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    Compare the Best Personal Loans in Singapore with the Lowest Interest Rates 2022

    What is a Personal Loan?

    A personal loan is an amount of money you can borrow from a bank, licensed moneylenders, or credit unions. This sum of money can be used for various reasons, such as for renovation, weddings, or housing. 

    How do Personal Loans Work?

    Personal loans have both short-term and long-term loan tenure options that you can choose from and must be repaid over time with interest. Apart from interest, these instalments are subjected to additional fees that you need to be aware of, namely: processing fees, late repayment fees, and changes in tenure fees. 

    Types of Personal Loan Interest Rates 

    Deciding which personal loan to go for can be confusing when you are unsure what the different interest rates mean on bank advertisements and brochures. There are generally two types of interest rates you need to take note of:  

    • Annual interest rate: Usually stated as “x% p.a”, the annual interest rate of your personal loan is the flat interest rate on your principal sum to be repaid. 
    • Effective interest rate (EIR): EIR, which may be higher than the advertised annual interest rate, represents the true economic cost of your loan. This is because it considers the processing fee and your frequency of repayment. Essentially, the higher the EIR, the more interest you will have to pay. 

    Other Costs of Personal Loans


    What It’s For

    Processing fee

    Administrative cost banks charge for processing your loan application

    Late repayment fee

    A penalty charge imposed when you miss or fail to make a payment by the stipulated payment date

    Early repayment fee

    A penalty charge imposed when you pay off your loan earlier than agreed 

    Types of Fees to be Aware of When Applying for a Personal Loan

    Types of Personal Loans

    There are several types of personal loans available on the market. Here are four common types of loans you will likely come across in your search for the best personal loan:

    Loan Type

    What Is It

    Suitable For

    Personal instalment loans

    Personal instalment loans enable you to borrow a sum of money that you will need to repay over a specific period of time, in fixed monthly instalments

    Ideal for those who require significant funds or to finance an unforeseen situation, such as home renovation, wedding, funerals, or medical emergencies.

    Line of credit

    A line of credit is a credit arrangement you make with a bank that enables you to withdraw funds from your credit line whenever you need it. The maximum amount of money that you can withdraw is predetermined 

    Ideal for those whose borrowing needs are hard to predict, such as for those who may face inconsistencies in their salary drawn or businesses that meet cash flow crunches.

    Balance transfer

    A balance transfer essentially transfers your outstanding available credit on your credit card to a low or 0% interest account for a period of time (typically three to 18 months) at a one-time processing fee.

    Ideal for those with small outstanding credit card balance or personal loan, and are confident to repay over a few months. 

    Debt consolidation plan 

    A debt consolidation plan is a debt refinancing programme that enables you to combine all your outstanding credit card debts and unsecured loans across financial institutions into one loan at a lower interest rate. You will need to make monthly instalments to the new financial institution of your choice for a tenure period that ranges from one to 10 years.

    Ideal for those with multiple and significant amount of credit card bills or loans, since they can repay it over a few years at a lower interest rate.  

    Types of Personal Loans and Recommendations

    Best Personal Loans with the Lowest Interest Rates in Singapore 2022

    Name of Loan

    Interest rate (% p.a.)

    Type of Loan

    From 3.5% (EIR: 6.4%)

    Personal Loan

    From 3.45% (EIR: 6.5%)

    Personal Loan

    From 3.88% (EIR: 5.79%)

    Personal Loan

    From 3.2% (EIR: 6%)

    Personal Loan

    From 5.42% (EIR 10.96%)

    Personal Loan

    From 3.48% (EIR: 7.3%)

    Personal Loan

    From 3.4% (EIR: 6.42%)

    Personal Loan

    18.5% p.a.

    Line Of Credit

    - First 3 months: 0%

    - Above 3 months: 20.5% p.a. for those with an annual income above S$30,000

    23.5% p.a. for clients with an annual income below S$30,000 after the promotion period

    Line Of Credit

    9% for first year

    19.8% p.a. thereafter

    Line Of Credit

    20.5% p.a.

    Line Of Credit

    20.9% p.a.

    Line Of Credit

    20.95% p.a.

    Line Of Credit

    EIR: 20.95% p.a.

