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%) and are currently offering a promotional interest rate of 2.88% (EIR: 5.27%) to qualified applicants. 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 2.88% p.a. (EIR: 5.27%)|
|Most flexible requirements: minimum loan amount of S$500, maximum loan amount of 10x monthly salary|
|Promotion: Interest rates from 2.88%; Processing fee waiver; Up to S$1,088 cashback for new-to-bank customers|
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 one of the lowest advertised flat rate on the market, and makes these loans some of the cheapest available. Furthermore, the banks are offering a promotional interest rate through ValueChampion of as low as 2.88% (EIR: 5.27%). DBS and POSB are also offering cashback promotions of up to S$888 for current bank customers and up to S$1,088 for existing customers, which makes their large loans even more affordable.
|Approved Loan Amount||New Customer Cashback||Existing Customer Cashback|
|S$10,000 to S$19,999||S$268||S$68|
|S$20,000 to S$29,999||S$488||S$288|
|S$30,000 to S$49,999||S$688||S$488|
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.
Summary of POSB/DBS's Personal Loans' Interest Rates & Features
|Loan Duration||Flat Rate||Fee||Effective Interest Rate||Monthly Payment||Total Cost|
|*Assuming loan of S$10,000, total cost includes promotions (assuming new-to-bank customer), fee currently waived|
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.
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. 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|
|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)