Updated April 22, 2024
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Disclaimer
Terms & Conditions
Annual Interest Rate
Minimum Loan Amount
Processing Fee
POSB’s personal loan is a finance product available to Singapore citizens and permanent residents only. It functions on the platform of Singapore’s most credible merchant bank DBS. With its swift cash distribution system, interest rates of about 3.88% and online application process, it is among the most affordable personal instalment loans in the country. The bank requires all applicants including new clients to have a functional POSB account. They must also be current credit card or credit line customers to facilitate the process of the loan distribution.
Individuals interested in getting a POSB personal loan and with a minimum annual income of S$120,000 are eligible to borrow up to 10x their monthly income. For borrowers with an annual income below S$30,000 are not left out though. The bank’s diverse loan options give credit to its claim of offering the most competitive financing options to Singaporeans. Although charges are as high as 11% per annum and high processing fees of 4% (EIR 20.01%) some competitors might offer more attractive interest rates.
POSB has a remarkable track record in offering various competitive financing options from the lowest (i.e. S$500) to the highest (10x monthly income for individuals with an annual income above S$120,000).
POSB demands standard bank fees including advance recovery and late refund fees. In addition, the bank also charges 1% of the entire loan amount. However, plan and create systems that will enable you to pay your loan when due to avoid extra charges.
| Fee | Fiat Rate |
| Processing Fee | 1% of loan principal (4% for low-income borrowers) |
| Early Recovery Fee | S$250 |
| Late Refund Fee (Credit Card) | S$100 |
| Late Payment Fee (Cashline PL) | S$120 |
| Loan Duration | AIR | Fee | EIR | Total Cost | Monthly Payment |
| 1 Year | 3.88% | $100 | 7.56% | S$10,388 | S$866 |
| 2 Year | 3.88% | $100 | 7.56% | S$10,776 | S$449 |
| 3 Year | 3.88% | $100 | 7.56% | S$11,164 | S$310 |
| 4 Year | 3.88% | $100 | 7.56% | S$11,552 | S$241 |
| 5 Year | 3.88% | $100 | 7.56% | S$11,940 | S$199 |
Singapore citizens and PR’s between the age of 21 and 65 are eligible to apply for this loan. In addition, borrowers are required to have a minimum annual income of S$20,000.
Interested applicants can apply through ibanking. Applicants can use their login details like username and password to access the platform or utilise an online loan application form and register with POSB card details.
POSB has several cashback bonuses available to its users, borrowers can benefit from them if they take up a POSB personal loan. New to bank clients get $200 cashback for a $10,000 loan, $888 for a $30,000 loan and $1,088 for a $50,000 loan.
Existing customers receive a S$688 cashback for a $30,000 loan and an $888 for at least $50,000.
POSB has a welcome bonus for new to bank applicants. New customers with an approved loan of $10,000, will receive S$100 cashback. Although borrowers must input the promo code “POSBPL” at the respective step during the online application.
However, irrespective of how attractive these promotions might be, it is recommended that personal loans are only used as a last-resort option to consolidate debt or manage cash flow.
Begin your loan application by clicking on the DBS/POSB link.
There are 2 ways to do complete an online DBS/POSB personal loan application:
You’ll be required to provide all the necessary documentation for DBS to approve your loan application. This list of documents includes but is not limited to:
After submission and approval of your DBS/POSB personal loan on your cashline and/or credit card, you will receive an SMS confirmation that the DBS personal loan has been approved. Please proceed to check your designated account for the crediting of the approved loan amount.
Competitive personal loan interest rates that rival other market participants.
Approved loan amount is credited to applicant in minutes
Up to 10x your monthly salary
Maximum loan repayment of 72 months cannot be extended
Doesn’t provide best terms for specific loan use (car, student, renovating etc.)
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