Don’t go to a moneylender if you need cash. HSBC and Citibank offer the lowest interest personal loans in Singapore, available exclusively at SingSaver.com.sg.
First published 12 Apr 2016. Updated 15 Dec 2016.
Whether it’s an emergency or simple cash flow management, most of us will need a personal Loan at some point. The good news is we have a lot of banks in Singapore, and competition compels them to lower their prices.
The bad news is that finding the best personal loan among them can take forever. So we found you three loans with the lowest rates:
|
S$10,000 loan with 3-year tenor |
|||||
| Bank Loan | Flat Annual Interest Rate | Effective Interest Rate | Processing Fees | Total Repayment (Interest) |
Monthly Payment |
| HSBC Personal Loan* | 4.50% | 8.50% | S$0 | S$11,350 (S$1,350) |
S$315.28 |
| Citibank Ready Credit Paylite | 4.55% | 8.50% | S$0 | S$11,365 (S$1,365) |
S$315.69 |
| POSB Personal Loan | 5.88% | 12.04% | S$200 (2% of loan amount) |
S$11,764 (S$1,764) |
S$326.78 |
*Exclusive rate, only for new applicants signing up through SingSaver.com.sg
1. HSBC Personal Loan
When it comes to loan interest rates, the lower they are, the better. This is especially true if you need to borrow a large amount.
The HSBC Personal Loan has an annual interest rate of 4.5% – currently the lowest interest rate in the market for a 3-year loan. You’ll only get this rate if you apply through SingSaver.com.sg.
Also, you can enjoy a waiver of the S$88 processing fee, as well as a S$50 cashback, if you sign up before 31 Dec 2016.
HSBC Personal Loan offers the longest loan tenor on the market – you can spread out your payments over up to 7 years.
To be eligible for the loan, Singaporeans will need to have an annual income of at least S$30,000. The maximum amount you can borrow is capped at 4 times your monthly salary. If your annual income exceeds S$120,000, you can borrow up to 8 times your monthly salary, or a maximum of S$200,000.
Foreigners residing in Singapore will need a minimum annual income of S$40,000, and may borrow up to 2 times their monthly income, or a maximum of S$100,000.
| Loan Tenor (years) | Flat Annual Interest Rate | Effective Interest Rate | Maximum Loan Amount (Singaporeans and PR) | |
| 1 | 4.7% | 8.5% | Annual Income from S$30,000 to S$120,000 | 4 x monthly salary |
| 2 to 3 | 4.5% | |||
| 4 to 5 | 4.6% | Annual Income more than S$120,000 | 8 x monthly salary, or S$200,000 | |
| 6 to 7 | 4.7% | |||
Think HSBC Personal Loan is the one for you? Start your application at SingSaver.com.sg’s Personal Loan page.
2. Citibank Ready Credit
Sometimes, you can’t be sure how much you need, or whether you should even borrow. Case in point: you run a business and have a client who is unreliable with payments (they may pay on time this month, they may not.) Or perhaps you have a bonus coming, but aren’t sure when – if it comes within a certain number of weeks you may not need a loan.
Under indecisive circumstances, the Citibank Ready Credit Paylite loan provides a safe alternative. New customers get a 4.55% p.a. interest rate (EIR 8.5% p.a.) for a minimum loan amount of S$1,000 with a 3-year loan tenor.
Other loan tenors are available, but carry different interest rates. Also, existing Citibank customers are not eligible for the current promotional rates. Refer to the following tables for details.
For new Citibank Credit Card or Ready Credit holder:
| Loan Tenor (years) | 1 | 2 | 3 | 4 | 5 |
| Flat Annual Interest rates | 4.94% | 4.82% | 4.55% | 5.72% | 5.79% |
| Effective Interest Rates | 9% | 9% | 8.50% | 10.50% | 10.50% |
For existing Citibank Credit Card or Ready Credit holder:
| Loan Tenor (years) | 1 | 2 | 3 | 4 | 5 |
| Flat Annual Interest rates | 8.76% | 7.76% | 7.39% | 7.79% | 7.92% |
| Effective Interest Rates | 15.80% | 14.25% | 13.50% | 14.00% | 14.00% |
To be eligible for the Citibank Ready Credit Paylite loan, Singaporeans will need a minimum annual income of S$30,000. For foreigners, you’ll need at least S$42,000.
With among the lowest interest rates, and a low minimum loan amount, the Citibank Ready Credit Paylite loan is suitable if you just need some funds to tide yourself over in the short term.
3. POSB Personal Loan
Another low-interest personal loan to consider is the POSB Personal Loan.
Borrowers can enjoy a promotional fixed interest rate of 5.88% p.a., for loans of more than S$3,000 and loan tenor of between 3 to 5 years.
Besides a lower interest rate, the promotion also includes reduced application fees. Here are the details:
|
Loan Tenor (years) |
Flat Annual Interest Rate | Effective Interest Rate |
Processing Fee |
|
1 |
7.99% | 19.7% |
3% |
|
2 |
7.99% | 17.28% |
3% |
|
3 |
5.88% | 12.04% |
2% |
|
4 |
5.88% | 11.62% |
2% |
| 5 | 5.88% | 11.32% |
2% |
To qualify, applicants will need a minimum annual income of at least S$30,000. The loan amount is capped at 4 x your monthly salary, increasing to 10 x salary if your annual income exceeds S$120,000.
Existing POSB customers may apply for the loan without needing to submit documents – you can log in using your Internet Banking credentials.
Read This Next:
You Can Use an Endowment Plan to Save for Your Wedding
Every Singaporean Makes These 5 Mistakes When Buying Insurance
By Alevin Chan
A Certified Financial Planner with a curiosity about what makes people tick, Alevin’s mission is to help readers understand the psychology of money. He’s also on an ongoing quest to optimize happiness and enjoyment in his life.
The post 3 Lowest Interest Personal Loans in Singapore appeared first on Financial News and Advice in Singapore.
