Before applying for a personal loan in Singapore, it is worth knowing exactly what it will cost – not just the monthly repayment, but the total amount you repay, how much of that is interest, and how those numbers change depending on your tenure.

This guide works through a $10,000 personal loan at current market rates across 12, 36, and 60-month tenures, so you can see the real numbers before you decide.

The worked example – $10,000 at 1.00% p.a. flat

Most major banks in Singapore currently advertise personal loan rates from 1.00% p.a. flat (EIR from approximately 1.93–1.94% p.a.). Using 1.00% p.a. as the base rate across three common tenures:

12 months: $842/month | $100 total interest | $10,100 total repayment
36 months: $286/month | $300 total interest | $10,300 total repayment
60 months: $175/month | $500 total interest | $10,500 total repayment

The monthly repayment for a 60-month loan is roughly $667 lower than a 12-month loan. But the total interest paid is five times higher.

How the flat rate works – and why EIR matters

Banks in Singapore quote personal loan rates as a flat rate per annum. This means interest is calculated on the original $10,000 principal for the full tenure, regardless of how much you have already repaid.

For a $10,000 loan at 1.00% p.a. flat:

Year 1 interest = $10,000 × 1.00% = $100
Year 3 interest = $10,000 × 1.00% × 3 = $300
Year 5 interest = $10,000 × 1.00% × 5 = $500

The EIR (Effective Interest Rate) tells you the true annual borrowing cost, factoring in the reducing balance and any fees. For a 1.00% p.a. flat rate, the EIR is approximately 1.93–1.94% p.a. – nearly double the advertised flat rate.

This is why comparing loans using only the flat rate is misleading. Always use EIR for comparison. For a full explanation, see our EIR guide.

How the numbers change at a higher rate

To illustrate how much the rate matters, here is the same $10,000 loan at DBS’s current advertised rate of 1.48% p.a. flat:

12 months: $846/month | $148 total interest | $10,148 total repayment
36 months: $290/month | $444 total interest | $10,444 total repayment
60 months: $179/month | $740 total interest | $10,740 total repayment

Compared to 1.00% p.a. flat over 36 months: the difference in total interest is $144. Over 60 months the difference is $240. On a $10,000 loan the absolute difference is modest – on a $50,000 loan, multiply these figures by five.

Choosing the right tenure for your situation

The right tenure depends on what your monthly budget can support – not the maximum tenure the bank offers.

If you can afford $842/month, the 12-month option costs only $100 in interest – the most cost-efficient outcome
If $286/month is your limit, the 36-month option is the right call – $300 in interest is a reasonable price for the breathing room
If even $286 is tight, the 60-month option keeps monthly commitments low at $175 – but you pay $500 in interest for that flexibility

Choose the shortest tenure your cash flow can genuinely support, not just the lowest monthly payment. For more on how to think about this decision, see our personal loan tenure guide.

What about processing fees?

Some banks charge a processing or admin fee on top of the interest. This fee – typically 1–3% of the loan amount – is either deducted from the disbursement or added to the repayment. A 1% processing fee on a $10,000 loan means you receive $9,900 but repay $10,000 plus interest.

Processing fees are included in the EIR calculation, which is another reason to compare using EIR rather than the flat rate. See current advertised rates and fees across major banks in our personal loan interest rates guide.

Frequently asked questions about personal loan costs in Singapore

How much does a $10,000 personal loan cost per month in Singapore?

At 1.00% p.a. flat – the current lowest advertised rate from major banks – a $10,000 loan costs $842 per month over 12 months, $286 per month over 36 months, or $175 per month over 60 months. The monthly repayment depends on your chosen tenure. The shorter the tenure, the higher the monthly payment but the lower the total interest paid.

What is the total interest on a $10,000 personal loan in Singapore?

At 1.00% p.a. flat, total interest is $100 over 12 months, $300 over 36 months, and $500 over 60 months. At higher rates, the interest rises proportionally. The key variable is tenure – every additional year adds one full year of interest on the original principal.

Is 1.00% p.a. the actual rate I will pay?

Not necessarily. Banks advertise starting rates that apply to the most creditworthy applicants. The rate you receive depends on your income, credit profile, existing debt, and employment type. The advertised 1.00% p.a. flat is a floor, not a guarantee. Your personalised rate may be higher. Always compare actual offers, not published rates.

How do I find the lowest rate on a $10,000 personal loan in Singapore?

Submit one application through Lendela and receive personalised offers from multiple banks simultaneously – including the actual rate you qualify for based on your profile, not the advertised starting rate. This lets you compare real monthly repayments and total costs before committing, without triggering multiple credit enquiries on your CBS report.

Compare personal loan offers through Lendela – one application, personalised rates from multiple banks, no impact on your credit score from checking your options.