Best Personal Loans in Singapore 2024

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Finding the best personal loan from over 150 financial institutions in Singapore can be daunting. Instant Loan simplifies the process by acting as your online "matchmaker," effortlessly sifting through the most suitable options to find your perfect personal loan. Save time, reduce stress, and discover the best rates with ease. Your ideal loan is just a few clicks away!

Compare the Best Personal Loan In Singapore: Top 9 Picks

Finding the right personal loan can be overwhelming with so many options available. To simplify your decision, we have compiled a table of the top picks from leading financial institutions in Singapore. This comparison highlights key features such as interest rates, loan amounts, and special offers to help you quickly identify the best loan for your needs.

DBS
DBS Personal Loan
Up to 10x salary Financing Amount
From 2.68% Interest Rate (p.a)
Up to 5 years Loan Tenure
Standard Charted
Standard Chartered CashOne Personal Loan
Up to S$250,000 Financing Amount
Up to 9% Interest Rate (p.a)
Up to 5 years Loan Tenure
UOB
UOB Personal Loan
Up to S$999,999 Financing Amount
From 2.88% Interest Rate (p.a)
Up to 5 years Loan Tenure
CIMB Bank
CIMB Personal Loan
From S$30,000 Financing Amount
From 2.80% Interest Rate (p.a)
Up to 5 years Loan Tenure
Citibank
Citi Quick Cash Loan
Up to 8x salary Financing Amount
From 3.45% Interest Rate (p.a)
Up to 5 years Loan Tenure
HSBC
HSBC Personal Loan
Up to 8x salary Financing Amount
From 2.92 Interest Rate (p.a)
Up to 7 years Loan Tenure
OCBC
OCBC ExtraCash Loan
Up to 6x salary Financing Amount
From 5.42% Interest Rate (p.a)
Up to 5 years Loan Tenure
Maybank
Maybank CreditAble Loan
Up to 4x salary Financing Amount
From 3.28% Interest Rate (p.a)
Up to 5 years Loan Tenure
POSB
POSB Personal Loan
Up to 10x salary Financing Amount
From 2.68% Interest Rate (p.a)
Up to 5 years Loan Tenure

Disclaimer: Instant Loan is a loan comparison site dedicated to compare cost of financial products and other services in Singapore. This will enable you to make an informed decision before proceeding to your chosen loan provider. The results of our comparison facility are based on our up-to-date objective analysis.

Note that all financial products and services are presented without warranty and may differ from other loan comparison sites. Additionally, this site may post paid advertisements marked as sponsored. Rest assured that we provide unbiased and independent comparison and our results are ranked accordingly.

Apply for a Personal Loan in 3 Easy Steps

To meet your financial needs with ease- whether it's for your next vacation or that potential property you have been wanting, Instant Loan provides a comparison tool wherein you can get the most desirable rates that suit you. These are the steps you can follow:

Step 1

1. Submit Loan Enquiry to Instant Loan

Tell us about your desired amount, monthly income, and desired interest rate and send.

Step 2

2. Compare up to 3 Loan Offers

We’ll provide you with 3 competitive personal loan quotes for free that would be ideal for your needs.

Step 3

3. Visit the Recommended Loan Provider

Head on to the most trustworthy financial institution you chose and apply online. You can visit the provider to finally sign your personal loan application.

Choosing the Best Personal Loan
Bank Vs. Non-Bank Alternative

Choosing the right personal loan depends on your specific needs, financial situation, and the urgency of obtaining the funds. Comparing these factors can help you make an informed decision.

Feature

Bank Loans

Non-Bank Alternatives

Interest Rates

2.68% to 5:52% p.a.

Potentially higher, especially for unsecured loans. Legal moneylenders charge at 1% to 4% per month

Approval Criteria

Stricter, requires higher credit scores and documentation

Easier approval, more lenient credit requirements.

Approval Time

Longer, can take several days to weeks

Faster, often within 24 hours

Flexibility

Less flexible terms and conditions

More flexible, with customizable repayment options

Regulatory Oversight

Highly regulated, ensuring borrower protections

Regulated by the Registry of Moneylenders

Loan Amounts

Between 4x to 10x your monthly income

Varies, typically lower maximum amounts than banks

Customer Service

Wide range of services and support options

Varies, often more personalized but can be less comprehensive

Reputation

Established and trusted institutions

Varies, important to research and verify credibility

How to Choose the Best Personal Loan for You

There are a few easy checks you can do to see if a financial institution is legitimate and licensed, including the way they advertise and how they sell you the credit. By looking out for these things, you can ensure you will not get ripped off.

