
What are personal loans?
Personal loans are unsecured loans that allow you to borrow money to use for whatever you want. Unlike a secured loan, you do not have to put up any collateral or pledge an asset such as your house when taking out a personal loan.
Given that personal loans are not tied to any of your assets, the interest rate on this type of loan tends to be higher. After all, there is nothing for the bank or moneylender to seize if you are unable to pay back on your loan.
How much can I borrow with a personal loan?
The amount of money you can borrow with a personal loan ranges anywhere between 2-6 times of your monthly salary.
Currently in Singapore, there is a cap on the amount of unsecured loans you can have, which is at 12 times of your monthly salary. This includes personal loans, credit card loans, and education loans.
The loan amount that you are eligible for typically depends on your credit history, income stream as well as other existing credit facilities that you may have. Some banks or licensed moneylenders also look at your citizenship and age. Most banks will require the borrower to be of a minimum age of 21 before they can take out a personal loan.
What are the types of personal loans available?
There are several types of loans in Singapore that can be classified under the broad category of personal loan.
Personal term loan
Under a personal term loan, you are allowed to borrow a specific sum of money from a bank or license moneylender. You will then need to pay back an agreed amount, which is your loan repayment amount together with interest, on a monthly basis.
Most of the time, you will have the flexibility to choose whether you want to pay it over a specific period of time or a one-time lump sum. The duration for personal loan repayment ranges anywhere between one to seven years.
Line of credit
Line of credit, which sometimes goes by credit line, cash line, or flexible repayment loan, is when the bank agrees to set aside a pre-approved amount of money. This allows you to draw cash from it whenever you need it. You may withdraw the entire approved amount or just part of it. The interest will only be applied on the amount that you have withdrawn.
This type of loan typically does not have a fixed repayment period. You can opt to repay as quickly as you can as when you have the money. Alternatively, if you are unable to pay back the entire sum, you can repay the bank a stipulated minimum amount monthly. The remaining debt will then be rolled over to the next time. One important factor to consider is that the more money you owe the bank and roll over, the higher the interest you may end up paying.
Debt consolidation loan
If you have incurred a lot of debts with multiple banks or financial institutions, a debt consolidation loan may be the solution to managing these debts effectively. When you take out a debt consolidation loan with a particular bank, the bank will proceed to pay off your multiple debtors. This helps to consolidate all your debts such that you owe money to just that one bank, making it easier to manage your repayment as you only have just one repayment loan to worry about. Concurrently, this also means that you do not have to deal with varying interest rates slapped on by the different banks and financial institutions that you owe money to.
Do note that debt consolidation loans are very strictly regulated in Singapore. In order to qualify, you will need to have at least 12 times of your monthly salary.
When is a “good time” for me to take out a personal loan?
Before taking out a personal loan, always consider the interest rates charges and processing fees. It may be tempting to borrow money to go on a shopping spree or luxury holiday. However, when the interest rates kicks in, you may end up struggling to repay these loans and eventually find yourself heavily in debt.
As such, personal loans are usually the best option there is a financial emergency and you need a large sum of money urgently.
Understanding personal loans interest rates in Singapore
When taking out a personal loan, it is crucial to do your due research as various banks or licensed moneylenders offer varying interest rates and repayment schemes.
Here are some commonly used terms when advertising personal loans and what they mean:
Advertised interest rate
As its name suggests, the advertised interest rate is simply the interest rate that is shown for advertisement purposes. It is usually marketed as a low figure so as to attract potential customers who want to apply for a personal loan.
However, this figure does not give you the full picture as it excludes other fees such as admin fee or processing fee.
Effective interest rate
In Singapore, it is mandatory for banks to indicate the effective interest rate (EIR) next to the advertised interest rate. This figure takes into account other fees such as processing fees as well as tenure of your repaying schedule.
Essentially, the EIR shows you the true interest rate of taking out a personal loan with the particular bank.
0% interest personal loans
Some banks may also offer a promotional 0% interest rate on short-term personal loans. However, do not be fooled by the 0% figure. These types of loans tend to come with extremely high processing fees.
This means that while you may “enjoy” zero interest rates on your loan, the bank actually collects your money upfront rather than in interest payments over time.
Where can I take out a personal loan in Singapore?
