Best Personal Loans 2020

Our experts carefully review the rates and features personal loans from all of Singapore's major lenders in order to make tailored recommendations for the best personal loan based on your preferences.

Best Overall Personal Loan:
  • HSBC Personal Loan: Most competitive interest rate (EIR 7%), S$100 cashback for online applicants
Best Personal Loan Promotion:
Best Small, Short-Term Personal Loans:
Best Personal Loan for Annual Income Below S$30,000:
Best Personal Loan for Foreigners in Singapore:
  • HSBC Personal Loan: Lowest foreign income requirement (S$40,000) and interest rate (EIR 7%)

Compare the Best Personal Loans in Singapore

Below, we show the total cost for each personal loan in Singapore. Our chart assumes a 3-year S$10,000 loan for a borrower that makes at least S$30,000 annually. For a loan of this size, you should expect to pay somewhere between S$1,000 and S$2,500 in fees and interest. This cost does not include fees for late or early payments, which we typically advise against.

Comparing the total cost of personal loans from every bank in Singapore in terms of interest payment, assuming S$10,000 of personal loan over 3 years
Cost of Personal Loan by Bank
Best Overall Personal Loan: Best Personal Loan Promotion:
Best Small, Short-Term Personal Loans: Best for Annual Income Below S$30,000: Best for Foreigners in Singapore:

Compare the Best Personal Loans in Singapore

Below, we show the total cost for each personal loan in Singapore. Our chart assumes a 3-year S$10,000 loan for a borrower that makes at least S$30,000 annually. For a loan of this size, you should expect to pay somewhere between S$1,000 and S$2,500 in fees and interest. This cost does not include fees for late or early payments, which we typically advise against.

Comparing the total cost of personal loans from every bank in Singapore in terms of interest payment, assuming S$10,000 of personal loan over 3 years
Cost of Personal Loan by Bank

Best Personal Loan: HSBC Personal Loan

  • Most Competitive Interest Rates: 7% EIR
  • Longest Loan Durations: 1 - 7 years
  • Promotions:
  • S$100 cashback for online applicants
  • Processing fee waived (S$88)
  • Read Our Full Review
Loan DurationFlat RateProcessing FeeEffective Interest RateMonthly InstalmentTotal Cost
1 year3.8%S$07%S$865.00S$280
2 years3.7%S$07%S$447.50S$640
3 years3.7%S$07%S$308.61S$1,010
4 years3.7%S$07%S$239.17S$1,380
5 years3.8%S$07%S$198.33S$1,800
6 years3.8%S$07%S$170.56S$2,180
7 years3.8%S$07%S$150.71S$2,560
*Assuming S$10,000 loan and income of S$30,000; includes processing waiver & S$100 online cashback

HSBC's personal loans typically charge the lowest effective interest rates in the market (7%). Additionally, HSBC is the only lender that provides 7-year loans, which can reduce the burden of your monthly repayments by spreading them out over a longer period of time. Finally, the bank is a great option for foreigners living in Singapore, as its income requirement for foreigners (S$40,000) is the lowest of any bank in our review.

  • Most Competitive Interest Rates: 7% EIR
  • Longest Loan Durations: 1 - 7 years
  • Promotions:
  • S$100 cashback for online applicants
  • Processing fee waived (S$88)
  • Read Our Full Review
Loan DurationFlat RateProcessing FeeEffective Interest RateMonthly InstalmentTotal Cost
1 year3.8%S$07%S$865.00S$280
2 years3.7%S$07%S$447.50S$640
3 years3.7%S$07%S$308.61S$1,010
4 years3.7%S$07%S$239.17S$1,380
5 years3.8%S$07%S$198.33S$1,800
6 years3.8%S$07%S$170.56S$2,180
7 years3.8%S$07%S$150.71S$2,560
*Assuming S$10,000 loan and income of S$30,000; includes processing waiver & S$100 online cashback

HSBC's personal loans typically charge the lowest effective interest rates in the market (7%). Additionally, HSBC is the only lender that provides 7-year loans, which can reduce the burden of your monthly repayments by spreading them out over a longer period of time. Finally, the bank is a great option for foreigners living in Singapore, as its income requirement for foreigners (S$40,000) is the lowest of any bank in our review.

