Hong Leong's personal loan allows customers to take out up to S$250,000 for up to 5 years, making it useful for those who need money to pay for home, medical, educational, and many other large-scale purchases. The promotional interest rate of 3.88% p.a. is slightly higher compared to other banks, so customers who are looking for the lowest rate may not find this loan to be the best fit. However, for wealthier and self-employed people who are looking to take out one of the largest loans available without a surplus of additional forms, this could be for you.
|Summary of Hong Leong's Personal Loan|
|Loan credit between S$5,000 to S$250,000|
|Interest rates starting at 3.88% per annum|
|Good for self-employed individuals|
|Loan tenure of 1-5 years|
Table of Contents
What Makes Hong Leong's Personal Loans Stand Out To Borrowers
Hong Leong's personal loan stands out due to its max borrow limit of S$250,000. Of course, this is conditional on the loan being 4x your monthly income, making it less attractive for those with lower incomes. On the other hand, other banks with high maximum limits, like POSB bank who offers up to 10x your monthly income if you make over S$120,000 per annum, may offer more flexibility with the maximum loan amount.
However, Hong Leong's personal loans are a bit more expensive compared to the market average of 3.48 – 3.7% p.a. Furthermore, regarding the EIR, which is the total amount you will pay for the loan, Hong Leong has a rate of 9.93% which decreases with loan duration. This is fairly average in Singapore, where the EIR ranges from 7.87% to 12%.
This loan could be useful for wealthier and self-employed individuals who want to take out a large loan, as Hong Leong requires minimal paperwork. For those who would like a shorter-term loan or have lower annual income, we recommend other banks like HSBC , which has lower interest rates and allows you to take out up to 8x your monthly income.
Table of Hong Leong's Personal Loan Charges
|Loan Duration||Flat Rate||Processing Fee||EIR||Monthly Instalment||Total Cost|
|*Assuming a loan of S$10,000|
Who Can Apply: Eligibility Criteria
In order to apply, you must be a Singaporean citizen or permanent resident between 21 and 60 years old who earns at least S$30,000 a year. The minimum amount you can borrow is S$5,000, whereas the maximum is up to 4x your monthly income or S$250,000.
Other Charges and Fees
Hong Leong has other charges and stipulations you should know prior to applying for the loan. For example, you will have to pay a fee of 3% or S$200 if you want to fully pay off the loan early. The chart below lists the most important fees to consider.
|Processing Fee||1.5% of the loan amount or S$100, whichever is higher|
|Late Payment Fee||S$80|
|Late Payment Interest||5% p.a. plus HLBS Prime (5.75%)|
|Early Termination Fee||3% of outstanding loan amount or S$200, whichever is higher|
How To Apply: Application Process
You can apply directly on their website by downloading the application form and sending it virtually or by post. Be ready to submit the following documents:
- The completed and signed application
- A copy of your NRIC and passport if applicable
- Credit Bureau Report
- A computerized payslip and CP contribution, if your salary is over S$60,000, or two years of Income Tax Notice of Assessment if you are self-employed
The application will be reviewed and either accepted or rejected within 2-3 days. Upon acceptance, you will receive the funds in your account subject to the contractual agreement. Due to the longer amount of time it takes to receive funds, Hong Leong may not be the best choice if you are looking to get cash immediately.