What is a bank loan?

A bank loan is when a bank offers to lend money to consumers for a certain amount of time. The bank loan will require the borrower to pay a certain interest rate per year. 

Here are some bank loans to consider:

Bank Loan	DBS Personal Loan
Features	Up to 10 times your monthly salary, instant cash into your bank account, with a fixed interest rate of 3.88% pa
Website	https://www.dbs.com.sg/personal/loans/personal-loans/dbs-personalloan
Interest Rate	3.88% pa AIR 7.56% pa EIR
Eligibility	Singapore Citizen or Singapore Permanent Resident Foreigners with existing Cashline and/or Credit Card account 21 – 75 years old Minimum Annual Income S$20,000

 

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3.Bank Loan	HSBC Personal Loan
Features	Supporting documents are not required Fixed monthly repayments with choice of tenor between 1 and 7 years Reinstatement of available credit limit upon monthly repayment Earn up to SGD 2,050 cashback
Website	https://www.hsbc.com.sg/loans/products/personal-line-of-credit/instalment-plan
Interest Rate	3.4% pa EIR 6.5% pa AIR
Eligibility	You will be eligible to apply if you have an existing Personal Line of Credit with good credit standing, and available Credit Limit.

 

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Bank Loan	Citibank Personal Loan
Features	Get your cash within the next working day Get it anytime with flexible repayment options from 12 to 60 months Personal loan up to 4x your monthly income
Website	https://www.citibank.com.sg/loans/quick-cash-media.htm
Interest Rate	6.5% pa EIR 3.45% pa
Eligibility	Singaporean / PR Minimum annual income of S$30,000 For Salaried Employees: A photocopy of the front and back of your NRIC Past 12 month’s CPF statement submitted via CPF web-link OR Latest Income Tax Notice of Assessment and latest original computerised payslip For Self-Employed: A photocopy of the front and back of your NRIC Last 2 years’ Income Tax Notice of Assessment and last 3 months’ bank statements Foreigners Minimum annual income of S$42,000 A photocopy of the front and back of your Passport/Employment Pass Latest Income Tax Notice of Assessment and latest original computerised payslip

 

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Bank Loan	POSB Personal Loan
Features	Instant cash into your account Up to 10 times your monthly salary
Website	https://www.posb.com.sg/personal/loans/personal-loans/posb-personalloan
Interest Rate	EIR 7.56% pa AIR 3.88% pa
Eligibility	Singapore Citizen or Singapore Permanent Resident Foreigners with existing Cashline and/or Credit Card account 21 – 75 years old Minimum Annual Income S$20,000

 

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Bank Loan	OCBC Personal Loan
Features	Fixed repayments up to 60 months
Website	https://www.ocbc.com/personal-banking/loans
Interest Rate	EIR 9.06% per annum 4.7% per annum
Eligibility	Singaporean or Singapore PR above 21 years old with an annual income of at least S$20,000 Foreigner above 21 years old with an annual income of at least S$45,000 Existing OCBC Credit Card or OCBC EasiCredit account holder

 

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Bank Loan	Maybank Personal Loan
Features	Flexibility to repay over 12, 24, 36, 48 or 60 months Waived 1% processing fees
Website	https://www.maybank2u.com.sg/en/personal/loans/personal-line-or-credit/creditable-term-loan.page?
Interest Rate	3.88% pa
Eligibility	Existing CreditAble account holder Age: 21 to 65 Singapore Citizens or Singapore Permanent Residents Annual income: S$30,000

 

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Bank Loan	UOB Personal Loan
Features	Up to $600 cash rebate Get instant cash Repayment from 36, 48 and 60-months
Website	https://www.uob.com.sg/personal/borrow/personal-loan.page
Interest Rate	3.48% p.a. EIR 6.86% p.a.
Eligibility	Existing UOB Credit Card/CashPlus customer Singapore citizen or Permanent Resident 21 – 60 years old Minimum annual income of S$30,000

 

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Bank Loan	CIMB Personal Loan
Features	New-to-Bank customers enjoy rates as low as 3.50%* p.a.  (EIR 6.4% p.a. – 6.6% p.a.) with payment options from 1 to 5 years Instant cash into bank account existing CIMB credit card members Apply and receive a loan of up to 90% of your credit card limit
Website	https://www.cimb.com.sg/en/personal/banking-with-us/loans-financing/personal-loans-financing/cimb-cashlite.html
Interest Rate	4.5% p.a. (EIR 8.21% p.a. – 8.41% p.a.)
Eligibility	Singaporean and Singapore PR annual income S$30,000

 