Best Personal Loan Promotions:

Depending on your preferences, personal loans that come with attractive promotions might be worth considering. Below we review loans with competitive cashback and fee waiver promotions.

Best Personal Loan Cashback Promotion: POSB/DBS Personal Loan

  • Competitive Interest Rates: from 7.56% EIR
  • Promotions:
  • Up to S$888 cashback for existing bank customers
  • Up to S$1,088 cashback for new customers
  • Read Our Full Review
Loan DurationFlat RateFeeEffective Interest RateMonthly PaymentTotal Cost
1 year3.88%1%7.56%S$865.67S$220
2 years3.88%1%7.56%S$449.00S$608
3 years3.88%1%7.56%S$310.11S$996
4 years3.88%1%7.56%S$240.67S$1,384
5 years3.88%1%7.56%S$199.00S$1,772
*Assuming loan of S$10,000, total cost includes cashback promotion (assuming new-to-bank customer)

POSB and DBS are currently offering a competitive promotion that provides up to S$1,088 in cashback. The banks' loans are particularly good for individuals that need cash immediately. While most banks take at least a day to disburse personal loans, POSB & DBS provide loans for current credit card and personal line of credit customers instantly. Additionally, the banks' rates (from 3.88%) are among the lowest available for those who qualify.

Note: The interest rate and processing fee offered to you is based on your personal credit and income profile. It may differ from the published rate and the rate offered to other borrowers.

  • Competitive Interest Rates: from 7.56% EIR
  • Promotions:
  • Up to S$888 cashback for existing bank customers
  • Up to S$1,088 cashback for new customers
  • Read Our Full Review
Loan DurationFlat RateFeeEffective Interest RateMonthly PaymentTotal Cost
1 year3.88%1%7.56%S$865.67S$220
2 years3.88%1%7.56%S$449.00S$608
3 years3.88%1%7.56%S$310.11S$996
4 years3.88%1%7.56%S$240.67S$1,384
5 years3.88%1%7.56%S$199.00S$1,772
*Assuming loan of S$10,000, total cost includes cashback promotion (assuming new-to-bank customer)

POSB and DBS are currently offering a competitive promotion that provides up to S$1,088 in cashback. The banks' loans are particularly good for individuals that need cash immediately. While most banks take at least a day to disburse personal loans, POSB & DBS provide loans for current credit card and personal line of credit customers instantly. Additionally, the banks' rates (from 3.88%) are among the lowest available for those who qualify.

Note: The interest rate and processing fee offered to you is based on your personal credit and income profile. It may differ from the published rate and the rate offered to other borrowers.

Best Personal Loan Fee Waiver Promotion: Standard Chartered CashOne

  • Interest rates starting from 3.88% p.a. (EIR: 7.56% p.a.)
  • Promotions:
  • Cashback of 50% of first month's instalment (for loans of at least S$15,000)
  • Processing fee waived (S$199)
  • Read Our Full Review
Loan DurationFlat RateFeeEIRMonthly InstallmentTotal Cost
1 year3.88%S$07.76%S$866S$388
2 years3.88%S$07.76%S$449S$776
3 years3.88%S$07.76%S$310S$1,164
4 years3.88%S$07.76%S$241S$1,552
5 years3.88%S$07.76%S$199S$1,940
*Assuming a S$10,000 loan and annual income of S$30,000; includes fee waiver

Standard Chartered's CashOne personal loan is currently waiving it's processing (S$199) and annual fees (S$50), in addition to offering a competitive cashback promotion on loans of at least S$15,000. Furthermore, the bank is advertising rates as low as 3.88% (7.56% EIR) for qualified applicants. While these rates are not guaranteed for all borrowers, when combined with the cashback promotion, this loan can be a great option.

