9 Cheapest Loans in Singapore With Low Interest Rates

It’s important to get the best deals for everything, especially when taking out loans, regardless of whether you’re borrowing from a licensed money lender or bank. While the thought of owing someone money and having the interest build up over time is daunting, it’s really not that scary as long as you find the cheapest loan in Singapore.

In fact, there’s a variety of cheap interest loans out there, from personal loans, bad credit loans, monthly loans, to business loans in Singapore — all you need to do is put in the time, effort, and research into finding the cheapest loan.

To help with your search, we’ve put together a list of the cheapest loans in Singapore to get the best bang for your buck.

1. UOB Personal Loan — Monthly Repayments as Low as S$20

If you’re looking for a cheap interest personal loan for the long run, UOB is one such bank you can consider. Besides enjoying monthly repayments from only S$20, you can also enjoy other perks like zero processing fees, instant disbursement, and cash rebate up to 2% (for loan sums of at least S$15,000 with 3-5 years tenure) As of this writing, the promotion will last till 30 June 2025, so if you’re keen — now’s your chance.

2. CIMB Personal Loan — No Early Repayment Fee, No Processing Fee

Its amazing rate of 2.68% is one of the lowest in the market currently, making it stand out from the rest of the loans. Rates-wise, it may be considered one of the cheapest loans in Singapore, on top of the other great benefits like no early repayment or processing fee.

3. Citi Quick Cash — Borrow Up to 4x to 8x Your Monthly Income

While the rates are not as low as the two former loans, Citi Quick Cash is a cheap loan in Singapore with flexible loan sums worth its salt. You can borrow up to 4 times your monthly income or even up to 8 times your monthly income (provided that your annual income is S$120,000 or above) — important if you need a sizable loan amount.

4. Standard Chartered CashOne Personal Loan — Lowest Interest Rate in Town, No Late Penalties

A top contender for cheap interest personal loan, this loan is offering a competitive rate of 1.90% per annum. Monthly repayments can go as low as S$50, and there aren’t even any late penalties — these proudly make it the cheapest loan in Singapore for its affordability and flexibility as of time of writing.

5. HSBC Personal Loan — Longest Loan Tenure of Up to 7 Years

While HSBC’s cheap interest personal loan doesn’t boast the lowest rates, it’s certainly still enticing for its loan tenure. Most of the cheap loans in Singapore only offer a loan tenure that goes as long as 5 years, but in HSBC’s case — it’s up to 7 years. This makes it really attractive if you need a significantly longer tenure to repay your loan.

There’s even a 2% cashback, which lets you receive up to S$3,600, depending on your borrowed sum and loan tenure.

6. DBS Personal Loan or POSB Personal Loan — Get Up to 3% Unlimited Cashback

While both of these banks market their own loans on their platform, these two personal loans are essentially identical. That being said, what makes these two cheap loans in Singapore attractive compared to their counterparts is their affordable rates — starting from only 1.99% per annum.

You’ll also receive your cash instantly and stand to get unlimited 3% cashback upon successful application.

7. OCBC ExtraCash Loan — Borrow Up to 6x Your Monthly Income, With Fixed Monthly Repayments

The OCBC ExtraCash Loan is a cheap interest loan that lets you borrow up to six times your monthly income. However, its rates start from 5.42% per annum, which doesn’t make it as enticing compared to its competitors.

Still, you’ll receive approval and cash swiftly when you apply with Singpass Myinfo, and there are numerous repayment options to consider.

8. GXS FlexiLoan — No Annual, Processing, Early or Late Repayment Fees

Starting from only 2.88% per annum (previously 2.99%), GXS offers a relatively cheap loan in Singapore that is both customisable and affordable. But what makes this cheap interest personal loan really attractive is how it comes with no additional fees, which helps you save at the get-go, in the long run, or even when you decide to repay earlier or later.

To top it off, as of this writing — receive up to S$800 cashback if you borrow at least S$10,000 from now till June.

