Best personal loans in Singapore with the lowest interest rates (2021)

PHOTO: The Straits Times file

CIMB, OCBC and HSBC offer the lowest interest personal loans in Singapore. Find out more about these loans which you can find on SingSaver.

Whether it’s due to an emergency or simple cash flow management, most of us will need a personal loan at some point.

Personal loans do get a bad reputation sometimes, but if you understand how to manage cash flow and know how to take advantage of promotional interest rates, they can be used to your advantage.

The most important factor when deciding on a personal loan is the interest rate for the personal loan. The lower the interest rate, the better.

This is especially true if you need to borrow a large amount. Interest rates being offered via SingSaver are often lower than the ones being offered by the bank but also take note that ultimately, the final loan interest rate will also take into account your credit score, salary and repayment history.

Also pay attention to any admin or processing fees involved (sometimes, they are waivable), annual fees, how quickly you can get your cash as well as the monthly instalments to be repaid.

Here’s a quick guide on the dos and don’ts when applying for a personal loan. We’ve compared the lowest interest rate personal loans available on the market right now and shared them below.

Best Personal Loan With Low Interest Rates ($20,000 Loan on a 3-year tenor)
Bank Loan Flat Annual Interest Rate Effective Interest Rate (p.a) Processing Fees Monthly Payment
CIMB CashLite Personal Loan 3.5 per cent 6.6 per cent $0 $614
HSBC Personal Loan 3.7 per cent* 7.00 per cent $0 $617
OCBC Personal Loan 3.5 per cent* 7.27 per cent $200 $614
Citi Quick Cash Loan 3.99 per cent* 7.50 per cent $0 $622
DBS/POSB Personal Loan 3.88 per cent 7.90 per cent $200 $620
SCB CashOne Personal Loan 3.48 per cent* 7.99 per cent $199 $614

Flat Annual Interest Rate: The interest rate advertised.
Effective Interest Rate (EIR): The actual interest rate you incur per annum, with factors such as processing fees taken into consideration.  
Processing Fee: Fee charged by the bank to process your loan.
Monthly Payment: How much you have to pay the bank each month.

1. CIMB CashLite Personal Loan

Leading the pack is the CIMB CashLite personal loan that offers the lowest rate in Singapore currently at 3.50 per cent p.a. (EIR 6.6 per cent p.a. for a 3 year tenure).

To enjoy this low rate, you’ll have to be a new-to-bank customer of CIMB. You will also be issued a CIMB Platinum MasterCard in order to facilitate this loan. To apply for the loan, enter promo code CASHLITE in the online application form.

If you are currently a CIMB customer, the interest rate you enjoy is 4.50 per cent p.a. and you can convert your available credit balance to cash instantly.

CIMB CashLite Personal Loan Eligibility
Nationality Singaporean or Permanent Resident (PR)
Age At least 21 years old
Minimum Annual Income $30,000
Other requirements Latest computerised payslip if annual income exceeds $72,000

2. HSBC Personal Loan

If you’re looking at a loan tenor of two to four years, the HSBC Personal Loan offers the best annual interest rate of 3.7 per cent p.a. (EIR 7per cent p.a.) for all income levels above $30,000 per annum. This interest rate is only available on SingSaver and cannot be found on HSBC’s own website.

The HSBC Personal Loan also offers the longest loan tenor on the market — you can spread out your payments over up to 7 years. There is no processing fee incurred.

Loan amounts range from a minimum of $5,000 to a maximum of 4x your monthly salary. If your annual income exceeds $120,000, you can borrow up to 8x your monthly salary, or a maximum of $200,000.

Foreigners residing in Singapore will need a minimum annual income of $40,000, and may borrow up to 2x their monthly income, or a maximum of $100,000.

HSBC Personal Loan Eligibility
Nationality Singaporean or Permanent Resident (PR) Foreigners (residing in Singapore)
Age 21 – 65 years old 21 – 65 years old
Minimum Annual Income $30,000 and above $40,000 and above
Other requirements N.A. Employment Pass with at least 12 months’ validity

Apply now and get rewarded with $88 cashback for approved loans and enjoy $0 processing fees. 