  • Interest rates starting from 3.88% p.a. (EIR: 7.56% p.a.)
  • Promotions:
  • Cashback of 50% of first month's instalment (for loans of at least S$15,000)
  • Processing fee waived (S$199)
  • Read Our Full Review
Loan DurationFlat RateFeeEIRMonthly InstallmentTotal Cost
1 year3.88%S$07.76%S$866S$388
2 years3.88%S$07.76%S$449S$776
3 years3.88%S$07.76%S$310S$1,164
4 years3.88%S$07.76%S$241S$1,552
5 years3.88%S$07.76%S$199S$1,940
*Assuming a S$10,000 loan and annual income of S$30,000; includes fee waiver
Standard Chartered's CashOne personal loan is currently waiving it's processing (S$199) and annual fees (S$50), in addition to offering a competitive cashback promotion on loans of at least S$15,000. Furthermore, the bank is advertising rates as low as 3.88% (7.56% EIR) for qualified applicants. While these rates are not guaranteed for all borrowers, when combined with the cashback promotion, this loan can be a great option.

Best Small, Short-Term Personal Loan: Citibank Personal Loan

  • Competitive Interest Rates for Small, Short-Term Loans (EIR: from 8.5%)
  • Low minimum loan amount: S$1,000
  • No Processing Fee
  • Read Our Full Review
Loan TenureFlat RateFeeEffective Interest RateMonthly InstalmentTotal Cost
1 year4.94%0%9.0%S$874.50S$494
2 years4.92%0%9.0%S$457.67S$984
3 years4.55%0%8.5%S$315.69S$1,365
4 years5.72%0%10.5%S$256.00S$2,288
5 years5.79%0%10.5%S$214.92S$2,895
*Assuming loan of S$10,000, total cost includes impact of promotions
For people who need a small personal loan and expect to be able to pay it off within 3 years, Citibank's Personal Loan (formerly Ready Credit PayLite) is one of the best options in the market. Citibank's effective interest rates of 8.5%-9.0% for new customers are among the lowest in Singapore for 1-3 years. Additionally, Citibank's Personal Loan does not charge a processing fee. Finally, Citibank’s minimum loan amount is only S$1,000, making it very accessible for anyone who may need to borrow just a few thousand dollars.

However, Citibank's Personal Loan does not offer the lowest interest rates for loans with longer tenures, making it a less attractive option for borrowers that require long-term loans. Additionally, while Citi's application decision is made within one hour, cash is disbursed more slowly (3-5 days) than other banks.

  • Competitive Interest Rates for Small, Short-Term Loans (EIR: from 8.5%)
  • Low minimum loan amount: S$1,000
  • No Processing Fee
  • Read Our Full Review
Loan DurationFlat RateFeeEffective Interest RateMonthly InstalmentTotal Cost
1 year4.94%0%9.0%S$874.50S$494
2 years4.92%0%9.0%S$457.67S$984
3 years4.55%0%8.5%S$315.69S$1,365
4 years5.72%0%10.5%S$256.00S$2,288
5 years5.79%0%10.5%S$214.92S$2,895
*Assuming loan of S$10,000, total cost includes impact of promotions

For people who need a small personal loan and expect to be able to pay it off within 3 years, Citibank's Personal Loan (formerly Ready Credit PayLite) is one of the best options in the market. Citibank's effective interest rates of 8.5%-9.0% for new customers are among the lowest in Singapore for 1-3 years. Additionally, Citibank's Personal Loan does not charge a processing fee. Finally, Citibank’s minimum loan amount is only S$1,000, making it very accessible for anyone who may need to borrow just a few thousand dollars.

However, Citibank's Personal Loan does not offer the lowest interest rates for loans with longer tenures, making it a less attractive option for borrowers that require long-term loans. Additionally, while Citi's application decision is made within one hour, cash is disbursed more slowly (3-5 days) than other banks.