Interest Rate

When considering a personal loan, it's crucial to find the lowest possible interest rate to minimize your overall cost. When borrowing from traditional banks in Singapore, you can expect an interest rate ranging between 2.68% to 5:52% p.a. 

Tip: Take into account the Effective Interest Rate (EIR) as well as the advertised rate. The EIR provides a more accurate picture of the interest payable and total loan cost as it includes processing and other fees.

Loan Amount

The amount you borrow should align with your financial capacity and repayment ability. Banks in Singapore can offer personal loans up to 10 times your monthly income, while other financial institutions can provide up to 6 times your salary. 

It's advisable to borrow the minimum amount necessary to meet your needs and ensure it fits within your budget. Start by evaluating your financial condition to determine the appropriate loan amount. You can also consider using a personal loan calculator to determine how much you can afford.

Repayment Schedule

Flexibility in the repayment schedule is vital for managing your finances effectively. Both banks and other financial institutions, such as credit companies, offer various repayment plans, but choose one that is manageable for your income and expenses. 

Carefully read the terms of the loan contract, as late repayments can incur additional interest and fees, negatively affecting your credit score. Opt for a repayment plan that fits comfortably within your financial routine to avoid any late payment penalties.

Loan Tenure

The ideal loan tenure is the shortest period that you can manage to repay comfortably. Shorter tenures generally mean lower overall interest costs, but they also come with higher monthly payments. 

Assess your financial situation to select a tenure that balances affordable monthly payments with minimal interest expenses. Align the loan tenure with your repayment capacity to ensure it is sustainable over the loan period.

Fees and Charges

Interest rates are not the only costs associated with personal loans. Be aware of additional fees that can impact the total cost of your loan:

  • Annual fees: Some banks charge a fixed annual fee, adding to your total repayment amount. For instance, a five-year loan could incur five annual fee payments.
  • Late payment fees: Missing instalments or paying less than the due amount can result in late payment fees. Lenders are strict about payment delays, so it's important to make timely payments to avoid extra charges.
  • Change in tenure fee: Some banks allow you to adjust your repayment period for a fee. This flexibility can be crucial if your financial situation changes and you need a longer repayment period to lower monthly instalment.

Early Repayment Fee 

While repaying your loan early might seem beneficial, lenders often charge an early repayment fee to offset the loss of anticipated interest. This fee can be a flat amount or a percentage of the outstanding loan balance. 

If you anticipate the possibility of repaying your loan ahead of schedule, ensure you understand and find the early repayment fee reasonable before committing to the loan.

Requirements for a Personal Loan

Requirements may vary depending on the bank, but here are the basic requirements you can expect:

Eligibility

  • Age: Typically between 21 to 70 years old.
  • Residency Status: Singapore Citizen, Singapore Permanent Resident, or foreigners with existing Cashline and/or Credit Card accounts.
  • Minimum Income: 
    • Singaporean or Permanent Resident: S$20,000
    • Foreigner: at least S$40,000

Required Documents

  • Proof of Identity: NRIC (front and back) for Singaporeans/PRs or passport for foreigners.
  • Income Documents:
    • Salaried Employees: Latest 1-year Income Tax Notice of Assessment (NOA), CPF Contribution History Statement (latest 9 months), or latest computerized payslip/salary crediting into a bank account.
    • Variable Commission-based Employees/Self-Employed: Latest 1-year Income Tax Notice of Assessment (NOA).
  • Bank Statements: Recent statements showing salary crediting (if applicable).

Get Your Best Personal Loans in Singapore Today!​

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Practical Uses for a Personal Loan:

Home Renovations

A personal loan can provide the funds needed to finance repairs or improvements to your home, such as remodeling your kitchen, updating bathrooms, or adding an extension. This can enhance your living space, increase the value of your property, and ensure your home remains safe and comfortable.

Cover unexpected medical bills or procedures that are not fully covered by insurance. This could include emergency surgeries, hospital stays, or expensive treatments. A personal loan can help manage these costs without depleting your savings or causing financial stress.

Education Costs

Use a personal loan to pay for tuition, books, or other educational expenses for yourself or your children. This can include enrollment in higher education courses, certification programs, or specialized training that can advance career opportunities and personal development.

