POSB Personal Loan (DBS Personal Loan) Review
POSB Personal Loan (DBS Personal Loan) Review
ValueChampion Rating 
Pros
- Competitive interest rates
- Quick fund disbursement
- High maximum loan amounts
Cons
- Tenures only up to 5 years
- Not the best for individuals seeking a specific-use loan (e.g. car loan)
POSB and DBS offer instant cash disbursement upon loan acceptance, making them good options for borrowers that require funds from a personal loan instantly. Additionally, POSB and DBS advertise some of the interest rates (normally 3.88% and EIR 7.56%) to qualified applicants.
Note: The interest rate and processing fee offered to you is based on your personal credit and income profile. It may differ from the published rate and the rate offered to other borrowers.
| Summary of POSB/DBS's Personal Loans |
|---|
| Low advertised interest rates: flat rates from 3.88% p.a. (EIR: 7.56%) |
| Instant cash disbursement for online applicants |
| Most flexible requirements: minimum loan amount of S$500, maximum loan amount of 10x monthly salary |
Table of Contents
- What Makes DBS/POSB Personal Loans Stand Out to Borrowers
- Who Can Apply: Eligibility Criteria
- Other Charges and Fees
- How to Apply: Application Process
What Makes POSB/DBS Personal Loans Stand Out to Borrowers
POSB and DBS offer interest rates from 3.88%, which is one of the lowest advertised flat rate on the market, and makes these loans some of the cheapest available. Additionally, the bank offers instant cash disbursement to approved online applicants. This is helpful as most lenders take at least one day to disburse personal loans. In order to qualify, applicants must be current credit card or credit line customers, and new-to-bank customers must credit their salary into a POSB or DBS deposit account.
These banks also offer the largest possible personal loans (10x monthly salary) to individuals with annual incomes of at least S$120,000. Additionally, DBS and POSB are two of 4 banks that offer personal loans to individuals with annual income of less than S$30,000. However, the bank charges these borrowers higher rates than its competitors, at 11% p.a. with a 4% processing fee (EIR 20.01%).
Summary of POSB/DBS's Personal Loans' Interest Rates & Features
| Loan Duration | Flat Rate | Fee | EIR | Monthly Payment | Total Cost |
|---|---|---|---|---|---|
| 1 year | 3.88% | 1% | 7.56% | S$865.67 | S$388 |
| 2 years | 3.88% | 1% | 7.56% | S$449.00 | S$776 |
| 3 years | 3.88% | 1% | 7.56% | S$310.11 | S$1,164 |
| 4 years | 3.88% | 1% | 7.56% | S$240.67 | S$1,552 |
| 5 years | 3.88% | 1% | 7.56% | S$199.00 | S$1,940 |
| *Assuming loan of S$10,000 | |||||
These banks also offer the personal loans with both the lowest minimum loan amount (S$500) as well as the largest possible amount of up to 10 times monthly income for individuals with annual incomes of at least S$120,000.
Who Can Apply: Eligibility Criteria
- Eligibility
- S$20,000 of annual income
- Max. Loan Amount
- 4x monthly salary; 10x monthly salary for income > S$120,000
- Min. Loan Amount
- S$500
- Processing Fee
- 1% of loan principal
- Approval Time
- Immediate approval & disbursement for DBS & POSB credit card or line of credit customers
Singaporeans and permanent residents, aged 21 - 75 are eligible for personal loans from DBS and POSB. Applicants must earn at least S$20,000 annually. Individuals that earn less than S$120,000 are eligible for loans of 4 times their monthly income, while individuals with annual incomes of at least S$120,000 are eligible for loans of up to 10 times their monthly income.
Other Charges and Fees
POSB and DBS charge a processing of 1% of the total loan amount. The banks also charge early redemption and late payment fees that are similar to other banks. That being said, we strongly suggest making on-time payments to make your personal loan as inexpensive as possible.
| Fee | Amount |
|---|---|
| Processing Fee | 1% of loan principal (4% for low-income borrowers) |
| Early Redemption Fee | S$250 |
| Late Payment Fee (Credit Card) | S$100 |
| Late Payment Fee (Cashline PL) | S$120 |
How to Apply: Application Process
Online applicants are eligible for instant cash disbursement. Once your loan is approved, funds will automatically be credited to your account instantly. Applicants must also submit a range of documentation, which is listed below.
- Photocopy of NRIC (front and back)
- CPF statement (past 12 months)
- Latest Income Tax Notice of Assessment or Latest Computerised Payslip
- 2 years' Income Tax Notice of Assessment or Latest Income Tax Notice of Assessment (Commission Based Employees)
- 2 years' Income Tax Notice of Assessment (Self-employed)
To apply for a DBS/POSB personal loan, you can click on the "Apply Now" buttons on this page.
Consumers who wants to find out more about other personal loans before making a decision can read our other guides to find the best personal loan in Singapore in 2022 that fits your needs.
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.