Where To Apply For The Best Personal Loans In Singapore

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Where To Apply For The Best Personal Loans In Singapore

August 2, 2022

So you know what a personal loan is and have determined that you need one.

The big question would be, where can you apply for such a loan?

Here are a few options you can consider, but first, let’s look at the interest rates you will need to pay.

What Is the Interest Rate For Personal Loans?

As you probably know, a personal loan can be secured or unsecured.

Secured loans involve the pledging of collateral or fixed assets such as a property or car. Unsecured loans do not involve any collateral.

With lower interest rates than credit cards, personal loans are good for those who need to consolidate high-interest debt or finance a large purchase.

The personal loan interest rate varies depending on several factors such as:

  • The borrower’s creditworthiness
  • The length of the loan
  • The borrowed amount
  • The decided instalment quantum

That said, personal loan interest rates may range from 1% p.a. to 4% per month.

That’s the good news: The maximum cap for your personal loan interest rate in Singapore is 4% per month.

Can I Pay My Personal Loan Via Monthly Instalments?

Yes, you can. In fact, most personal loans are repaid via monthly instalments, meaning you’ll make fixed payments each month for the duration of your loan.

The amount of your monthly payment will depend on the following:

  • Loan amount
  • Interest rate
  • Loan tenure or duration
  • Admin fee (up to 10% of the borrowed amount)

Here’s an example of what you can expect.

Let’s say you’ve borrowed $5,000 for a tenure of 12 months with a 3% p.a. interest rate. In this case, your total interest will be $150, and your monthly payments will be $458.33 (if you also include the admin fee).

Though you can repay some personal loans in a lump sum, instalment plans are usually easier to budget for. Ultimately, that keeps your financial obligations manageable.

You can also use this handy personal loan calculator.

Which Banks Offer Personal Loans in Singapore?

Banks would be the most obvious option for a personal loan, despite their relatively lengthy and stringent approval process.

Below is a comprehensive list of the personal loans offered by banks in Singapore. The figures below are based on a $10,000 loan with a three-year tenure and a monthly income of $2,500.

Standard Chartered CashOne

  • Interest rate: 3.48%
  • EIR: 7.99%
  • Total sum: $11,044
  • Processing fee: $0
  • Monthly instalment: $307

Citi Quick Cash (New Loan Customers)

  • Interest rate: 3.45%
  • EIR: 6.5%
  • Total sum: $11,035
  • Processing fee: $0
  • Monthly instalment: $307

UOB Personal Loan

  • Interest rate: 3.4%
  • EIR: 6.42%
  • Total sum: $11,020
  • Processing Fee: $0
  • Monthly instalment: $306

HSBC Personal Loan

  • Interest rate: 3.2%
  • EIR: 6%
  • Total sum: $10,960
  • Processing fee: $0
  • Monthly instalment: $304

Citi Quick Cash (Existing Loan Customers)

  • Interest rate:4.55%
  • EIR: 8.5%
  • Total sum: $11,365
  • Processing fee: $0
  • Monthly instalment: $316

DBS Personal Loan

  • Interest rate:3.88%
  • EIR: 7.9%
  • Total sum: $11,164
  • Processing fee: $100
  • Monthly instalment: $310

POSB Personal Loan

  • Interest rate: 3.88%
  • EIR: 7.9%
  • Total sum: $11,164
  • Processing fee: $100
  • Monthly instalment: $310

OCBC ExtraCash Loan

  • Interest Rate: 5.43%
  • EIR: 11.47%
  • Total sum: $11,629
  • Processing fee: $100
  • Monthly instalment: $323

Where Else Can You Apply For A Personal Loan Apart From Banks?

Banks are a reliable option when it comes to getting a personal loan.

But as mentioned, it may take some time for your loan to be approved as banks tend to employ a thorough and strict vetting process due to their low risk appetite.

If you need a personal loan urgently, banks may not be your best bet. This is especially so if your credit score is not ideal or your income is lower than some banks would prefer.

But you can try applying for a personal loan from a licensed money lender.

The Ministry of Law grants licenses to legal money lenders in Singapore, so their activities are completely regulated. You can see the list here.

Licensed money lenders tend to value your credit score less than banks because they rely on your current income.

If a licensed money lender believes you can repay your loan, it will lend you that sum faster and with less bureaucratical hoops than banks.

What Are the Benefits Of Applying For A Personal Loan With A Licensed Money Lender?

Here’s why you should consider a licensed money lender:

Quicker Access To Cash

One of the main reasons to take out a personal loan from a licensed money lender is that you can immediately receive your cash. Banks usually take a few days or even weeks to process and approve your loan application. But with a money lender, you can get your money within hours.

More Flexible Loan Terms

Another advantage of choosing a money lender is they’re generally more flexible regarding loan terms. If you need a larger loan or want to extend your repayment period, a money lender is more likely to accommodate your request than a bank.

Fewer Eligibility Requirements

Banks in Singapore prefer regular incomes of at least $30,000 per year and high credit scores. They can also offer good loans to Singapore citizens and permanent residents earning less than $20,000 per year if their credit ratings are high.

However, a foreigner earning less than $30,000 per year or a citizen with a low credit score may not have much luck with banks.

But a licensed money lender can offer tailored financial packages with fair rates and low instalments that fit your budget.

What To Prepare When Applying For A Personal Loan

For most personal loan applications in Singapore, you need to provide:

  • Your NRIC
  • Last three months’ payslips, and proof of residence
  • Latest Income Tax Notice of Assessment if you are self-employed

Once you have chosen a licensed money lender, you need to visit its office premises in person to complete the loan approval process and have your identity verified. This face-to-face meeting is mandatory for licensed money lenders.

Any money lender that grants you a loan over the phone without a meet-up at its office address is most likely an illegal or unlicensed money lender, a loan shark, or a scammer.

The money lender must explain the terms and conditions of the loan clearly to you and provide you with a copy of the loan contract after you have signed it.

During the loan tenure, it is crucial to have the following documents on hand:

  • A copy of the loan contract
  • Receipts for all your loan repayments
  • Statement of account for all your loan payments
  • Copies of receipts, accounts and relevant documents

Apply For A Personal Loan That Best Suits Your Needs

Credit Thirty3 is a licensed money lender that offers various types of personal loans.

It offers specific types of personal loans that cater to various life stages. Here are some examples:

No matter which type of loan you choose, here’s what you can expect from Credit Thirty3:

Straightforward Application Process

Credit Thirty3’s platform is synced with Myinfo so that this information can be uploaded instantly. With our quick pre-approval process, you can get your money in a few hours.

Lowest Interest Rates

As a licensed money lender, Credit Thirty3 does its best to keep its interest rates low so that borrowers can enjoy more favourable and flexible terms.

Viable Loan Solutions

It doesn’t matter if your credit score is poor. Credit Thirty3’s experienced and helpful consultants will work out the best solution for your needs.

Customised Financial Packages

After getting the full picture of your financial commitments and constraints, the consultants at Credit Thirty3 will tailor a loan package for you that best suits your needs based on your current situation.

Get your quote here to find out more.