Loans are helpful to meet the urgent needs but most of us look for lowest/interest fee loans.  Other than credit cards, you won’t find any interest free loans, especially from banks. There are some banks in Singapore that might offer the lowest interest rates for personal loans.

Waiving plan of Interest

You may not get the complete waiving of interest from the loan through banks. There are some banks that waive interest for a specific duration if you repay the money in that time, there is less interest on the loan. The duration is usually 3 to 6 months in which the customer enjoys the first 6 months by paying a smaller amount with no interest. They can also choose time according to their feasibility for the usage of this waiver plan.  These plans are best to go for business loans as you might face any financial difficulty, you will have a chance to use this at the right moment.

Are There Interest-Free Loans Available In Singapore?

People in Singapore often prefer banks for any kind of loans. If you are living in Singapore for a long time, you would know about the multiple options like moneylenders and banks that offer loans with less interest. Credit cards are the only solution for interest-free loans. They are mostly created only for the shopping needs but many banks and money lenders offer 0% interest installment plan. You will also find some credit card option that will offer a duration of 30 to 60 days for payment with no interest at all.

Approaching banks for a loan, you will have to come up with suitable interest requirements. Banks can’t lend money with interest because their business model is established on this base. Now, you have to find the types of loans with lowest interest rates. This guide will provide you a detailed comparison of loans and one can choose the options the suits the bill.

3 Personal Loans with Best Interest Rates

Well, if you are in need of cash for any emergency situation and don’t have enough time to compare personal loan plans on the basis of interest. Have a quick look at the comparison done by our team. You can compare different types of loans for an emergency situation.

We know that lower interest the better. However, there are 3 kinds of personal loan with lowest interest rates and you can easily apply to the bank for them. Yes, many loans come with different conditions but you will only go for the one that suits to your bill.

S$20,000 loan with 3-year tenure

Bank Loan Flat Annual Interest Rate Effective Interest Rate (p.a.) Processing Fees Total Repayment
(Interest)
Monthly Payment
HSBC Personal Loan 3.70% 7.00% S$88 (waived) S$22,220
(S$2,220)
S$617.22
Standard Chartered CashOne Personal Loan 3.88% 7.90% S$0 S$22,328
(S$2,328)
S$620.22
Citibank Quick Cash 3.99%* 7.50% S$0 S$22,394
(S$2,394)
S$

1.   HSBC Personal Loan

If you are looking for a large amount of cash but can’t afford huge repayment on monthly basis then consider HSBC personal Loan. It offers the longest tenure loan almost around 7 years in Singapore. So, you will be paying interest worth 7 years that will automatically reduce the monthly payment to the amount that suits you. It is one of the fastest loans as it can be approved in a day and you will get money the next day. The annual interest rate of 3.70% for a loan is at least 3 years but on the condition of minimum annual income criteria of $80,000.

Eligibility Criteria for HSBC Personal Loan

Eligibility Singaporean, PR or foreigner. 21 to 65 years old
Minimum annual income $30,000 (Singaporean/PR) or $42,000 (foreigner/self-employed)
Maximum loan amount 4X your monthly salary / 8X if your annual income is $120,000 and up
Interest rate Starting from 4.8% p.a. (those with an annual income of $80,000 and above enjoy rates as low as 3.7% p.a.)
Processing fee $88 (currently waived)
Late payment charge 2.5% + prevailing interest on the overdue amount
Early settlement penalty 2.5% of the outstanding principal amount

2.   Standard Chartered CashOne Personal Loan

If you don’t fall in the criteria of annual income condition for HSBC loan then, Standard chartered CashOne is the best option to choose. It guarantees a flat interest rate of 3.88% p. a, irrespective of loan amount or tenure.

Eligibility Criteria for Standard Chartered Personal Loan

Eligibility Singaporean, PR or foreigner. 21 to 65 years old
Minimum annual income $20,000 (Singaporean/PR) or $60,000 (foreigner)
Maximum loan amount 4X your monthly salary
Interest rate 3.88% p.a.
Processing fee $199 (currently waived)
Late payment charge $80
Early settlement penalty 3% of the outstanding principal amount or $250, whichever is higher

3.   CitiBank Quick Cash

Currently, this is the loan with the lowest interest rate and with no process fees. If you are eligible for the loan, Citibank offers you money within 1 hour. However, the transfer of amount can take 1(for CitiBank account) to 5 (for a no-CitiBank account) working days. Remember that you will need a CitiBank account ready before applying for Quick Cash.

Eligibility Criteria for Quick Cash Loan

Eligibility Singaporean, PR or foreigner. 21 to 65 years old
Minimum annual income $30,000 (Singaporean/PR) or $42,000 (foreigner)
Maximum loan amount 4X your monthly salary
Interest rate 4.55% p.a.
Processing fee None
Late payment charge If payment is overdue by 2 months, the loan will be terminated and any outstanding loan amount will be charged
Early settlement penalty 3% of the outstanding principal amount or $100, whichever is higher
   

Moreover, it is now up to you. You have a complete guide on best loans with their eligibility criteria. Choose the one that is suitable to your income as well your current need for cash.