How Do Banks Determine Personal Loan Approval in Singapore?

Need some quick cash to tide you over in Singapore? A personal loan might be the solution you’re seeking. But how can you be sure if you qualify for one? Fortunately, the process isn’t as complicated as it may seem. In fact, it’s relatively straightforward. In this post, we’ll dissect the critical factors that determine whether your loan application gets the green light or the boot. 

Eligibility Criteria

To successfully obtain a personal loan in Singapore, satisfying certain eligibility requirements is vital. These criteria typically involve earning a minimum income, possessing Singaporean citizenship or permanent residency, and maintaining a healthy credit rating. 

Alongside these fundamental factors, financial institutions may also take into account additional aspects like employment status, age, and current financial obligations during their evaluation.

Age21 to 65 years old
Minimum Annual IncomeS$20,000 or S$30,000
Employment Status Employed or Self-Employed 
Citizenship Singaporean, Permanent Resident, Foreigner

Credit Score

Credit scoring is a vital factor in determining your creditworthiness when it comes to securing a personal loan in Singapore. In Singapore, the Credit Bureau Singapore (CBS) calculates credit scores, which range from 1,000 to 2,000, with higher scores implying a more impressive credit history. 

Banks use credit scores to evaluate an applicant’s credit risk, determine interest rates, and finalize other loan terms. A higher credit score can lead to better loan terms, such as lower interest rates, while a lower score may result in less favorable conditions.

Risk GradeCredit ScoreDefault Probability
AA1911 – 2000Between > = 0.27%
BB1844 – 1910Between 0.27% and 0.67%
CC1825 – 1843Between 0.67% and 0.88%
DD1813 – 1824Between 0.88% and 1.03%
EE1782 – 1812Between 1.03% and 1.58%
FF1755 – 1781Between 1.58% and 2.28%
GG1724 – 1754Between 2.28% and 3.48%
HH1000 – 1723Between > = 3.48%

Debt-to-Income Ratio

Your debt-to-income ratio (DTI) is an essential aspect that banks scrutinize when assessing your personal loan application in Singapore. This ratio measures your debt against your income, and it carries a substantial weight in the banks’ decision-making process.

To calculate your DTI, sum up all your monthly debt payments, and divide them by your gross monthly income. Then, multiply the result by 100 to obtain a percentage. 

(Gross Monthly Debt / Total Monthly Income) x 100

A lower DTI is better, with a rating of 36% or lower being the sweet spot for borrowers. A low DTI signals to banks that you have a lower risk of defaulting on your loan, which can improve your chances of approval.

Borrowing Amount

When it comes to borrowing a personal loan, the amount you request plays a significant role in the lender’s evaluation process. Be mindful of only requesting what you need and what you can afford to repay. Taking on more than necessary can lead to financial woes and loan defaults.

To secure your chances of approval, take time to calculate the amount you require and establish a realistic repayment plan. By doing so, you ensure that you don’t bite off more than you can chew, and you have a higher chance of acquiring the loan.

Annual IncomeMinimum Loan Amount Maximum Loan Amount
S$20,000S$500 or S$1,0002x or 4x times your monthly salary 
S$30,000 and above S$500 or S$1,0004x times your monthly salary
Greater than S$120,000S$500 or S$1,0006x or 10x times your monthly salary 

Loan Purpose

When it comes to personal loan applications in Singapore, the loan purpose can play a pivotal role in determining whether the bank will approve or reject the request. Certain loan purposes, like gambling or investment, can make banks hesitant to grant larger loans or approve the application altogether.

To improve your chances of getting approved, it’s important to have a clear and specific loan purpose and the ability to repay the loan. In Singapore, popular reasons for personal loans include home renovations, debt consolidation, and medical expenses. By focusing on a legitimate purpose and demonstrating your ability to repay the loan, you can enhance your chances of securing approval for the loan you need.

Employment History and Stability

When applying for a personal loan, your employment history is a crucial factor banks take into consideration. They seek stability and a consistent income stream, making it essential to have a steady job.

Banks prefer borrowers who have a stable employment history without any extended gaps. This factor increases your chances of getting approved for a personal loan. If you have a short employment history or gaps in your work history, securing approval for a personal loan could become difficult.

Singapore’s Top Banks for Personal Loans in 2023

If you’re in the market for a personal loan from a bank in Singapore, you’re in luck. We’ve compiled a list of the top banks that offer exceptional loan options to meet your financial needs. 

Personal LoanInterest Rate (p.a.)EIR (p.a.)Loan AmountProcessing Fee
HSBC Personal Loan4%7.5% S$1,000 – 8x monthly salary S$0
SCB CashOne Personal Loan3.48%7.99%S$1,000 – 8x monthly salary S$0
UOB Personal Loan3.99%7.49%S$1,000 to 95% of your available credit limitS$0
DBS/POSB Personal Loan3.88%7.9%S$500 – 10x your monthly salary 1% processing fee
Citi Quick Cash Loan4.55%8.5%S$1,000 – 4x your monthly salaryS$0

HSBC Personal Loan

Looking for a top-of-the-line personal loan? HSBC Personal Loan is the answer. Boasting an incredibly low-interest rate of 4% (EIR 7.5% p.a.) and an extended loan tenure of up to seven years, this loan is the ideal solution for those who require a substantial loan with a prolonged repayment schedule. 


