Who Is The Best Lender For Personal Loans In Singapore? Top Picks Of 2023

September 27, 2023

Are you in need of urgent cash in Singapore? A personal loan from a reputable bank is often the safer and more cost-effective choice compared to borrowing from moneylenders. Even though banks typically require minimum income requirements and credit history checks, don’t be discouraged. These are standard procedures in Singapore.

So, if you’re wondering who is the best lender for personal loans in Singapore, look no further. In this 2023 guide, we will discuss the top 5 best lenders for personal loans, helping you make an informed financial decision.

What Does Interest Rate, EIR, And Processing Fees Mean?

Interest Rate

The interest rate, often expressed as a percentage, is the cost you pay to borrow money from a lender. It’s essentially the fee for using the lender’s funds.

Personal loan interest rates are determined by several factors, including your credit history, the amount you’re borrowing, and the loan duration. Banks tailor these rates to individual applicants, so you only discover your specific interest rate once your application is approved.

EIR (Effective Interest Rate)

The Effective Interest Rate represents the actual cost of borrowing. It includes the nominal interest rate and any other fees or charges associated with the loan, such as processing or administrative fees.

Processing Fee

A processing fee is a one-time fee the lender charges for processing your loan application and disbursing the funds. It’s a separate cost from the interest rate and can vary from lender to lender. Banks charge processing fees to cover administrative expenses, such as credit checks and paperwork processing.

Top 5 Personal Loans In Singapore

UOB Personal Loan

UOB Personal Loan is exclusively accessible to existing UOB credit card or CashPlus customers who are Singaporeans or Permanent Residents aged between 21 and 65. Applicants must demonstrate an annual income of at least $30,000 to gain eligibility.

If you are not already a UOB customer but wish to avail of the UOB Personal Loan, the initial step involves acquiring a CashPlus or UOB credit card.

What makes this loan particularly appealing is its competitive interest rates. For a 12-month loan period, the interest rate is set at 3.77% p.a., accompanied by an effective interest rate of 6.89% p.a.

For loan durations of 24, 36, 48, or 60 months, the interest rate remains capped at 3.88% p.a., with an effective interest rate of 7.29% p.a. Furthermore, there’s an added benefit of a 0% processing fee for this loan.

Existing UOB customers enjoy the advantage of instant approval when submitting an online application for this loan, simplifying the borrowing process.

Standard Chartered CashOne

Standard Chartered CashOne, a notable personal loan option in Singapore, extends its eligibility to Permanent Residents, Singapore Citizens, and foreigners holding a Singapore Employment Pass aged 21 to 65.

Setting it apart from other banks, it features relatively lower entry requirements. Singaporean residents’ minimum annual income threshold is $20,000, while foreigners’ is $60,000. An attractive aspect of this loan is its accessibility to salaried employees and self-employed individuals.

Notably, you don’t need to be an existing Standard Chartered customer to apply; it’s open to anyone. Standard Chartered CashOne streamlines the application process through SingPass, and it can disburse the loan within 15 minutes, making it a fast and cost-effective option.

The loan comes with no processing fee but an initial annual fee of $199, which Standard Chartered deducts from your approved loan for tenures ranging from 1 to 5 years.

There are no subsequent annual fees from the second year onwards. However, missed instalments incur an annual fee of $50 for that year and a late repayment fee of $100.

Interest rates for this personal loan start from 3.48%, with an EIR of 6.95%. Your specific interest rate depends on your financial profile.

Citibank Quick Cash

Citibank Quick Cash stands as an exclusive opportunity tailored for those new to Citibank loans. If, by any chance, you already have an existing Citibank loan, be prepared for a potentially higher interest rate. This personal loan’s eligibility extends to Permanent Residents (PRs) and Singapore Citizens, provided they maintain a minimum annual income of $30,000.

The application process couldn’t be more straightforward. Log in to the user-friendly Citi Mobile App, specify your desired loan amount, and watch the funds disburse instantly.

What truly sets this loan apart is its flexibility in selecting the loan tenure. You have the freedom to opt for durations spanning 12, 24, 36, 48, or 60 months, and the best part is none of these options come with any processing fees.

To break down the interest rates, for a loan tenure of 1 year, the rate stands at 3.56%. As you extend the tenure, the interest rate decreases to 3.45%. Despite these variations in interest rates based on tenure, the Effective Interest Rate (EIR) remains consistent at 6.5%.

