Our Picks for the Best Personal Lines of Credit
A personal line of credit (PLOC) is a loan that functions like a credit card. Once your bank approves your borrowing limit, you are able to borrow however much you need at any given time and will only pay interest only on what you've actually borrowed. We've identified personal credit lines with the lowest interest rates by loan tenure, allowing you to choose the most affordable credit line depending on your preferred borrowing time frame.
Best Personal Credit Lines: Cost Comparison
Below, we compare the total cost, including annual fee and interest, of different personal lines of credit from each bank in Singapore. This assumes a scenario where you take out a S$10,000 of line of credit for 1 month.
Best Personal Line of Credit: HSBC Personal Line of Credit
- Standard Prevailing Interest Rate: 14%
- Standard Annual Fee: S$60 (waived for 1 year)
- Revolution & Advance Interest Rate: 16.5%
- Revolution & Advance Annual Fee: S$60 (waived for 2 years)
- Premier Interest Rate: 12%
- Premier Annual Fee: Waived
If you are looking for a longer-term personal line of credit, HSBC's personal line of credit is the way to go. First, its annual fee is waived for 1 year (or 2 years for Revolution customers or higher). Not only that, its fee in subsequent years is substantially lower than all other banks at S$60. Furthermore, its effective interest rate is the lowest in the market at 14%, compared to 20% charged by other banks. Therefore, if you are looking to open a personal line of credit that you will need to use over a few years, HSBC's offer can be the most effective and the cheapest option for you.
It's also worth mentioning that HSBC's rates become even cheaper for HSBC's loyal customers who have either a HSBC Revolution Card or Advance/Premier status with the bank.
Best Short-Term Personal Line of Credit: Maybank CreditAble
- Promotional First-Year Interest Rate: 9.0%
- Prevailing Interest Rate: 19.8%
- Annual Fee: S$80
- Maximum Credit Limit: 4x monthly salary
Maybank's CreditAble is one of our top two picks for the best personal line of credit in Singapore. First, its annual fee of S$80 is waived for 2 years, which is the best option we've seen in the market. Although its effective interest rate is in line with the market average around 19.8%, it actually offers a super low rate of 9% for the 1st year. Because of these two features, Maybank's CreditAble is by far the cheapest short-term option for someone who is looking for a personal line of credit in Singapore.
Best Personal Line of Credit for Low Income Borrowers: DBS Cashline
|Annual Income||Interest Rate||Credit Limit|
|$20,000 to S$30,000||20.5%||2 times monthly salary|
|S$30,000 to S$120,000||20.5%||4 times monthly salary|
|S$120,000+||20.5%||10 times monthly salary|
DBS Cashline is the best line of credit with a minimum income requirement below S$30,000. DBS stands out as a lender offering personal line of credit loans to individuals with annual incomes of at least S$20,000 and due to its current promotion. Additionally, DBS Cashline charges a low interest rates of 20.5%.
Best Personal Line of Credit for Promotion: UOB CashPlus
- Prevailing Interest Rate: 20.5%
- Annual Fee: S$100
- Maximum Credit Limit: 4-6x monthly salary
- Promotions: Receive discounted UOB CashPlus Funds Transfer loan: 0% interest
UOB's CashPlus is currently worth considering due to its competitive promotion which includes 0% interest for 3 months and a processing fee waiver (worth S$100). Following the promotional period, this product is not as competitive, with a prevailing interest rate of 20.5%. Still, those that seek a very short-term source of funding may find UOB's CashPlus to be a good fit.
How to Choose a Personal Line of Credit
When choosing a personal line of credit it is important to have a rough idea about how long you would like to have access to financing. For example, some borrowers would prefer to have access to funds for several years, while others simply need the ability to borrow over the span of a few months. Once you've identified the period of time that works best for your circumstances, you can easily select the cheapest credit line from our list. We narrowed our list based on the total cost of borrowing, which takes into account prevailing interest rates and processing fees.
Should You Get a Personal Line of Credit or a Personal Loan?
While personal lines of credit function as revolving credit lines and charge interest based on the flexible amount the borrower draws, personal loans charge a set interest rate based on a lump sum loan principal. Many personal loans have an early repayment penalty, so you might consider a personal loan if you don't expect your cash flow to improve in the near future.
A personal line of credit, is a revolving credit line and will charge interest as you draw money from it. You will notice the interest rates are much higher than a typical personal loan and often lower than a traditional credit card. Since there is no repayment penalty and you can get approval fairly quickly, this is a great option for individuals certain of their future cash flows who are looking for a short term loan option.
Frequently Asked Questions
While personal lines of credit function as revolving credit lines and charge interest based on the flexible amount the borrower draws, personal loans charge a set interest rate based on a lump sum loan principal. For more information, please refer to our full guide.
In most cases, borrowers will find that car loans are cheaper than personal lines of credit for purchasing a vehicle. The best car loans charge interest rates of just 2-3%, making them more affordable than personal lines of credit especially longer tenures.
Startup founders and other small business directors may be interested pursuing personal loans or lines of credit as an alternative to business financing. Our research indicates that the best SME lines of credit are a better fit for these organisations, as they tend to offer larger maximum financing amounts and more competitive interest rates without strict eligibility requirements.
The banks on this page currently offer the best personal lines of credit. To determine which banks make our list, we compare a number of key factors including interest rates, processing fees and eligibility requirements.
Summary Table of the Best Personal Line of Credit Rates in Singapore
If you are interested, below is a summary table of the best personal line of credit products in Singapore.
|Annual Income Requirement||Annual Fee||Interest Rate||Maximum Credit Limit|
|Maybank CreditAble||S$30,000||S$80, waived 2 years||9% 1st year, 19.8% subsequently||4x monthly salary|
|HSBC Personal Line of Credit||S$30,000 (S$40,000 for foreigners)||S$60, waived 1 year||18.5%||2x monthly salary|
|Premier Customer||S$0||12%||2x monthly salary|
|DBS Cashline||S$20,000||S$120, waived 1 year||29.8%||2x monthly salary|
|S$30,000||S$120, waived 1 year||20.5%||4x monthly salary|
|S$120,000||S$120, waived 1 year||20.5%||10x monthly salary|
|OCBC EasiCredit||S$20,000||S$80||29.8%||2x monthly salary|
|S$30,000 (S$45,000 for foreigners)||S$80, waived 1 year||19.98%||4x monthly salary|
|S$120,000 (S$120,000 for foreigners)||S$80, waived 1 year||19.98%||6x monthly salary|
|UOB CashPlus||S$30,000||S$100||19.8%||4x monthly salary|
|S$120,000||S$80||19.8%||6x monthly salary|
|Citibank Ready Credit||S$30,000 (S$42,000 for foreigners)||S$100, waived 1 year||20.95%||4x monthly salary|
- on_current="true" url = "https://www.valuechampion.sg/different-types-unsecured-loans-singapore"Personal Loan vs Debt Consolidation vs Personal Line of Credit: What’s The Difference?[/link
- Personal Installment Loans vs Personal Line of Credit: How Should You Choose?
- Could a Business Line of Credit Help My SME?