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|Particulars||Singapore / PR||Foreigner|
|Interest Rate||From 3.88% p.a.||From 3.88% p.a.|
|Effective Interest Rate (E.I.R)||From 7.56% p.a.||From 7.56% p.a.|
|Processing Fee||One time processing fee of 1%||One time processing fee of 1%|
|Maximum loan amount||4X your monthly salary; 10X if your income is $120,000 and up||4X your monthly salary; 10X if your income is $120,000 and up|
|Minimum Annual Income||$20,000||$20,000|
|Loan Tenure||1 - 5 Years||1 - 2 Years|
|Approval duration||Instant Approval and instant cash for DBS ibanking customers||Instant Approval and instant cash for DBS ibanking customers|
|Late payment charge||$100 for Credit Card, $120 for Cashline||$100 for Credit Card, $120 for Cashline|
|Early settlement penalty||S$250||S$250|
|Promotion||1% Cashback on Approved Loan Amount||1% Cashback on Approved Loan Amount|
Offered by one of the local banks in Singapore, POSB Personal Loan allows existing and new customers to apply online and get approval within minutes. You can also borrow up to 10x your monthly salary as long as you have a good credit standing.
As with other personal loan providers, POSB allows you to take out a loan if you’re Singaporean or PR aged 21 to 65, with a minimum annual income of $20,000.
If you’re already an existing POSB customer, you can apply via iBanking, mBanking, ATM, credit or debit card. There’s no additional document needed. Alternatively, if you don’t have a Cashline account, you can apply and submit your documents through MyInfo.
You can apply for a POSB personal loan through MoneySmart from as low as 3.88% p.a. (EIR 7.56% p.a.). Take note that EIR may change up to 20.01%, depending on your loan amount, tenure and credit history.
To get an estimate of how much you’ll be paying monthly, you can use the POSB Personal Loan Calculator.
POSB is running a cashback promotion for personal loan applicants. If you’re a new-to-bank customer with an approved loan amounting to $10,000, you’ll receive a $100 cashback with the promo code “POSBPL” entered during the online application. This promotion is valid until 31 August 2021.
Keep in mind that no matter how enticing the promotion is, you should only sign up for a personal loan if you need to consolidate debts or manage your cash flow.