What is the POSB Personal Loan?

The POSB personal loan is a financial package offered by POSB Bank which can be used for your own purpose. It comes with a competitive interest rate and fast cash disbursement. This is a loan product that is easy to apply but you will need to first have an account with POSB Bank or DBS Bank in order to qualify.

What are the unique features of the POSB Personal Loan?

With this personal loan, you can enjoy:

• Low-interest rate from 3.88% per annum of AIR
• 1% processing fee
• Quick cash will be deposited into your account.
• Loan amount of up to 10 times your monthly salary  (if you earn more than SGD120,000 per year)
• A fixed monthly repayment schedule from 1 to 5 years.
• Minimum of 7.56% per annum of EIR
• How do I apply for the POSB Personal Loan?

It must be noted that you must be an account holder with POSB or DBS bank in order for you to receive the funds if your application is approved. For existed account holders, you will need to log in to your online banking and then choose the amount and tenure of your choice. Then submit the application and once approved, you will receive the cash in your account.

What are AIR and EIR?

AIR stands for Applied Interest Rate. Basically, it is the rate where the interest payable on your loan is calculated and imposed. This uses a flat rate basis method. For example, if the AIR is 3.88% and you take a SGD$20,000 loan for 5 years. The AIR here is calculated on:

• SGD$20,000 (amount borrowed) x 3.88% per year x 5 years = SGD$3,880.
• SGD$3,880 would be the total interest payable.

Meanwhile, EIR stands for Effective Interest Rate. This generally refers to the actual cost of borrowing. It uses a reducing balance method, very much the same as how home or mortgage loans are calculated.

Am I eligible to apply for the POSB Personal Loan?

This product is available if you are:

• A Citizen or Permanent Resident of Singapore
• Between 21 and 75 years of age
• Earn a yearly income of more than SGD$20,000
• A foreigner who has a Credit Card or Cashline account with POSB Bank
• Once you have submitted your application, you will receive an SMS that will confirm that your application has been successful. The amount that you applied for will then be disbursed into the account information that you provided in your application.