Best Personal Loan Singapore

Best Personal Loan Interest Rates (2022)

The best personal loan Singapore changes every year because many factors affect the rise and fall of interest rates and regular payment options. You’ve definitely found this post because you’re looking for the best deals perfect for your financial goals this year. We’re happy to tell you that numerous banks have excellent interest rates perfect for personal loans.

A personal loan is a financial product that you can use for anything. It can serve as a down payment if it has enough value. Alternatively, it can pay for a significant education fee chunk or supplement a wedding or vacation budget. If you can contend with its interest rates, regular loan payments, and loan term, you can take on any financing we’ve listed as the best for 2021.

The Best Personal Loan With Low-Interest Rates This 2022

Here are your best options for a high-quality personal loan with a low interest rate this 2021. Keep this table handy for all your needs.


Flat Interest Rate

Effective Interest Rate

HSBC Personal Loan




HL Bank Personal Loan

Hong Leong Bank



UOB Personal Loan




Citibank Quick Cash (New Borrowers)




DBS Personal Loan




POSB Personal Loan




Citibank Quick Cash (Existing Borrowers)




*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. 

1. HSBC Personal Loan

HSBC’s personal loan gives you up to S $200,000 loan amount with a minimum of S $5,000. Borrowers won’t have to contend with any processing fees. If you take out a S $10,000 financing under a 3.4% interest rate with a 6.5% effective interest rate (EIR), you’ll pay a total of S $11,020, including the interest rate charge at S $306 monthly payments.

You’ll need to open an HSBC personal account, and you can get less cash than S $100,000 by the following day once you’ve submitted all the required documents to prove your eligibility. As of writing, you can get an S $88 cashback plus five S $20 Grab Food vouchers once you get loan approval.

2. HL Bank Personal Loan

With HL Bank, you can get up to four times your monthly salary payable in 1-5 years. Plus, you can pay for your entire financing with interest rates as low as 3.88 yearly (with an 8.32% EIR). If you’re borrowing S $10,000, you must expect to pay S $11,164 inclusive of interest rate charges and processing fees of 10% or S $150 (for a S $10,000 personal loan within 3 years).

Borrowers must expect to pay S $310 per month and earn S $30,000 per year minimum to comply with the bank’s requirements. Currently, HL Bank has no personal loan promos for borrowers.

3. UOB Personal Loan

For a S $10,000 personal loan, UOB personal loan borrowers must contend with a 4.25% interest rate (7.96% EIR). They’ll contend with a total repayment of S $11,275 inclusive of interest rate charges. With this amount, borrowers won’t have to deal with any processing fees whatsoever but can expect themselves to pay S $313 per month.

UOB’s personal loan product is accessible because they expect borrowers to take out S $1,000 and above payable within 1-5 years. If you’re a UOB Credit Card holder, it’s easy to get loan approval because you won’t have to submit any documentation and have immediate personal loan approval.

4. Citibank Quick Cash (New Loan Customers)

New account holders earning S $30,000 and beyond yearly can use Citibank Quick Cash to borrow a minimum of S $1,000. The regular loan interest rate is at 4.55% (with 8.5% EIR) for a S $10,000 loan. Plus, you have a total loan amount of S $11,365 total repayment inclusive of interest rate charges.

All account holders eligible for Citibank Quick Cash must earn S $30,000 yearly for a S $10,000 personal loan payable within 1-5 years. Currently, all one-year loan tenures for any amount have zero interest rates per year but require you to pay a 3.5% processing fee.

5. DBS Personal Loan

When you borrow S $10,000 payable for three years using DBS Personal Loan, you can expect to pay S $11,164 plus a $100 processing fee and S $310 monthly. DBS provides you a 1-3 year personal loan to pay for the total amount inclusive of its interest rate charges at 3.88% (7.9% EIR)

If you’re an existing DBS or POSB account holder, you can receive cash directly to your bank account after the bank approves your application. Currently, DBS has no available promotions for its products and services.

6. POSB Personal Loan

Borrowing S $10,000 payable for three years with POSB, you’ll deal with an interest rate of 3.88% with an effective interest rate (EIR) of 7.9%. You’ll have paid S $11,164 inclusive of interest rate charges before the bank closes the personal loan transaction. Borrowers will pay a S $100 processing fee and regular monthly repayments of S $310.

Existing DBS and POSB account holders will receive their funding with a direct wire after their bank’s loan application approval, meaning it will reflect the new amounts within days. POSB has no existing promotions for its personal loan product.

