Who Is the Best Lender for Personal Loans in Singapore? The 2023 Edition

Personal Finance

Who Is the Best Lender for Personal Loans in Singapore? The 2023 Edition

September 25, 2023

Personal loans are a good option if you need urgent cash but don’t want to bother your loved ones by asking for a loan. Borrowing money from a bank or other lending organisation and paying it back in equal monthly payments is a personal loan.

Banks are considered the best lenders for personal loans in Singapore because it is often far more affordable and secure than engaging moneylenders. However, banks typically analyse your credit report, and you’ll need to earn a certain minimum income.

Let us look at who is the best lender for personal loans in Singapore.

Explanation Of Key Terms

Explanation Of Key Terms

The Interest Rates 

Observe how the phrase ‘from X%’ rather than the number ‘X%’ serves to indicate interest rates. This is due to the simple reason that the terms of a personal loan can change rapidly depending on variables like:

  • The credit history.
  • The quantity of money you desire to borrow.
  • Duration of time (also known as loan tenure).

When you apply to a bank, they may adjust your interest rate to reflect your circumstances. As a result, you may not know your actual rate until after the authorisation of your application.

The EIR (Effective Interest Rate)

It is a better indication of the expense of a loan in comparison to interest rates on the advertisements. This is because it takes into account other costs and the loan’s payback schedule.

Processing Fees 

This is the most significant unstated fee relating to unsecured loans. A loan of $10,000 would net you $9,900 after paying a processing fee of $100 (or 1%) to cover the loan’s principal.

Borrowers may not ‘feel’ the impact, but their ability to borrow money drops, and the price rises.

Let’s take a look at the five highlighted personal loan programs.

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Aug 2023 Guide Of Top 5 Personal Loans In Singapore

UOB Personal Loan

Personal loans from UOB are only available to Singaporeans, PR cardholders, and clients of UOB’s CashPlus program who are at least 21 and under 65. In addition, you have to be an employee with a salary of no less than $30,000 annually.

Not a current client of UOB’s? The UOB Personal Loan application process requires using a UOB CashPlus or credit card.

For a loan term of 12 months, you’ll pay 3.77% per year in interest plus an EIR of 6.89% yearly. The fixed rate is 3.88% p.a., resulting in an EIR of around 7.21% and 7.29% p.a. for loans with loan tenure of 60, 48, 36, or 24 months.

Once solely applicable to loan terms of 24 months or more, UOB now foregoes processing fees across the board. Online applications for personal loans from UOB undergo immediate approval if the borrower is already a bank customer.

Standard Chartered Cashone

The eligibility criteria for qualifying for a personal loan from Standard Chartered CashOne include:

  • Borrowers must be at least 21 years old.
  • Have permanent residency.
  • Possess a valid Singapore Employment Pass.

Standard Chartered’s CashOne individual loan has fewer entrance barriers than those of competing banks. The minimum yearly earnings for Singapore citizens and PRs is $20,000 (less than most banks), and the obligatory annual income for foreigners is $60,000.

Standard Chartered’s open to applicants not on a traditional salary, such as those who work on commission or are self-employed. You may acquire this financial aid in as little as 15 minutes after applying online using SingPass. To qualify for this financial product from Standard Chartered, you need not be a current client.

Now that we know it’s quick, how about the cost? Standard Chartered collects a one-time yearly charge of $199 for loans with terms of one and five years.

After the first year, there are no more annual charges to pay unless you fall behind on payments, in which instance you’ll have to fork up $50. Add $100 to that as late charges.

CashOne’s $199 fee is only reasonable if you need a sizable amount. The cost of the loan amount of $10,000 would amount to 1.99% of the loan’s principal.

Advertised rates begin at 3.48%, resulting in a practical interest of 6.95% or higher. The rate you receive may vary from the one shown here because rates differ individually.

Citibank Quick Cash

Citibank Quick Cash is a lending product available exclusively to new Citibank clients at a rate of 3.45% (EIR: 6.5%). Your interest will be greater if you have an active loan with Citibank.

The Citi App makes it easy to withdraw cash whenever you need it by letting you log in and enter the amount you want to withdraw.

