Personal loans are one of the most flexible ways to manage large expenses—whether it’s home renovation, medical bills, education, or consolidating high-interest debt. Exploring options for Personal Loans can help you find the right interest rate, repayment tenure, and loan amount.
Comparison of Common Personal Loan Options
| Bank / Lender | Loan Amount Range | Tenure | Effective Interest Rate (EIR) |
|---|---|---|---|
| DBS / POSB | From S$500 up to S$100,000 (subject to bank approval) | 6 months – 5 years | From 1.99%~4.17% |
| OCBC / ExtraCash | Up to 6x monthly income | 12 – 60 months | From 5.42%~10.96% |
| UOB | From S$1,000 up to S$200,000 | 1 – 5 years | From 1.85%~3.40% |
| HSBC | Up to 8x monthly income | 1 – 7 years | From 1.8%~3.5% |
How to Get the Best Personal Loan
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Match the loan tenure with your purpose
- Short-term (1–2 years) for emergencies
- Mid-term (3–5 years) for renovations, education, or household expenses
- Long-term (6–7 years) for larger debt consolidation
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Check the Effective Interest Rate (EIR) - EIR reflects the true cost including fees and repayment structure
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Apply through your main bank - Existing salary-account relationships often result in faster approval and better rates
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Watch for seasonal promotions - Banks often run lower-rate offers during festive seasons or year-end campaigns
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Compare at least 3 lenders - Even small differences in EIR can save hundreds or thousands over the life of the loan
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Maintain a good credit score - Timely repayments improve your eligibility for higher limits and lower rates
Example: Monthly Repayments on a S$10,000 Loan
| Tenure | Rate | Approx. EIR | Monthly Instalment | Total Payable |
|---|---|---|---|---|
| 1 year | 3.5% | ~7.2% | ~S$860 | ~S$10,320 |
| 3 years | 3.88% | ~7.5% | ~S$295 | ~S$10,620 |
| 5 years | 4.2% | ~8.1% | ~S$185 | ~S$11,100 |
Note: Figures are estimates. Actual rates and monthly payments depend on bank approval and applicant profile.
Conclusion
When choosing a personal loan, it’s not just about the rate. What really matters is:
- How comfortably you can repay each month
- Whether the loan tenure matches your cash flow
- How the EIR compares across lenders
With careful comparison and responsible borrowing, personal loans can be a practical tool to manage major expenses without overstraining your finances, Please review carefully before committing to avoid the risk of over-borrowing beyond your ability to repay, which could lead to a decline in your credit rating.
