Bank Directory

United Overseas Bank Limited

Contact No: 1800 222 2121

Address: 80 Raffles Place, UOB Plaza, Singapore 048624

UOB is committed to building lasting relationships with our customers, through product and market expertise, and our promise to always do what is right. With a well-established global presence today and particularly in Asia, UOB has understanding of Asian markets, corporate culture and business mindsets, which is matched by few. Our strong foothold in Singapore, Malaysia, Indonesia, Thailand and China is well-placed to create greater access and growth in this region, for our customers.

OCBC Limited

Contact No: 6318 7222

Address: 65 Chulia Street, #09-00 OCBC Centre, Singapore 049513

OCBC Bank is the longest established Singapore bank, formed in 1932 from the merger of three local banks, the oldest of which was founded in 1912. It is now the second largest financial services group in Southeast Asia by assets and one of the world’s most highly-rated banks, with an Aa1 rating from Moody’s. Recognised for its financial strength and stability, OCBC Bank is consistently ranked among the World’s Top 50 Safest Banks by Global Finance and has been named Best Managed Bank in Singapore by The Asian Banker.

Citibank Singapore

Contact No: 6225 5221

Address: 23 Church St, Singapore 049481

Citi has been in Singapore since 1902 and is represented in nearly every asset class. Citi Singapore is the largest foreign banking employer in Singapore, and it is home to strategically important hubs, Innovation Labs and the Asia Pacific Citi Service Centre (CSC). We have businesses with client-focused capabilities, such as the Global Subsidiaries Group (Asia), Citi Private Bank (Global), and International Personal Bank (Global); product focused innovation hubs, such as Global Consumer Bank, the ASEAN Investment Banking Hub, Markets Hub, and the Treasury and Trade Services (TTS) Hub; Innovation Labs, such as the Citi Innovation Lab (TTS) and the Consumer Innovation Lab; and the Asia Pacific Citi Service Centre (CSC) at Changi Business Park.

DBS Bank

Contact No: 6878 8888

Address: 12 Marina Boulevard, MBFC Tower 3, Singapore 018982

Since our founding 50 years ago, DBS has always had a history of trailblazing and innovating. As we celebrate our 50th anniversary, we are honoured that our digital leadership has been recognised as leading the way not just in Asia but the world. In a first for a Singapore and Asian bank, DBS Bank has overtaken larger, more established banks to be named Best Bank in the World. The prestigious top award was conferred to DBS by Global Finance in its World’s Best Global Banks 2018 Awards. DBS was also named the ‘World’s Best Digital Bank’ in 2016 and 2018 and the ‘World’s Best SME Bank’ in 2018 by Euromoney.

Standard Chartered Singapore

Contact No: 6596 8888

Address: 8 Marina Boulevard #27-01, MBFC Tower 1, Singapore 018981

Standard Chartered Bank in Singapore is part of an international banking group, with more than 150 years of history in some of the world's most dynamic markets. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, Here for good. The Bank has a history of 159 years in Singapore, where we opened our first branch in 1859. In October 1999, we were among the first international banks to receive a Qualifying Full Bank (QFB) licence, an endorsement of the Group's long-standing commitment to our business in the country.

Loan Application

Four Types of Personal Loans Offered by Banks


There are so many questions that people in Singapore have when it comes to personal loans. Personal loans have been the main focus of many types of experiences that people would want to have.


Whether one is focused on education or on furnishing a household, a personal loan is the right way of making sure that one would have the funds to make all experiences amazing.


With that, there are four common types of personal loans that every individual should know. In this article, you will get a guide on the four types of personal loans, compare the processing fees as well as the interest rates, and when it is the right time for you to apply for each of the loans.

What are the common types of personal loans? There are four, and they are the following;

  1. Personal Installment Loan;
  2. Line of Credit;
  3. Funds Transfer or Balance Transfer; and
  4. Debt Consolidation Plan.

It is necessary for every person to know what these loans stand for and what they can do. However, before getting any kind of personal loan, what should you have in place so you know that you can pay it off?


Things You Need To Know Before Borrowing

Before borrowing, there are a few things that you should know. First, you must have a repayment plan in place. Some people think that personal loans can do more bad than good, but that is a mistake. The truth of the matter is that personal loans can help you when you need it to, but you also have to help yourself. You must have a repayment plan in place before you take out a personal loan. You should pay it off in your head. Create a plan where you get rid of the debt and have more space for your monetary use.


You must also avoid applying for successive personal loans, whatever kind that may be. Most people would forget that they would still have to pay off whatever loan they need to pay off. If you just sit there and transfer your balance from one creditor to another, you end up not being able to pay off your loans and just getting that new loan as much as you can. Eventually, you end up ruining your credit score.


You must also know that your interest rates depend on you. Most banks use risk-based pricing to adjust interest rates. Your credit profile plays an important role in determining the level of interest that banks and lending institutions would impose on you. Keep in mind that the riskier your credit profile is, the riskier the interest rate imposed.


Finally, every borrower must know that all kinds of borrowing affect your Total Debt Servicing Ratio. Whether you take out a loan for six months or 60 months, it all affects you and your score. Plan your loans carefully.



Personal Installment Loan

Out of all the different kinds of loans, the personal installment loan is perhaps the one with different names. But, whatever it is called, one cannot deny the fact that Personal Installment Loans are used by many individuals in any country.


The Loan In Summary: This specific kind of loan allows the individual to borrow a specific sum of money and repay the amount due in equal monthly installments. There is a one-time processing fee that is usually waived by banks, and the individual would agree to repay the loan amount in fixed monthly installments of up to 60 months.


How does the bank or financial institution make money? The lender, which is usually a bank or a financial institution, would charge interest rates and fees that would be calculated for their income. This part is how they make money.


