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Loan interest rate Singapore 2021

Singapore one thousand dollar notes showing loan interest rate in Singapore

Singapore’s ranking as one of the most expensive cities to live in may not come as a surprise to those of us who have been residing here for a while. Coupled with the rising costs of living driven by shortages during a time like the Covid-19 pandemic, even the best of us need help financially to tide over this tough period. Fret not! We detail some of the most competitive loan interest rate Singapore to help you obtain the best loan to suit your needs.

Mortgage/ home loans

In Singapore, there are two main types of loans pegged to mortgage loans: board rate and SIBOR.

SIBOR rates, also known as Singapore Interbank Offered Rates, is the loan interest rate Singapore that Singapore banks can borrow money from each other via the interbank market. This is different from the board rate, which is the interest rate determined by the bank alone. Both loan interest rate Singapore fluctuate depending on a number of factors, such as the period of lock-in. While board rates vary across banks, SIBOR rates are available in the public domain. As of the time of writing, the 1-month, 3-month, 6-month SIBOR stands at 0.281%, 0.437%, and 0.593% respectively.

Car loans

Another category of loan you may be considering is a car loan. This can be broadly divided into two categories – car loans and green car loans. The latter, which has a lower loan interest rate Singapore, comes as part of Singapore’s plans to push for greener electric vehicles. Both DBS and OCBC offer such loans at a flat fixed 1.68% interest per annum.

Alternatively, you can also go for a car loan, which has a loan interest rate Singapore of above 2%, depending on the value and age of your car.

Personal loans

Personal loans are one of the more straightforward loans you can apply for. The application process is relatively quicker, regardless of whether you apply online or in person. These, however, have a higher loan interest rate Singapore, with a short loan tenure of between 1 and 5 years.

Under personal loans, there are secured and unsecured loans. Unsecured loans are loans that do not require you to put up collateral. The trade-off, however, is a higher than average loan interest rate Singapore.

Below are some of the payday loan interest rate at 4% or lower which you may want to consider.

Find out more about the top 5 cheapest loans in Singapore.

Bank Interest rate p.a (%) Effective Interest Rate (%)
DBS/POSB Personal Loan 2.88 5.79
UOB Personal Loan 3.4 6.42
HSBC Personal Loan 3.4 6.5
Citibank Quick Cash (New Loan Customers) 3.45 6.5

Business loans

These too, have varying interest rates depending on whether it is a secured or unsecured loan. Since the pandemic started, the government has also worked to provide Covid-19 relief schemes for businesses to tide their business over. There are also venture capital loans, suitable for businesses that are in their early stages of growth.

Renovation loans

Renovation loans are similar to personal loans, with varying interest rates across different banks. Most banks however charge a one-time processing fee, so do remember to factor them in when calculating your repayment sum. Below are some of the renovation loans and their interest rates, although these rates may vary depending on your credit scores.

Bank Interest rate p.a (%) Effective Interest Rate (%)
DBS Green Renovation Loan 2.68 3.43
DBS Renovation Loan 3.88
OCBC Renovation Loan 4.18 5.19
CIMB Renovation-i Financing 4.33 5.00

Debt consolidation plans

These loan plans, as the title suggests, are here to help you pay off the existing credit you owe. They are thus limited to those who are already in debt.

Bank Interest rate p.a (%) Effective Interest Rate (%)
Standard Chartered Debt Consolidation Plan 3.48 6.79
HSBC Debt Consolidation Plan 3.4 6.5
DBS Debt Consolidation Plan 3.58 6.95
POSB Debt Consolidation Plan 3.58 6.95

Student loans

Last but not least, student loans. These loans are special as they are interest-free for as long as you remain in school, which allows you to focus on your studies before considering repayment after you graduate.

Bank Interest rate p.a (%) Processing fee (%)
DBS Study Loan 4.38 2.5
POSB Further Study Assist 4.38 2.5
OCBC FRANK Education Loan 4.5 2.5

 

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