Personal Loans in Singapore 2026: Rates, Eligibility, and How to Compare
Last reviewed: June 2026
Quick Answer
Personal loans in Singapore typically charge 3% to 6% flat per annum, roughly 6% to 11% Effective Interest Rate, so always compare EIR not advertised flat rates. MAS caps total unsecured borrowing at 12 times monthly income, and most banks require a minimum annual income of SGD 20,000 to qualify.
Rates as of 2026. Verify with official sources before filing.
How Do Personal Loans Work in Singapore?
Personal loan interest rates from Singapore banks in 2026 typically range from about 3% to 6% flat per annum, equivalent to roughly 6% to 11% EIR, with eligibility usually requiring a minimum annual income of SGD 20,000. A personal loan in Singapore is an unsecured loan, meaning no collateral is required. You borrow a fixed amount, repay it over a fixed tenure with a fixed monthly instalment, and pay interest on the outstanding balance. Unlike credit cards, personal loans have a defined repayment schedule which makes them more suitable for larger, planned expenses.
Banks and licensed moneylenders are the two main sources of personal loans in Singapore. Banks are regulated by MAS, licensed moneylenders by the Ministry of Law. The rules, rates, and borrowing limits differ significantly between the two.
Interest Rates: What to Actually Compare
Banks advertise personal loan interest rates in two ways that often confuse borrowers. The advertised rate (also called the flat rate or promotional rate) is applied to the original loan amount for the full tenure. The Effective Interest Rate (EIR) reflects the true cost of borrowing because it accounts for the reducing principal balance as you repay.
A loan advertised at 3.5% per annum flat typically has an EIR of around 6.5% to 7%. Always compare EIR rather than flat rates when evaluating offers, as MAS requires lenders to disclose both.
Bank personal loan rates in Singapore typically range from about 3% to 6% flat per annum (approximately 6% to 11% EIR) depending on the bank, loan amount, and your credit profile. Licensed moneylenders are capped by law at 4% per month, which is significantly more expensive and should only be considered when bank options are unavailable.
Who Is Eligible and How Much Can You Borrow?
For bank personal loans, the typical eligibility criteria in Singapore are: minimum annual income of SGD 20,000 for Singapore Citizens and PRs (some banks require SGD 30,000), minimum age 21, and satisfactory credit history with Credit Bureau Singapore (CBS).
MAS caps the total unsecured borrowing limit per individual at 12 times monthly income across all financial institutions. If your total outstanding unsecured debt exceeds 12 times your monthly income, you cannot take on additional unsecured credit.
TDSR and Personal Loans
The Total Debt Servicing Ratio (TDSR) limit of 55% of gross monthly income applies to property loans but not to personal loans in isolation. However, if you plan to take a property loan, existing personal loan repayments will be included in the TDSR calculation. Significant personal loan debt can therefore reduce your property borrowing capacity.
Use the TDSR Calculator to see how your existing debts affect your property borrowing capacity before taking on additional personal loan commitments. Also see our guide on how TDSR and MSR work.
Bank vs Licensed Moneylender: Key Differences
| Factor | Bank | Licensed Moneylender |
|---|---|---|
| Interest rate | 3% to 6% flat p.a. (6% to 11% EIR) | Up to 4% per month |
| Regulator | MAS | Ministry of Law |
| Max loan (income below SGD 20k) | Not eligible | SGD 3,000 |
| Max loan (income SGD 20k to SGD 30k) | Up to 4x monthly income | SGD 3,000 |
| Min annual income | SGD 20,000 to SGD 30,000 | No minimum |
| Credit check | CBS check required | Less stringent |
How Do You Compare Offers?
- Compare EIR rather than flat rate. A lower flat rate does not always mean a cheaper loan.
- Check the processing fee. Typically 1% to 2% of the loan amount and adds to the effective cost.
- Confirm early repayment terms. Some banks charge a penalty of 1% to 3% of the outstanding principal for early settlement.
- Check the late payment fee. These can be substantial and compound if you miss payments.
- Read the fine print on promotional rates. They often apply only for the first 12 months before reverting to a higher standard rate.
Use the Personal Loan Calculator to compare monthly repayments, total interest cost, and EIR across different loan amounts and tenures before you commit.
Sources
MAS unsecured credit rules; Ministry of Law licensed moneylender regulations; Credit Bureau Singapore guidelines.