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Bank Loan	Standard Chartered Personal Loan
Features	Get up to $1,200 cashback Within 15 minutes cash disbursement
Website	https://www.sc.com/sg/borrow/loans/cashone/
Interest Rate	3.48% pa 6.95% pa EIR
Eligibility	Singaporeans and PR Age: 21 – 65 years Minimum annual income: S$20,000 Foreigners Age: 21 – 65 years Minimum annual income: S$60,000 Must hold a Singapore Employment Pass

 

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Bank Loan	HL Bank Personal Loan
Features	4 times your monthly salary fuss-free payment method
Website	https://www.hlbank.com.sg/en/personal-banking/loans/personal-loan/installment-loan.html
Interest Rate	3.88% p.a. (EIR: 8.78% p.a.) to 8.88% p.a. (EIR: 17.77% p.a.)
Eligibility	Between 21 and 60 years old A Singapore citizen or Singapore permanent resident Earning a minimum annual income of S$30,000

Types of bank loan 

Secured loan 

A secured bank loan is for property and a car that requires a huge loan amount. These assets are pledged to the bank as collateral. If the collateral value drops below the loan amount, the borrower will have to top up with more assets or pay part of the outstanding loan amount. However, if the loan is not repaid after the loan tenure is up, the assets will be repossessed and sold to recover the loan. 

Unsecured loan 

Unsecured loans are for assets that are not pledged as collateral. Unsecured loans typically have higher interest rates. Unsecured loans include credit cards, bank overdraft, and personal lines of credit. 

Term loan 

Term loans require the borrower to repay the loan by instalments over the agreed loan period. The bank can recall the loan if the borrower is found to breach the terms of the loan agreement. Term loans are usually large in amount and offer a longer repayment period. Example of these loans is housing loans, education loans, and car loans. 

Revolving loan 

A revolving loan allows the borrower to use the money up to an agreed credit limit whenever they need it. When the borrower repays the outstanding amount, their credit becomes available to draw on again. Example of a revolving loan includes bank overdraft, personal lines of credit and credit cards. 

Personal loan 

A personal loan is a bank loan offered by a bank to an individual for any uses. Individuals can use a personal loan for their wedding, home, car, and any other matters in life that they need money for. 

Car loan 

A car loan is a specialised type of bank loan specially catered to potential car buyers. The borrower can apply for a car loan to purchase a new car or a second-hand car. 

Home loan 

A home loan is a specialised type of bank loan specially catered to home buyers. A home loan can also be used for renovation costs of the new home or specified types of housing such as an HDB flat. 

Education loan 

An education loan is a specialised bank loan usually borrowed by students to further their studies in a tertiary institution or university. 

Advantages of taking up a bank loan 

Flexible spending 

There are a wide variety of bank loans for borrowers to choose from. Different bank loans have a different purpose, and they offer different benefits to the borrower. Personal loans offer flexible spending to the borrower because they can use the money for anything. 

Flexible loan terms 

Bank loans offer borrowers great short-term and long-term financing option. The loan tenure period depends on what type of loan and what is the purpose of the loan. For car loans, the borrower can take up to 7 years to repay the loan. For bigger purchases such as homes, the loan tenure tends to be longer such as 20 to 30 years. 

Lower interest rates

When you take up a bank loan, you will enjoy lower interest rates as compared to credit cards and other licensed moneylenders. Your credit score will suffer if you use up your credit card or fail to pay your balance in full. If you choose to take a cash advance from your credit card, you will need to pay numerous fees and high-interest rates. 

Disadvantages of taking up a bank loan 

Strict approval process

Bank loans have a strict requirement for approval, so it is more difficult to apply for bank loans than other loan types. Bank loans are favoured towards borrowers with good to excellent credit. Your credit score will determine if your bank loan application gets approved and how much interest you will have to pay. 

Penalty for missing a loan payment 

Banks penalise heavily on borrowers who do not pay on time or pay part of their balance. Some banks charge a flat fee for late payment, while others charge a percentage of the outstanding balance. If you missed several payments, the bank might increase the interest rate that you have to pay. 

Other fees and conditions 

Some bank loans have other fees, such as a prepayment penalty and a one-time application fee. A prepayment penalty would mean that you may get penalised if you suddenly pay a large amount of money for your monthly repayment. Some bank loans may also have additional conditions, such as the annual income and the applicant’s age.

Things to consider when taking up a bank loan 

Types of loans 

You should consider different bank loans that suit your purpose instead of immediately applying for a personal loan. Sometimes, applying for a specific type of loan, such as an education loan, may have lower interest rates and more benefits as compared to applying for a personal loan. 

Interest rate 

Interest rate is one of the most important factors to consider when wanting to take up a bank loan. You should compare the bank loans across different banks and pick out the lowest interest rate or the interest rate that you are most comfortable paying. 