What are the fees? Personal installment loans come with a lot of fees that allow the individual to borrow the specific amount. The fees range from 2% to 5%. Bank interest rates vary depending on the bank. It is usually between 5% and 13% per annum.


How much can I borrow? You can borrow up to the available credit limit that you are qualified in. There are regulations that limit loans up to six times the individual’s income, and that is usually the amount that is followed by the lending institution.


How long is the tenure? Your loan period can have a repayment period that typically ranges from 12 months to 60 months, depending on the kind of personal loan and your credit limit.


When are personal installment loans best used? To maximize the potential of this loan, you could use it best when you need a big sum of money to cover your expense that is too big to pay in one go.


Can you give an example? The best example that applies here is if you take out a $40,000 loan. If you cannot pay this at the instance that it becomes due, you should take out a personal installment loan and gradually pay the loan. The best term here is 24 months so you can further stretch your loan and your money.



Line of Credit

Next one is the line of credit. This kind of personal loan is basically like a bank account or an overdraft facility that only charges interest when the individual withdraws from the account.


The Loan In Summary: In this kind of loan, the individual must first apply for the loan. Once approved, the loan that is approved and the funds would be available either via a cheque or an ATM. The individual may then withdraw or encash the cheque when the need arises.


How does the bank or financial institution make money? The bank or the financial institution makes money through the line of credit withdrawal. The charge is automatic and


What are the fees? When you avail of a line of credit, you will have to pay for an annual fee and interest rates upon withdrawal. The annual fee is usually at $60 and a maximum of $120 while the interest rate is at 13% to 19%.


How much can I borrow? The loan amount depends on the bank and the individual’s credit score. Banks would usually offer up to two times the monthly salary of the individual. If he has a high monthly salary and good credit standing, he can get up to four-time or six times his total monthly salary. This part does not depend on the line of credit facility alone because the borrower may also have other debts.


How long is the tenure? Loan tenure is not fixed with the line of credit. As long as you pay the interest rate and you obtain a loan and withdraw from the facility, you can continue using it.


When is a line of credit best used? If you own a business or you have children, having a line of credit is necessary for you to have a standby cash fund that you can use for emergencies. Treat this one as an emergency fund so you would have more self control with its use.


Can you give an example? If you have a small business and say that you need some nee capital, this facility would help you replenish your stocks while you wait for your company’s receivables.



Balance Transfer

Have you read something along the lines of a funds transfer or a balance transfer? If you own a credit card, you probably have. This loan facility uses your available credit. You have to pay a small one time fee, and you can extend the term of your loan. Many individuals do this to get rid of one credit card debt and transfer it to another, so he does not have to pay large finance charges.


The Loan In Summary: The process of getting a balance transfer helps the borrower transfer his outstanding balance from one credit card provider to another. It provides the borrower with breathing room on what he can borrow. Instead of paying an amount as big as finance charges, late charges, and all other charges, he only has to pay a one-time processing fee which can range from S$500 to S$30,000.


How does the bank or financial institution make money? Banks make money through the one-time processing fee. If you are unable to pay the new loan, the bank would have to charge you a big amount of interest, which is almost at least 17% of the total outstanding balance.


What are the fees? The one-time processing fee is usually between 1% to 5% of the approved loan amount.


How much can I borrow? The loan amount usually depends on your available credit limit, but the usual amount is between a minimum of S$500 to S$30,000.


How long is the tenure? The loan tenure lasts between 6 months to 12 months.


When are balance transfers best used? It is best used when the need for cash is urgent or if you are looking at reevaluating your credit standing and you do not want to pay enormous amounts of interest.


Can you give an example? If you have a total outstanding debt of S$30,000 spread out over multiple credit cards, you know that you are in a big financial problem. You are handling a lot of interest rate, and you end up paying more interest than principal.



Debt Consolidation Plan

The last kind of personal loan is the debt consolidation plan. A Debt Consolidation Plan is one scheme that is government-approved, and it is available with all leading banks in Singapore. It allows borrowers to consolidate their debts and make sure that they will have more breathing room for their debt.


The Loan In Summary: This kind of loan applies to all kinds of debts. Once approved, the new bank will take over all of the loans and make sure that all outstanding debts are paid for. The accounts will either be closed or temporarily suspended depending on the arrangement. The debtor will then make monthly payments to the new bank. You can refinance your loans and make sure that you pay less in the process.


How does the bank or financial institution make money? Since this is a government-approved scheme, banks and lenders do not make a lot of money with it. The only charge is the interest charge once you default on a payment.


What are the fees? There are no fees.


How much can I borrow? The total loan will depend on the total outstanding balance on your credit cards. At a minimum, you must borrow at least 12 times your monthly salary before you can apply for this kind of loan.


How long is the tenure? Loan tenure is between one to ten years.


When is debt consolidation plans best used? When you are already deep in debt and need help on making some changes, you can go for this kind of personal loan.


Can you give an example? If you have an outstanding debt of $100,000, you can still help yourself by applying for a debt consolidation plan.



Decide The Best One For You

The different kinds of loans are there because it depends on your needs. Before making a decision, always weigh your option and make sure that you would only borrow within the range of your need.


There are a few questions that you must ask yourself first, and they are the following:

  • How much do you need to borrow?
  • How long do you need the loan for?
  • When do you need the money?
  • Do you want the option to access more money?
  • Can you afford to repay the loan?
  • Is there a way that you can automatically pay off your loan?

The above questions may be hard to swallow questions, but addressing them now would help you address your finances with a better point of view. Never take the risk of getting a loan without doing your research.


If you have bad credit and can't get a loan with banks, you may want to try getting a loan with licensed money lenders.