  • Age: 21 to 65 years old
  • Annual Income: S$30,000 (Singaporean & PRs), S$40,000 (foreigners)
  • Citizenship: Singaporean, Permanent Residents, and Foreigners  
  • Pass Type: E-Pass (for foreigners)

Standard Chartered CashOne Personal Loan

The Standard Chartered CashOne Personal Loan offers a unique solution for those who require a substantial loan at a low-interest rate. With an attractive interest rate of 3.48% (EIR 7.99% p.a.) and rapid loan approval and cash disbursement, you’ll have access to funds when you need them the most. This loan is specifically designed to cater to those who require financial assistance for big-ticket expenses. 


  • Age: 21 to 65 years old
  • Annual Income: S$20,000 (Singaporean & PRs), S$60,000 (foreigners)
  • Citizenship: Singaporean, Permanent Residents, and Foreigners  
  • Pass Type: E-Pass (for foreigners)

UOB Personal Loan

Another fantastic option for those seeking a personal loan is the UOB Personal Loan. With interest rates as low as 3.99% (EIR 7.49% p.a.) and loan terms of up to five years, it’s hard to beat. The application process is a breeze if you’re already a UOB credit card holder or CashPlus customer. Simply submit your application via the official UOB website and you can expect speedy loan approval.


  • Age: 21 and above 
  • Annual Income: S$30,000 
  • Citizenship: Singaporean and Permanent Residents

DBS/POSB Personal Loan

DBS/POSB has an exceptional personal loan option that you should not overlook. With a low-interest rate of 3.88% (EIR 7.9% p.a.), prompt loan approval, and speedy cash disbursement for current customers, this personal loan is a cut above the rest. Ideal for those with modest incomes, DBS/POSB’s personal loan offers a unique advantage compared to other bank loans. Borrowers have the flexibility to take out smaller loan amounts, starting from as little as S$500. 


  • Age: 21 to 65 years old
  • Annual Income: S$20,000 (Singaporeans & PRs), S$45,000 (foreigners)
  • Citizenship: Singaporean, Permanent Residents, and Foreigners with Cashline or Credit Card Accounts

Citi Quick Cash Loan

If you’re seeking a personal loan tailored to your specific requirements, Citibank has the perfect solution. With a competitive interest rate of 4.55% (EIR 8.5% p.a.) for existing customers and an even lower rate of 3.45% (EIR 6.5% p.a.) for new clients, this loan is an excellent choice for those seeking a small sum for a short repayment term. Though the interest rate is slightly higher than other loans, you’ll receive the funds you need fast and hassle-free.


  • Age: 21 to 65 years 
  • Annual Income: S$30,000 (Singaporeans & PRs), S$42,000 (foreigners)
  • Citizenship: Singaporean, Permanent Residents, and Foreigners 
  • Pass Type: E-Pass (foreigners)

Tips for Getting Approved for a Personal Loan in Singapore

Scoring a personal loan in Singapore can seem like an uphill battle, but with the right strategies, it’s a surmountable challenge. Here are some tactics to bolster your chances of securing that loan:

✅ Check Your Credit Score and Report: Before applying for a loan, make sure that your credit score and report are accurate and up-to-date. If your score is less than stellar, take corrective steps to strengthen it before seeking a loan.

Find Your Ideal Lender: Different banks in Singapore have varying lending policies and criteria. Research and compare lenders to find one that aligns with your financial needs and profile.

✅ Organize Your Documentation: Proper documentation is crucial, including income and employment verification, bank statements, and identification proof. Make sure that you have all the necessary documents in order to streamline the loan application process.

Lower Your Debt-to-Income Ratio: By decreasing your debts or increasing your income, you can improve your debt-to-income ratio. This will boost your likelihood of loan approval and bolster your financial well-being.


Knowing how banks analyze your personal loan application is essential if you’re considering borrowing in Singapore. Your credit score, employment history, loan size, and debt-to-income ratio all contribute significantly to your approval chances. With this information, you can take strategic steps to enhance your odds of success. Once you receive the loan, you can focus on fulfilling your financial objectives, including paying off debts or expanding your investment portfolio.

Open Up Financial Possibilities with Accredit Moneylender

If you’re feeling let down by traditional banks and their strict lending standards, don’t fret. Accredit is the dependable licensed moneylender in Singapore that has your back. We offer a seamless loan application process that won’t leave you stressed out, even if you don’t meet the typical bank loan requirements.

With Accredit, you’ll have access to more flexible eligibility criteria, transparent loan terms, and a potential avenue toward financial security. So if you’re in dire need of financial aid and have been denied by traditional banks, turn to Accredit for the solution you deserve. 

Apply now to take the first step toward financial freedom.

Awarded by Ministry of Law to operate a new Pilot Programme, we have been providing transparent and quality service since 2002.


Tampines Branch
(+65 6226 2662)
Yishun Branch
(+65 6219 2662)
Hougang Branch
(+65 6245 2662)
Clementi Branch
(+65 6261 2662)

Accredit @ Yishun

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm

Accredit @ Tampines

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm

Accredit @ Hougang

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm

Accredit @ Clementi

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm