Best Personal Loan With Low Interest Rates

Best Personal Loans In Singapore With The Lowest Interest Rates (2022)

Need extra cash for an emergency? Or maybe you need financing assistance for a major expense? Taking out personal loans in Singapore might just be what you need.

Whether you’re a Singapore citizen or a foreigner, there are plenty of options in the market. That said, take time to compare which financing institutions have the lowest interest rate. Plus, consider the other fees involved as well.

Below is a list of the lowest interest rate personal loan Singapore. Plus, other loan options to choose the best one that fits your needs.

Best Personal Loan With Low Interest Rates

Let’s assume you want to borrow $20,000 on a 3-year loan term. Use the table below to compare the different rates offered by banks.


Total Amount Payable

Flat Interest Rate

Effective Interest Rate (EIR)

Processing Fee

Standard Chartered CashOne






HSBC Personal Loan






DBS Personal Loan






HL Bank Personal Loan

Hong Leong Bank





Citibank Quick Cash (New Loan Customers)






Some of the most common terms and jargons:

  • Flat Annual Interest Rate: Interest payments are calculated based on the original loan amount. The monthly interest will remain the same throughout the loan term.
  • Effective Interest Rate (EIR): It reflects the true cost of borrowing. It’s usually higher than the advertised rate because it takes into account other fees – including processing fees and admin charges.
  • Processing Fee: This is the fee charged by the bank to process your loan application. It’s usually charged upfront upon loan approval.
  • Monthly Payment: The amount you have to pay the bank every month. Your monthly payment will depend on the loan amount, term, and interest rate.


Analyst’s Review

1. Standard Chartered CashOne

Currently, Standard Chartered Bank (SCB) offers a flat 3.48% interest rate on their CashOne Personal Loans. They are also waiving the processing fees which are usually charged at $199.

This personal loan option is perfect for low-income borrowers. The bank’s minimum income requirement is at $20,000 and offers competitive interest rates. Additionally, SCB promises instant approval as well as fast disbursement.

Unfortunately, this personal loan option is not the best for foreigners living in Singapore. SCB requires foreigners to have a minimum annual income of $60,000 – a lot higher than other banks.


  • Singapore citizen or Permanent Resident
  • 21-65 years old
  • $20,000 minimum annual income

Current Promotions

If you apply for a loan now, you’ll get instant cash disbursement and up to $400 cash in PayNow. Plus a cashback of up to $1,288 from SCB when your loan is approved. This promo is valid until 02 March 2021.

2. HSBC Personal Loan

HSBC Personal Loan is perfect for Singapore citizens and foreigners seeking affordable loan options. At a 3.4% flat rate, this bank offers some of the cheapest interest rates in Singapore. 

Additionally, they provide the longest tenures – up to 7 years! This is great for individuals who are worried about their ability to pay for the monthly requirements.


  • Singapore citizen or Permanent Resident
  • 21-65 years old
  • Salaried employee, variable/commission-based employee, self-employed
  • $30,000 minimum annual income
  • Foreigners living in Singapore must have a minimum of $40,000 annual income
  • Foreigners must have an Employment Pass with at least 12 months’ validity


Receive $88 cashback and 5 x $20 Grab Food vouchers upon approval of loan application. This promotion is valid until March 31, 2021.

3. DBS Personal Loan

DBS offers the most competitive loan interest rate (from 3.88% p.a.) in Singapore. Additionally, they also provide instant cash disbursement upon loan approval.

This personal loan option is perfect for borrowers who need instant funds. It’s also great for high-income borrowers who are looking into the largest possible personal loans. For example, individuals with a minimum annual income of $120,000 can loan up to 10x their monthly salary.

To qualify, you must be a current credit card or credit line customer. For new customers, they must credit their salary into a POSB or DBS deposit account.


  • Singapore citizen or Permanent Resident
  • 21-65 years old
  • $30,000 minimum annual income
  • Foreigners must have a minimum annual income of $40,000  

4. HL Bank Personal Loan

HL Bank recently revised their interest rate to 3.88% per annum. Plus, they also offer one of the highest loan amounts at $250,000. To help you get the best personal loans, a loan specialist will facilitate your loan application.


  • Singapore citizen or Permanent Resident
  • 21-65 years old
  • Salaried employee, variable/commission-based employee, self-employed
  • $30,000 minimum annual income

5. Citibank Quick Cash (New Loan Customers)

Citibank’s Quick Cash is perfect for individuals who need a small, short-term personal loan. With a promotional interest rate of 3.99% p.a., it is one of the best options in the market.

However, this offer is only for new customers who borrow at least $20,000 for 3 years. Additionally, Citibank’s Quick Cash is less attractive for individuals seeking long-term loans.


  • Singapore citizen or Permanent Resident
  • 21-65 years old
  • Salaried employee, variable/commission-based employee, self-employed
  • $30,000 minimum annual income

Note: Citibank’s best loan interest rate is offered exclusively to new customers. Existing credit card or personal loan holders are charged at a higher interest rate for short-term loans.

How To Apply

  • Completed and signed loan application form
  • Photocopy of NRIC (front and back)
  • Income documents
  • For self-employed applicants: Latest income tax notice assessment
  • Commission earning applicants: Provide the latest 3 months’ payslip, CPF contribution history for the last 6 months, or latest income tax notice of assessment.
  • For foreigners: Clear photocopy of Employment Pass

Alternative Option

Banks in Singapore are very meticulous when it comes to scrutinizing borrower qualifications. This increases the chances of getting rejected. That said, you may want to consider getting a loan from a licensed moneylender.