Alternative Short-Term Option: OCBC Cash-On-Instalment

  • Great Option for Small, 2-Year Loans
  • Exclusive Interest Rate through ValueChampion (EIR: 9%)
  • Low minimum loan amount: S$1,000
  • Promotions:
  • Up to S$320 cashback (S$80 per S$8,000 in total loan amount)
  • Read Our Full Review
Loan DurationFlat RateFeeEffective Interest RateMonthly PaymentTotal Cost
1 year0%6%11.47%S$833.33S$600
2 years0%9%9.00%S$416.67S$900
3 years5.80%2%12.11%S$326.11S$1,940
4 years5.80%2%11.71%S$256.67S$2,520
5 years5.80%2%11.38%S$215.00S$3,100
*Assuming Annual Income above S$30,000, loan of S$10,000
Due to its exclusive rate offered through ValueChampion, OCBC's Cash-On-Instalments are the cheapest small, 2-year personal loans offered in Singapore. The exclusive rate charges 0% annual interest and a 9% processing fee.

Additionally, these loans are unique in that they allow consumers to convert their available credit limit into a fixed monthly instalment loan. This feature can be quite useful for those who need a relatively small sum of cash. Their 1-year loan is also relatively cheap, with a one-time processing fee of 6% and 0% of interest. However, OCBC's Cash-On Instalments can be quite expensive for longer durations.

  • Great Option for Small, 2-Year Loans
  • Exclusive Interest Rate through ValueChampion (EIR: 9%)
  • Low minimum loan amount: S$1,000
  • Promotions:
  • Up to S$320 cashback (S$80 per S$8,000 in total loan amount)
  • Read Our Full Review
Loan DurationFlat RateFeeEffective Interest RateMonthly PaymentTotal Cost
1 year0%6%11.47%S$833.33S$600
2 years0%9%9.00%S$416.67S$900
3 years5.80%2%12.11%S$326.11S$1,940
4 years5.80%2%11.71%S$256.67S$2,520
5 years5.80%2%11.38%S$215.00S$3,100
*Assuming Annual Income above S$30,000, loan of S$10,000

Due to its exclusive rate offered through ValueChampion, OCBC's Cash-On-Instalments are the cheapest small, 2-year personal loans offered in Singapore. The exclusive rate charges 0% annual interest and a 9% processing fee.

Additionally, these loans are unique in that they allow consumers to convert their available credit limit into a fixed monthly instalment loan. This feature can be quite useful for those who need a relatively small sum of cash. Their 1-year loan is also relatively cheap, with a one-time processing fee of 6% and 0% of interest. However, OCBC's Cash-On Instalments can be quite expensive for longer durations.

Best Personal Loan for Low Income Borrowers: Standard Chartered CashOne

  • Best Interest Rates for Low Income Borrowers
  • Low Minimum Income Requirement: S$20,000
  • Low Minimum Loan amount: S$1,000
  • Promotions:
  • Cashback of 50% of first month's instalment (for loans of at least S$20,000)
  • Processing fee waived (S$199)
  • Read Our Full Review
Loan DurationFlat RateFeeEffective Interest RateMonthly InstalmentTotal Cost
1 year9.8%S$027.56%S$274.50S$282
2 years9.8%S$023.14%S$149.50S$576
3 years10.8%S$022.99%S$110.33S$980
4 years10.8%S$021.80%S$89.50S$1,284
5 years10.8%S$020.92%S$77.00S$1,608
*Assuming existing customer with annual income of S$25,000, S$3,000 loan
For individuals who make less than S$30,000 per year, Standard Chartered CashOne is the best personal loan available. For people who make between S$20,000 and S$30,000 per year, Standard Chartered charges flat rates of 9.8 - 10.8% and no processing fee. This translates to an effective interest rate (EIR) of 20-27%, depending on the loan tenor. In comparison, other personal loans offered to lower income borrowers charge flat rates of 11-13% in addition to processing fees (up to 4%) with EIR of around 30%.

A downside of the Standard Chartered CashOne is that it has a maximum loan cap of S$5,000 or 2x your monthly salary, whichever is lower. However, if you make less than S$30,000, we strongly advise you against borrowing more than this amount in the first place.