    Balance Transfer / Funds Transfer

    EIR: 25.9% p.a.

    Balance Transfer / Funds Transfer

    EIR: 18.5% p.a.

    Balance Transfer / Funds Transfer

    EIR: 25.9% p.a.

    Balance Transfer / Funds Transfer

    EIR: 19.8% p.a.

    Balance Transfer / Funds Transfer

    EIR: 19.98% p.a.

    Balance Transfer / Funds Transfer

    EIR: 25.9% p.a.

    Balance Transfer / Funds Transfer

    EIR: 26.9% p.a.

    Balance Transfer / Funds Transfer

    EIR: 25% p.a.

    Balance Transfer / Funds Transfer

    EIR: 25% p.a.

    Balance Transfer / Funds Transfer

    From 6% (EIR: 7.48%)

    Debt Consolidation Plan

    3.99% (EIR: 7.5%)

    Debt Consolidation Plan

    3.58% (EIR: 6.95%)

    Debt Consolidation Plan

    From 3.4% (EIR: 6.5%)

    Debt Consolidation Plan

    From 3.58% (EIR: 6.95%)

    Debt Consolidation Plan

    From 3.48% (EIR: 6.79%)

    Debt Consolidation Plan

    From 4.5% (EIR: 8.41%)

    Debt Consolidation Plan

    Find the Best Interest Rates for Personal Loans in Singapore

    How to Choose the Best Personal Loan for You?

    Taking on a personal loan is a long-term commitment. Before doing so, these are some factors that you should take into consideration before committing to one:

    • Loan eligibility: Before disbursing personal loans, banks have to ensure that they lend money to borrowers who can likely repay them. As loan requirements vary between banks, it is important to familiarise yourself with the criteria for personal loans before applying for one.
    • Interests rates: It is crucial to understand the difference between annual and effective interest rates. An annual flat interest rate on your personal loan refers to the percentage of your principal borrowed sum until you repay the loan. On the other hand, an effective interest rate (EIR) reflects the true cost of taking a loan considering other factors, such as processing or administrative fees. They determine and affect the total cost of your personal loan, and, consequently, the monthly instalment you have you pay.
    • Other fees: Banks often charge other fees, such as early repayment fee or late payment fees.
    • Monthly affordability: Finally, as repayment of your monthly personal loan will be a recurring expense, consider what is a comfortable and affordable repayment sum to your income and/or budget. Otherwise, charges such as late repayment fee will add unnecessary costs to your total loan amount. 

    Can Foreigners Get Personal Loans in Singapore?

    Foreigners can apply for personal loans in Singapore. However, do note that the eligibility criteria for foreigners are different from that of Singaporeans and often stricter. Banks will require your proof of identity, address, income and employment, and a valid work pass. Foreign applicants also have to be above the age of 21.

    Several major banks in offering personal loans to foreigners in Singapore. They include DBS/POSB, OCBC, HSBC, Citibank, and Standard Chartered.

    Personal Loans Guide 101

    Understanding personal can feel like a tall order with the different components to consider. We have done the work so you do not have to! Here are three curated guides on personal loans to help you grasp all you need to know about personal loans before you commit to taking one: 

    Frequently Asked Questions

    Can you get cash from a personal loan?

    Personal loans are generally delivered as a one-time cash payment, often deposited into your bank account. You may be required to open a bank account with your chosen personal loan provider in order to obtain the personal loan.

    How long can your personal loan period be?

    A personal loan term length is the amount of time taken to repay your loan, and you can often decide how long you want to take to repay the loan. While personal loan terms can vary between 12 to 60 months or more, do take note that a longer repayment term would incur higher interest costs in the long run although you may be paying a lower monthly instalment cost.

    What if you don't qualify for a personal loan?

    There are several reasons that you may have been declined to take on a personal loan. Some of these reasons may include: borrowing an amount that is deemed by the bank as too high for you to repay, not meeting the income threshold for borrowing, not meeting the basic borrowing requirements, having a low credit score, or high debt-to-income ratio. Understanding why you were rejected is an important first step to increase your chances of securing a loan. Alternatively, you may choose to approach a licensed money lender.

    Should you look at the interest rate or EIR?

