An Introduction to Personal Loans in Singapore

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Singapore is one of the world’s top financial centers and the island nation’s banks offer a wide range of banking products, solutions and services, including personal loans. These loans are designed to help the people of Singapore meet their financial needs. The interest rates offered can be very attractive and the customer can also enjoy flexible repayment tenure to repay the borrowed amount. Singapore is not the only banks and financial institutions that offer personal loans in Singapore. In fact, there are many licensed and unlicensed moneylenders in the country who provide personal loans.

Types of Personal Loan

There are different types of personal loan products available in ‘Lion City’ and they are as follows:

1. Term Loan – These are traditional loan products that provide the customers with the money they need and are also required to return the money with applicable interest within a period specified in the contract signed by them. They are mainly offered by banks and traditional financial institutions in the country.

2. Loan on Credit Card – Many credit card issuers in Singapore offer their customers instant cash against the credit available on their cards. Loan applications are approved within no time and the money is directly transferred to the bank account of the applicant. In most cases, customers can avail up to 100 per cent of the available credit on their card as a loan.

3. Personal Line of Credit Some popular banks operating in the country, such as Maybank, do not offer personal loans and instead offer personal loans that give people access to funds on a monthly basis. It is a type of revolving credit in which customers need to make monthly payments to avail more funds.

4. Overdraft Protection – OCBC Bank and other top banks in Singapore offer overdraft protection facility with their savings account which allows them to withdraw more money than is available in their account. The excess money withdrawn is treated as a loan and customers are expected to pay it back through Equated Monthly Installments (EMIs).

Banks that provide personal loans in Singapore

Some of the top banks that provide personal loans in Singapore are as follows:

  • OCBC Bank;

  • UOB;

  • DBS Bank;

  • HSBC Singapore;

  • ANZ Singapore;

  • Citibank etc.

Application Process

If you are an adult with a stable income and good credit score, you can approach any bank in the country and apply for a personal loan. You can either visit any of their branches or contact their customer support team. Some of them will also give you the option to apply for the loan online on their website.

loan amount

The amount disbursed will depend on your annual income, credit history and overall profile as a borrower. You can expect to borrow a higher amount if you have a higher annual income with an attractive credit score. Similarly, the interest rates offered to you will also depend on the factors mentioned above and you can avail a better rate if you are one of the loyal customers of the bank i.e. if you have already opted for other products offered by the bank have chosen

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