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 |
|
3.Bank Loan |
HSBC Personal Loan |
| Features |
|
| 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. |
Bank Loan |
Citibank Personal Loan |
| Features |
|
| Website | https://www.citibank.com.sg/loans/quick-cash-media.htm |
| Interest Rate | 6.5% pa EIR
3.45% pa |
| Eligibility | Singaporean / PR
Foreigners
|
Bank Loan |
POSB Personal Loan |
| Features |
|
| Website | https://www.posb.com.sg/personal/loans/personal-loans/posb-personalloan |
| Interest Rate | EIR 7.56% pa
AIR 3.88% pa |
| Eligibility |
|
Bank Loan |
OCBC Personal Loan |
| Features |
|
| 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 |
Bank Loan |
Maybank Personal Loan |
| Features |
|
| Website | https://www.maybank2u.com.sg/en/personal/loans/personal-line-or-credit/creditable-term-loan.page? |
| Interest Rate | 3.88% pa |
| Eligibility |
|
Bank Loan |
UOB Personal Loan |
| Features |
|
| Website | https://www.uob.com.sg/personal/borrow/personal-loan.page |
| Interest Rate | 3.48% p.a.
EIR 6.86% p.a. |
| Eligibility |
|
Bank Loan |
CIMB Personal Loan |
| Features |
|
| 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 |
Bank Loan |
Standard Chartered Personal Loan |
| Features |
|
| Website | https://www.sc.com/sg/borrow/loans/cashone/ |
| Interest Rate | 3.48% pa
6.95% pa EIR |
| Eligibility | Singaporeans and PR
Foreigners
|
Bank Loan |
HL Bank Personal Loan |
| Features |
|
| 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 |
|
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.
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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