There are several occasions when we might find ourselves in need of some extra funds. Whether for pre-planned events such as a honeymoon, to replace home appliances like refrigerators or air conditioners, or unforeseen emergencies that came out of the blue, we may not always have the savings to cover these costs.
In such situations, a personal loan can prove highly useful. With lower interest rates than credit cards, fixed monthly repayments and the choice to space out your repayments over several years, personal loans are flexible financial tools that are straightforward and easy to manage.
The DBS Personal Loan is a popular personal loan that comes with competitive interest rates and convenient loan tenures. And with the promotion now ongoing, borrowers can get even more value when applying for this loan. Here’s an in-depth look at the DBS Personal Loan and what’s on offer in the latest promotion.
Also read: CIMB Personal Loan Review (2024): Great Perks and Interest Rates for Larger Loans
Table of contents
- DBS Personal Loan promotion: Get 2% cashback
- DBS Personal Loan overview
- Our thoughts on DBS Personal Loan
- DBS Personal Loan eligibility requirements
- How to apply for DBS Personal Loan
More on this topic:
Best Personal Loans To Ease Your Cash Flow In Singapore
4 Times In Life You Should Consider Getting a Personal Loan
How Many Personal Loans Can You Have at Once?
DBS Personal Loan promotion: Get 2% cashback
Apply for a DBS Personal Loan and enjoy 2% unlimited cashback on your principal loan amount. Here are the details:
Promo code |
POSBPL |
Loan tenure |
Minimum 36 months |
Loan amount |
S$5,000 or more |
Promo period |
Now till 31 Jan 2025 |
DBS Personal Loan overview
Note the following key features of this loan. For more information, refer to DBS’s webpage.
- Interest rate: from 2.68% p.a. + 1 % processing fee (EIR 5.43% p.a.)
- Maximum loan amount:
- 4x monthly salary (annual income less than S$120,000)
- 10x monthly salary (annual income S$120,00 or more)
- Minimum loan amount is S$500
- Loan tenure: 1 to 5 years
- For loans less than S$3,000, maximum loan tenure is 2 years
- Other fees and charges:
- Late payment fee: S$120
- Early termination fee: S$250
A note on AIR and EIR - What’s the difference?
Applied Interest Rate (AIR)
Also known as the Advertised Interest Rate, the AIR is the interest rate the bank applies to your personal loan. It shows the interest charged on a per annum basis, and is used to calculate how much interest is payable on the loan. .
Effective Interest Rate (EIR)
The Effective Interest Rate reflects the true cost of borrowing, and may be higher than the advertised rate, based on how the loan is calculated.
If the EIR is higher than the advertised rate (as in the case of the DBS Personal Loan), that indicates the loan is calculated on a flat rate basis. This is when the advertised interest rate is applied throughout the loan period, based on the original loan amount.
When comparing loans, borrowers should refer to the EIR instead of the AIR for an accurate representation of borrowing costs.
More on this topic:
Credit Card Interest Rate: How To Calculate Credit Card Annual Percentage Rate (APR)?
Understanding Interest Rates: How You Can Use It To Save Even More Money
What Is The Effective Interest Rate (EIR) In A Loan?
Our thoughts on DBS Personal Loan
Attractive 2% cashback
The 2% cashback offered on this loan is a good way to offset the processing fee of 1%, as well as lower your overall cost of borrowing.
You can withdraw the cashback amount to pay for other needs. But if possible, we recommend putting cashback towards your initial loan repayments, to help you adjust to your new financial obligation.
Note though that the cashback is only eligible for loans at least S$5,000 and with repayment terms of 3 years or longer.
Competitive interest rate
DBS Personal Loan is available with an interest rate starting from 2.68% p.a. (EIR 5.43% p.a.), making it a competitively priced personal loan on par with many other banks.
Of course, this rate is not guaranteed, and you may be offered a higher rate based on your credit score, income profile and other factors. For instance, if your salary is below S$30,000, you may be offered an interest rate of 11.00% p.a. + 4% processing fee (E.I.R. 20.01% p.a.).
Borrow up to 95% of Cashline or credit card limit
While the maximum loan amount is up to 4x your monthly salary for those earning less than S$120,000 per year, and 10x your monthly salary if you earn S$120,000 or more yearly, you may not be able to borrow up to those limits.
That’s because the DBS Personal Loan has a borrowing cap of 95% of the credit limit granted in your Cashline or credit card account. If you require a larger loan, it might be helpful to request a higher credit limit before applying.
DBS Personal Loan eligibility requirements
To apply for this loan, applicants should meet the following requirements:
- Singapore Citizen or Permanent Resident
- Foreigners with existing Cashline and/or Credit Card account
- Age 21 to 70 years old
- Annual income of S$20,000 and above
Additionally, you’ll need to provide the following documents during application:
- For salaried employees:
- NRIC front and back
- Either one of the following: CPF transaction history (most recent 9 months), latest Notice of Assessment, or latest computerised payslip or DBS salary crediting
- For self-employed persons or variable/commission earners:
- NRIC front and back
- CPF transaction history (most recent 9 months)
- Latest Notice of Assessment
If you have Singpass, you can use Myinfo to submit your income information instead. That would be the most convenient option, but it is limited to Singaporeans only.
How to apply for DBS Personal Loan
Step 1: Go to the DBS Personal Loan page
Step 2: Click on the “Apply Now” button
Step 3: Follow the on-screen instructions to complete and submit your loan application
Step 4: Wait for the bank to contact you for next steps
Are you borrowing a personal loan for your short-term and long-term needs? Check out the best personal loans and apply through SingSaver for exclusive offers.Read these next:
Your Go-To Personal Loans Guide in Singapore
Best Personal Loans To Ease Your Cash Flow In Singapore (2022)
All The Legal Loan Limits You Need To Know About In Singapore
4 Times In Life You Should Consider Getting a Personal Loan
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