Let’s face it, we all have moments where our bank account is looking a little sad and we need a little extra cash to tide us over.

Whether it’s to fund that much-needed staycation or to finally start on your dream hobby, a personal loan can be a lifesaver.

But first things first: do you really need a personal loan? Would another type of loan serve you better?

We’ll cover that today, along with:

What a personal loan is and how it’s different
What to know before deciding on a personal loan
The average interest rates
The best personal loans currently available in Singapore

Quick Overview of Singapore’s Best Personal Loans

Provider	Interest Rate	Processing Fee	Annual Fee
CIMB CashLite	6.32 – 7.5% EIR	S$0	S$0
Standard Chartered CashOne	6.95% EIR	S$0	S$199 for first year; waived thereafter
POSB/DBS Personal Loan	7.56% EIR	1%	S$120, waived for first year
UOB Personal Loan	6.89 – 7.49% EIR	S$0	S$120, waived for first year
Citibank Ready Credit	7.5 – 10.5% EIR	S$0	S$100, waived for first year
HSBC Personal Loan	7.5% EIR	1%	S$60, waived for first year

What’s a Personal Loan? How Is It Different?

A personal loan is a type of loan you can use for any purpose, such as medical expenses or travel.

Unlike other loans specific to a particular purpose (such as a study loan or car loan), personal loans offer more flexibility in how you can use the funds.

Like credit card debt, they’re typically unsecured. That means they don’t require collateral such as a home or a car. This makes them easier to obtain if you don’t have valuable assets to put up as security, though it also means higher interest.

Personal loans in Singapore usually have a fixed interest rate, meaning the interest rate stays the same throughout the loan term. This is great if you prefer predictable monthly payments and want to avoid the risk of interest rate fluctuations.

What to Know Before Getting a Personal Loan in Singapore

Ask yourself these questions before heading to the bank:

1. Is a personal loan really what I need?

If you just need a bit of cash to tide you over until the end of the month, charging it to your credit card might be better.

Alternatively, if you have a singular purpose for the money (e.g. renovations), consider getting a specific loan instead. They usually charge lower interest, though you’ll have to provide proof in the form of quotations and contracts.

Also, avoid personal loans if you expect to take out a larger loan soon (e.g. for a house).

2. What’s my credit rating?

This will play a role in whether – and how quickly – you are approved for the loan along with the interest rate you must pay.

You can get your credit report from Credit Bureau Singapore before applying for a loan, though we recommend only doing so if you’re very sure you need one. (Too many credit enquiries affect your rating.)

3. What’s the loan amount I need?

Personal loans can go up to a couple hundred thousand depending on your annual income. That doesn’t mean you should max out your loan amount though.

Determine how much money you really need to borrow. Only borrow what you can afford to pay back comfortably based on your cashflow.

4. How quickly can I pay back the loan?

Loan tenures normally range between one to seven years. Longer tenures may mean lower monthly payments but higher total interest costs.

5. What’s the Effective Interest Rate (EIR) I’ll pay?

You’ll see different types of interest rates for personal loans – a flat interest rate and the EIR for example.

Look out for the EIR first. This is a better gauge when comparing loans across banks as it includes processing fees and compounding over time.

6. What other fees and charges should I know about?

Check for any additional fees or charges, such as early repayment fees or late payment fees. These can add to the total cost of the loan.

The 6 Best Personal Loans for Singapore

We’ve listed what we think are the most competitive loans here.

But bear in mind that the interest rates shown below are only generic ones: the actual EIR you’ll pay depends on your financial situation and credit rating.

1. CIMB CashLite Personal Loan

CIMB is best known for their credit cards, many of which are featured in this list of no-fee cards.

And as of 2023, CIMB has only one branch in Singapore – not exactly the most accessible or popular. But perhaps that’s why they have the lowest advertised interest rates of this list. (Only applies to new CIMB clients though!)

What makes CIMB even more appealing is that there’s no processing fee for loan amounts greater than S$5,000, and they’re currently running a promo. If you get a loan tenure of between three to five years, you can get between S$50 and S$1,000 in cashback.

New clients will get a CIMB Visa Signature Card to facilitate the personal loan.

Early redemption fee	3% of outstanding principal or S$250, whichever is higher	Late payment charge	S$100
Age	At least 21	Annual income	At least S$30,000

2. Standard Chartered CashOne Personal Loan

Need quick cash? With Standard Chartered’s promise of cash disbursement “within 15 minutes,” CashOne may be a good choice.