9. Trust Instant Loan — 100% Transparency, No Hidden Fees

Trust Instant Loan prides itself as one of the cheapest loans in Singapore, with rates offered from as low as 2.2% per annum. Trust is also upfront with their loan offering — you’ll find no processing or hidden fees — everything is as it is.

This cheap interest personal loan can also be repaid in 3 months or 5 years, depending on your preferred loan tenure.

How Do Personal Loan Interest Rates Work?

Now that you know which are the cheapest loans in Singapore, definitely take some time to understand how personal loan interest rates work. This will aid you in making the best financial decision as you browse through the different cheap loans in Singapore.

Advertised Rate

This is none other than the interest rate that is usually displayed and actively promoted by financial institutions and banks. Essentially, it’s the lowest possible cost, not including other fees, charges, or taking into account a borrower’s credit history. When considering cheap loans in Singapore, looking at the advertised interest rate isn’t sufficient, you need to factor in the effective interest rate (EIR) too.

Effective Interest Rate (EIR)

When getting a cheap interest personal loan in Singapore, you need to look at the EIR closely.

It’s higher than advertised rates, but it’s a clearer representation of the true cost of the loan as it includes the advertised rate, processing fees, and the repayment schedule.

So, when on the hunt for the cheapest loans in Singapore, make sure to search for loans with lower EIRs to get the most affordable loan offering possible.

Revolving Interest Rates

Revolving personal loans let you borrow money whenever you need it — the exact opposite of how a cheap interest loan usually works. It offers higher rates due to its more flexible nature of borrowing and the higher risks involved.

These are none other than your credit facilities, say credit cards and credit lines, which usually boast higher rates. As such, revolving personal loans are usually not considered as cheap loans in Singapore.

Term Personal Loan Rates

Compared to revolving personal loans, term personal loans are more affordable, offering lower rates that are either fixed or variable, and determined from the get-go. How the loan works is by taking out a lump sum which you’ll repay in fixed monthly instalments over a discussed tenure period, usually varying from 1 to 7 years.

Bonus: 0% Interest personal loans

There are loans advertised with a 0% per annum interest rate, but this usually applies to a short-term period and a higher processing fee upfront. Technically, you’re still paying the bank with the loan; the only difference is that the bank collects your money from the start, instead of through interest payments.

As such, this may not be considered a cheap loan in Singapore since you’re still ‘paying for interest’, just at an earlier time.

How to Pick Among the Cheapest Loans in Singapore?

While getting a cheap interest personal loan is important, there are many other factors to keep in mind as well. From having clarity behind the purpose of taking out a loan, reviewing the various cheap interest loans in detail, to gaining clear comprehension of all costs associated with the loan — learn how to pick out the cheapest loan in Singapore that best meets your requirements.

1. Figure Out Your Needs

Do you need the money instantly? Do you need the loan for a wedding, renovation, or a health emergency? How long do you need the loan repayment period to be?

There are many questions that need to be addressed before you decide on any of the cheapest loans in Singapore. Ensure you give it a good thought as it will better guide your decisions.

2. Compare Loan Offers

Whether you’re planning to borrow from a bank, legal money lender, or financial institution, you’ll need to assess the different terms and conditions in the loan offer — the interest rates, tenure, loan terms, and any fees that may apply.

Once you’ve sorted this out, you’ll know which cheap interest loan you should go for.

3. Work With a Trusted Loan Provider

While the ultimate cost of a loan is what truly matters, you have to ensure the loan comes from someone you can trust. This means that the loan consultant attending to you should be experienced, transparent, and reliable.

This will help in ensuring a smoother loan journey as the dedicated loan consultant will be able to recommend a suitable loan and provide sound financial advice altogether.

Are There Other Cheap Loan Providers Besides Banks?

Even though personal loans from banks seem to be the cheapest loans in Singapore, they may not always be the most suitable solution, especially if circumstances like your credit score or annual income don’t allow for it. When this is the case, borrowing from a licensed money lender might be the better option.

At 1-Cash, we offer loans with affordable rates from as low as 1% to 3.88% monthly. We also offer instant approval and disbursement, flexible repayment schedules, and a wide range of loan packages. If you’re keen to learn more, just reach out to us or send in your loan application today.