  • Best Interest Rates for Low Income Borrowers
  • Low Minimum Income Requirement: S$20,000
  • Low Minimum Loan amount: S$1,000
  • Promotions:
  • Cashback of 50% of first month's instalment (for loans of at least S$20,000)
  • Processing fee waived (S$199)
  • Read Our Full Review
Loan DurationFlat RateFeeEffective Interest RateMonthly InstalmentTotal Cost
1 year9.8%S$027.56%S$274.50S$282
2 years9.8%S$023.14%S$149.50S$576
3 years10.8%S$022.99%S$110.33S$980
4 years10.8%S$021.80%S$89.50S$1,284
5 years10.8%S$020.92%S$77.00S$1,608
*Assuming existing customer with annual income of S$25,000, S$3,000 loan

For individuals who make less than S$30,000 per year, Standard Chartered CashOne is the best personal loan available. For people who make between S$20,000 and S$30,000 per year, Standard Chartered charges flat rates of 9.8 - 10.8% and no processing fee. This translates to an effective interest rate (EIR) of 20-27%, depending on the loan tenor. In comparison, other personal loans offered to lower income borrowers charge flat rates of 11-13% in addition to processing fees (up to 4%) with EIR of around 30%.

A downside of the Standard Chartered CashOne is that it has a maximum loan cap of S$5,000 or 2x your monthly salary, whichever is lower. However, if you make less than S$30,000, we strongly advise you against borrowing more than this amount in the first place.

Best Personal Loan for Foreigners in Singapore

  • Lowest Income Requirement for Foreigners: S$40,000
  • Most Competitive Interest Rates: 7% EIR
  • Longest Loan Durations: 1 - 7 years
  • Promotions:
  • S$100 cashback for online applicants
  • Processing fee waived (S$88)
  • Read Our Full Review
Loan DurationFlat RateProcessing FeeEffective Interest RateMonthly InstalmentTotal Cost of Borrowing
1 year3.8%S$07%S$865.00S$280
2 years3.7%S$07%S$447.50S$640
3 years3.7%S$07%S$308.61S$1,010
4 years3.7%S$07%S$239.17S$1,380
5 years3.8%S$07%S$198.33S$1,800
6 years3.8%S$07%S$170.56S$2,180
7 years3.8%S$07%S$150.71S$2,560
*Assuming S$10,000 of loan and income of S$30,000; includes processing waiver & S$100 online cashback
According to our analysis HSBC offers the best personal loan for foreigners living in Singapore. For example, HSBC has the lowest interest rates (7% EIR) and income requirements for foreigners (S$40,000). Finally, HSBC offers the longest personal loan tenures (7 years), which can reduce the cost of monthly instalments.

To learn more about the best personal loans available to foreigners living in Singapore, refer to our full guide.

  • Lowest Income Requirement for Foreigners: S$40,000
  • Most Competitive Interest Rates: 7% EIR
  • Longest Loan Durations: 1 - 7 years
  • Promotions:
  • S$100 cashback for online applicants
  • Processing fee waived (S$88)
  • Read Our Full Review
Loan DurationFlat RateProcessing FeeEffective Interest RateMonthly InstalmentTotal Cost of Borrowing
1 year3.8%S$07%S$865.00S$280
2 years3.7%S$07%S$447.50S$640
3 years3.7%S$07%S$308.61S$1,010
4 years3.7%S$07%S$239.17S$1,380
5 years3.8%S$07%S$198.33S$1,800
6 years3.8%S$07%S$170.56S$2,180
7 years3.8%S$07%S$150.71S$2,560
*Assuming S$10,000 of loan and income of S$30,000; includes processing waiver & S$100 online cashback

According to our analysis HSBC offers the best personal loan for foreigners living in Singapore. For example, HSBC has the lowest interest rates (7% EIR) and income requirements for foreigners (S$40,000). Finally, HSBC offers the longest personal loan tenures (7 years), which can reduce the cost of monthly instalments.

To learn more about the best personal loans available to foreigners living in Singapore, refer to our full guide.

How to Choose the Best Personal Loan in Singapore

Before you apply for a personal loan, you should always consider all of your options. Although personal loans are cheaper than credit card debt, they still come at a relatively high price. Interest rates and other terms can also vary greatly based on your annual income and other factors. Therefore, here is some parting advice for those who want to take out a personal loan.