Citi Quick Cash is available to self-employed or salaried Singaporean PRs and citizens and foreign nationals with a yearly wage of not less than $42,000. The minimum age to apply is 21, and the maximum is 65.

Citibank offers personal loans with interest rates of 3.56% for terms of one year and 3.45% for terms of three years. The EIR is 6.5%, regardless of the term length.

POSB/DBS Personal Loan

Personal loans from DBS are available solely to current clients. You can transfer the money immediately if you use a DBS, Cashline, or credit account or if your employer deposits your paycheck directly to your POSB or DBS deposit account.

Anyone with a credit card or cashline account, even non-Singaporeans, can apply for the funding. DBS personal finance loans are available to borrowers with lower incomes and longer life expectancies than those from other banks, as long as they have a steady job and income of at least $20,000.

You don’t need a stable income, similar to the Standard Chartered’s loan. Independent contractors and commission-based employees are welcome to apply.

With a private loan from DBS, you may pay as little as 3.88% interest. The lowest feasible EIR is 7.9%, and a processing charge of 1% brings that total up. You can choose from a six-month to a five-year loan term.

The real rate you receive will depend on the terms DBS is willing to give you, but they are the minimum conceivable rates. The highest possible EIR is 20.01%.


Personal loans from HSBC are available to:

  • Singaporean citizens.
  • Permanent residents.
  • Individuals between the ages of 21 and 65.
  • People who earn $30,000.
  • More in yearly salary or $40,000.
  • A valid work visa for at least six months and an annual salary of at least $40,000.

HSBC’s loan in Singapore stands out since it currently offers the best loan tenure, at a maximum of seven years. HSBC’s loan is an excellent option if you need a substantial loan but cannot make the hefty monthly instalments.


  • The effective interest rate (EIR) is 7.5%-15% p.a.
  • The advertised interest rate of 4% p.a.

But keep in mind that individual interest rates will differ. Personal loans from HSBC carry an annual cost of $60, with no first-year charge as an introductory offer.

How To Choose The Right Loan In Singapore

It’s essential to keep in mind that the interest that a financial institution gives you will vary depending on several variables, including:

  • Your credit history.
  • The amount you’re borrowing.
  • The length of time over which you’ll be paying it back.

Check out what other banks may provide you if you fail to receive the lowest rates the first time you visit states. Consider your needs for cash urgency and repayment tenure.

Some people may have more difficulty qualifying for personal loans than others. They include:

  • Senior citizens. If you’re 65 or older, you are eligible for a loan from the DBS up until age 75.
  • Those whose yearly earnings are $30,000 or less. The minimal yearly income for both Standard Chartered and DBS Loan is only $20,000.
  • Commission-based employees or entrepreneurs. Standard Chartered, Citibank Cash, HSBC, and DBS are all viable choices. Other banks only welcome salaried employees.

Term Loans vs. Credit Lines in Singapore

Term personal loans are those you agree to before you receive the money and in which you loan a set amount with a set payback schedule. The substantially lower rates available with these loans make them an attractive option. You can pay the loan at a rate that works with your budget.

Many financial institutions also allow customers to establish an individual line of credit (a flexible repayment plans, credit line, revolving loan, or credit Line).

You can withdraw any amount up to the maximum, but you’d better get it back quickly or pay exorbitant interest. Keep going until you know you can repay the loan immediately.

Most financial institutions today have a flexible repayment plan. They can determine the size of a personal loan based on an existing line of credit or a credit card limit.

Therefore, you’ll need some kind of credit to secure the loan. Even though it has a set payback schedule, we still view it as a term loan.

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Wrap Up

The burden of debt is unpleasant, but it is avoidable. If you need a loan, put everything you’ve got into repaying it in a timely manner to prevent late charges. Practice financial responsibility by taking stock of your finances is a good idea. Keep track of all your earnings and expenditures.

This will help you avoid the need for loans in the future. Create a spending plan that leaves you with some savings for the future but not so much that you must choose between food and rent.

Additionally, you should save enough money for at least three months of living expenses in case of an emergency fund. You could utilise this money instead of taking out a loan to cover any emergency expenses that may arise.