POSB Personal Loan (DBS Personal Loan) Review

POSB Personal Loan (DBS Personal Loan) Review

Competitive interest rates and instant cash disbursement.

Good for

  • Borrowers seeking competitive interest rates
  • Those who need funds instantly
  • High-income borrowers seeking the largest possible personal loans

Bad for

  • Borrowers who require personal loans with tenures longer than 5 years
  • Individuals seeking a specific-use loan (e.g. car loan)

Analyst's Rating


POSB and DBS offer instant cash disbursement upon loan acceptance, making them good options for borrowers that require funds from a personal loan instantly. Additionally, POSB and DBS advertise some of the interest rates (normally 3.88% and EIR 7.56%) to qualified applicants.

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.

Summary of POSB/DBS's Personal Loans
Low advertised interest rates: flat rates from 3.88% p.a. (EIR: 7.56%)
Instant cash disbursement for online applicants
Most flexible requirements: minimum loan amount of S$500, maximum loan amount of 10x monthly salary

Table of Contents

What Makes POSB/DBS Personal Loans Stand Out to Borrowers

POSB and DBS offer interest rates from 3.88%, which is one of the lowest advertised flat rate on the market, and makes these loans some of the cheapest available. Additionally, the bank offers instant cash disbursement to approved online applicants. This is helpful as most lenders take at least one day to disburse personal loans. In order to qualify, applicants must be current credit card or credit line customers, and new-to-bank customers must credit their salary into a POSB or DBS deposit account.

These banks also offer the largest possible personal loans (10x monthly salary) to individuals with annual incomes of at least S$120,000. Additionally, DBS and POSB are two of 4 banks that offer personal loans to individuals with annual income of less than S$30,000. However, the bank charges these borrowers higher rates than its competitors, at 11% p.a. with a 4% processing fee (EIR 20.01%).

Summary of POSB/DBS's Personal Loans' Interest Rates & Features

Loan DurationFlat RateFeeEffective Interest RateMonthly PaymentTotal Cost
1 year3.88%1%7.56%S$865.67S$488
2 years3.88%1%7.56%S$449.00S$876
3 years3.88%1%7.56%S$310.11S$1,264
4 years3.88%1%7.56%S$240.67S$1,652
5 years3.88%1%7.56%S$199.00S$2,040
*Assuming loan of S$10,000

These banks also offer the personal loans with both the lowest minimum loan amount (S$500) as well as the largest possible amount of up to 10 times monthly income for individuals with annual incomes of at least S$120,000.

Smallest personal loan size

Who Can Apply: Eligibility Criteria

Consider this if you require a personal loan that offers cash immediately

Eligibility S$30,000 of annual income
Max. Loan Amount 4x monthly salary; 10x monthly salary for income > S$120,000
Min. Loan Amount S$500
Processing Fee 1% of loan principal, waived for loans of more than S$30,000
Approval Time Immediate approval & disbursement for DBS & POSB credit card or line of credit customers

Singaporeans and permanent residents, aged 21 - 65 are eligible for personal loans from DBS and POSB. Applicants must earn at least S$30,000 annually. Individuals that earn less than S$120,000 are eligible for loans of 4 times their monthly income, while individuals with annual incomes of at least S$120,000 are eligible for loans of up to 10 times their monthly income.

Other Charges and Fees

POSB and DBS charge a processing of 1% of the total loan amount. The banks also charge early redemption and late payment fees that are similar to other banks. That being said, we strongly suggest making on-time payments to make your personal loan as inexpensive as possible.

Processing Fee1% of loan principal (4% for low-income borrowers)
Early Redemption FeeS$150
Late Payment Fee (Credit Card)S$100
Late Payment Fee (Cashline PL)S$105

How to Apply: Application Process

Online applicants are eligible for instant cash disbursement. Once your loan is approved, funds will automatically be credited to your account instantly. Applicants must also submit a range of documentation, which is listed below.

  • Photocopy of NRIC (front and back)
  • CPF statement (past 12 months)
  • Latest Income Tax Notice of Assessment or Latest Computerised Payslip
  • 2 years' Income Tax Notice of Assessment or Latest Income Tax Notice of Assessment (Commission Based Employees)
  • 2 years' Income Tax Notice of Assessment (Self-employed)
William Hofmann

William is a Product Manager at ValueChampion Singapore, helping consumers and SMEs find the best banking products through comprehensive analysis of data. He previously was an Economic Consultant at Industrial Economics Inc, where he conducted a variety of research and economic analyses. He graduated from University of Vermont with degrees in Economics and Psychology. His work has been featured on a variety of major media such as the Straits Times, the Business Times, the Edge, DailySocial, the Entrepreneur and more.

Comments and Questions

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