Major Purchases

Buy appliances, furniture, or electronics that you need or desire. Whether it's a new refrigerator, a living room set, or the latest laptop, a personal loan can make it possible to purchase these items without having to save up for months or compromise on quality.

Vacation

Fund your dream holiday with a personal loan. This can cover travel costs, accommodations, activities, and other expenses to ensure a memorable and enjoyable vacation. It's an opportunity to explore new destinations, relax, and create lasting memories without worrying about immediate financial constraints.

Emergency Expenses

Handle unforeseen expenses like car repairs, urgent home fixes, or sudden travel needs. A personal loan can provide quick access to cash, allowing you to address these emergencies promptly and avoid further complications or inconveniences.

Factors Influencing Personal Loan Interest Rates

Understanding the factors that influence personal loan interest rates can help you make informed decisions and secure better loan terms:

Loan Type 

Personal loans come in two main types: secured and unsecured. 

Secured loans, backed by collateral such as a property or savings account, typically offer lower interest rates due to the reduced risk for the lender. 

Unsecured loans, which don't require collateral, often have higher rates because they pose a greater risk to the lender. The purpose of the loan can also affect the rate; for instance, loans for specific purposes like home renovation might have different rates compared to general personal loans.

Credit Score 

Your credit score is a critical determinant of the interest rate you will receive. A high credit score indicates to lenders that you are a low-risk borrower, which can result in lower interest rates. Conversely, a low credit score suggests higher risk, leading to higher interest rates to compensate for potential default risk. Regularly checking and improving your credit score by paying bills on time and reducing debt can significantly benefit your loan terms.

Loan Amount and Term 

The amount you wish to borrow and the monthly repayment period can influence the interest rate. Larger loan amounts might come with lower interest rates due to the economies of scale for the lender. However, the tenure of the loan also plays a role; longer loan terms can result in higher interest rates over time, as lenders seek to compensate for the extended risk. 

It's crucial to balance the loan amount and term to ensure manageable repayments and favorable rates.

Financial Institution Policies 

Each financial institution has unique policies that affect interest rates. These can include internal risk assessment procedures, market conditions, and promotional offers. For instance, some institutions might offer lower rates to attract new customers or during specific times of the year. 

Additionally, lenders might adjust rates based on their current financial health and lending capacity. It's beneficial to compare offers from multiple institutions and understand their specific policies to find the best rate for your needs.

FAQs

Financial Institutions in Singapore offer two main types of loans. These are secured loans which can be accessed after providing collateral, and unsecured loans that can be availed depending on your credit history. For legal institutions, you can loan up to 6 times of your monthly salary if your annual income is at least S$20,000.

For banks, you can loan up to 10 times of your monthly income if your annual salary is S$120,000 and above.

You have to go through the application process with the bank or financial institution of your choice. The first thing asked from you is to fill in all the necessary information in an application form. The bank or financial institution will then assess you based on the required documents you have submitted. Keep in mind that your credit history will also be checked.

Once the financial institution decides to grant you a personal loan, it will determine the down payment, loan term, the repayment schedule and its amounts. Aside from the processing fees, the bank may also charge cancellation or early repayment penalty should you decide to terminate the contract or settle to package before the agreed term.

Banks may be picky when approving loans. This is because they are keen on ensuring the client is able to repay their borrows. As a result, it may take a day or two for approval.

This is longer compared to those who have applied on financial institutions online and visit the office physically, which takes only between 30 minutes to an hour.

Also, applying for a personal loan in a bank in Singapore might require more days. Normally, it would take weeks for borrowers to prepare the needed documents. Hence, should you have been planning to consider taking a loan, you may consider this factor. Prepare your requirements beforehand.

For banks, the minimum repayment duration usually starts at five years, while the maximum loan repayment period for loans is 65 years minus the buyer's age or 30 years whichever is shorter. The maximum loan repayment period for loans taken through financial institutions is 35 years. Thus, the maximum age at which the loan must be repaid is 65 years old.

You can most certainly take out a second personal loan but there are a few conditions that need to be met before it is possible. All the same eligibility criteria still apply.

Keep in mind that you have to check if your credit score is qualified for this option. It should match the requirements of your chosen financial institutions. For a personal loan, most banks require that you have a minimum credit score, often somewhere between 580 and 600. Tip: If you're not sure about the minimum credit score requirement for a bank, ask before applying.

