When choosing a personal loan, one of the most important factors to consider is the interest rate offered. The interest rate on a loan (along with any admin fees and/or late charges) contributes to the cost of borrowing; the lower the interest charged, the cheaper the loan.
Hence, whenever possible, it is important for you to pick the cheapest loan in Singapore and get the best bang for your buck. This will help you save money and lessen your debt burden. To help you along, we’ve picked out five cheap interest personal loans in Singapore that will give you the funds you need, easily and affordably.
A quick note on different types of personal loans in Singapore
Before we jump into the various cheap interest loans, let’s first have a quick discussion on the different types of personal loans in Singapore.
Broadly speaking, loans in Singapore belong to one of two categories — secured loans and unsecured loans.
Secured loans require the borrower to put up assets as collateral to secure the loan. The lender has a legal right to take possession of the collateral should the borrower fail to pay back the loan.
This reduces the risk to the lender, allowing secured loans to be offered at lower interest rates.
Some common examples of secured loans are:
In contrast to secured loans, unsecured loans do not require collateral to be pledged. If the borrower defaults on the loan, the lender does not have the right to seize any assets to make up for the loss and must instead pursue other debt recovery actions.
Because of this heightened risk, unsecured loans have comparatively higher interest rates than secured loans. Some common examples of unsecured loans are:
- Personal loans
- Education loans
- Furniture loans
- Wedding loans
- Fast cash loans
- Business loans
In this article, we will be focusing on unsecured personal cheap loans in Singapore.
5 Cheapest personal loans in Singapore
| Personal loan | Advertised interest rate | Loan tenure |
| UOB Personal Loan | From 2.88% per annum (EIR 5.43% per annum) | 1 to 5 years |
| DBS Personal Loan | From 1.99% per annum (EIR 4.17% per annum) | 6 months to 5 years |
| Citi Quick Cash | From 3.45% per annum (EIR 6.5% per annum) | 1 to 5 years |
| Standard Chartered CashOne Personal Loan | From 1.90% per annum (EIR 3.63% per annum) | 1 to 5 years |
| HSBC Personal Loan | From 2.92% per annum (EIR 5.50% per annum) | 1 to 7 years |
Source: Personal Loan Finder
Note: EIR = Effective Interest Rate, which takes into account fees and charges
1. UOB Personal Loan
The UOB Personal Loan is one of the cheapest loans in Singapore for having such attractive interest rates, making it a worthy contender for the title.
Apart from offering one of the most competitive interest rates among the major banks in Singapore, UOB is also waiving the processing fees for all UOB Personal Loan applicants, regardless of their chosen loan tenure. It’s an added plus point on top of it being a cheap interest personal loan.
2. DBS Personal Loan
The DBSPersonal Loan starts from as low as 1.99% per annum (EIR 4.17% per annum), making it one of the cheapest loans in Singapore. While this is no doubt an attractive rate, it comes with some caveats. The loan comes packaged with a 1% processing fee and the promotional rate is available only until 31 March 2025 as of time of writing.
Besides being considered one of the cheapest loans in Singapore, there’s also the added benefit of a limited-time cashback promotion that DBS is running to attract borrowers.
3. Citi Quick Cash
With interest rates from 3.45% to 3.56% per annum (maximum EIR 6.5% per annum), the Citi Quick Cash personal loan is among the cheapest loans in Singapore.
There aren’t any especially exciting promotions at the moment for this cheap loan — the only perk is a waiver of admin fee — but this personal loan is notable for its capped EIR at 6.5% per annum across all loan tenures (1 to 5 years).
This could render the Citi Quick Cash loan a cheaper option than its counterparts, as some loans have higher EIRs, especially with shorter loan tenures.
Another plus point? Citi Quick Cash has been offering the abovementioned rates for a considerably long period of time already. It’s a reliable, cheap loan for your consideration.
4. Standard Chartered CashOne Personal Loan
A mainstay amongst the top few cheapest loans in Singapore is none other than the Standard Chartered CashOne Personal Loan, which has an interest rate starting from 1.90% per annum (EIR 3.63% per annum) thanks to the limited-time promotion the bank is running.