You’ll get 2 months’ interest in cashback upon approval, though this is offset by the first year’s annual fee of S$199. In subsequent years there’s a fee waiver as long as you make payments on or before the due date (if you don’t, it’s S$50).

Standard Chartered also gives new clients an extra S$100 cashback on top of the two months’ interest, for a max of S$3,100 total cashback.

Early redemption fee	S$150	Late payment charge	S$100
Age	At least 21	Annual income	At least S$20,000

3. POSB/DBS Personal Loan

Sometimes you just need a quick top-up, especially when a substantial payday is around the corner. That’s why the POSB/DBS Personal Loan’s offering of a 6-month loan tenure sounds enticing. At least you won’t be paying interest for years!

Like Standard Chartered, POSB/DBS offers fast disbursement. (It’s basically instant if you have an existing Cashline account or credit card with them.)

Just note this personal loan also comes with a 1% processing fee and annual fees past the first year, so there’s extra incentive to take a shorter loan tenure.

Early redemption fee	S$250	Late payment charge	S$120
Age	At least 21	Annual income	At least S$20,000

4. UOB Personal Loan

UOB Personal Loan

Apply Now

Processing Fee

S$0

Annual Fee

S$120

(waved for first year)

Interest (p.a)

3.77 – 3.99%

EIR 6.89 – 7.49%

Loan tenure

1 to 5 years

Already bank with UOB? If you have an existing credit card or CashPlus account with them, you’re eligible to take up a UOB Personal Loan. They promise instant disbursement of funds if you apply online between 8am to 9pm.

UOB also has the second lowest EIR (6.89%), but only for loan tenures of 12 months.

Online applications also net you between 1 – 2.2% cashback on the approved loan amount at no cap. This only applies to loans of at least S$5,000 with a two to five-year tenure though.

Early redemption fee	3% of outstanding principal or S$150, whichever is higher	Late payment charge	S$120
Age	At least 21	Annual income	At least S$30,000

5. Citibank Ready Credit

Citibank Ready Credit

Apply Now

Processing Fee

S$0

Annual Fee

S$100

(waived for first year

Interst (p.a)

3.99 – 5.79%

EIR 7.5 – 10.5%

Loan tenure

1 to 5 years

Given that Citibank has been moving out of the Asia-Pacific region, it may not be advisable to take a long loan tenure with them. For now though, their first-year fee waiver and lack of processing fees make them a contender if you need quick cash.

Early redemption fee	3% of outstanding principal or S$100, whichever is higher	Late payment charge	S$100
Age	At least 21	Annual income	At least S$30,000

6. HSBC Personal Loan

At 7 years, HSBC has one of the longest loan tenures. This allows you to spread out payments over time, especially if you’re taking on a large loan (max S$200,000).

That may be of interest especially to existing HSBC Premier customers, who can get a preferential rate of 3.4% p.a. (or 6.5% EIR).

Early redemption fee	2.5% of outstanding principal	Late payment charge	S$75
Age	At least 21	Annual income	At least S$30,000

Current promotion:

Applicable to both New and Existing Customers
Submit an application for a personal loan and get approved to be eligible for the following:
- Loan amount of S$10k – S$19,999: get S$50 Cash via PayNow
- Loan amount of S$20k – S$34,999: get a Dyson AM07 (worth S$459)
- Loan amount of S$35k – S$49,999: get an Apple AirPods Max (worth S$806.45)
- Loan amount of S$50k – S$79,999: get an Apple Bundle worth S$1,047.65: Apple iPad 10th Gen 64GB (worth S$685.30) + Apple AirPods Pro 2nd Generation (worth S$362.65)
- Loan amount of S$80k – S$99,999: get a Garmin Fenix 7 Black DLC Ti with Black Silicon Band (worth S$1,429)
- Loan amount of S$100k or more: get an Apple iPhone 14 Pro 256GB (worth S$1,836)
Valid until 2 April 2023. Click to apply.

BONUS: Lendela

Lendela is more of a matchmaker rather than a personal loan provider. But they’re great for getting an idea of the real interest rate you’ll pay without the enquiries showing up on your credit report.

In other words, they allow you to shop around without the usual credit rating penalties for shopping around.

Personal Loans

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