Best Personal Loan Rates in Singapore (2024): For Your Life Emergencies

Life has a way of throwing curveballs, from unexpected medical bills to dream projects waiting to be realised.

When the hurdles seem a bit too high or the aspirations a tad out of reach, a personal loan becomes more than just borrowed funds; it’s a helping hand, enabling you to overcome challenges and embrace opportunities.

Whether it’s turning a house into a home or investing in personal growth, a personal loan can be the bridge that turns dreams into reality, making the journey uniquely yours.

As with any loan, a personal loan comes with an interest rate, processing fee, minimum repayment fee and loan tenure. 

Although the application process is quite straightforward, there are quite a few things you need to carefully consider when you want to find the best personal loans for you.

TL;DR: Personal Loan Promotions And Comparison in Singapore (2024)

Lowest Personal Loan Rates

For the benefit of those looking for the lowest loan rates (although this shouldn’t be the only thing you’re looking at), here’s what you need to know:

Click here to jump:

• What to know about personal loans
• Personal Instalment Loans
• Line of Credit / Overdraft Facility
• Balance Transfer / Funds Transfer
• Debt Consolidation Plan
• Other types of personal loans

Disclaimer: All rates are as of 16 Jan 2024 and may be subject to changes. Please check with the respective banks for updated information. The information provided by Seedly serves as an educational piece and is not intended to be personalised financial advice. Readers should always do their own due diligence and consider their financial goals before committing to any financial product and consult their financial advisor before making any decisions.

Things to Pay For Personal Loans

Besides paying for how much you’re borrowing, there are applicable fees you possibly will need to pay for:

Then again, some banks will have promotional offers where you don’t have to pay for interest during the tenure period, so it really depends on your loan and the bank you opt for.

Types of Personal Loans

Next up, you need to familiarise yourself with the types of personal loans:

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Best Bank for a Personal Loan

This is the most straightforward loan, which offers you a sum of cash upfront, and you will need to pay back the amount in instalments over a tenure. Four main factors you should consider before taking up a personal loan from a bank.

• How it works: Once you have submitted your application with the amount you intend to borrow, you will make an upfront one-time processing fee and commit to repaying the total amount via fixed equal monthly instalments that can stretch up to 60 months. The interest and fees you will have to pay are first calculated and computed in the total loan amount. You can also get your bank to waive the processing/administrative fee.
• Loan Tenure: 1 – 7 years
• Reason(s) for taking up this loan: This loan is suitable for the purchase of big-ticket items or expenses that you cannot pay all at once
• Early Repayment Penalty: Yes

Example: One of your relatives met an unexpected medical emergency that requires complicated surgery. They have not been insured under a Health Insurance Plan, which can help cover the medical expenses incurred. The medical bill totals up to $10,000, and your relative’s family can take up a personal instalment loan and slowly repay it over a longer timeframe.

CIMB Cashlite

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Citibank Quick Cash Loan

DBS/POSB Personal Loan

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GXS FlexiLoan

GXS is a relatively new contender in the personal loan space, given that digital banks are still in their nascent period. The GXS FlexiLoan is an unsecured loan that does not have an early repayment penalty, annual fee, processing fee, or late payment fee. However, it does charge late interest upon late repayment.

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HSBC Personal Loan

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Maybank CreditAble Term Loan

OCBC EasiCredit Personal Loan

Standard Chartered CashOne Personal Loan

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UOB CashPlus Loan

UOB Personal Loan

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Personal Loan: Line of Credit

Sometimes known as an Overdraft Facility, it is an established arrangement between the bank and clients which determines the maximum loan amount the customer can borrow.

Once the application is approved, the borrower can access funds from the line of credit at any time, as long as they do not exceed the maximum amount set in the agreement.

With that being said, banks often charge fees for opening a credit line and annual fees to maintain your credit line account.

• How it works: Start applying via your bank, and once it is approved, you can withdraw the funds via mobile/internet banking, physical branch, cheque or ATM. You will be charged daily the moment you start withdrawing your funds. It is good to note that you stop paying the interest once you repay the loan amount.
• Additional Fees/Interests: There are two layers of interest. Firstly, you will need to open a line of credit, which comes with an annual fee. Second, the interest rates on the amount you borrow range from 18.60% to 22.00%.
• Loan Amount: Banks typically offer up to 2-6 times your monthly salary. 
• Loan Tenure: Flexible. You decide how long the loan tenure will be, but do note that you will be paying interest on it until the day you repay.
• Reason(s) for taking up this loan: This loan is suitable for purchasing big-ticket items or expenses that you cannot pay all at once or when you face unexpected situations where cash is not immediately available. This allows you to withdraw the money without processing it except for the initial application. 
• Early Repayment Penalty: These loans do not have an early repayment penalty.

Example: As a small business owner, you may not have sufficient cash flow to free up the purchase of operational supplies during peak periods. Once sales are settled, you can quickly repay the amount owed to the bank. This may be the most suitable for those who foresee needing to borrow cash multiple times throughout the year.

These are what banks are offering:

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Personal Loan: Balance Transfer / Funds Transfer

A Balance Transfer or Funds Transfer is a type of unsecured, short-term loan that uses the available credits on your credit card.

It can be a strategic move for individuals looking to manage their debt more effectively. It can help save money on interest payments, especially if the new credit card offers a lower interest rate or a promotional period with no interest.

It transfers your outstanding balance from credit cards to a 0% or low-interest account, commonly offered on a credit card over a grace period, usually from three to 18 months.

his is most often used to reduce interest payments and help consolidate multiple credit debts into one place. Generally, you are not required to pay any interest if you manage to pay off all credit card balances before your grace period. 

