POSB Personal Loan (DBS Personal Loan) Review

POSB Personal Loan (DBS Personal Loan) Review

Banks with the lowest advertised personal loan interest rates.

Good for

  • Borrowers seeking lowest rates in the market
  • 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)

Editor's Rating

4.0/5.0

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 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 AmountNew Customer CashbackExisting Customer Cashback
S$10,000 to S$19,999S$268S$68
S$20,000 to S$29,999S$488S$288
S$30,000 to S$49,999S$688S$488
S$50,000+S$1,088S$888

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 DurationFlat RateFeeEffective Interest RateMonthly PaymentTotal Cost
1 year2.88%1%5.27%S$857.33S$288
2 years2.88%1%5.27%S$440.67S$576
3 years2.88%1%5.27%S$301.78S$864
4 years2.88%1%5.27%S$232.33S$1,152
5 years2.88%1%5.27%S$190.67S$1,440
*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.

Smallest personal loan size

Who Can Apply: Eligibility Criteria

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

Eligibility S$20,000 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$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.

FeeAmount
Processing Fee1% of loan principal
Early Redemption FeeS$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)

Comments and Questions

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