5. HSBC Personal Loan
Last but certainly not the least on our list is the HSBC Personal Loan, which is currently being offered at an interest rate starting from 2.92% per annum (EIR 5.50% per annum), making it a markedly cheap personal loan worthy of further examination.
One reason to consider this cheap loan in Singapore is that it comes with a longer loan tenure of up to 7 years, making it a great choice for those in need of a longer loan repayment period. With the ability to spread your repayments over 84 instalments (instead of the standard 60), your monthly loan repayment amount will be lower and thus easier to meet.
Also, HSBC is waiving the processing fee for this loan, further cementing it as one of the cheapest loans in Singapore. The admin fee waiver is valid for as long as HSBC runs the promotion.
Banks offer cheap loans, but strict eligibility requirements
You’d have noticed that the cheapest loans in Singapore are all bank loans. This is not surprising; it is their dominant position that allows banks to offer personal loans with the lowest interest rates, or cheap interest personal loans.
However, in exchange, banks’ personal loans come with a slew of eligibility requirements, which may place them out of reach for certain borrowers.
In particular, these requirements may pose a challenge:
- Annual income: Bank loans require a minimum annual income of S$20,000 or S$30,000.
- Credit score: Borrowers with poor credit scores stand a high chance of being rejected.
- Higher-than-advertised interest rates: The actual interest rate offered varies according to individual borrower profile, and may be higher than the advertised rate.
- Longer waiting time: Many banks require borrowers to have an account with them to disburse the loan. This can prolong the duration you have to wait before receiving your loan, especially if you’re not an existing customer.
- Early repayment fee: There is often a fee charged if you choose to pay off your loan early, which increases your total cost of borrowing.
What if you don’t qualify for banks’ cheap interest personal loans?
Banks’ personal loans are undoubtedly among the cheapest loans in Singapore, but they may not be suitable for all borrowers.
If you’re not able to qualify for a cheap interest loan from the bank — perhaps because of a bad credit score or a low annual income — you may wish to consider applying for a licensed lender’s loan instead. Licensed money lenders in Singapore are allowed to charge an interest rate of up to 4% per month.
Are there money lenders with low interest rates?
Yes, there are money lenders with low interest rates but you have to recognise that their interest rates will never be as low as what banks offer! Still, if you dig hard enough, you can find a cheap loan in Singapore that meets your financial needs best.
Why should you try to find the lowest interest rate money lender in Singapore?
#1 Licensed lenders provide legal loans
Licensed lenders offer legal loans. These are an alternative that you can count on if you can’t get your hands on loans from the big banks.
#2 Their loans are extremely accessible
In place of very low interest rates, licensed lenders offer extremely easy accessibility to legal loans. Almost anyone and everyone can get a loan from licensed lenders so long as they can show proof of consistent income.
Just so you know, licensed lenders do not take into account your credit score, and neither do they have an annual income threshold. You will be able to apply for a loan even if your income is less than S$10,000 per year.
#3 You can get your loan on the same day
Loans are often disbursed on the same day — often in less than 30 minutes — and you can choose to have the loan deposited directly into your bank account or given to you in cash. Just make sure you have all your supporting documents on hand when you visit their office!
#4 Licensed lenders have higher interest rates compared to banks
As previously mentioned, licensed money lenders’ interest rates are higher than banks’. It makes sense for you to look for the lowest interest rate money lender in Singapore to bring down your cost of borrowing as much as possible.
Where to find the lowest interest rate money lender in Singapore?
This will require some due diligence and time on your end. You can find the lowest interest rate money lender in Singapore by comparing loan packages across several money lenders with low interest rates.Worried about not being able to get a loan due to your income level? Fret not, there are many personal loans for lower income earners if you know where to look!
Synergy Credit is a legal loan company that provides quick cash loan solutions with attractive rates starting from 2.27% monthly and customisable repayment plans. Contact us to learn how we can assist in easing your financial situation with a cheap interest loan and start your loan application today.
About the Author
Huiting is passionate about all things related to current affairs and the finance industry. With years of experience in tow, you can rest assured that the content she creates will always have an extra insightful touch.
