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SINGAPORE: In Singapore, personal loans serve as a flexible financial tool for various needs, whether it’s addressing urgent situations, investing in education, or enhancing one’s quality of life. However, stringent eligibility criteria, particularly annual income thresholds, can pose challenges for low-income earners, making it crucial to explore options that “fit” their financial circumstances.

Here are the five best personal loans for low-income earners in Singapore according to SingSaver:

1. POSB Personal Loan

The POSB Personal Loan stands out for its inclusive eligibility requirements.

Open to individuals earning at least S$20,000 annually, it welcomes Singaporeans, Permanent Residents (PRs), and foreigners. Foreign applicants, however, need a Cashline and/or Credit Card account with the bank.

With an age range of 21 to 75 years, this loan offers competitive interest rates starting from 3.88% per annum (Effective Interest Rate – EIR 7.56% p.a.) and allows repayment over a period of up to five years.

Borrowers can avail themselves of up to 4X their monthly salary.

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2. Standard Chartered Personal Loan

For those with a minimum annual income of S$20,000, Standard Chartered provides an accessible personal loan option.

Exclusive to Singaporeans and PRs, foreigners must meet a higher income requirement of S$60,000 or more per year.

This loan offers affordable interest rates from 3.48% per annum (EIR 6.95% p.a.) with a fixed one-time processing fee of S$199, partially or fully offset by the ongoing cashback promotion.

New clients can receive S$200 cashback, while existing customers can get S$100, provided they borrow at least S$10,000 over three, four, or five years.

3. OCBC ExtraCash Loan

For those whose annual incomes fall below the S$30,000 threshold, OCBC’s ExtraCash Loan presents a viable option.

With a minimum annual income requirement of S$20,000 for Singaporeans and PRs, expatriates may find it easier to qualify with an income threshold of S$45,000. However, it is important to note the higher interest rates, starting from 12.31% per annum (EIR 26.39% p.a.).

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Despite this, the loan offers flexibility with a tenure ranging from one to five years, along with a one-time processing fee of S$100.

4. CIMB Personal Loan

As of Jun 2023, CIMB Personal Loan provides one of the lowest interest rates in Singapore, starting from 3.38% per annum (EIR 6.32%). It accommodates diverse borrowing needs with loan tenures ranging from one to five years.

Singaporeans and PRs aged 21 to 65 with a minimum annual income of S$20,000 can apply. However, this option is not available for foreigners.

Fees include a 1% processing fee for loans below S$5,000, waived for amounts S$5,000 or higher, and an early repayment fee of 3% of the outstanding principal amount or S$250, whichever is higher.

5. Citi Quick Cash Personal Loan

Citi’s Quick Cash Personal Loan sets a slightly higher minimum annual income requirement for Singaporeans and PRs at S$30,000, while foreigners need to earn at least S$42,000.

With attractive interest rates starting from 3.45% p.a. (EIR 6.5% p.a.), borrowers can access up to 4X their monthly salary, with loan amounts subject to a minimum of S$1,000.

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Notably, this loan imposes no processing fees or administrative charges, and available tenures range from one to five years.

As personal loans play a pivotal role in managing finances for low-income earners in Singapore, understanding the eligibility criteria and available options empowers individuals to make informed decisions based on their unique financial situations./TISG