Best Personal Lines of Credit 2018
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. Here, we discuss the best personal line of credit offerings in Singapore to help you compare the offerings and make the best financial decision.
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
- Promotion: Applicants for HSBC's Personal Line of Credit receive preferential Balance Transfer rates: 0% for 6 months, with upfront processing fee of 1.38% (EIR: 3% p.a.); 4.88% for 12 months, with no processing fee (EIR: 4.88% p.a.)
Cons of HSBC Personal Line of Credit
- Maximum credit limit of S$100,000
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 Personal Line of Credit for Low Income Borrowers: DBS Cashline
DBS Cashline is the best line of credit for with a minimum income requirement below S$30,000. DBS stands out as a lender offering personal line of credit loans to individuals with annual incomes of at least S$20,000 because it waives its first annual fee and due to its current Grab voucher promotion. Additionally, DBS Cashline charges interest rates of 29.8%, the same rate charged by competitors for low income borrowers.
Pros of DBS Cashline for Low Income Borrowers
- Interest rate of 29.8%, same as competition
- Maximum credit limit of 2x your monthly salary
- Promotion: Up to S$80 in Grab vouchers
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%||2x 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$100, waived 1 year||20.95%||4x monthly salary|