A personal loan is taken to fix urgent financial needs. They are a type of closed-end credit where the borrower makes monthly payments over a period of time. Singapore has reported a drop in bank lending for the second consecutive month in April largely due to the effects of the COVID-19 pandemic.
According to a recent report, total lending amounted to $689.7 billion in April, representing a 0.4% drop from the $692.4 billion reported in March. Below are the best personal loans in Singapore;
HSBC Personal Loan
HSBC allows customers to borrow a sizable amount and repay over a longer period of time. Customers can borrow up to $30,000 with a 7 year maximum repayment period at interest rates of 3.7% p.a. The bank offers the lowest interest rates compared to its peers. In addition HSBC does not charge any processing fee for customers seeking personal loans.
Citibank Personal Loan
Also called Citi Quick Cash, Citibank’s personal loan attracts an interest rate of 3.99% p.a. This interest rate is paid by new customers who take out at least $20,000 with a 3 year repayment period. Among other things, Citibank offers a quick approval for personal loans for people who may need cash urgently.
DBS Personal Loan
A large number of Singaporeans have POSB or DBS deposit accounts / credit cards. This way, almost all citizens have access to DBS Personal Loan. The DBS Bank has a MoneySmart portal where customers can log into internet banking and apply their loans. For those with POSB/DBS credit card, their applications are processed immediately and the money credited straight to their accounts.
Applicants without POSB/DBS credit card but with savings accounts are required to provide additional documentation for verification. The bank charges personalized interest rates based on each customer’s risk profile as well as credit history.
Standard Chartered Personal Loan
As opposed to POSB/DBS personal loan that offers variable interest rates, the Standard Chartered personal loan attracts an interest rate of 3.88% p.a. Also referred to as the StanChart CashOne personal loans, they attract a $199 processing fee.
The Standard Chartered personal loan is processed very quickly to the advantage of those who may need cash urgently. In fact, the bank boasts of instant loan approval and fast cash disbursement.
UOB Personal Loan
The UOB Personal Loan is offered based on the customer’s credit limit. This means it is available to customers with either UOB credit card or a line of credit (CashPlus). The loan is approved instantly for qualifying customers. The bank offers slightly higher interest rates compared to its peers in the market.
OCBC Personal Loan
There are two types of personal loans offered by OCBC;
- OCBC ExtraCash loan
- OCBC Cash-On-Instalments
The OCBC ExtraCash loan is offered to new customers while the OCBC Cash-On-Instalments is offered to existing OCBC credit card / line of credit customers. The loan attracts slightly higher interest rates compared to other major banks.
For customers that have a loan history with OCBC, the banks offers a much lower interest rate to change the un-utilized credit into cash.
HL Bank Personal Loan
HL Bank is one of the banks in Singapore that offer promising personal loans. The bank offers one of the highest maximum loan amount of up to $250k. The bank offers competitive interest rates having recently revised their rates to 3.88% p.a.
Most banks display two types of percentages on their personal loans. The lower one is the annual interest rate while the higher one is the effective interest rate or EIR. Loans are usally repaid between 1 to 7 years with a customer required to select a loan tenure beforehand. The longer the period selected, the more amount paid in interest rates.