There is a wide selection of financial institutions across the region. To easily choose which one offers the deal that best fits your needs, you can consider using Instant Loan's comparison tool. With it, you can easily get three or more quotes in a second.

Unfortunately, Instant Loan is not a financial institution and does not provide any loan services. We are a neutral party providing loan comparisons.

There are different types of personal loans: Personal Instalment Loan, Line of Credit, Funds Transfer or Balance Transfer and Debt Consolidation Plan.

Personal Instalment Loan - This can be used by Singaporeans and permanent residents in the area. This involves borrowing a specific sum, paying a 1-time processing fee and agreeing to repay the amount in fixed monthly repayment. The loan interest and fees are calculated for the whole loan tenure and added to the total loan amount.
Foreigners can also apply for it, but the conditions require an employment pass of 1-year validity, and 3 months' payslips to generate your annual income.
Line of Credit - is an overdraft facility that only charges interest when you withdraw from the account. Once approved, the funds can be withdrawn via ATM, cheque, internet banking or by going to a physical bank branch. You are charged loan interest the moment you draw funds. No loan interest is charged, when you repay the funds.
It typically has an annual fee ranging from $60 to $120. While its interest rates are generally between 18% to 22% p.a, before any promotional offer. This is deemed useful as a standby cash fund for unexpected expenses. If you need funds for an emergency, you can withdraw cash instantly without any approval process but only when necessary.

Fund Transfer - This loan uses the available credit on your card. You pay a 1-time processing fee and enjoy a very low interest or 0% rate for between 3 to 12 months. You either settle the total amount outstanding or you end up being charged interest rates between 18% to 29% right after, depending on the credit facility the funds were drawn down from.
Banks normally charge a 1-time processing fee of between 1% to 5% on your approved loan amount. The best balance transfer offers will waive this processing fee. Balance transfers are ideal should you need cash urgently, or have a big, short-term expense on the horizon and want to avoid high interest rates on other types of loan facilities.

Debt Consolidation Plan - This loan is a government-approved scheme available with all leading banks in Singapore. It brings together all your open unsecured credit under 1 easier repayment and debt management.

There will be a 1-time processing fee. Depending on the bank and promotional rates, the Effective Interest Rate is typically between 6.7% to 12% p.a. This is commonly used by those who are having trouble keeping up with loan repayments and have a rough guide being 12x monthly salary.

Credit card - This allows you to make purchases and pay back what you owe little by little over time or all at once. If you repay your balance in full within a month, you’ll avoid interest charges.

Peer-to-peer (P2P) - These loans are like personal loans, except they are funded by individual investors rather than a single lending institution.

Home equity loan - This is a second mortgage that gives you a lump-sum amount of money that is repaid on a set schedule. The amount you can borrow is determined by the amount of equity you have in your home, and terms range from five to 15 years.

Small business loan - A business loan can help keep your personal finances separate from your business expenses. These also tend to have lower interest rates than personal loans.

Yes. Depending on your circumstances, a personal loan may be the best option for financing your vehicle purchase. It's advisable as you can receive the money within a few days and aren’t required to find the vehicle you plan on buying first. There is also no collateral needed.

While you could use a credit card to pay for a wedding, there are downsides. Perhaps the biggest is the cost. Should your card contain a high annual percentage rate, carrying a large balance over an extended time period could make your wedding more expensive than you’d planned.

A personal loan, on the other hand, could be a cheaper way to cover all your wedding costs. It also may have better interest rates than a credit card and take less a toll on your credit score.

Also deemed as a business loan, with a term loan, you receive a lump sum of capital that you pay back over a specific time period with a set interest rate, which might be fixed or variable. Meanwhile, a line of credit is one of the most flexible financing products on the market.

While both term loans and lines of credit can provide you some much-needed capital, they have different use cases. Term loans are best for specific, one-off purchases. Lines of credit, on the other hand, are best for ongoing operating expenses. This type of financing is much more flexible and is usually revolving, meaning you don’t have to reapply each time you use and repay your loan.

For financing something particular, one-time expense, a term loan is your ideal option. However, if you’re searching for funds to cover ongoing operating expenses, a line of credit is best for you.

A Flat Interest Rate plan computes interest payments based on the initial original principal. In Singapore, it is normally applied to car loan financing. Meanwhile, the Effective Interest Rate plan computes interest payments based on the remaining outstanding principal at the end of each term and works on computing interest on a reducing balance basis. This is applied for mortgage loan financing in Singapore.

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