DBS Personal Loan vs DBS Cashline: How They Compare

Q: Is DBS Personal Loan or DBS Cashline cheaper?

It depends on how you use it. DBS Personal Loan's EIR of 3.22% p.a. is fixed and predictable. DBS Cashline's 22.9-29.8% p.a. is charged only on what you draw, so a small, quickly repaid amount can cost less overall than a loan's full interest, but a balance left outstanding for months will cost considerably more.

DBS offers two very different ways to borrow outside a credit card: the DBS Personal Loan, an instalment loan with a fixed repayment schedule, and DBS Cashline, a revolving line of credit you draw from as needed. They solve different problems, and their advertised rates aren't directly comparable – here's what each one actually costs.

DBS Personal Loan

Key facts at a glance:

Advertised from 1.48% p.a. (flat rate), with an effective interest rate (EIR) of 3.22% p.a.
Processing fee: 1%
Lump sum, repaid in fixed monthly instalments over a set tenure
Minimum income: $20,000 p.a. for Singaporeans and PRs
Existing DBS/POSB Cashline or credit card holders can apply without income documents

DBS Cashline

Key facts at a glance:

Rate: 22.9% p.a. for annual income of $30,000 and above, or 29.8% p.a. for $20,000 to below $30,000
Annual fee: $120 (waived in year one)
You only pay interest on what you draw, and you can redraw as you repay
Nominal rate is far higher than the Personal Loan's EIR, but it reflects the flexibility of drawing and repaying on your own schedule

Why the rates aren't directly comparable

DBS Personal Loan's 3.22% EIR reflects a fixed schedule where you know the total cost upfront. Cashline's 22.9–29.8% p.a. is charged on your outstanding daily balance for as long as it's outstanding, with no fixed end date – so a small amount repaid quickly can cost very little, while a balance carried for months adds up fast. The higher headline rate isn't a sign Cashline is a worse product; it reflects the flexibility of drawing and repaying on your own schedule.

Which one fits

DBS Personal Loan suits a known, one-off cost – renovation, a wedding, consolidating existing debt – where a fixed schedule helps with planning.
DBS Cashline suits recurring or unpredictable cash flow needs where you want funds on standby without reapplying each time, and you're confident you can repay drawn amounts quickly.

Frequently asked questions

Is DBS Personal Loan or DBS Cashline cheaper?

It depends on how you use it. DBS Personal Loan's EIR of 3.22% p.a. is fixed and predictable. DBS Cashline's 22.9–29.8% p.a. is charged only on what you draw, so a small, quickly repaid amount can cost less overall than a loan's full interest – but a balance left outstanding for months will cost considerably more.

Can I have both DBS Personal Loan and DBS Cashline at the same time?

Yes, they're separate facilities, though your total borrowing across both (and other credit facilities) is still subject to Singapore's overall unsecured credit limits based on your income.

How do DBS Personal Loan and DBS Cashline compare to other banks?

Rates, fees and minimum income vary by bank and product type. Comparing personalised offers from multiple banks and financial institutions side by side, rather than applying to each separately, makes it easier to see which structure and rate actually suits your situation.

Why compare with Lendela

Whichever DBS product fits your situation, it's worth seeing it alongside what else is out there before you commit.

Rates, fees and eligibility for personal loans and credit lines vary more between banks and financial institutions than most people expect, and the only way to know you're getting a fair deal is to compare.

Lendela matches you with personalised offers from 70+ banks and financial institutions through a single application – no need to approach each one separately or fill in the same details again and again.