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Where You Can Find the Lowest Interest Rate Personal Loans In Singapore

Searching for lowest interest rate personal loans in Singapore
Searching for lowest interest rate personal loans in Singapore

When faced with an urgent financial emergency, a personal loan might be your best bet. Most of us would naturally look for the lowest interest rate personal loans to minimise the burden of repaying the debt.

In this article, we’ll examine what personal loans are, what you can use it for, where you can find the lowest Interest rate personal loans in Singapore and more.

What is a personal loan and what can you use it for?

Personal loans can be secured (requiring collaterals) or unsecured loans and you can get personal loans from either banks or licensed money lenders in Singapore.

There are many benefits of personal loans, as you can use it for almost any personal expenses – from downpayment for your home, funerals, wedding expenses or tertiary education, personal loans can help you ease your cash flow so that you can reach your life goals more quickly. You can also use it to pay off unexpected bills such as emergency medical fees or car repairs.

Where you can find lowest interest rates for personal loans in Singapore

There are two places where you can find the lowest interest rate personal loans in Singapore – banks and licensed money lenders.

1. Banks

If you’re wondering which bank has the lowest interest rate on personal loans, look no further. Some banks like HSBC, DBS, OCBC, UOB, etc, offer personal loans with interest rates from as low as 3.4% per annum. Some banks might even offer 0% interest rates, which may sound too good to be true.


Indeed, 0% interest rate personal loans often come with a catch – they often involve high fees, such as processing fees and other charges, so their effective interest rates (EIR), which includes processing and administrative fees, are actually much higher than their advertised interest rates.

In a nutshell, always look at the EIR when borrowing from banks as that will be the more accurate interest rates you will be paying. So the lowest interest rate personal loans may not exactly be the lowest after all.

2. Licensed money lenders

An equally reliable and competitive option is to take a personal loan from licensed money lenders.

While interest rates offered by licensed money lenders (1-4% per month) are higher compared to banks, the loan application processes with money lenders are less stringent, as they are more lenient with credit checks. They will only check your borrowing records and limits with other money lenders with the Moneylenders Credit Bureau (MLCB), but not your credit history with banks.

This is especially important for borrowers with bad credit history and thus cannot qualify for bank loans.

Hence, licensed money lenders also have a faster loan approval rate. But of course, if you have a good credit score, it will boost your chances of getting your loan approved generally with more favourable terms, such as a lower interest rate.

How to apply for lowest interest rate personal loans with licensed money lenders

Licensed money lenders offer a streamlined process for personal loans that is easy to navigate.

Here’s a step-by-step loan application guide:

  1. Fill up the online application form. This will only take a few minutes.
  2. Wait for the loan executive to call you and confirm the loan details.
  3. You will then need to head down to the moneylender’s office for a face-to-face verification, which is a compulsory step according to the Ministry of Law. Remember to bring all relevant documents for this visit.
  4. After your documents are verified, it’s time to sign the loan contract. However, before you do so, be sure that you understand all the loan terms, including the repayment period and interest rates. Only sign the contract if you agree to all of the terms.
  5. You will be able to get the funds immediately, whether in cash or via a bank transfer.

Here are the required documents you need for your loan application

Employed Singaporeans:

1. Identity Card

2. CPF Contribution Statements

3. Latest payslips for the past 3 months

Self-Employed Singaporeans:

1. Identity Card

2. IRAS’ Notice of Assessment or

3. Other proof of income (eg. bank statements or any official income statements).


1. Employment pass

2. Proof of home address (eg. tenancy agreement or proof of billing address)

3. Latest payslips for the past 3 months

Why apply for lowest interest rate personal loans with us?

R2D Credit offers some of the most competitive rates with up to 12 months’ installment options. We understand your needs and will process your loan applications as fast as possible. You can get your cash within a day.

Reach out to us now to find out more!



The information provided on our website is for educational and informational purposes only and is not intended to be a substitute for legal or financial advice. While we try to ensure that information on this website is accurate, we do not warrant that the information will be free from error. We shall not be liable for any loss or damage that may arise from the use of this website.

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