Personal Loan Offers?

Singaporeans and PRs with a minimum income of S $30,000 per year.


OCBC Extra Cash Loan

  • About This Product

Enjoy a 5.43% interest rate (EIR = 11.47%) on a personal loan with a payment tenure of up to 1-5 years. You can borrow up to the following:

  • Six times your salary if you have an annual income of S $120,000
  • Four times your salary for an annual income of S $30,000-S $119,999
  • Two times your monthly salary if you have an annual income of S $20,000- S $29,000

You can conveniently make your payments using your mobile banking funds transfer and OCBC mobile banking app. You’ll need to pay a flat S $100 for all loan tiers too.

  • Who Are Eligible For Their Personal Loan Offers?

Singaporeans and PRs with a minimum income of S $30,000 per year.

OCBC Cash On-Installments

  • About This Product

Your Cash-on-Installments with OCBC only have a 4.7% interest rate (EIR – 9.46%) and pay for a 1% or S $100 processing fee for 1-5 years.

OCBC iBanking users can conveniently use their app to apply without requirements.

  • Who Are Eligible For Their Personal Loan Offers?

Singaporeans and PRs with a minimum income of S $30,000 per year.

I Have Low Credit Scores or Need Cash Immediately. Are There Bank Loan Alternatives?

Singapore’s personal loan market offers Singaporeans with excellent credit scores the best value possible. However, bank loan alternatives do exist. Licensed moneylenders can offer you the same loan amounts. While some terms might be different, they are handy loans you can receive on the same day if you submit all your requirements to prove your eligibility.

Why Choose Singaporean Licensed Money Lenders?

Singaporeans with low credit scores and foreign workers with virtually zero access to Singapore’s banks have full access to licensed moneylending services. Registered moneylenders can give you up to six months of your income with faster loan application results and approval rates than banks and financial institutions.

Annual income Singaporeans/PRs Foreign workers/Expats Payment Schedule Loan Term Interest Rate Processing Fee
Less than $10,000
$500 Monthly 12 Months 4% EIR 10% of Principal Amount
At least $10,000 and less than $20,000 $3,000 Monthly 12 Months 4% EIR 10% of Principal Amount
At least $20,000 6 times monthly income 6 times monthly income Monthly 12 Months 4% EIR 10% of Principal Amount

Who Are Eligible?

Anyone in Singapore is eligible to use licensed moneylenders. Even foreign workers can take out moneylender financing and have zero issues with the process. Licensed moneylenders have made the process easy for all borrowers as long as they bring all the requirements to take out financing.

Here are the most common criteria for eligible Singaporean borrowers:

  • At least 18 years old
  • Singaporean/PR residents must have regular employment or a source of income above $1,500 per month
  • Foreigners/Expats working in Singapore must have regular employment or a source of income above $2,000 per month

Steps To Apply For a Personal Loan

1. Visit Your Lender’s Website or Physical Branch

All licensed moneylenders have their respective websites, which is convenient for borrowers during the pandemic. However, you can still head to your chosen lender’s office and inquire about their available financial products. When Singapore relaxed its pandemic quarantine protocols late in 2020, many licensed moneylenders have opened their doors to in-location borrowers. We highly advise you to work with lenders near you, especially if it’s an Instant Loan branch.

2. Submit All The Necessary Requirements

Licensed moneylenders need to verify information about you and your employment. Both Singaporean and foreign borrowers have to submit their respective requirements to prove they’re eligible for their financing.

Here is a list of common requirements for your financing needs:

For Singaporeans/PRs

  • Identity card / NRIC
  • Proof of residences such as a recent bill or letter addressed to you (for tenants)
  • Tenancy agreement (if you are renting)
  • Recent 3 months payslip and employment letter if your current employment is less than 6 months
  • SingPass Details

For Foreign Workers

  • A valid work permit / S Pass / Employment Pass
  • Passport
  • Proof of employment (staff pass or company pass)
  • Recent 3-month payslips & employment letter
  • Proof of residence such as a tenancy agreement, recent bill, or letter addressed to you
  • Latest bank statement of account to which yearly or monthly salary is credited
  • Singpass (to download IRAS NOA)

3. Wait For Your Loan Amount’s Release

Many borrowers can attest that licensed moneylenders release their loan amount within the same day after submitting all their requirements. In extreme cases, you’ll receive your loan in less or within one week. Licensed moneylenders have fewer borrowers, allowing them to give you financing in less than a day or a week thanks to their quick evaluation and the financing’s unsecured nature.

