Personal Loan Rates: Compare Top Lenders in Singapore

Navigating the world of personal loans in Singapore can be tricky with so many lenders offering different interest rates, loan tenures, and features. Whether you're looking for the best personal loan rates in Singapore, need a quick personal loan comparison, or simply want to understand how to get a personal loan for your needs, SingSaver is here to help. We provide a comprehensive personal loan comparison tool that allows you to easily compare personal loans from top lenders in Singapore, empowering you to make informed financial decisions.

Before you dive into comparing personal loans, it's crucial to assess your financial needs and goals. This involves:

• Determining loan amount and purpose: Clearly define how much you need to borrow and what you plan to use the funds for. This will help you narrow down your options and choose a loan that aligns with your requirements.

• Evaluating repayment capabilities: Assess your current financial situation, including your income, expenses, and existing debts. This will give you a realistic idea of how much you can afford to repay each month. 

When comparing personal loans, pay close attention to the following key factors:

• Interest rates and fees: Look for loans with competitive interest rates and minimal fees to minimise your overall borrowing costs. Understand how the Effective Interest Rate (EIR) works to get an accurate estimate of how much you’ll actually pay after interest is included.

• Loan tenure and flexibility: Choose a loan tenure that suits your repayment capabilities. Consider lenders that offer flexible repayment options, such as the ability to make early repayments or change your repayment schedule.

• Lender reputation and customer service: Opt for reputable lenders with a strong track record of customer satisfaction. Read reviews and compare customer service offerings to ensure you'll have support when you need it.

A personal loan in Singapore is an unsecured or secured loan that provides you with a lump sum of money that you can use for various purposes. Secured loans require you to pledge an asset as collateral, such as a car or property, while unsecured loans do not require any collateral.

They typically have fixed interest rates and monthly repayments, making it easier to budget and manage your finances. Specifically in Singapore, personal loans typically have the following characteristics:

Personal loans can be used for a wide range of purposes, including:

• Debt consolidation: Consolidate multiple high-interest debts into a single, lower-interest personal loan, making it easier to manage your repayments and potentially save on interest.

• Home renovations: Finance home improvement projects, such as kitchen upgrades or bathroom renovations, with a personal loan.

• Medical expenses: Cover unexpected medical bills or planned procedures with a personal loan.

• Education costs: Fund your own education or your child's education with a personal loan.

• Major purchases: Finance large purchases, such as a new car or a dream vacation, with a personal loan. You can even pay for and finance your wedding!

MORE: How to get a personal loan

You can obtain a personal loan in Singapore from several sources:

Most banks in Singapore such as DBS, OCBC, UOB, HSBC, and Standard Chartered, offer personal loans with varying terms and conditions. They offer competitive interest rates and established customer service, but they may also have stricter eligibility criteria. 

Our Picks: Best banks for personal loans.

Credit unions are member-owned financial institutions that offer personal loans to their members. Credit unions may offer lower interest rates and more personalised service than banks. Examples of credit unions in Singapore include NTUC Income and Singapore Police Co-operative Credit Union.

Online lenders such as Lending Club and SingFinance are becoming increasingly popular in Singapore, offering a convenient and fast way to access personal loans. Online lenders often have faster approval processes and more flexible eligibility criteria, but it's important to compare interest rates and fees carefully.

Our Picks: Best online personal loans 

Looking solely at the listed annual interest rate of a loan may only tell a limited story. An Effective Interest Rate (EIR) can provide a more complete picture of your loan's actual cost. 

EIR incorporates not just the interest rate, but also all the other fees and charges you'll be responsible for paying. It takes into account the impact of compounding and the timing of your repayments, providing a more accurate reflection of the total cost of borrowing. 

Because it includes all costs borne over time, EIR is a more reliable metric to compare the financial impact of a personal loan and help you make informed financial decisions.

Factors influencing interest rates

Your credit score, income, loan amount, loan tenure, and debt-to-income ratio (DTI) are some of the factors that can influence the interest rate you're offered. 

Credit score: A good credit score is essential. Lenders use your credit score as a snapshot of your creditworthiness. A higher score indicates a history of responsible borrowing and timely repayments, making you a less risky borrower. Factors that influence your credit score include your payment history, outstanding debt, credit history length, types of credit used, and recent credit applications. 

Income: Lenders also consider your income and employment status as indicators of your ability to repay the loan. A stable income and secure employment history demonstrate financial stability and reduce the perceived risk for lenders. Conversely, an unstable income or frequent job changes might result in higher interest rates. 

Loan amount: The amount you borrow can affect the interest rate. Larger loan amounts might carry lower rates than smaller ones.

Loan tenure: The length of your repayment period (loan tenure) can also influence the interest rate. Shorter tenures often have lower interest rates, but higher monthly payments. Longer tenures have lower monthly payments but accrue more interest over the life of the loan.

Debt-to-income ratio: Your DTI, the proportion of your monthly income that goes toward debt repayments, is another crucial factor. A lower DTI indicates that you have more disposable income available, making you a lower-risk borrower and potentially qualifying you for better rates. A high DTI, on the other hand, may lead to higher interest rates or even loan rejection.

Interest rates on personal loans in Singapore can vary significantly between lenders. In the current market, the average personal loan interest rates from major banks like DBS, OCBC, UOB, HSBC and Standard Chartered typically range from 2.68% to upwards of 5.54% depending on loan product, tenure and individual credit assessment. POSB boasts the lowest interest rate, starting from 2.68% while OCBC has the highest interest rate of 5.54%.

Here’s a breakdown on the prevailing annual personal loan percentage interest rates in Singapore:

MORE: Personal loan application guide

Maintaining a good credit score, having a stable income, and choosing a shorter loan tenure, and a low DTI can help you qualify for the best personal loan rates. A lower DTI demonstrates your ability to manage debt responsibly, making you a more attractive borrower to lenders. This can lead to more competitive interest rates. Similarly, a stable income and secure employment history signal financial stability, reducing the lender's risk and increasing your chances of securing a lower interest rate.

SingSaver’s personal loan calculator can help you estimate monthly repayment rates to better compare between your options.

The EIR is a crucial factor to compare as it represents the total cost of borrowing, including interest rates and fees. Look for loans with lower EIRs to minimise your borrowing costs.

If you need funds urgently, consider the loan's funding time. Some lenders offer same-day or next-day disbursement, while others may take a few days to process your application. Find out more about how long it takes to get a personal loan in Singapore.

Check if the lender offers flexible repayment options, such as the ability to change your repayment date or make early repayments without penalties.

Calculate your monthly repayments based on the loan amount, interest rate, and loan tenure. Ensure that the monthly repayments are affordable and fit within your budget.