7. Citibank Quick Cash (Existing Loan Customers)

If you’re borrowing S $10,000 using a Citibank Quick Cash loan as an existing account owner, you won’t pay for any processing fees. Monthly, you’ll be paying S $316 for three years. Fortunately, you have one of the lowest loan interest rates at 4.5% per year (8.5% effective interest rate). In total, you’ll have paid S $11,365 plus interest by the end of your existing loan.

As an existing Citibank customer, you won’t pay any processing fees throughout the loan’s entirety. On the other hand, Citibank Quick Cash disallows early payment, meaning you’ll pay your entire financing for three years, such as in our example.


Terms That Most Borrowers Find Confusing

1. Interest Rate

Most interest rates reflect the bank’s service fees for lending money. This value is the “floor” or the lowest amount they’ll charge for a loan. Borrowers with high credit scores easily receive the lowest interest rates possible.

2. Effective Interest Rate

On the other hand, borrowers with low or undesirable credit scores will likely receive the effective interest rate (EIR). These figures are higher than the actual interest rate, yet they do not serve as the “ceiling” rate, especially for poor-credit borrowers. Banks evaluate all loan applications on a case-per-case basis, which effectively gives every Singaporean borrower a unique EIR each time.

3. Processing Fees

Banks use employees and facilities to process loan applications, investigations, and other administrative work. Processing fees ensure that banks can maintain these facilities and keep up the quality. Often, banks will charge 10% of the personal loan’s total for processing fees.

The Best Alternative to Bank Personal Loans

You’ve definitely heard horror stories from failed loan applications. They’ve waited for more than a month to receive a turned-down application. If you’ve read other stories, you’ll have learned about low-credit score applicants receiving stellar effective interest rates and using collateral to take out financing.

Fortunately, Singapore’s licensed moneylenders are the best alternatives to banks because of their help-oriented service. They require no high credit scores, and they focus on your income and job stability. Truthfully, they will dictate the actual amounts you’ll receive from your financing, depending on your eligibility.

Banks Versus Moneylenders

Some major differences between banks and moneylenders will be quickly apparent to you, such as the shorter loan term period and the ability to pay the entire financing early with licensed moneylenders. Both have their advantages and disadvantages, which we have listed in detail on this table.

  Loan Amount Interest Rate Repayment Period
Banks 10x your monthly salary and above From nearly 4% p.a. (nearly 8% EIR) 1-5 Years
Licensed Moneylenders 6x your monthly salary 1- 4% monthly 12 Months

Finding The Perfect Personal Loan

A good borrowing strategy is to research whether you’re applying for a bank or licensed moneylender’s loan service. If you’re fully informed about your prospective loans’ pros and cons, you won’t get blindsided by certain disadvantages in the future. Finding the perfect personal loan depends on the research you’re willing to put in.

Luckily, you can use loan comparison websites to shorten your research time. Handy filters from advanced loan comparison websites, such as Instant Loan, make it easy and quick to find the best loans. When doing your research, always compare the following items.

1. Monthly Repayments

In our list, we’ve included monthly repayments because it’s a decision-making contention point. Depending on your interest rate, you might be paying a higher or lower monthly repayment amount. Fortunately, loan comparison services, such as Instant Loan, can quickly give you the complete estimated monthly repayments of all viable search results you’ll find.

2. Total Loan Amount You Need

Research is a big part of planning, which plays a big role in avoiding enormous debt. Always have a plan when determining the total loan amount you need. You must remember that your financing isn’t a permanent solution for everyday needs. With a financing objective, such as college payments or emergency bills, it’s easy to have a fixed loan amount to borrow from either banks or licensed moneylenders.

3. Promotions and Discounts

Sometimes, a one-year, interest-free personal loan can help you address your current predicament and help you spend less in the future. Promotions and discounts, while seldom and challenging to time their use properly, are handy if they’re beneficial to you. While they have a huge bearing on your loan application decisions, always prioritize your established financial plan and a comprehensive comparison between similar financial products.

The Difference Between Applying for a Bank and Moneylender Personal Loan

We’ve listed the various details between banks and licensed moneylender personal loans. Now, we’ll expound further on each one’s loan products, eligibility, and requirements.


You’ve seen the list of the best personal loans in Singapore. Most of them have specific eligibility and requirements. For example, many of the products require borrowers of S $10,000 to have a minimum income of S $30,000. Alternatively, banks will ask borrowers to deal with product-specific early-repayment penalties that licensed moneylenders will never charge. Here are the common eligibility and requirements of personal bank loans in Singapore.