DBS/POSB Personal Loan

DBS/POSB Personal Loan is exclusively tailored for existing DBS customers, offering accessibility to individuals with a DBS credit card or DBS Cashline. Singaporean Citizens and Permanent Residents (PRs) who earn a minimum annual income of $20,000 are eligible for this loan. Remarkably, this loan welcomes salaried employees and those without a salaried income to apply.

The interest rate for the DBS/POSB Personal Loan is 3.88%. Additionally, it comes with a processing fee of $100, contributing to an effective interest rate of 7.9%

HSBC Personal Loan

HSBC Personal Loan extends its accessibility to Singapore Citizens and Permanent Residents, provided they maintain a minimum annual income of $30,000. What distinguishes this loan is its exceptional tenure, stretching up to 7 years – the longest duration available in Singapore. This feature makes it an ideal choice for individuals needing a substantial sum but prefers to manage lower monthly repayments.

While HSBC Personal Loan presents the advantage of extended tenure, it’s important to note that its interest rate, at 4%, is slightly higher compared to other personal loans. The Effective Interest Rate (EIR) stands at 7.9% p.a., reflecting the overall cost of borrowing over the loan tenure.

Don’t miss out on Singapore’s best personal loan solutions for 2023. Click here to learn more about GS Credit and start your journey toward financial freedom today.

Choosing The Right Loan In Singapore

Choosing the right loan in Singapore requires thoroughly examining the applied interest rates. These rates are contingent on variables like your credit history, the loan amount, and the loan tenure.

To make an informed choice, ensure that you check these factors to estimate the overall cost of the loan and its affordability. Understanding how these components affect your loan will enable you to select an option that aligns with your financial capacity and needs.

Moreover, when determining the right loan, it’s essential to factor in your specific requirements, including the urgency of cash needs and the repayment duration that aligns with your financial circumstances, to minimise any potential financial strain.

Special Cases In Singapore

In Singapore, certain demographic groups may encounter challenges when seeking a personal loan. These special cases encompass:

  • Older individuals: Older individuals might face difficulties accessing personal loans. However, it’s noteworthy that older individuals can still apply for a DBS loan, even up to 75.
  • Low-income earners: Individuals with an annual income below $30,000 may find securing personal loans from many lenders challenging. However, they can explore alternatives like DBS and Standard Chartered, as these institutions have a minimum income requirement of as low as $20,000.
  • Commission-based or self-employed individuals: Those relying on commission-based income or self-employment often encounter hurdles when applying for personal loans due to fluctuating earnings. Fortunately, multiple options are available to them, including Standard Chartered CashOne, HSBC Personal Loan, DBS Personal Loan, and Citibank Quick Cash, which cater to the specific needs of commission-based or self-employed individuals.

Term Loan vs. Credit Line

The distinction between term loans and credit lines lies in their financial structures. Term loans offer predetermined sums with fixed repayment schedules, often featuring lower interest rates. They provide stability and predictability for borrowers.

On the other hand, credit lines afford repayment flexibility, allowing borrowers to draw and repay funds within a set limit. However, they typically entail higher interest rates. Those seeking adaptable financing solutions prefer credit lines, while those favouring a structured approach and cost-effectiveness typically choose term loans.

Financial Responsibility In Singapore

Navigating financial responsibility in Singapore entails a distinctive approach. It emphasises the importance of punctual repayments to avoid punitive late charges, fostering a financially disciplined lifestyle.

Simultaneously, exercise prudence by cultivating an emergency fund. An emergency fund acts as a safety net, providing necessary funds when faced with unexpected circumstances. Setting aside three to six months’ worth of living expenses in this fund is recommended.

Additionally, securing comprehensive insurance coverage is paramount as it safeguards against unexpected financial setbacks such as medical emergencies, accidents, or unforeseen events.

Don’t wait any longer. Your ideal personal loan may be just a click away with GS Credit. To find out more about our flexible loan offers, click here.


When finding the best lender for personal loans in Singapore in 2023, it’s essential to consider various factors such as interest rates, effective interest rates, and eligibility criteria. Each of the top 5 personal loan options discussed offers unique advantages, making them suitable for different financial situations.

To make an informed decision, evaluate your needs, financial capacity, and repayment plan preferences. Doing so lets you select the loan that aligns best with your requirements and secure your financial future.

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