Loan period 

Another important factor to consider is the loan period. The loan period will determine the amount of money for your monthly repayment. Ideally, you would want to make sure that you are able to pay your monthly repayment without much difficulty. 

Downpayment amount 

You should also consider the downpayment amount you need to pay for the bank loan. However, not all bank loans require a downpayment by the borrower. Downpayment helps to lower monthly payments. The more money you set aside for a downpayment, the lower your total loan amount will be. 

 Top Bank Loans in Singapore 2021

Top Personal Loan: HSBC Personal Loan

Interest Rate	EIR	Processing Charge	Loan Tenure
3.5% p.a.	6.5% p.a.	S$0-SS$6	1-7 years

Bonus: 

Fresh BAU Bonus: S$100 Cashback

HSBC’s Personal Loan Details
Best Savings Interest Rates	Above 6.5% EIR
Lengthiest Loan Intervals	1 – 7 years
Loan Sum	S$5,000 – S$200,000
Approval Period	1 minute approval, get money within 1 working day.
Minimum Yearly Income	S$30,000 (Singapore Citizens or PR) / S$40,000 (foreigners)

HSBC’s Personal Loan Repayment Intervals

Loan Interval	Flat Rate	Processing Charge	EIR	Monthly Payment	Total Charges
1 year	3.6%	S$0	6.5%	S$862.96	S$356
2 years	3.5%	S$0	6.5%	S$445.46	S$691
3 years	3.4%	S$0	6.5%	S$306.49	S$1,034
4 years	3.5%	S$0	6.5%	S$237.15	S$1,383
5 years	3.5%	S$0	6.5%	S$195.66	S$1,740
6 years	3.5%	S$0	6.5%	S$168.10	S$2,103
7 years	3.5%	S$0	6.5%	S$148.49	S$2,474

 Supposing S$10,000 loan, income of S$30,000; covers processing fee waiver for Premier clients (S$60 for Personal Banking Customers), existing bonuses. Note that the rates above do not reflect the final customised loan offer.

 

Top Personal Loan Promotions: Standard Chartered

Interest Rate	EIR	Processing Charge	Loan Tenure
3.48% p.a.	6.95% p.a.	S$0	1-5 years

Bonus:

50% 1st month’s payments with cashback

Register through MyInfo over S$20 Cashback.

Standard Chartered CashOne Loan Details
Competitive Interest Rates	Above 6.95% EIR
Smallest Interest Rates for low-income individuals	9.8 – 10.8% p.a. Flat Rate
Loan Sum	S$1,000 – S$250,000
Loan Tenure	1-5 years
Approval Interval	15 minutes
Minimum Yearly Income	S$20,000 (Singapore Citizens & PR)

Standard Chartered’s CashOne Personal Loan Repayment Schedules

Loan Interval	Flat Rate	Yearly Charge	EIR	Monthly Payment	Total Charges
1 year	3.48%	S$199	8.45%	SS$1,725	S$895
2 years	3.48%	S$0	7.63%	$891	S$1.392
3 years	3.48%	S$0	7.30%	S$614	S$2,088
4 years	3.48%	S$0	7.10%	S$475	S$2,546.67
5 years	3.48%	S$0	6.95%	S$391	S$3,284.33

Supposing S$10,000 loan with income of S$30,000; covers processing fee waiver or existing bonuses. Note that the rates cited do not reflect your final customized Loan Contract.

 

Swiftest Personal Loan Disbursement: POSB/DBS Personal Loan

Interest Rate	EIR	Processing Charge	Loan Tenure
3.88% p.a.	7.56% p.a.	1%	1 month – 5 years

Bonus:

Fresh loan clients get 1% cashback over approved loans of S$10,000 or more.

POSB/DBS Personal Loan Details
Lowest Interest Rates	Above 7.56% EIR
Loan Tenure	1 month – 5 years
Loan Amount	S$500 – 10x Monthly Salary
Approval Time	Instant approval with disbursement for DBS & POSB credit card and line of credit clients
Minimum Annual Income	S$30,000 (Singapore Citizens and PR)

POSB/DBS’s Personal Loans Repayment Timing

Loan Interval	Flat Rate	Fee	EIR	Monthly Payment	Total Cost
1 year	3.88%	1%	7.56%	S$865.67	S$488
2 years	3.88%	1%	7.56%	S$449.00	S$876
3 years	3.88%	1%	7.56%	S$310.11	S$1,264
4 years	3.88%	1%	7.56%	S$240.67	S$1,652
5 years	3.88%	1%	7.56%	S$199.00	S$2,040

Supposing S$10,000 loan with income of S$30,000; covers processing fee waiver or existing bonuses. Note that the rates above do not reflect your customized final loan contract.

