Borrowing habits in Singapore are changing. A recent report shows that nearly 28% of all loan applications now come from middle-aged borrowers (40-59), with average loan amounts hitting S$22,000. Meanwhile, loan applications from younger adults (18-29) have dropped by 25% since 2022, indicating a shift in financial priorities.
Personal loans remain a go-to option for financing major expenses or emergencies. With an average interest rate of 3.22% per annum, they offer competitive borrowing costs. However, rates differ across banks, making it crucial to compare offers.
In this guide, we highlight the best personal loan options, including CIMB’s attractive 2.80% p.a. loan, to help you find the ideal rate and terms for your financial needs.
Which Bank Loan Rate Is the Best in Singapore?
When it comes to personal loans, finding the best interest rate can make a significant difference in how much you repay over time. Singapore offers a variety of competitive rates, but some banks stand out for offering lower rates and special promotions. Here’s a breakdown of some of the best personal loan rates available:
| Best Personal Loans | Interest Rate | EIR | Loan Tenure | Processing Fee | Promotions |
|---|---|---|---|---|---|
| CIMB Personal Loans | 2.80% p.a. | 5.28% p.a. | 1 to 5 years | 1% | Up to S$2,000 cashback |
| DBS Personal Loans | From 2.68% p.a. | 5.43% p.a. | 6 months to 5 years | 1% | 2% unlimited cashback + S$300 eCapitaVouchers |
| Standard Chartered CashOne Personal Loan | 2.88% p.a. | 5.84% p.a. | 1 to 5 years | S$199 | Cash rebate of up to 2% for loans over S$15,000 with a tenure of at least 36 months |
| UOB Personal Loan | 2.88% p.a. | 5.43% p.a. | 1 to 5 years | 0% (waived) | Up to 2% cash rebate |
| HSBC Personal Loan | 2.92% p.a. | 5.50% p.a. | 1 to 7 years | None | Up to 2.0% cashback starting at a 3-year loan tenure |
| Licensed Moneylenders | 1-4% per month | N/A | Up to 12 months | Up to 10% of the approved loan amount |
1. CIMB Personal Loan: Best for Budget-Conscious Borrowers
CIMB Personal Loan offers competitive interest rates, making it a top choice for individuals looking to minimize borrowing costs. It also comes with attractive cashback promotions, enhancing its appeal for larger loan amounts. CIMB’s competitive rates, along with its generous promotions, make it an ideal option for borrowers who prioritize low-cost loans.
- Interest Rate: 2.80% p.a.
- Effective Interest Rate (EIR): 5.28% p.a.
- Loan Tenure: 1 to 5 years.
- Promotions: Earn up to S$2,000 cashback on eligible loan amounts.
- Eligibility: Singaporeans, PRs with a minimum annual income of S$20,000. Malaysians have a minimum income requirement of S$30,000.
2. DBS Personal Loan: Best for Low Interest Rates with Rewards
DBS Personal Loan provides a combination of low interest rates and enticing promotions, including cashback and eCapitaVouchers for larger loan amounts. It offers flexible loan tenure options and caters to both Singaporeans and foreigners with existing DBS/POSB accounts, making it a versatile choice for many borrowers.
DBS provides competitive rates and generous promotions, making it a solid choice for borrowers looking for added perks.
- Interest Rate: From 2.68% p.a.
- EIR: 5.43% p.a.
- Loan Tenure: 6 months to 5 years.
- Promotions: Receive 2% unlimited cashback and up to S$300 in eCapitaVouchers for loans over S$10,000 with a minimum tenure of 24 months.
- Eligibility: Singaporeans, PRs with a minimum annual income of S$20,000; foreigners need an existing DBS/POSB account.
3. Standard Chartered CashOne Personal Loan: Best for Low Interest Rates with Cashback
Standard Chartered CashOne Personal Loan offers a competitive interest rate along with flexible tenure options. It stands out with its attractive cashback promotions for new clients, making it an excellent choice for those looking to maximize value through added perks while securing a low-interest loan.
- Interest Rate: 2.88% p.a.
- EIR: 5.84% p.a.
- Loan Tenure: 1 to 5 years.
- Promotions: Receive up to 2.5% cashback on your approved loan amount.
- Eligibility: Singaporeans, PRs with a minimum annual income of S$20,000; foreigners need an annual income of S$60,000.
For example, using Standard Chartered’s online personal loan calculator, you’ll receive a S$1,250 cashback if you get a loan amount of S$50,000.
