Best Personal Loans in Singapore (2018)

by • April 26, 2018 • Best personal loansComments (0)9891

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Best Personal Loans in Singapore (2018)

Marina bay Sands - night scenary

Image Credits: Marina Bay Sands and Singapore Flyer at night, Paul Ho,

Personal loans can go a long way towards helping you achieve your business goals. They can also be a nice safety net in case you’re forced to deal with unexpected events that may occur. While you could always borrow from friends and family, sometimes it’s a good idea to keep personal loans separate from personal relations. And in this case, you can borrow from a bank or licensed lender. The good news is there are several banks and institutions that you can choose from in Singapore. Below are the requirements you should expect, the types of loans that are available in Singapore, where you can find them, and the difference between banks and money lenders.

Requirements and Eligibility

best personal loans singapore

Whenever you apply for a loan, the bank or institution will expect you to meet certain criteria. While each institution has its own requirements, there are a few basics that most have in

For example, in most cases, applicants are expected to be: –

  • At least 21 years old and a maximum of 60 years of age.
  • The applicant must make a minimum of S$20,000 per year if he/she were a permanent Singapore resident and S$45,000 if he/she were a foreigner who has a work permit (though in most cases, loans are only offered to permanent residents.)
  • The applicant must already have an account or credit card with the bank.
  • The applicant must be employed.

Licensed Money lenders are an option if you do not qualify for a Bank’s Personal Loan

If you do not qualify for a bank’s personal loan, you should consider loans from friends or relatives first. You should only borrow if you have the capability to repay the loan and should not drag out the repayment period.

Be careful to check if the money lender is a licensed money lender. Licensed Money lender have to work strictly to the rules and regulations set up by the Ministry of Law and cannot charge higher fees and/or interest rates than mandated.

Remember, moneylenders will only lend they have the confidence that you will be able to honour the debt and repay them on time. They will also run credit bureau checks on you.


Here are some registered and licensed Moneylenders you can consider:

Do not respond to those sms about giving you a loan, many of those may be illegal. Always make sure you borrow from a registered money lender. You can check the list of licensed moneylenders in Singapore here.

Types of Personal Loans in Singapore 

Banks and institutions realise that not all personal loans will be used in the same way. And this is why they assess each request on a case-by- case basis. They also offer different types
of loans for applicants to choose from. Here’s a list of the most common options:

Term Loan
Term loans are the most common types of personal loans. They are a one-time cash disbursement and are very simple. The applicant borrows a specific amount from their bank and at a specific rate of interest. When the funds have been sent to your account, you can then use it in whatever way you would like. The repayment is fixed in monthly instalments. Along with the interest is the principal amount.

Personal Line of Credit
This type of personal loan is very similar to the concept of a credit card. As is the case with a credit card, a personal line of credit has a limit of credit from which you will be able to draw cash. Interest is only paid on the amount that you actually borrow. However, you are not charged if you withdraw cash. This type of personal loan is extremely flexible and can come
in handy for new business owners. They’re great because they’re short-term and the interest rates are low. In most cases, you only need a minimum income of S$20,000 per year.

Secured Overdraft
Secured overdraft is a revolving. However, it is a secured personal loan. How much you are able to borrow will depend on how much collateral you’re willing to pledge to your bank. Your
overdrafts may be taken against securities like unit trusts, shares, and investment-linked insurance plans.

Debt Consolidation Plan
In some cases, the applicant may have multiple open unsecured loans, In which case it can be challenging to manage everything. That’s why many people consider debt consolidation plan. This situates all of your loans under one, big umbrella which tends to make it much easier to repay because there’s only one due date, plus the interest is very low.

Education Loan
In some cases, the applicant is a college student who is unemployed. In this instance, the student would need someone to guarantee them– preferably someone who’s income amounted to S$30,000 per year. Students are only expected to repay the money once they have graduated. Not only can this money go towards tuition fees, but also books, computers, and living expenses.

There is an endless number of places that you can secure a personal loan. However, not all of them are reputable. The major banks are more reputable, and let’s go over the personal loans offered by the most popular institutions.


POSB offers a debt consolidation plan. Its rates start at around 4% and can be carried for almost 10 years. So, this can be a great deal if you actually qualify for these particular rates.
If you are a new customer, then you can receive a maximum of S$1,200 of cash back. And this makes it a little easier to pay the $99 processing fee. There is a very good chance that you will end up paying an interest rate that is much higher than that, but this loan is still worth considering due to the promotion bonus.


What’s great about this particular loan is that you can turn your available credit limit into a loan that is fixed monthly. It’s 6% processing fee and 0% interest rate makes it all worthwhile. However, this one is best for individuals who only need a small amount of cash.


Maybank is geared toward individuals who are self-employed and earn at least SGD 30000 per annum. This personal loan is very popular because it offers a quick approval process. Also, it has a hassle-free documentation. It can be used for several different purposes, from tuition fees to home renovations, its completely up to the borrower.


HSBC is perfect for those who are in need of larger personal loans but are not able to handle the sizeable repayment per month. Here’s why: You can carry HSBC personal loan for up to 7 years and it has an interest rate of 9-10%. And if you’re an actual HSBC customer, the interest rate can drop to as low as a 3.8% flat rate. These qualities make it a one of a kind
personal loan. If you complete the application online, HSBC will waive its processing fee and give you a cashback of S$50. However, it’s worth mentioning that this loan requires that you
borrow at least S$10,000 to get the promotional rates.


If you can pay down a small load within 3 years time, then Citi Ready Credit Paylite may be just what you’re looking for. Its loan maturities are 1 to 3 years, however, it still manages to
offer 9% interest rates. There are no processing fees. There is a 4.82% to 5.79% flat rate range. This personal loan only requires that you borrow a minimum of S$1,000.

Standard Chartered

If your annual income is less than S$30,000 and you’re looking for low rates, then you should consider Standard Chartered CashOne. It offers a flat rate fee of 7.5% and completely waives its processing fee. This means that it offers 12-15% interest rate, depending on how long you carry the loan. However, the most applicants can borrow is S$5,000 or twice their monthly salary.

Banks vs Licensed Moneylenders

Licensed Moneylenders are very much like banks in that they grant loans. If the borrower is late with their payments, the legal lender does not harass the individual, but simply send them reminders. And this is the same method that is used by banks. However, there are quite a few differences as well. Let’s take a look at how banks are different from licensed moneylenders:

1. Moneylenders tend to focus on granting smaller loans amount. Even if the borrower earns $30,000 in annual income, the most they can qualify for is $10,000. This is one of the legal restrictions money lenders operate according to.

2. Moneylenders tend to approve loans faster. The average assessment time is half an hour. In fact, you can have your cash within 45 minutes from the time you submit your application. That is because there are fewer credit and background checks than with banks.

3. Moneylenders make it harder for the applicant to determine what interest rate they will be paying. In fact, many will not disclose this information over the phone. You’re forced to visit the location in-person to get a better idea. Moneylenders tend to charge higher interest rates than banks do.

The Takeaway

As you can see, there is a lot to consider when choosing a personal loan. However, the
choice you make will depend on what your ultimate goal is. It also depends on the
requirements of the institution you choose.


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