 

Top Small, Short-Term Personal Loan: Citibank Fast Cash Personal Loan

Interest Rate	EIR	Processing Charge	Loan Tenure
4.94%-5.79% p.a.	9.0%-10.5% p.a.	0%	1-5 years

Bonus:

Fresh Citi Credit Card or Citibank Ready Credit sum holders are entitled the rate of 0% p.a. with 3.5% processing fee (E.I.R 7.85% p.a.) over a 1 year loan tenure.

POSB/DBS Personal Loan Details
Competitive Interest Rates for Small, Short-Term Loans	EIR above 7.5%
Loan Tenure	1 – 5 years
Loan Sum	S$1,000 – 4x monthly income (alternatively S$150,000)
Approval Interval	1 hour (Preceding 5pm)
Minimum Annual Income	S$30,000 (Singapore Citizens and PR); S$42,000 (Foreigners)

Citibank Fast Cash Personal Loan Repayment Timing

Loan Interval	Flat Rate	Fee	EIR	Monthly Payment	Total Cost
1 year	0%	3.5%	7.85%	S$833.33	S$350.00
2 years	4.00%	0%	7.50%	S$450.00	S$800.00
3 years	3.99%	0%	7.50%	S$311.03	S$1,197.00
4 years	4.01%	0%	7.50%	S$241.75	S$1,604.00
5 years	4.05%	0%	7.50%	S$200.42	S$2,025.00

Supposing S$10,000 loan; covers processing fee waiver or existing bonuses. Take note that rates cited do not reflect the final customized loan contract.

 

Low-Interest Small 1-Year Loans: Citibank Quick Cash 0% Interest

Interest Rate	EIR	Processing Charge	Loan Tenure
0% p.a.	7.85% p.a.	3.5%	1 year

 

0% Interest Rate for 1-year Loan Details
Loan Tenure	1 year
Loan Sum	S$1,000 – 4x monthly income (alternatively S$150,000)
Approval Interval	1 hour (Preceding 5pm)
Minimum Annual Income	S$30,000 (Singapore Citizens and PR); S$42,000 (Foreigners)

Citi Quick Cash (0% Interest) Repayment Timing

Loan Interval	Flat Rate	Fee	EIR	Monthly Payment	Total Cost
1 year	0%	3.5%	7.85%	S$833.33	S$350.00

Supposing S$10,000 loan; covers processing fee waiver or more existing bonuses. Note that the rates cited do not reflect your customised final loan contract.

 

Top Cash-On-Instalment: OCBC Cash-On-Installment

Interest Rate	EIR	Processing Charge	Loan Tenure
above 4.70% p.a.	above 9.06% p.a.	1%	1 – 5 years

 

OCBC Cash-On-Installment Details
Non-promotional rates:	4.70% flat rate; 9.06% – 10.45% EIR
Loan Tenure	1-5 years
Loan Sum	S$1,000 – Max. Credit Limit
Approval Interval	Varies
Minimum Annual Income	S$30,000 (Singapore Citizens and PR); S$45,000 (Foreigners)

OCBC Cash-On-Instalment Repayment Timing for Current OCBC Clients

Loan Interval	Flat Rate	Fee	EIR	Monthly Payment	Total Cost
1 year	4.7%	1%	10.45%	S$872.50	S$550.00
2 years	4.7%	1%	9.77%	S$455.84	S$1,020.00
3 years	4.7%	1%	9.46%	S$316.95	S$1,490.00
4 years	4.7%	1%	9.24%	S$247.50	S$1,960.00
5 years	4.7%	1%	9.06%	S$205.84	S$2,430.00

Supposing S$10,000 loan; covers processing fee waiver or existing bonuses. Kindly note that the rates above do not reflect the final customized loan contract.

 

Top Bank Loan for Low-Income Borrowers: Standard Chartered CashOne

Interest Rate	EIR	Processing Charge	Loan Tenure
9.8%-10.8% p.a	20.92%- 27.56%	S$0	1 – 5 years

 

Conclusion 

For many people, taking up a bank loan is the best option to finance the things we need a huge sum of money for. However, not everyone can apply for a bank loan, and the bank loan is not guaranteed to be approved. When taking up a bank loan, be sure of the interest rate and the monthly repayment amount. Do bear in mind that you will end up in a bigger debt at the loan tenure if you miss too many monthly repayments. 

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Editor’s Note:

While every precaution has been made to ensure the accuracy and fairness of this listing, we acknowledge that they may be inaccuracies. Therefore, we urge you to contact the service provider above for the correct information and/or contact us with the correct information.

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