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What’s the cheapest way to borrow money in Singapore?

cheapest way to borrow money in Singapore

Getting a loan in Singapore is not an easy task. The country holds some proper laws in place for the money borrowing with the annual fees, processing fees, and then interest rates. Whereas, there are ways through which you can get the loan on cheap terms that will help you in meeting your financial needs. 

It is somehow fortunate for the residents or foreigners in Singapore that they can reach out to the reliable banks for getting these loans that offer lenient repay terms. Some of these are mentioned below: 

Standard Chartered bank loan 

They offer you loan maximum up to $250,000 and a minimum $1000 or up to four times higher than your salary. The smart way to avoid hefty interest rate is by applying via MoneySmart. With MoneySmart, you just have to pay a rate of 3.88 percent per annum. For the personal loan appliers, the processing fees are waived that is $199 usually. The good thing about Standard Chartered is that they get you to cash the very next day that none of the other competitors like HSBC or Citibank offers. 

 Citibank loan 

You need to have a salary of $42,000 as a foreign worker or $30,000 as a Singaporean resident. They also propose you with the loan amount that is four times than your current annual salary. However, the interest rate is 4.55 percent annually. The loan is called Quick Cash by Citibank. The positive thing about Citibank is that you can get the loan approval within an hour and the amount is in your account the very next day. For the quick deposit of amount, you must be a Citibank account holder and if you do not have an account, then it will take approximately 5 working days. 

Citibank has stern regulations about late payments that are if you have not paid by 2 months, your loan will be halted and you will still have to pay the remaining loan amount as a penalty. The processing fee is nil for the Quick Cash customers. 

HSBC loan 

The HSBC personal loan is a kind of economical solution for all those who are in need of some big amount, but early repayment is stopping them to chase their desires. HSBC brings you the repayment period of up to seven years that is enough to pay bit by bit. The interest rates are 3.7 percent that is the most favorable as compared to the other banks in the industry. They actually have two interest rates that are 4 percent for those who have a salary amount of $80,000 annually. If you choose to pay early before 7 years, then the interest rate drops down to 3.7%. This bank also does not charge any processing fee, but the late payment has to be paid about $75 if you are unable to repay the monthly installment. 

UOB loan 

Before applying for the personal loan at UOB, it is advised to get the account or credit card as they pay via their credit card. While applying for the loan, you can get a credit card at the same time. They charge a bit higher interest rate that is 4.99% and your borrowing amount is dependent on your credit limit. If you are earning $30,000 per year, then applying for finance is not an issue here. They get you a quick loan approval while the submission timings are from 7 in the morning till 8 pm in the evening.