(source: Standard Chartered)
4. UOB Personal Loan: Best for High Loan Amounts with Cashback Rebates
UOB Personal Loan provides competitive interest rates and is ideal for those looking to borrow larger amounts. With a cashback rebate of up to 2% for loans over S$15,000, UOB offers extra value for long-term borrowers, making it a great option for individuals planning to take out substantial loans.
- Interest Rate: 2.88% p.a.
- EIR: 5.43% p.a.
- Loan Tenure: 1 to 5 years.
- Promotions: Cash rebate of up to 2% for loans over S$15,000 with a tenure of at least 36 months. You can also receive a Samsung Galaxy Tab A9 (worth S$251) if you’re one of the first 30 approved applicants at 9am every Friday.
- Eligibility: Singaporeans and PRs with a minimum annual income of S$30,000.
5. HSBC Personal Loan: Best for Longer Loan Tenures with Flexibility
HSBC Personal Loan provides competitive rates along with flexible repayment options, offering loan tenures of up to 7 years. This makes it a suitable choice for borrowers looking for extended repayment periods, helping to reduce monthly installment burdens while maintaining manageable interest costs.
- Interest Rate: 2.92% p.a.
- EIR: 5.50% p.a.
- Loan Tenure: 1 to 7 years.
- Promotions: Up to 2.0% cashback starting at a 3-year loan tenure.
- Eligibility: Singaporeans and PRs with a minimum annual income of S$30,000; foreigners need a minimum income of S$40,000.
Which Bank Offers the Lowest Interest Rate?
The CIMB Personal Loan offers one of the best rates in Singapore at 2.80% p.a. with an effective interest rate of 5.28% p.a. and up to S$2,000 cashback, making it ideal for those seeking low borrowing costs with extra rewards.
For cashback-focused borrowers, DBS Personal Loan and UOB Personal Loan are great options, offering 2% unlimited cashback and up to 2% cash rebates, with interest rates starting from 2.68% p.a. and 2.88% p.a., respectively.
If you need fast cash and traditional loans aren’t an option, licensed moneylenders can be a good alternative, offering instant approval, fast loan disbursement, and flexible repayment term.
Borrowing from Bank vs. Licensed Money Lender Singapore
When deciding between borrowing from a bank or a licensed moneylender in Singapore, it’s essential to weigh the key benefits each option offers. Here’s a breakdown to help you make an informed decision:
| Features | Banks | Licensed moneylenders |
|---|---|---|
| Interest rate | 2.68% to 5.42% p.a. | 1-4% per month |
| Approval speed and Loan requirements | Slower approval speed; more loan requirements | Fast; same day |
| Credit Score | Required | Not required |
| Loan amount | Up to 4x monthly income | Up to 6x monthly income |
| Repayment tenure | 1 year to 7 years | 6 months to 1 year |
| Processing fees and other charges | 1% to 2% processing fee depending on the bank | Late fee of SGD 60 or less per month and service of 10% of the principal of the loan |
When borrowing from banks, you’ll benefit from lower interest rates, typically between 2.68% to 5.42% per annum, which makes them ideal for long-term loans.
Banks also offer higher loan amounts, lending up to four times your monthly income, with flexible repayment periods of 1 to 7 years.
On the other hand, licensed moneylenders offer faster loan approvals, sometimes within an hour, and can lend up to six times your monthly income with fewer requirements.
Though their repayment terms are shorter, often 12 months or less, they provide promotional offers and cater to a broader audience, including citizens, permanent residents, and foreigners, making them a flexible option for immediate financial needs.
Closing
Finding the best personal loan in Singapore requires comparing interest rates, promotions, and loan terms across various banks. Whether you are looking for low interest rates like CIMB’s 2.80% p.a. or attractive cashback offers from DBS or UOB, there’s a loan tailored for your financial needs.
Key Takeaways:
- CIMB stands out with a low interest rate of 2.80% p.a. and an effective interest rate of 5.28% p.a., making it ideal for those looking for budget-friendly borrowing.
- DBS and UOB offer generous cashback promotions, with DBS providing up to 2% unlimited cashback and UOB offering up to 2% rebates for larger loan amounts, making these options attractive for borrowers looking for added perks.
- While banks generally have more stringent requirements and slower approval processes, licensed moneylenders can offer faster approvals with fewer requirements, making them a viable option for borrowers needing quick cash.
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