ALSO READ: Personal loan promotions in Singapore 2021

3. OCBC Personal Loan

Enjoy the low interest rate of 3.5 per cent p.a. (EIR 7.27 per cent p.a.) — the lowest in the market currently — when you apply for an OCBC Personal Loan.

This rate is exclusive for new to OCBC loan customers who apply via SingSaver. (Note: existing OCBC loan customers will be offered an interest rate from 4.7 per cent p.a)

The downside for this loan is there’s a one-time processing fee of 1per cent of the loan amount. So if you’re looking at a $20,000 loan amount, that will be a processing fee of $200. There is a minimum loan amount of $1,000 required to apply for the OCBC Personal loan.

Do note you will need to open an OCBC Credit Card or OCBC EasiCredit account to service your loan. Your maximum credit limit will be 6x your monthly salary if you’re earning $120,000 a year and above (if not, it will be 4x your monthly salary). 

OCBC Personal Loan Eligibility
Nationality Singaporean or Permanent Resident (PR) Foreigners (residing in Singapore)
Age 21 – 65 years old 21 – 65 years old
Minimum Annual Income $30,000 and above $42,000 and above

4. Citi Quick Cash Loan

The Citi Quick Cash Loan offers an interest rate of 3.99 per cent p.a. (EIR 7.5 per cent p.a.) with a minimum loan amount of $20,000. This rate is exclusive for new to Citibank loan customers who apply via SingSaver.

No processing fee will be charged for the Citi Quick Cash Loan. You can also borrow up to 4x your monthly salary, with a minimum loan amount of $100 for 24 months to 60 months loan tenure period.

You are required to have a Citibank Ready Credit or Citi Credit Card account to be offered a Citi Quick Cash loan. More terms and conditions found here.

Citi Quick Cash Loan Eligibility
Nationality Singaporean or Permanent Resident (PR) Foreigners (residing in Singapore)
Age 21 – 65 years old 21 – 65 years old
Minimum Annual Income $30,000 and above $42,000 and above

ALSO READ: Top 6 myths about personal loans, busted

5. DBS/POSB Personal Loan

DBS/POSB offers a relatively low personal loan at 3.88 per cent p.a with a processing fee of 1 per cent of the approved loan amount.

For those looking for a small loan amount, you can opt for the DBS/POSB personal loan as the minimum loan amount is S$500. Existing DBS/POSB users can apply via SingSaver and get instant approval and loan disbursal.

A personal loan with DBS/POSB is also a good option for lower income earners. While most banks require a minimum annual income of $30,000 to apply, those earning $20,000 to $30,000 annually may be eligible for DBS/POSB loan at a higher annual interest rate and processing fee.

DBS/POSB Personal Loan Eligibility
Nationality Singaporean or Permanent Resident (PR) Foreigners (residing in Singapore)
Age 21 – 65 years old 21 – 65 years old
Minimum Annual Income $20,000 and above $40,000 and above
Other requirements N.A. Employment Pass with at least 12 months’ validity

6. Standard Chartered CashOne Personal Loan

With a flat interest rate of 3.48 per cent p.a. (EIR from 6.95 per cent p.a.), the Standard Chartered CashOne Personal Loan is one of the best options in the market. There are no processing fees for this loan but Standard Chartered charges an annual fee of $199.

Applying via MyInfo will get you $20 cashback. You will also receive 50 per cent cashback on your first month’s instalment. What’s more, you can now get instant approval and loan disbursement – no more waiting three to five working days to receive your cash!

Standard Chartered CashOne Personal Loan Eligibility
Nationality Singaporean or Permanent Resident (PR)
Age 21 – 65 years old
Minimum Annual Income $20,000 and above
Other requirements N.A.

This article was first published in SingSaver.com.sg.