Best Unsecured Debt Consolidation Loans – This list contains our recommendations for the best personal loans available to foreigners living in Singapore. We took into account, among other things, interest costs, fees, loan terms and promotions. The average effective interest cost of all personal loans in Singapore is around 13% to 15%; however, many of the loans on this list charge much lower interest rates, making them more affordable. In addition to low interest rates, you should choose a loan that allows you to make affordable monthly payments in the shortest time you can manage.
*Assuming a loan of S$10,000 and an income of S$40,000 (Please note that the above rates are not indicative of your customized loan offer)
Best Unsecured Debt Consolidation Loans
An HSBC personal loan is the best option for most borrowers. Firstly, HSBC’s effective interest rate of 6% is the lowest available for personal loans for foreigners resident in Singapore. In addition, HSBC has the lowest income requirement for foreigners (S$40,000) and waives the processing fee of S$88. They only offer personal loans for up to 5 years. This allows borrowers to reduce their monthly costs by spreading the loan over a longer period.
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An HSBC personal loan is the best option for most borrowers. Firstly, HSBC’s effective interest rate of 6% is the lowest available for personal loans for foreigners resident in Singapore. In addition, HSBC has the lowest income requirement for foreigners (S$40,000) and waives S$88 administration fees. Finally, the HSBC personal loan is the only loan that offers terms of up to 7 years, compared to some other banks that only offer personal loans with terms of up to 5 years. This allows borrowers to reduce their monthly costs by spreading the loan over a longer period.
If you can’t get a cheaper loan from a bank, Lendela is a great way to compare the best loans from lenders. This platform provides potential borrowers with a selection of tailored loan offers to compare. Lendela also has a relatively low salary requirement ($1,200 per month) and most applicants receive more than 1 loan offer on the same day. This is why Lendela is a solid choice for those who do not qualify for bank loans.
OCBC installment loans are among the cheapest personal loans available to foreigners residing in Singapore. This is partly due to the bank offering an exclusive 3.5% rate to new bank applicants who apply through . This means that the OCBC Installment Loan is not the cheapest personal loan option for those who currently bank with OCBC.
HSBC offers the most affordable debt consolidation plans for foreigners living in Singapore thanks to its low interest rates. For example, for loans with maturities of 1 to 7 years, HSBC only charges a flat rate of 4%, compared to other banks that typically charge 5 to 6%. For longer terms of 8 to 10 years, rates of 5.7% are still the cheapest compared to other lenders who charge at least 6%. Additionally, online applicants will receive a S$100 cashback and processing fees will be waived.
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Unlike personal installment loans, personal lines of credit allow borrowers to draw on affordable credit and features similar to a credit card. This form of loan is advantageous because interest is charged only on the amount you actually borrow. As a result, it can even be cheaper than a traditional personal loan, depending on your borrowing habits.
HSBC is the best long-term personal credit line available to foreigners residing in Singapore. The bank charges the lowest effective interest rate of 18.5% for this type of loan, while other banks charge 20% and more. In addition, HSBC waives the annual fee (S$60) for 1 year for new customers and 2 years for Revolution, Advance and Premier customers.
Maybank’s Creditable is another great personal line of credit that foreigners may want to consider. While this loan charges higher effective interest rates (starting at 19.8%) than HSBC, Maybank’s promotional interest rate during the first year of its personal lines of credit is very low at 9%. This factor makes Creditable a good choice for those who want a line of credit for 2 years or less.
As with any big financial decision, we strongly recommend that you compare all of your options before choosing a personal loan. While personal loans charge lower interest rates than credit cards and typically have lower principal than home loans, they are not a trivial endeavor. With this in mind, we recommend that you carefully consider a number of factors before applying for a loan.
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First, it is necessary to compare the total cost of each loan. This consists of interest costs and various fees. When comparing interest rates, it is essential to understand the difference between an effective rate and a fixed rate. The flat rate helps you calculate the total interest you owe over the life of the loan. On the other hand, the effective interest rate (EIR) represents the true economic cost of your loan and helps you compare the interest rates of different types of loans. Other fees include everything from loan processing fees to late fees. It is important to check the cost of each loan before applying to understand any cost differences.
In addition, it is important to consider your monthly payment for each loan. For example, you want to choose a loan that you can repay on time and that does not limit your budget too much. Long-term loans usually require lower monthly payments. However, these loans also tend to have higher overall costs. You need to balance these factors to find the loan that best suits your financial situation.
There are several types of personal loans offered in Singapore. The most common are installment loans. These loans provide borrowers with a lump sum upfront, which borrowers then repay in monthly installments over the life of the loan. Personal installment loans are useful for individuals who need cash to pay for large one-time expenses. Lines of credit or personal lines of credit are another common type of personal loan. A personal line of credit allows borrowers to “withdraw” money as needed based on a limit set by their bank. These borrowers only pay interest based on the amount they actually borrow. Therefore, these loans can be cheaper than other personal loans depending on your borrowing habits. Personal lines of credit are especially useful for individuals who plan to borrow small amounts on an ongoing basis.
If you have already accumulated a significant amount of personal debt and are looking for a personal loan to pay off your existing debts, you should consider a balance transfer or debt consolidation loan. Both types of loans help borrowers consolidate and pay off their existing loans. For example, balance transfers create one new loan by combining a borrower’s existing debts. These loans are particularly attractive to those who expect to pay off their debts in a short period of time, as these loans usually offer an interest-free period of 3 to 12 months. On the other hand, debt consolidation loans are best for borrowers who need a longer-term option to consolidate their personal debts. These loans provide a lump sum of cash to be used specifically to pay off various existing loans.
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Typically, licensed lenders require loan applicants to provide proof of identity, address and income. As proof of identity, foreigners are generally required to present a copy of their work card and passport. Applicants can usually provide any official document to prove their address, such as a utility bill with name and address. Finally, proof of income usually requires borrowers to provide their Central Provident Fund (CPF) contribution history statement, latest income tax slip or automated pay slip, or have their salary credited to the lender’s bank account.
See our summary table for the range of foreigner loans offered by licensed lenders to foreigners resident in Singapore.
To come up with our best list of personal loans for foreigners in Singapore, we’ve collected data on all personal loans from over 10 top lenders in Singapore, which are listed in our table below.
We then calculated the total cost of each loan. These fees include everything the borrower ultimately pays the bank, other than the loan principal, including processing fees, administration fees, and interest rates. We also considered promotions such as fee waivers or cashback that reduce the overall cost of the loan. We assume that borrowers make their monthly payments on time, which helps them avoid additional charges such as late payment or early repayment fees. This page only deals with loans offered to foreigners residing in Singapore. We have also developed a comprehensive list of the best personal loans in Singapore for those interested.
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Stephen Lee is a Senior Research Analyst at , specializing in insurance. He holds a BA in International Studies from the University of Washington and his previous work experience includes risk management and
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