POSB Personal Loan Singapore: Quick Review
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 worse, it can wipe out your hard-earned money. And thus, we can’t afford to make it happen.
But what if it happened? What if, right now, you’re facing emergencies and don’t know what to do next? All these are “real-life” situations that are just temporary. If you’re looking for a solution, you just came to the right place.
In this article, you’d be able to know what Singaporeans do to not, at least, hurt their hard-earned savings when facing urgent expenses.
Table of Contents
Why Do Singaporeans Take up Personal Loans?
Due to the event of coronavirus, a lot of changes happened, especially to people’s lifestyle and behaviour. And that includes the behaviour toward personal finances.
That said, a group surveyed Singaporean’s financial behaviour, 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 over time.
If you don’t want to touch your savings during these emergencies, you can take a personal loan as 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 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.
What can POSB Personal Loan can offer?

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
Features of POSB Personal Loans
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 of 10x monthly salary. Enjoy a flat rate interest as low as 3.88% per annum with a tenure loan 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.
Eligibility Requirements when getting a POSB Personal Loan
POSB Personal Loans is only available to Singaporean and Permanent Residents aged 21 to 65. 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.
Interest Rates of POSB Personal Loan
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. It’s one way to ensure the borrower’s capability of paying the debt over time.
Loan Tenure of POSB Personal Loans
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.
Fees when getting a POSB Personal Loans
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
To use Chat Banking, you need to visit POSB’s website. It’s a messaging feature that you can find right at the lower right part of their website. You can refer to the image provided above.
Your next step is to type in “Personal Loans“, then select “Apply for Loan.” If you have an existing account, select “Credit Card and Deposit Account.”
Once it is prompted, select “Authenticate Me” and use either your “iBanking login” or “Card & PIN” for authentication. Then, you type in your desired Loan Amount and choose your preferred Loan of Tenure, Credit Card, and Deposit Account.
After that, review and verify your loan details before clicking the “Confirm” button. Once confirmed, your loan application is complete.
digibank Mobile

POSB’s mobile app is available for iOS and Android Users. All you need to do is download the app either at App Store or Play Store. Launch the app, and you can now log in.
Use your Touch or Face ID or your digibank User ID and PIN to log in. Then, you can proceed by clicking the “More” button and select “Personal Loan” under Apply.
Right after that, select the account you wish to use to maintain your loan – Credit Card or Cashline Account. Then after selecting, key in what Loan Amount you desire to borrow. Choose your preferred Loan of Tenure.
(Note: The Loan amount up to an individual’s available limit will be reflected.)
The next step is to select your Savings or Current Account where the loan will be credited into. Then tap “Next“.
Review all the loan details first before you tap the “Apply Now” button. Once you click that button, your application is complete.
Online Form

You can go to the DBS iBanking site to apply for Personal Loan.
First, log in with your User ID and PIN, or iBanking Login. Then, go tap on your selected Card Type and key in your Card Number and PIN.
You’ll be asked how much Loan Amount you want to borrow. So, type in your needed Loan Amount, then select your desired Loan Tenure.
Choose what account you want to apply for your loan. For example, it could be your Credit Card or Cashline Account.
After choosing, select your Savings or Current Account where the loan amount will be credited. Then click the “Continue” button.
You must verify all the details. Then, 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 deciding to get one.
But if you need a flexible, low-interest personal loan, you can opt to take one from a licensed moneylender like Cash Mart Singapore. You get the loan proceeds in not time.