POSB Personal Loans Singapore

Uncertain financial events occur and are beyond our control. No matter how careful we are in handling money, these events can highly affect our budgeting. And it can even wipe out our hard-earned money. 

And we can’t afford to make it happen. 

But what if financial emergencies happened. What do Singaporeans do to not, at least, hurt their hard-earned savings? 

Read on and find out how personal loans can help you relieve other financial stress.

Table of contents

Why Do Singaporeans Take up Personal Loans?

Top 3 Reasons Why Singaporeans Take Personal Loans

Other reasons why Singaporeans take a personal loan

Get a Personal Loan in Singapore

A Quick Review About POSB Singapore

Facts about POSB Personal Loan

How can I apply for POSB Personal Loan?


Why Do Singaporeans Take up Personal Loans?

Due to the event of coronavirus, a lot of changes happened, especially to people’s lifestyle and behavior. And that includes the behavior toward personal finances.

That said, a group surveyed Singaporean’s financial behavior, specifically about taking a personal loan.

Top 3 Reasons Why Singaporeans Take Personal Loans

To Cover Daily Expenses

As mentioned earlier, we can’t avoid some financial emergencies which are beyond our control. What usually happens is that we use the money that is saved and kept overtime.

If you don’t want to touch your savings during these emergencies, you can take a personal loan like what Singaporeans do.

To Help a Family, a Relative, or a Friend

A lot of families are financially affected by the pandemic crisis. This is why Singaporeans are extending their help to support their loved ones. The loan amount could either be used for their medical or other needs.

To Help Finance a Mortgage

Buying a home is one of the big purchases that an individual can have. And it isn’t easy. It is quite hard to pay a mortgage deposit upfront.

What Singaporeans do is they take a personal loan to help finance the mortgage. 

Note: Lenders will look on to borrower’s debt-to-income ratio, your earnings versus on how much you owe. If it shows that you can afford both mortgage and personal loan, the lender may consider your application. 

Other reasons why Singaporeans take a personal loan

  • To buy a car
  • To pay off credit card debts
  • To help fund home renovations
  • For engagement, proposal, and wedding expenses
  • To pay for funeral

Source: Singaporean personal loan statistics 2020

Now that you know the reasons why Singaporeans take a personal loan, the next question is where to get a personal loan in Singapore?

Get a Personal Loan in Singapore

There are many banks and other financial institutions in Singapore. Such entities are offering a variety of financial products and services. And all are abiding with the Ministry of Finance.

One of these financial entities is POSB or the Post Office Savings Bank. Read on to know more.

A Quick Review About POSB Singapore

POSB or the Post Office Savings Bank is the oldest local bank that still operates in Singapore. The bank is known to offer low-cost banking services to Singaporean citizens.

It was once a statutory board under the Ministry of Finance. Not until DBS Bank acquired the entity on November 16, 1998.

The bank has the highest number of branches and ATM outlets in the suburbs of Singapore. And it continues to offer a low cost for basic savings accounts to the citizen and permanent residents.

Facts about POSB Personal Loan

POSB Personal Loan: Key Features

Personal Loan in POSB offers a feature of instant approval for existing DBS/POSB credit card and savings account. Plus, POSB disburses cash quickly if applied via DBS iBanking account on MoneySmart. 

You can take a minimum loan amounting to S$500, and a maximum amount that is 10x monthly salary. Enjoy a flat rate interest as low as 3.88% per annum with a loan of tenure from one year up to five years. 

Expats can borrow personal loans in POSB but with a limited loan tenure – one to two years loan tenure. 

POSB Personal Loan: Eligibility

POSB Personal Loans is only available to Singaporean and Permanent Residents who are aged 21 to 65 years old. Either you’re employed, self-employed, or commission earner, you can apply for the loan as long as you earn at least S$30,000 of annual income.

Also, POSB requires personal loan applicants to have a Cashline and/or Credit Card account (that is to grant the loan amount) and a DBS/POSB account (that will be used for loan disbursement).