Accredited lending agencies offer faster approvals compared to banks. Your loan can get approved and released within minutes.

Why Consider Moneylenders?

First of all, all licensed moneylenders are listed on the Ministry of Law’s website. They have to follow the rules and regulations set by the Registry of Moneylenders. Additionally, the Moneylenders Act protects borrowers from inflated interest rates.

When you borrow from licensed moneylenders:

  • Minimal Documentation: With licensed moneylenders, applicants will only need to provide proof of identity, residency, and monthly or annual income.
  • Credit Score Flexibility: A licensed moneylender is less strict when it comes to an applicant’s credit score and history. They are more open to providing financing for individuals who don’t meet the bank’s criteria.
  • Faster Approval Process: Since moneylenders are less meticulous, your loan application will get approved a lot faster. In fact, they offer same-day approval. They’re the ideal choice for those who need urgent cash.
  • No Collateral: Lastly, accredited moneylenders do not require borrowers to provide any collateral.

Personal Loan Features

Here’s a simple breakdown of how much you can get with an accredited moneylender in Singapore:

Nationality Annual Income Eligible Loan Amount
Singaporean or Permanent Resident Less than $20,000 Up to $3,000
At least $20,000 Up to 6x your monthly income
Foreigner Less than $10,000 Up to $500
At least $20,000 Up to 6x your monthly income
Minimum Income Loan Amount Interest Rate Repayment Processing Fee Late Fee
$1,500 Up to 6x your monthly income 1-4% monthly Up to 12 months, subject to the terms and conditions of the agreement Not exceeding 10% of the principal loan amount when the loan is granted (one time only) Maximum of $60 each month of late repayment


  • At least 18 years old
  • Minimum salary of $1,500 for Singaporean or Permanent Resident
  • Minimum salary of $2,000 for Foreigners

How To Apply


  • Identity card
  • SingPass
  • Proof of residence – utility bill, letter addressed to you, and or tenancy agreement
  • Proof of employment – certificate of employment or recent 3 months payslip
  • For foreigners: Passport, work permit, proof of residence, proof of income and employment, and SingPass to log into IRAS website

Other Factors To Consider When Choosing A Personal Loan

1. Loan Tenure

This refers to how long you’re going to repay the loan. This factor affects your monthly installment amount, interest, and total loan cost. That said, choose a loan tenure that you can meet. If you fail to repay on time, you’ll incur late fees which could lead to the accumulation of debt.

2. Processing Fee

As previously mentioned, processing fees are the amount charged by banks or moneylenders to process your loan application. Processing fees are usually charged upfront. So consider the processing fees when deciding how much you want to borrow to ensure that you have enough cash for your needs.

3. Late Payment Fee

If you miss any payment schedule or pay less than the fixed repayment amount, you’ll be charged a late payment fee. That said, you need to pay close attention to your monthly payment amount and schedule. Decide whether you can meet them or not.

4. Early Settlement Fees

Banks may charge you an early settlement fee if you want to pay your debt in full. Why? Because it helps make up for the interest they would have collected as your personal loan matures.

Licensed moneylenders, on the other hand, do not have early settlement fees.

Good To Know

Do I need a high credit score to get the lowest interest rates?

Banks use your credit score to determine your risk as a borrower. As a result, it will affect your interest rate as well as your loan amount. In the worst case, your loan application will be rejected. So improving your credit score will help you get the lowest interest rate. 

Read more: How to improve your credit score in Singapore

What if I cannot repay the loan?

  • Your credit score will be affected.
  • Your chances of getting approved for a loan in the future will be lower.
  • If you do get approved for a loan in the future, you’ll pay a higher interest rate.

Here’s what you can do:

  • Talk to your loan officer or moneylender: You can ask for a reduced interest rate. Or ask if they can give you an extension or help you come up with a loan repayment plan.
  • Discounted lump sum settlement: Ask the bank or moneylender to give you a discount on your total amount owed. In return, you’ll be paying the amount in a lump sum on a due date
  • Take out a new loan: This involves borrowing again to pay for your outstanding debt. This is helpful if you choose a loan plan with a lower interest rate.

Can I repay the loan in advance?

Yes, you can. But you have to talk to your creditor if they will charge early settlement fees. Licensed moneylenders do not charge early repayment fees.

Who are the top banks in Singapore?

  • Standard Chartered CashOne
  • HSBC Personal Loan
  • DBS Personal Loan
  • Citibank Quick Cash (New Loan Customers)
  • HL Bank Personal Loan

How to improve my credit score

  • Pay your dues on time
  • Never default on your loan
  • Track your outstanding debt
  • Keep your loan inquiries to a minimum
  • Consolidate debt to repair damaged credit


Personal loans are an excellent option when you need extra cash. Before applying for a loan, consider your options thoroughly. For example, compare the interest rates, loan period, and maximum loanable amount between the top banks in Singapore.

But if you want alternative options, consider taking a personal loan from licensed moneylenders. Accredited lending agencies offer fast approvals and quick disbursements.Check out Instant Loan’s loan comparison services today. You can request up to 3 loan quotes to compare the best loan deals from us.

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