Get affordable Personal Loan Singapore

Personal loans are referred to as the unsecured loans that are lent by the bank for personal matters. It is then paid through the income. Banks will take you through the formal procedure that requires information about your personal income and the costs (including annual interests).

What to Know About Personal Loans?

Personal is the fastest available loans. In Singapore, you can get them within a week of your application. So, anyone who needs a loan in an emergency, it is the best option. As it is mentioned that personal loans are unsecured, the reason is that there are not too severe consequences in failing to pay your loan back. You might get some trouble in getting credit cards in the future. They are also safer than credit cards as the interest rates are fixed.

Well, to the pros there are some cons too. Personal loans have high-interest rates than any other types of loans. Plus, if you have good credit, you might not want to risk anything precious for collateral for the loan.

The urgency of a personal loan

There are many situations in life that might demand you to lend a sound amount of cash in order to fulfill the need. It can be a medical treatment, a wedding or any financial emergency. Regardless of what it is, you can get the right amount of cash as a personal loan in a short time period.

Moreover, you can pay the loan form your monthly income on easy installments. The interest rate is defined as per your annual income. Special low-interest rates are offered for the students and around 30-50% interests are applied to other than student loans.

What Do You Need To Apply For A Personal Loan?

There are certain things that you need before applying for a personal loan. In Singapore, you should be between the age of 21-65 and the annual income that should be at least S$30,000. If you’re a foreigner, interest rates and requirement for annual income will be higher.

Apart from this information, a bank or lender will also ask for particular documents that are:

  • Proof of identity: Your ID card/ employment pass and passport
  • Proof of Address: Utility bills with your name and address
  • Proof of Income: your latest 12 months’ Central provident fund history or income tax notice or Salary Payslip.

Types of Personal Loans in Singapore

There are 3 main types of loans for consumers:

  • Personal Installment Loan: this is the most common type of loan and you just have to pay back over a monthly
  • Credit Line: in this lender decides the amount you can borrow from your credit line. You pay interest on the amount and duration. Once you pay back you are not obliged to pay any interest until you want to borrow again.
  • Balance Transfer: This particular type of loan allows you to transfer any outstanding loans you already have into one place. You also get the privilege of grace period which is mostly about the 6-12 months in which no interest is charged from you.

Best Personal Loans Singapore 2019

There are some of the personal loans that you should consider in 2019.

Personal loan Interest rate Processing fee** Monthly installment (x 36)
Standard Chartered CashOne MoneySmart exclusive: 3.88% p.a. (EIR 7.97% p.a.) $199 (currently waived) $310
DBS Personal Loan /POSB Personal Loan Starting from 3.88% p.a.* (EIR 7.9% p.a.) 1% x $10,000 = $100 $310
CIMB CashLite Starting from 4.5% p.a.* (EIR 8.41% p.a.) None $315
Citibank Personal Loan 4.55% p.a. (EIR 8.5% p.a.) None $316
HSBC Personal Loan 4.8% p.a. (EIR 9.0% p.a.) $88 (currently waived) $318
OCBC Cash-on-Instalments 5.8% p.a. (EIR 12.11% p.a.) 2% x $10,000 = $200 $326
Bank of China $martLoan 6.52% p.a. (EIR 14.69% p.a.) 3% x $10,000 = $300 $332
Maybank CreditAble Term Loan 6.88% p.a. (EIR 13.77%) 2% x $10,000 = $200 $335
UOB Personal Loan 8% p.a. (EIR 14.55% p.a.) None $344

* Interest rate is personalized after the bank assesses your risk profile

The ** Processing fee is deducted from the principal, so for a $10,000 loan with $100 processing fee, you actually only get $9,900 in cash

Different Personal Loan Interest Rates

There are different interest rates and before applying for a personal loan you might need a basic understanding about them.

  • Advertised Interest Rate: This is an annual interest rate which is advertised in bigger font and leave you out of the other details.
  • Effective Interest Rate: EIR shows you the complete schedule of repayment and all details for a personal loan.
  • 0% interest personal loan: this is for the short term loans and banks take the upfront payment from you rather than interest payments later on.

The way to choose the Best Personal Loan

You need to consider many things before going for a personal loan. EIR is the best approach as it tells you the true cost of taking a loan and try to keep the duration of installments as minimum as possible. Taking the loan for more time will mean to pay more to a lender in terms of interest.

Remember that interest charges according to the amount of loan and try to keep it up to your need so, you don’t have to pay a lot of interest to the banks. Choose the shortest time period and try to achieve balance as soon as possible. It is only for your benefit because it will reduce the amount of interest.

You may come across many other alternatives but they are not trustworthy. If you are looking for a business loan and the bank knows the reason, you will have fewer interest rates. However, other options come with a lot of un-invited consequences. Now, it is your decision about taking the loan and deciding the tenure. There are some best personal loans on lowest rates. One thing to keep in mind that have a keen look at the interest rate and take it only for an emergency purpose.