  • Total Cost: this is the dollar amount you end up paying in interest and fees. You can minimize it by choosing low effective interest rate and short duration.
  • Monthly Payment: you need to be able to comfortably afford the monthly repayment during the loan’s tenure. Otherwise, you will end up paying significant amounts in penalty fees and interest. To figure out your monthly payment, first multiply your annual flat rate by the principal amount. Then, multiply this amount by the duration of your loan in years. Then add this amount to the principal you borrowed. Dividing this by the duration of your loan in months will result in the monthly payment (also called monthly instalment or monthly repayment) that you need to make to the bank.
  • Balance: you need to balance the above two numbers as much as possible. Try to minimize the total cost of your personal loan, while making sure that your finances can comfortably handle the monthly installment required to pay off the loan.

Personal Instalment Loan Comparison Table

Please refer to our summary table below for the best personal loan offerings in Singapore.

Personal LoansBest For...Min. Annual Income
HSBC Personal LoanBest Personal LoanS$30,000
POSB/DBS Personal LoanBest Cashback PromotionS$20,000
Standard Chartered CashOneBest Fee Waiver PromotionS$20,000
Citibank Personal LoanSmall, Short Term LoansS$30,000
OCBC Cash-On-InstalmentShort-Term AlternativeS$30,000
Standard Chartered CashOneAnnual Income Below S$30,000S$20,000
HSBC Personal LoanForeigners in SingaporeS$40,000
Personal LoansBest For...Min. Annual Income
HSBC Personal LoanBest Personal LoanS$30,000
POSB/DBS Personal LoanBest Cashback PromotionS$20,000
Standard Chartered CashOneBest Fee Waiver PromotionS$20,000
Citibank Personal LoanSmall, Short Term LoansS$30,000
OCBC Cash-On-InstalmentShort-Term AlternativeS$20,000
Standard Chartered CashOneAnnual Income Below S$30,000S$20,000
HSBC Personal LoanForeigners in SingaporeS$40,000

Effective Interest Rate (EIR) vs Flat Interest Rate

When evaluating a personal loan in Singapore, it’s very important to consider both its flat rate and its effective interest rate (EIR). To explain the difference, flat rate is the number you use to calculate how much interest you owe on the loan. For example, if you borrow S$10,000 at 5% flat rate over 5 years, you have to pay S$500 in interest per year for the next 5 years.

In contrast, EIR represents the true economic cost of the loan, and includes the impact of processing fees and your loan repayment schedule. The reason this is important is that you don’t get to use the full amount you borrow (principal) for the entire duration of your loan. This is because you have to pay the processing fee and your principal payment back to the bank. In other words, you are paying some money back every month that has no impact on reducing your interest payment.

Therefore, you have to carefully examine both numbers when shopping for a personal loan. The flat interest rate will determine how much you have to pay back to the bank on a monthly basis. On the other hand, EIR will tell you what the loan really costs (including fees). Don't be tricked into thinking that a personal loan is only going to cost you 4-8% by looking at its flat rate. In reality, it really costs 12-20%, if not more, which is represented by EIR.

What You Need to Apply for A Personal Loan

In Singapore, you must be between 21 and 65 years old to qualify for a personal loan. Also, most banks will require a minimum annual income of S$30,000, though some banks lend to people with as little as S$20,000 of annual income. For foreigners, this limit increases to $40,000-S$60,000 depending on the lender.

In terms of documents, you will likely need to provide the following to the lender to be approved:

  • Proof of Identity: Singapore Identification Card (IC) or Employment Pass (EP) + Passport
  • Proof of Address: Documents including your residential address (i.e. utility bills with your name and address)
  • Proof of Income: Your Latest 12 months’ Central Provident Fund (CPF) contribution history statement or Latest Income Tax Notice of Assessment or Latest Computerised Payslip or Salary Crediting into the lender’s bank account

To learn more about how personal loans work in Singapore, you can read more about personal loans basics and how much they cost in our guides.

