In Singapore, the loan taking process is not as simple as in other countries. Singapore has its own economical rules to make sure their financial health will be healthy. The banking system is a part of the economy. But for a common man, all the manuals and guidelines are too tough to decide what to choose. And in most of the cases, the common men get into trouble by selecting arbitrarily. In this article, you’ll know what a good interest rate is for an urgent money loan. But before proceeding, you need to know the types of interest rates first.
The main types of interest rates, Flat Interest Rate, Floating Interest Rates and Effective Interest Rate. Knowing about these is very important. Because loans must be taken by showing proper reasons which will help you to get fast approval personal loan singapore banks.
What is Flat Interest Rate?
Flat interest rate is simply the interest, you need to pay monthly or annually for the principal for a certain period. For example, if you take a personal loan of $30,000 for 2 years at a 5% rate then your total Interest excluding principal will be $3000. That means per year you have to pay $1,500.
What is Floating Interest Rate?
Floating interest rate is also known as the variable interest rate is an interest rate that depends on the market and keeps on increasing or decreasing as the market or index goes up or down respectively. It can vary over the time period of a specific loan. It can prove to be either very beneficial or damaging.
What is EIR or Effective Interest Rate?
The effective Interest Rate is representing the cost of the loan. All your financial documents including your salary statement will be submitted to them. An amount, you have to submit every month as a processing fee. This money has no connection with your principal.
So while applying for a personal loan in a bank in Singapore, make sure, you are checking both FIR and EIR. Verify the budget cost and loan amount with your EIR mainly. There are lots of banks in Singapore who are offering a suitable interest pattern for their customers. But among all, there are three which are offering amazing FIR and EIR. Let’s see more about them.
- HSBC Personal Loan :
HSBC Personal Loan is offering you a 3.7% flat Interest Rate annually. The Effective interest rate is 7%. Make sure you are from age 21 to 65 and have an annual income of more than $30,000. HSBC bank is offering loan payment extension up to 7 years without any processing fees.
- OCBC Personal Loan :
OCBC Personal Loan is offering you the lowest interest rate, 3.5% per annum. But this rate is applicable if you are applying the first time. For the existing clients, the Flat Interest Rate is 4.7% per annum. The effective Interest Rate is 7.27% per annum.
- CIMB Personal Loan :
This bank is also providing you with the lowest interest rate which is 3.5% for one year. For the existing customer, the flat Interest Rate will be 4.7% per annum. However, the effective Interest Rate is very low here which is just 6.6% per annum with a 3-year tenor.
- Citi Quick Cash Loan :
Citi Quick Cash Loan offers personal loans at an interest rate of 3.99% per annum. Its effective interest rate is 7.5% per annum with the least loan amount of $ 30,000. This offer is specially made for people who will use Sing Saver for applying their application for a personal loan to CitiBank. They charge zero processing fees. You can lend 4 times of your monthly income for 24 months or 60 months’ time period just by paying a bare minimum of $ 100. If you are someone between 21 to 65 years of age, then you can opt for these amazing offers.
- DBS / POSB Personal Loan :
Opting for DBS / POSB is not advised for long tenure but for a small period of time, one can consider it as a good option. With an interest rate of 3.88% per annum, DBS / POSB offers personal loans starting at the lowest loan amount of $ 500. But for offering a loan at such a small amount they do charge a processing fee of 1% for approving your personal loan fast. One can apply via Sing Saver to get even faster acceptance of their personal loan application. It does provide low personal loan interest but it can act as a perfect life saviour for low-income earners. So if you fall under the low-income earner category and are between the age limit of 21 to 65 years, you should totally go for it.
- Standard Chartered Cash One Personal Loan :
With a flat interest rate of 3.48% and an effective interest rate of 7.99% per annum, Standard Chartered Cash One Personal Loan is best suited for everyone. They ask no processing fees but charge $ 199 as their yearly fees. But to combat this con, they are offering a $ 20 cash back if you apply using My Info. Along with this, a 50% cashback is assured on your first monthly instalment. On top of that, they provide instant loan approvals within hours and your money will be in your hand in 3 to 5 working days. If you are aged between 21 to 65 years of age and have an annual income of $ 20,000, you are most welcome to check this offer out.
As mentioned, there are lots of their banks that offer amazing interest rates. But these are low with preferable conditions. For a Singaporean, it would be best to check the terms and conditions before applying to any of the banks for a loan.