Personal loan rates in Singapore have reached a five-year low, dropping below 2% per annum (pa) for the first time since 2020. This significant decrease presents a potentially advantageous opportunity for consumers considering debt consolidation, home improvements, or major personal expenses. According to a review by personal finance platform SingSaver, the rates have steadily declined from an average of 3.88% pa between 2020 and 2023 to as low as 1.85% pa in 2025.
The review highlighted the current personal loan rates from major banks in Singapore. United Overseas Bank (UOB) offers a rate of 1.85% pa with an effective interest rate (EIR) of 3.40%, whilst DBS Bank provides a rate of 1.99% pa with an EIR of 4.17%. OCBC Bank and Standard Chartered offer rates of 1.98% pa and 1.90% pa, with EIRs of 4.19% and 3.63%, respectively. This marks a sharp decline from previous years, with DBS maintaining a consistent rate of 3.88% pa from 2020 to 2023 before dropping to 2.68% pa in 2024 and further to 1.99% pa in 2025.
The current sub-2% offerings could result in significant interest savings over a typical three to five-year loan term. SingSaver’s analysis suggests that for financially disciplined individuals, this could be a strategic time to secure lower-cost credit. However, the decision to borrow remains personal, and responsible borrowing and careful comparison are essential. For more information on current offers and terms, consumers are encouraged to visit SingSaver’s Personal Loan Comparison Tool.
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