If you don’t have an existing Cashline and/or Credit Card account, you’ll need to submit some documents. 

For Salaried Employees:

  • Submit a copy of NRIC (front and back)
  • Your latest 1 Year Income Tax Notice of Assessment (NOA)+ with an additional payslip or the CPF Contribution History Statement for the last nine months (latest).

For Self-Employed and Commission-based employees:

  • Submit a copy of NRIC (front and back)
  • Your latest 1 Year Income Tax Notice of Assessment (NOA)+

OR, you may choose to apply alternatively via MyInfo. 

Note: Incomplete or failure to submit the required documents will cause a delay in processing your POSB Personal Loan. 

If you don’t have a DBS/POSB account yet, you can directly apply through POSB and choose the desired account.

POSB Personal Loan Interest Rates

Enjoy an interest rate as low as 3.88% per annum with POSB. However, the said interest will be subject to verification. 

In other words, the interest rate will be personalized based on the borrower’s risk profile and credit history. This is to make sure that the borrower has the capability of paying the debt over time. 

POSB Loan of Tenure

Personal Loan of POSB has a Loan Tenure from 12, 24, 36, 48, and 60 months. You choose a tenure you think you can afford to repay your debt over time.

POSB Personal Loans: Loan Fees

Be aware of the following loan fees when taking a personal loan in POSB. 

  • Processing fee (1%)
  • A late payment fee: Credit Card S$100; Cashline S$120
  • A Full Repayment Penalty: S$250 

If you don’t want to miss your monthly payments, save the date on your smartphone’s calendar, and set-up an alarm. Do this and you can avoid the late payment charges. 

How can I apply for POSB Personal Loan?

You can choose from POSB’s loan application options:

Chat Banking

Take the 6 simple steps in applying for Personal Loans via Chat Banking. 

Step 1: If you can see a message button at the lower right part of POSB’s website, as shown above, click it. 
Step 2: Type in Personal Loan then select Apply for Loan.
Step 3: If you have an existing account, select Credit Card, and Deposit Account.
Step 4: If prompted, select Authenticate Me and use either your iBanking login or Card & PIN for authentication. 
Step 5: Type in your desired Loan Amount and choose your preferred Loan of Tenure, Credit Card, and Deposit Account.
Step 6: Review and verify your loan details before you click the Confirm button. Once confirmed, your loan application is complete.

digibank Mobile

POSB’s mobile app is available for iOS and Android Users. Here are the steps on how to apply through digibank mobile.

Step 1: Log in to the app with your Touch/Face ID or your digibank User ID and PIN
Step 2: Click More and choose Personal Loan under Apply
Step 3: Select the account you wish to use to maintain your loan – Credit Card/Cashline Account
Step 4: Key in what Loan Amount you desire to borrow. Then select your preferred Loan of Tenure. (Note: The Loan amount up to an individual’s available limit will be reflected.)
Step 5: Select your Savings/Current Account where the loan will be credited into. Then tap Next
Step 6: Review all the loan details and then tap Apply Now to complete your application. 

Online Form

You can go to the DBS iBanking site to apply for Personal Loan. 

Step 1: Simply log in with your User ID and PIN, or iBanking Login
Step 2: Tap on your selected Card Type and key in your Card Number and PIN
Step 3: Enter how much Loan Amount you want to borrow. And then select your desired Loan Tenure
Step 4: Select what account your want to use to apply for the loan – Credit Card/Cashline Account.
Step 5: Select your Savings/Current Account where the loan amount will be credited. Then click Continue
Step 6: Verify all the details, provide authorization, and click Submit Application


POSB has been servicing Singaporeans for decades offering low-cost banking services. In times of a tight budget, you can take a POSB Personal Loan to support your finances. 

For you to not get into a series of debt, use it SMARTLY. If you don’t have enough knowledge about loans, talk to a financial expert, and seek advice before you decide to get one.

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