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 the lowest flat and effective interest rates, of 3.88% and 7.54%, respectively. These banks also offer the largest possible personal loans, 10x monthly salary, to individuals with annual incomes of at least S$120,000. Finally, POSB and DBS offer personal loans to individuals with incomes of at least S$20,000, a minimum income requirement that is lower many other banks in Singapore. It is important to note; however, that it is unclear what interest rates these banks charge low-income borrowers.
|Summary of POSB/DBS's Personal Loans|
|Instant cash disbursement for POSB/DBS Cashline or credit card customers|
|Lowest advertised interest rates: flat rates from 3.88% p.a.|
|Processing fee: 1% of loan principal, waived for loans greater than S$30,000|
|Most flexible requirements: minimum loan amount of S$500, maximum loan amount of 10x monthly salary|
Table of Contents
- What Makes DBS/POSB Personal Loans Stand Out to Borrowers
- Who Can Apply: Eligibility Criteria
- Other Charges and Fees
- How to Apply: Application Process
What Makes POSB/DBS Personal Loans Stand Out to Borrowers
POSB and DBS offer interest rates from 3.88%, which is the lowest advertised flat rate on the market, and makes these loans some of the cheapest available. DBS and POSB are also waiving their 1% processing fees (up to S$1,000) for loans of at least S$30,000, which makes their large loans even more affordable. However, their websites do not provide more details and these rates are not guaranteed, making it unlikely that all borrowers will receive the same low interest rate.
Summary of POSB/DBS's Personal Loans' Interest Rates & Features
|Duration (Years)||Flat Rate||Fee||Effective Interest Rate||Monthly Payment||Total Cost|
|*Assuming loan of S$30,000, total cost includes impact of promotions and fees|
DBS & POSB are the only lenders in our review that offer instant cash disbursement to existing credit card or personal line of credit customers. 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, it is unclear what interest rates these low-income borrowers will be charged.
Finally, these banks 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 income of at least S$120,000.
Who Can Apply: Eligibility Criteria
Singaporeans and permanent residents, aged 21 - 65 are eligible for personal loans from DBS and POSB. Applicants must earn at least S$20,000 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; however, the bank is currently waiving this fee for loans greater than S$30,000. 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 Fee||1% of loan principal, waived for loans greater than S$30,000|
|Early Redemption Fee||S$150|
|Late Payment Fee (Credit Card)||S$100|
|Late Payment Fee (Cashline PL)||S$105|
How to Apply: Application Process
Borrowers must become bank customers with POSB/DBS before acquiring a personal loans. This entails signing up for a Cashline or credit card account and a deposit account. In order to sign up for these services, applicants must provide personal identification, income and employment information. Once you are a DBS/POSB customer and your loan is approved, funds will automatically be credited to your account instantly.
- 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 (Commision Based Employees)
- 2 years' Income Tax Notice of Assessment (Self-employed)