After considering all your monetary options and you have decided to go ahead with taking out a personal loan, here are some banks and companies that offer personal loans in Singapore:
Personal Loan Provider | Standard Chartered Bank |
Speciality |
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Pricing | Check on website for prevailing interest rates |
Website | |
Address | View branch locations here |
Telephone | 65 6747 7000 |
Operating Hours | Varies by branch |
Personal Loan Provider | OCBC Bank |
Speciality |
|
Pricing | Check on website for prevailing interest rates |
Website | https://www.ocbc.com/group/gateway |
Address | View branch locations here |
Telephone | 65 6363 3333 |
Operating Hours | Mon-Fri: 9.00am to 4.30pm |
Personal Loan Provider | DBS Bank |
Speciality |
|
Pricing | Check on website for prevailing interest rates |
Website | https://www.dbs.com.sg/personal/default.page# |
Address | View branch locations here |
Telephone | 1800 111 1111 |
Operating Hours | Mon – Fri: 8.30am to 4.00pm Sat 8.30am to 12.30pm |
Personal Loan Provider | UOB Bank |
Speciality |
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Pricing | |
Website | https://www.uob.com.sg/personal/index.page |
Address | View branch locations here |
Telephone | 1800 222 2121 |
Operating Hours | View branch opening hours here |
Personal Loan Provider | HSBC Bank |
Speciality |
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Pricing | https://www.hsbc.com.sg/loans/products/personal-line-of-credit/instalment-plan/ |
Website | |
Address | View branch locations here |
Telephone | Contact via form here |
Operating Hours | Varies by branch locations |
Personal Loan Provider | Bank of China |
Speciality |
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Pricing | |
Website | https://www.bankofchina.com/ |
Address | View branch locations here |
Telephone | View contact details here |
Operating Hours | View branch operation hours here |
Personal Loan Provider | Citibank |
Speciality |
|
Pricing | Check on website for prevailing interest rates |
Website | |
Address | View branch locations here |
Telephone | View contact details here |
Operating Hours | View branch operating hours here |
Personal Loan Provider | POSB |
Speciality |
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Pricing | https://www.posb.com.sg/personal/loans/personal-loans/posb-personalloan |
Website | https://www.posb.com.sg/personal/default.page |
Address | View branch locations here |
Telephone | 1800 339 6666 |
Operating Hours | View branch opening hours here |
Personal Loan Provider | HL Bank |
Speciality |
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Pricing | https://www.hlbank.com.sg/en/personal-banking/loans/personal-loan/installment-loan.html |
Website | |
Address | 7 Wallich St, #B1 – 25 and #B1- 26, Singapore 078884 |
Telephone | 65 6818 0503 |
Operating Hours | Monday to Friday – 9:00am to 4:00pm |
Personal Loan Provider | CIMB Bank |
Speciality |
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Pricing | https://www.cimb.com.sg/en/personal/banking-with-us/loans-financing/personal-loans-financing.html |
Website | https://www.cimb.com.sg/en/personal/home.html |
Address | 50 Raffles Place, Singapore Land Tower, #09-01, Singapore 048623 |
Telephone | 65 6333 7777 |
Operating Hours | 9.00am – 7.00pm, daily |
Personal Loan Provider | Maybank Singapore |
Speciality | Personal loan for various purposes including Education, Private Property or personal use |
Pricing | Check on website for prevailing interest rates |
Website | https://www.maybank2u.com.sg/en/personal/loans/personal-credit/index.page? |
Address | View branch locations here |
Telephone | 1800-629 2265 |
Operating Hours | Monday – Friday: 10 am to 6.30 pm |
Personal Loan Provider | ICBC Bank |
Speciality |
|
Pricing | Check on website for prevailing interest rates |
Website | https://singapore.icbc.com.cn/ |
Address | View branch locations here |
Telephone | View branch contact details here |
Operating Hours | View branch operating hours here |
Personal Loan Provider | State Bank of India |
Speciality |
|
Pricing | Check on website for prevailing interest rates |
Website | https://www.sbising.com/personal-loans-scheme |
Address | View branch locations here |
Telephone | 1800-724 7464 |
Operating Hours | Monday to Friday: 09:30 AM – 05:45 PM |
Personal Loan Provider | Lendela |
Speciality |
|
Pricing | Check on website for prevailing interest rates |
Website | https://sg.lendela.com/application?utm_source=best_in_singapore&utm_medium=referral&utm_campaign=best_in_sg_test |
Address | Found8 Prinsep, 128 Prinsep St, #01-01, Singapore 188655 |
Contact |
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Operating Hours | NA |
Personal Loan Provider | CreditMaster |
Speciality |
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Pricing | Check on website for prevailing interest rates |
Website | https://www.creditmaster.sg/ |
Address | #01-50 Park Rd, People’s Park Complex, Singapore 059108 |
Contact |
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Operating Hours | Monday – Sunday, 11:00 AM – 8:00 PM |
Personal Loan Provider | Swift Credit |
Speciality |
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Pricing | Check on website for prevailing interest rates |
Website | https://www.swiftcredit.sg/personal-loan/ |
Address | 1 Sophia Road, #01-37 Peace Centre, Singapore 228149 |
Contact |
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Operating Hours | Monday – Saturday : 11am – 7pm Sundays & Public Holidays by Appointment Only |
Personal Loan Provider | I-Credit |
Speciality |
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Pricing | Check on website for prevailing interest rates |
Website | https://www.icredit.com.sg/ |
Address | 82 Lorong 23 Geylang #05-02, Atrix Singapore 388 409 |
Telephone | 65 6222 5222 |
Operating Hours | Monday to Friday: 11:00 am – 8:00 pm Saturday & Sunday: 11:00 am – 4:00 pm |
Personal Loan Provider | Credit Culture |
Speciality |
|
Pricing | Check on website for prevailing interest rates |
Website | https://www.creditculture.sg/ |
Address | 31A Keong Saik Road, Singapore 089138 |
[email protected] | |
Operating Hours | Weekdays 9am – 6pm |
Personal Loan Provider | Capital Funds Investment |
Speciality |
|
Pricing | Check on website for prevailing interest rates |
Website | https://www.loancfi.com.sg/services/personal-loan-singapore/ |
Address | 65 Ubi Crescent #06-07, Hola Centre, Singapore 408559 |
Telephone | 65 6281 7736 |
Operating Hours | Mon to Fri – 12pm to 8pm Sat – 11am to 3pm |
Personal Loan Provider | Dash Credit |
Speciality |
|
Pricing | Check on website for prevailing interest rates |
Website | https://www.dashcreditsg.com/types-of-available-loans |
Address | 335 Pioneer Rd North, Singapore 628475 |
Telephone | 65 9082 1065 |
Operating Hours | Contact for operating hours |
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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