• How stuff works: Once you submit an application for Balance Transfer on your credit card, you will pay a one-time processing fee on the amount you borrowed. Afterwards, you will enjoy a low to 0% interest rate over the grace period. You will be charged interest ranging from 18% to 29% when the grace period has ended, depending on the credit card. There is usually a minimum repayment you need to commit to. 
• Additional Fees: You will also be charged a one-time processing fee, typically ranging from 1% to 5%, depending on your credit card company. Occasionally, some credit cards will offer up promotions when this is waived.
• Loan Amount: The amount you can loan is based on your credit card limit. Banks usually require a minimum loan amount but can offer up to 10 times your monthly salary if you have a high monthly income and a good credit score.
• Loan Tenure: 3 to 12 months grace period until the high-interest rates kick in based on the initial interest rate of all your credit cards. 
• Reason(s) for taking up this loan: This particular type of loan allows you to transfer any outstanding loans you already have into one place. Balance transfer loans are a great way to consolidate your debt into a more manageable account with fixed monthly repayments you can budget for. Do look out for promotions where banks will waive the processing fee via cashback or incentives.
• Early Repayment Penalty: These loans do not have an early repayment penalty.

Example: *Choy, touchwood* You might have racked up $20,000 in credit card debts spread over many credit cards as you could not keep up with your expenses tracking. Rather than paying the total 20-25% interest rates on all those credit cards, you can apply for the Balance Transfer to focus your repayment on one. The 6 to 12-month grace period will give you time to think. Make your best effort to pay back the debt as soon as possible and develop a repayment plan. 

To avoid the example above, you can read the Seedly Money Framework for 2022 & Beyond!

Personal Loan: Debt Consolidation Plan

A Debt Consolidation Plan is an instalment loan used to pay off your personal debt.

Yup, a plan to combine all your credit card debts and personal loans into one loan with a lower interest rate. This is often to manage and eliminate your debt over several years and is sometimes termed the Debt Restructuring Programme. This may sound similar to the Balance Transfer, but there is a criterion — the borrower’s debt must exceed 12 times their monthly salary.

Do note that debt consolidation loans usually come with a one-time processing fee, a flat interest rate, and a 1 to 10-year tenure!

• How it works: Once you have submitted your application, the bank to which you have submitted your application will combine all the loans into a single loan by buying out all your outstanding balances, fees and charges. After that, you will then make monthly repayments to the said bank over a few years until your debt is cleared. 

The essence is finding a plan of low interest and fees while keeping your monthly payment at a reasonable level.

While you look for the best loan that works for you, remember to look for promotions that may give you interest-free periods. Don’t be afraid to ask for a waiver of your annual fees!

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Licensed Moneylenders

Alternatively, you can borrow money from Licensed Moneylenders.

‘Licensed’ says that these moneylenders are legal entities that operate within the Moneylenders Act and Rules.

These moneylenders are certainly not the typical Ah-Longs you know who spray O$P$ on walls! They are restricted by law on the amount they can lend, the fees they charge and the acceptable interest rate.

One Seedly contributor has rightfully pointed out the differences between borrowing from a moneylender versus a bank, and you can read it here.

Compared to borrowing from banks, licensed moneylenders operate as small businesses and loan out small amounts that are pegged to your income – up to $3,000 if your annual income is less than $20,000.

Otherwise, they can loan you up to six times your monthly payment. With fewer processes, borrowing from licensed moneylenders may be faster, and there may be fewer restrictions on citizenship and income.

HOWEVER, moneylenders could potentially charge you up to 30% of the interest rate even though the Government’s guidelines have a cap on the monthly interest rate as they may not abide by the guidelines set or have other hidden fees. 

Hence, always do your due diligence to check and enquire for the details so that you stay on top of your finances! 

Based on guidelines set by the Ministry of Law, a licensed moneylender is only permitted to impose the following charges, interests and expenses:

• The monthly interest rate is capped at 4%; 
• The monthly late interest rate is capped at 4% for each late repayment, and the late interest can only be charged on an amount that is repaid late; 
• A late fee of not more than S$60 per month;
• A fee not exceeding 10% of the principal of the loan when a loan is granted; 
• Legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan;
• An administrative fee that must not exceed 10% of the principal loan granted;
• The total cost charged by a legal lender, including interest, late interest, administrative fees, late fees, and other related charges, must not exceed the principal loan amount.

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Loans From Credit Unions

The lesser-known sibling of banks and moneylenders, a Credit Union is a non-profit money cooperative whose members can borrow from pooled deposits at low-interest rates.

Credit Unions, sometimes termed “Credit Co-operatives” or “Credit Co-ops”, are financial institutions created and operated by their members, who pool their resources to help one another. Unlike commercial banks, a credit co-op is not for profit, and it aims to provide access to affordable financial solutions for its members, who are also its collective owners.

Nonetheless, with Co-op being an exclusive initiative, there are things you need to know:

1. You need to be a Member of the Union to start borrowing
2. You need to show that you can repay the loan and how you use the funds

Some notable names include TCC Credit Co-operative and Straits Times Co-op.

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So, is a Personal Loan for you?

While most of us really wish that we don’t have to resort to taking up personal loans to finance certain aspects of life, it can become inevitable, especially when heavily cash-strapped. As such, these are some essential considerations should the situation arise.

When in doubt, you can always head over to our friendly Seedly Community to ask for opinions and advice!

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