A personal line of credit is a loan you use like a credit card. A bank approves your entire "loan" at once, but you only "draw" however much you need at any given time, and pay interest only on what you've actually borrowed. A personal line of credit can be a useful tool when you need to borrow a small amount of money in increments, and is especially useful for people with irregular income. It can also be helpful if you need to spend a relatively large sum that you don't currently have. Here, we discuss the best personal line of credit offerings in Singapore to help you make the best financial decision.
Table of Contents
- Our Top Picks for Best Personal Line of Credit by Maximum Credit Limit
- Visual Comparison of the Best Personal Line of Credit
Our Top Picks for the Best Personal Line of Credit in Singapore
The following loan products, in our opinion, represent the best line of credit offerings currently available for consumers in Singapore. Since you only pay interest on the amount of money you draw from your line of credit, banks often charge you an annual fee for the ability to draw cash at anytime. While it's difficult to calculate the exact cost of a line of credit because everyone's use case is different, we combed through each product's details to find a few options with the lowest interest rate and annual fees. Below, we organise the best personal line of credit by the maximum credit limit.
Best Personal Line of Credit with Lowest Interest Rate
In our opinion, these two personal line of credit products offer the lowest cost in terms of both processing fees and interest rates. Read our review of each product to see which one is the better fit for your needs.
Best Short-Term Personal Line of Credit: Maybank CreditAble
Maybank's CreditAble is one of our top two picks for the best personal line of credit in Singapore. First, its annual fee of S$80 is waived for 2 years, which is the best option we've seen in the market. Although its effective interest rate is in line with the market average around 19.8%, it actually offers a super low rate of 9% for the 1st year. Because of these two features, Maybank's CreditAble is by far the cheapest option for someone who is looking for a personal line of credit in Singapore.
Pros of Maybank CreditAble
- Promotional rate of 9% for the 1st year (19.8% from 2nd year)
- S$80 of annual fee, waived for 2 years
- Promotion: S$120 cashback for online applicants
Cons of Maybank CreditAble
- Its interest rate after the 1st year is quite average compared to other products
- Maximum credit limit of 4x your monthly salary
Best Long-Term Personal Line of Credit: HSBC Personal Line of Credit
If you are looking for a longer-term personal line of credit, HSBC's personal line of credit is the way to go. Although its annual fee is waived for only 1 year, its fee is already lower than all other banks at S$60. Not only that, its effective interest rate is the lowest in the market at 18.5%, compared to 20% charged by other banks. Therefore, if you are looking to open a personal line of credit that you will need to use over a few years, HSBC's offer can be the most effective and the cheapest option for you.
It's also worth mentioning that HSBC has even cheaper rates for HSBC's loyal customers who have either a HSBC Revolution Card or Advance/Premier status with the bank.
Pros of HSBC Personal Line of Credit
- Lowest interest rate in the market of 18.5%
- S$60 of annual fee, waived for 1 year
Cons of HSBC Personal Line of Credit
- Maximum credit limit of 2x your monthly salary
Best Large Personal Line of Credit: DBS Cashline
If you are looking for a very large line of credit for personal use, then DBS Cashline is definitely the most ideal option for you. While most personal line of credit products have a maximum credit limit of 4-6x your monthly salary, DBS's Cashline allows you to borrow up to 10x your monthly salary if you make S$10,000 per month (or S$120,000 per year).
Pros of DBS Cashline
- Interest rate of 19.8%, similar to other banks
- Maximum credit limit of 10x your monthly salary (for annual income of at least S$120,000)
- Promotion: S$180 of cash back for online applicants
Cons of DBS Cashline
- High annual fee of S$100 per year, waived for 1 year
Visual Comparison of the Best Personal Line of Credit in Singapore
Below, we compare the total cost, including annual fee and interest, of different personal lines of credit from each bank in Singapore. This assumes a scenario where you take out a S$10,000 of line of credit for 1 month.
Summary Table of the Best Personal Line of Credit in Singapore
If you are interested, below is a summary table of the best personal line of credit products in Singapore.
|Annual Income Requirement||Annual Fee||Interest Rate||Maximum Credit Limit|
|Maybank CreditAble||S$30,000||S$80, waived 2 years||9% 1st year, 19.8% subsequently||4x monthly salary|
|HSBC Personal Line of Credit||S$30,000 (S$40,000 for foreigners)||S$60, waived 1 year||18.5%||2x monthly salary|
|Revolution & Advance Customer||S$60, waived 2 years||16.5%||2x monthly salary|
|Premier Customer||S$0||12%||2x monthly salary|
|DBS Cashline||S$20,000||S$100, waived 1 year||29.8%||4x monthly salary|
|S$30,000||S$100, waived 1 year||19.8%||4x monthly salary|
|S$120,000||S$100, waived 1 year||19.8%||10x monthly salary|
|OCBC EasiCredit||S$20,000||S$80||29.8%||2x monthly salary|
|S$30,000 (S$45,000 for foreigners)||S$80, waived 1 year||19.98%||4x monthly salary|
|S$120,000 (S$120,000 for foreigners)||S$80, waived 1 year||19.98%||6x monthly salary|
|UOB CashPlus||S$30,000||S$80||19.8%||4x monthly salary|
|S$120,000||S$80||19.8%||6x monthly salary|
|Citibank Ready Credit||S$30,000 (S$42,000 for foreigners)||S$80, waived 1 year||19.95%||4x monthly salary|