  • 18 Years of Age
  • Singaporean National or Permanent Resident
  • Must earn a specific income threshold depending on the loan amount
  • Nominal to high credit scores


  • Existing bank account holders (for specific promotions and loan products)
  • NRIC
  • Employment letter of offer or 3 months of payslips
  • Recent billing statement to verify address

Licensed Moneylenders

All registered Singaporean moneylenders focus on helping rather than profiting from Singaporeans. As a great bank alternative, they’re open for foreign nationals with their loan services. Plus, they do not require borrowers to have nominal credit scores. Licensed moneylenders focus on your income figure and stability. Plus, they’ll interview you to assess your financial knowledge and management skills.

Licensed lenders have simpler requirements than banks. Here’s a complete list of them below.


  • You are of 18 years of age and above
  • Singapore and PR minimum: S $1,500 (for foreigners, S $2,000)


  • Singapore/PRs:
    • Identity card / NRIC
    • Proof of residence (utility bill, a letter addressed to you, and/or tenancy agreement)
    • Proof of employment (certificate of employment or 3 months recent payslip)
  • Foreigners:
    • Passport
    • Work Permit / S-Pass / Employment Pass
    • Proof of residence (utility bill or tenancy agreement)
    • Proof of employment (certificate of employment or 3 months recent payslip)
    • Proof of income (bank or account statement)

Is Personal Financing All I’ll Find With Licensed Moneylenders?

Personal loans are just one financial product licensed moneylenders can provide borrowers. They have a product variety that rivals bank offers. While they might not issue credit cards, you can get the following aside from the best personal loans with fair terms and conditions.

1. Bridging

These financial products function as a spot payment option to grab a time-sensitive opportunity or promotion. The licensed moneylender gives you a specific down payment amount acting as a “bridge” towards your objective. For example, bridging loans are useful for one-time, low down payment condo promotions when you don’t have enough savings to seize the chance.

2. Business

Licensed moneylenders have enough resources to supply startup, small, and medium enterprises with sufficient financing to start or expand their business. Business loan requirements significantly differ from personal financing requirements. Additionally, their loan amounts go way beyond six months of an individual’s salary too.

3. Payday

If your employer fails to you on time for any reason, licensed moneylenders can spot your income, allowing you to pay them later. Many Singapore freelancers and foreign workers take advantage of licensed moneylender payday financing, which helped them avoid ballooning debts and utility bills.

4. Foreigner

Foreign workers in Singapore have no credit scores and bank history, making it difficult to use bank services. However, licensed moneylenders use income amount and stability as the basis for loan application approval. Foreign workers still have unique and higher-than-usual eligibility and requirements set, but their terms and conditions are the same as those Singaporeans, and permanent residents receive.

What Are The Differences Between Secured and Unsecured Loans?

Borrowers with low credit scores receive alternative financing proposals, such as an unsecured loan.

Secured loan products use collateral as a borrower’s guarantee to lenders. It can be anything of value, such as a vehicle or property. Borrowers can use their properties’ equities as security to lower their monthly interest rates or at least get a loan application approval.

Unsecured loans are high-interest financial products that have no collateral involved. Borrowers with poor to junk credit scores receive unsecured loan offers because of their extremely high risk of defaulting.

Read more: Differences between Secured and Unsecured Loans

Can I Use a Personal Loan For Debt Consolidation?

While personal loans can function like consolidated loan options, they are worlds apart in difference. A licensed moneylender personal financing requires you to pay within 12 months with up to 4% interest rate. On the other hand, debt consolidation allows consolidators to negotiate a lower interest rate and longer repayment period to give you the best chance to repay and clear your debts.

How Long Does a Personal Loan Get Approval?

Banks can take from two weeks to a month for many bank loan applicants until you can get any loan application results.

On the other hand, licensed moneylenders can give you a loan application decision in less than an hour if you prove your eligibility by submitting all your requirements.

Get The Best Licensed Moneylender Personal Loans Today!

It’s challenging to use just any licensed moneylender. Fortunately, advanced search algorithms from Instant Loan allow you to see the best promotions from licensed moneylenders nationwide. Additionally, you can get up to three quotes from Singapore’s most preferred and highly-rated moneylenders to find the best-customized loan plan for you. Visit our website today to learn more!

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