There are a few different types of personal loans available to borrowers in Singapore. First, there are personal instalment loans. These are the most common type of personal loans. Personal instalment loans provide borrowers funds upfront, which borrowers are expected to repay on a monthly basis over the tenor of the loan. These loans are helpful for borrowers that need financing for a large, one-time expense. Another common type of personal financing is known as a credit line or personal line of credit. These loans allow borrowers to "draw" funds as needed up to a limit determined by the lender. Borrowers are only charged interest based on the amount of money and amount of time that they have borrowed, which can make this type of financing cheaper depending on your borrowing needs. These type of loans are useful for individuals that plan to borrow smaller amounts on an ongoing basis.

Borrowers that already have a significant amount of personal debt may consider balance transfer or debt consolidation loans. Balance transfer loans allow borrowers to transfer outstanding loans to a one new loan balance. Many lenders offer a grace period of 3 to 12 months, during which borrowers are not charged interest, making these loans a great option for consolidating and paying down your personal debt. Debt consolidation loans are similar in that they allow borrowers to pay down various personal debts; however, debt consolidation loans are instalment loans that provide a lump sum of cash in order to pay down various debts. Debt consolidation loans are typically useful for borrowers that require a longer-term option for consolidating their personal debt.

If you are considering applying for a personal loan, it is essential to make sure that you are applying for the cheapest loan possible. Aside from comparing rates and fees, it is important to make sure that you are considering the most applicable loan type. For instance, it is often much more inexpensive to apply for a specific-use loan if it fits your borrowing purposes. For example, home, car and education loans tend to charge much lower interest rates than those of personal loans, making these loans less expensive for borrowers that require financing for these specific purposes. Therefore, while personal loans can be great financing tools for many large or unexpected expenses, prospective borrowers should also be aware of other borrowing options.

Frequently Asked Questions

While there are several banks that tend to offer competitive interest rates, it is best to view the variety of personal loan offerings based on your borrowing needs and personal financial situation. For example, some banks offer great rates to those with lower incomes, while others offer lower rates to individuals taking out very large loans. By identifying your financing needs, you'll be able to better assess the personal loan landscape.

In order to be eligible for a personal loan, you'll need to be at least 21 years old, and no older than 65. Additionally, most banks require that you earn at least S$20,000 - S$30,000 annually. Most lenders will require that you submit documentation proving your identity, age and income.

While it is possible to use a personal loan for nearly all purchases, if you are interested in financing in order to purchase a vehicle, renovate your home, attend university or even buy a home, you are better off considering a specific-use loan. Most banks offer a range of these loans (e.g. car loans) with interest rates that are much lower than those of personal loans.

It depends. If you are able to repay your credit card balance within your monthly billing cycle, a credit card can be a great option, as they often offer great rewards that can offset the total cost of your wedding. On the other hand, if you are unable to repay your balance in-full, you're better off choosing a personal loan, as personal loans tend to charge much lower interest rates than credit cards.

Methodology

To arrive at our best personal loan list for Singapore, we collected data from the terms and conditions of personal loans from over 10 major loan providers in Singapore, listed in our table below.

Personal Lenders in ValueChampion's Study
POSB/DBSOCBCUOBHSBCCitibank
Standard CharteredMaybankCIMBANZRHB

We then created an algorithm to calculate the cost of each loan. This cost includes everything that a borrower ends up paying the bank outside of the loan amount itself, which includes processing fees, administrative fees, interest rates. We also take into account benefits of promotions like fee waivers or cashback, which decrease the total cost of a loan. We assume that each monthly installment is paid on time, therefore avoiding other penalties like late payments or early payments.

Because loans come with different costs depending on their size, duration and required minimum income, cost is calculated for each duration range (1-5 years) and for each principal amount. By mapping out each loan's total costs at different size, maturity and income level, we were able to arrive at the above list that costs the least to the borrower.

William Hofmann

William is a Senior Research Analyst at ValueChampion Singapore, focusing on banking and SMEs. He previously was an Economic Consultant at Industrial Economics Inc.

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