Calculating personal loan interest rates in Singapore

Best personal loan interest rate Singapore: How to select loans with the best rates?

4 min

Personal loans can help tide you through unforeseen circumstances. One of the factors we consider when thinking of taking a personal loan are their interest rates, as it can affect how much money you eventually need to repay.

Here, we will share with you the personal loan interest rates in Singapore, as well as other fees and charges, so you can make a more informed decision when selecting a loan that is suitable for you.

What are personal loan interest rates in Singapore?

The interest rate is a proportion of the loan principal, which means the amount borrowed, that a lender charges a borrower. This amount is to be paid on top of the amount you’re borrowing from a financial institution. You can expect banks to charge 3.5-11% per annum, while licensed moneylenders in Singapore charge 1-4% per month.


Below is a list of various types of personal loans you can take with the bank. The rates and amount payable stated are for borrowers earning $2,500 a month and who want to take a loan of $10,000, with a loan tenure of 3 years.

Personal loans and interest rates with banks in Singapore:

Name of Bank Loan Interest Rate Effective Interest Rates Processing Fee Total Amount Payable Amount Payable Per Month
Standard Chartered CashOne 3.48% 7.3% $0 $11,044 $307
Citi Quick Cash (New Loan Customers) 3.45% 6.5% $0 $11,035 $307
HSBC Personal Loan 3.2% 6% $0 $10.960 $304
UOB Personal Loan 3.4% 6.42% $0 $11,020 $306
Citi Quick Cash (Existing Loan Customers) 4.55% 8.5% $0 $11,365 $316
DBS Personal Loan 3.88% 7.9% $100 $11,164 $310
POSB Personal Loan 3.88% 7.9% $100 $11,164 $310
OCBC ExtraCash Loan 5.43% 11.47% $100 $11,629 $323

Are there other fees and charges when taking a personal loan?

Bank personal loans

Yes, there are. Interest is not the borrower’s only expense. That is why the advertised interest rate (the lower rate that you see, often in a bigger font) is so low and attractive. It does not include other fees such as bank administrative charges, application fees, account processing fees and penalties for late payment.

Most of these additional fees are reflected in the effective interest rate, which is a more accurate reflection of how much banks are actually charging you for the loan.

Personal loans with licensed money lenders

If you are borrowing from licensed money lenders, the maximum personal loan interest rate in Singapore they can charge is 4% a month. Should you fail to make your payments on time, the maximum rate of late interest the money lender can charge is also 4% per month for each month the loan repayment is late.

Licensed money lenders can also charge you late fees of not exceeding $60 for each month of late repayment as well as processing fees not exceeding 10% of the loan principal.

The total charges imposed by money lenders on any loan (which includes interest, late interest, processing and late fees) also cannot exceed an amount equivalent to the principal of the loan.


For example, if you take a loan of $20,000 with a licensed moneylender, the interest + late interest + 10% administrative fee and monthly $60 late repayment fees cannot be higher than $20,000.

How to choose the lowest interest rate personal loans in Singapore?

1. Do your research and math

Before choosing the lowest interest rate for a personal loan in Singapore, calculate the total interest and fees of each loan quote you are offered before comparing the total amount payable for each loan, then decide which is most value-for-money for you.

2. Consider the instalment plans and loan tenure

Once you have laid out your budget and repayment plan, consider the ideal instalment that works best for you. Longer instalments generally mean spreading out your repayment over a longer team, so you are paying less every month, while shorter instalments mean paying more each month.

While it is tempting to think that the faster you pay off your loan, the better, you will need to take into account your monthly cash flow and budget, as well as potential financial emergencies that might crop up that might render you unable to pay the stipulated instalment. Late repayment can incur additional late charges and fees.

3. Check the lender’s credibility

Before taking up a personal loan with a moneylender in Singapore, do check for credibility and reliability of the lender. Ensure that the moneylender is licensed under the Ministry of Law, and also check for customer reviews on Google. A reliable moneylender always has happy and satisfied customers.

Be wary of loan sharks

All licensed money lenders in Singapore registered under the Ministry of Law are bound to the rules and regulation of the Singapore law. If you come across any money lender not listed in the registry, it is not licensed. Here are more tips to ensure that you are dealing with a licensed money lender.

Find the lowest interest rate personal loan in Singapore

At Cash Direct, we offer competitive rates and flexible repayment terms to suit your budget. If you need more information, simply reach out to us.

Apply for a loan here with us!