Consider The Following Before Finalizing Your Borrowing Decision

Licensed moneylenders offer you an excellent alternative to bank loans. However, keep in mind that even legitimate lenders can send you spiraling into deep debt. Before you finalize your decision, make sure you’ve accounted for all factors that can affect your loan-paying days in the future. Here are five elements that make up a loan — which can help or send you spiraling to deeper debt.

Annual interest rate

Every year, your licensed moneylender interest rates can increase up to 4%. However, personal bank loans can limitlessly increase, making it virtually impossible to pay back until your lender declares your bankruptcy. Take note of effective interest rates because these are the actual figures most will start with — and the rate only gets higher from that starting point.

Loan Tenure

Personal loans with a licensed moneylender allow you a loan tenure of 12 months, meaning you have a flat interest rate in 12 months. The lender may increase the figures from 2% to 4% interest rates If you’ve gone for more than a month or two in payment delays. Your bank or licensed moneylender may correspond with you or forward the concern to debt management or consolidation service departments.

Additionally, remember that loans with longer tenures will lead to higher interest rates and equally higher repayments in the future.

Processing fee

All licensed moneylenders can only charge you up to 10% of your total loan principal. On the other hand, banks have promotions with zero processing fees, such as some of the bank products we’ve listed above. However, most banks charge a 10% administrative processing fee for personal loans. This also applies to licensed moneylenders.

Early repayment or cancellation fee

With licensed moneylenders, you can pay for your loan early in bulk. However, for some banks, paying your personal loans in advance has an accompanying early repayment fee, which has similar figures as penalties. Like early repayments, your cancellation fee might be as much or higher than penalty fees. Therefore, don’t plan on paying your financing too early and avoid canceling paying your loan.

If you have to pay early, make sure you’ve accounted for the early repayment fee. Banks charge you for this because you’re cutting short their loan term interest profits.

Ongoing promotions

Promotions are the “clinchers” for many borrowers because they often use promotional information, such as interest-raise free or zero processing fee deals, in making personal loan decisions. Truthfully, it’s challenging to catch the best deals ideal for your current financial needs. To keep updated, you can subscribe or check out daily offers from loan comparison websites.

Will Licensed Moneylenders Ask For My Borrowing Reason?

Many successful borrowers report that their licensed moneylenders never asked for their personal loan reasons. However, some lenders will ask for your personal loan reasons, but they never give it any bearing in considering your loan application reasons. It’s likely your lender only wants to know it for future reference, such as in an instance you have failed to pay for your regular monthly dues.

Is a Personal Loan Viable For Debt Consolidation?

A personal loan has a fixed interest rate and an average of a one-year loan term. However, personal loans are not ideal debt consolidation mediums because of their stringent terms and conditions. Debt consolidators can negotiate any lump-sum total financing with your lenders. They’ll then provide you with a low-interest loan, carefully considering your income-to-debt ratio to ensure you can clear all your debts.

Can I Restore My Credit Score With a Personal Loan?

Because of its zero credit history requirements, you can use personal loans to recover your credit score. However, you’ll need to clear all your existing debts first. Most borrowers fall under enormous debt because they use easy-to-access loans to pay existing debt. However, if you’re done paying debts but have a poor credit score, a personal loan from a licensed moneylender is an excellent choice.

Related: How To Improve Your Credit Score In Singapore

How Do Banks and Financial Institutions Decide Loan Applications?

Credit Bureau Singapore (CBS) is the country’s primary institution monitoring and issuing credit reports to banks, financial institutions, and licensed moneylenders. Banks derive borrower credit scores and reports from the CBS, allowing them to make loan application decisions as fast as possible. Therefore, if you have a lower credit score, banks will likely give you a high-interest personal loan beyond the effective interest rate.

Can Foreigners Use Personal Loans?

Foreign workers and expatriates in Singapore will find it difficult to fulfill bank personal loan requirements. However, licensed moneylenders guarantee both foreigners and expatriates guaranteed loan application approval as long as they submit and fulfill all their requirements. If you’re a foreigner looking to borrow from licensed moneylenders, you can refer to the eligibility and requirement list above this post.

Get The Best Personal Loans With Hundreds of Options Available

Singapore has a wide range of personal loan options. In this list, you’ll find the best options for your financing needs. You can use this as a reference for all your loan and financing needs. However, if you don’t qualify for their requirements, you can always count on licensed moneylenders to provide you with alternative financing.

Visit Instant Loan now! They will provide you with the best-licensed moneylender personal loan, bridging loan, and other financial products available.

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