    It is important to understand both types of interest rates when taking a personal loan. An annual flat interest rate on your personal loan refers to the percentage on your principal borrowed sum until you repay the loan. On the other hand, an effective interest rate (EIR) reflects the true cost of taking a loan as it considers other factors, such as processing or administrative fees. It is thus crucial to consider both types of interest rates, as the annual interest rate often determine if the monthly instalment is affordable to you while EIR will ultimately influence the total cost of your loan.

    What loan amount should you take?

    There are numerous factors to consider before taking a personal loan. Before deciding on your loan amount, a crucial factor to consider is whether the monthly repayment amount is something you can afford. Will this monthly instalment have an impact on my monthly budget? What impact? And to what extend? As a general guideline, you should aim to spend no more than 35% to 43% of your take home salary on repaying your debts.

    Which bank is best for personal loan?

    As the terms differ between banks, the best bank for personal loans is greatly dependent on which is of most importance to you when taking on a personal loan. Take into consideration annual interest rate and EIR before deciding on which bank to take a loan from.

    How can a personal loan help?

    There are several ways a personal loan can come in helpful for you:

    • Consolidate credit card debt - As personal loans tend to have a lower average interest rate than that of credit cards. Personal loans may be helpful in paying off credit card debts, especially if you have owe a substantial balance on one or more credit cards.
    • Lump sum payment to help finance big expense - Personal loans can be used to finance a variety of expenses, from weddings to home renovations. Taking on a personal loan is always an option if you need to finance a big-ticket item, especially if the monthly repayment is affordable for you.
    • Improve your credit score - Timely repayment of your personal loan can help in improving your credit score, especially if you have a history of other missed or late debt repayments.

    What are the tenures and maximum APR for each loan?

    Annual percentage rate refers to the yearly interest bank charges for a loan. The maximum tenure and APR differs across banks. Generally, the maximum tenure is typically 5 to 7 years, while maximum APR stands at about 8.93%.

    How fast can I get a loan?

    Depending on your bank of choice, expect to obtain your personal loan within one to seven business days.

    Are personal loans good for your credit score?

    A personal loan can have a positive impact on your credit score if it is repaid on time, since this demonstrates that you are able to responsibly handle your debt.

    When should I use a personal loan?

    You may want to consider taking up a personal loan if:

    • A personal loan is the least expensive borrowing option for you
    • You are confident of making monthly repayments in a timely fashion
    • You are unable to qualify for low-interest credit cards
    • The amount you intend to borrow is beyond your credit limit

    How do banks or financial institutions decide my loan amount?

    Banks look at several factors before deciding if you are a credible borrower who will likely have the means of repaying your loan. Eligibility criteria defers between banks, but some of the deciding factors often include: your credit score, income and employment history, debt-to-income ratio, residency status, loan term and quantum.

    Are there any benefits to taking a personal loan?

    Taking a personal loan in the form of a debt consolidation plan can be especially help if you are repaying several loans monthly, since it charges a lower interest rate. It can also help build your credit score if you are confident of making timely repayments every month. As personal loans can be used for a wide variety of purposes, it affords you fast access to a sum of money and greater flexibility in terms of how you use it.

    What is the maximum loan amount I can borrow?

    This depends on whether you are obtaining a secured or unsecured personal loan. A secured personal loan requires a collateral as a condition of borrowing. Depending on the issuing bank, borrowers can borrow up to 12 times their monthly income of unsecured loans.

    How can I get a loan with 0 interest?

    It is possible to get a loan with zero interest rates. However, zero interest rates often come with hefty penalties for late repayment or heavy fees that will effectively add up to loan equating to a personal loan that charges an interest rate.

    Can I get a loan without a salary?

    While you are generally required to produce your proof of salary to apply for personal loans, individuals may still be able to apply to get a loan if they do not receive regular payslips. Such individuals may do so by submitting other documentation to show proof of income. Further, banks may also require such individuals to pledge high-valued assets as security and maintain a healthy credit score to be eligible for personal loans.

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    Seedly's Product Comparison Page Listing Guidelines
    For Personal Loans products to be listed on Seedly's Product Comparison Page, they have to fulfil the following criteria:

    • Monetary Authority Singapore (MAS) Licensed Bank
    • Owns a Capital Markets Service License