Personal Loan

One of the biggest factors to consider when taking out a personal loan is how much interest you’re going to pay and how long you have to pay for it. Different banks and lenders offer different interest rates for the same amount so it’s best to shop around before you take out that big loan. Aside from the obvious advice of ‘Don’t get a loan unless you really need it’, there are a few things you can do to keep yourself out of hot water regarding your finances.

Below are three easy tips you can follow to make the most of your money.

1. Get the lowest interest rate possible.

Depending on where you get your loan, the interest may have been included in the overall amount; if not, there’s no need to worry. The interest rate agreed upon when you first took out the loan is more or less fixed, even if it takes you a few years to pay off the loan.

2. Always consider the current inflation rate.

Conventional wisdom tells you to pay off a loan whenever you have spare cash so you’ll finish payment earlier. However, inflation devalues currency through time. If you try and pay off your loan earlier, you’ll essentially be paying more despite shortening your loan tenure. A good rule of thumb would be to pay off your loan only when interest rates are higher than inflation rates; otherwise, it would be wise to spend your money elsewhere.

3. Use personal loans to pay off other loans. 

Because personal loans have a fixed annual interest rate (APR), you can use one to pay off other loans, such as mortgages or other loans with variable APR. Before doing so, however, always remember tip #2.

Getting the Personal Loan That’s Right for You

Aside from getting the lowest interest rate possible, several banks offer a few other perks that you can take advantage of. These perks include cashbacks, waived processing fees, and quick approval times. Below are a couple of banks that offer such benefits.

HSBC Personal Loans


With HSBC, you can get a loan within the hour of your application based on their 1-hour approval in-principle. The HSBC Personal Loan is GoBear’s #1 most selected personal loan, due in part to their reasonably low interest rate of 4.8%. Online loan applications also come with the benefit of waived processing fees and up to S$350 cashback. Key features of an HSBC Personal Loan include fixed monthly repayments, a loan amount of up to 8 times your monthly income, and a long loan tenor of up to 7 years.

CITI Personal Loans on Ready Credit


If you take advantage of Citibank’s Welcome Offer, the 4.83% interest rate on their personal loan more or less equals HSBC’s advertised rate. Citibank also offers loan approval within the hour and waived processing fees — but without the cashback, so that’s one thing to consider when shopping around for a loan provider. They do, however, offer a $1,000 minimum loan amount, flexible loan tenures, and loans with a 0% interest rate but with an upfront service fee.

If you process your HSBC or CITI personal loan application via the GoBear website, we’ll sweeten the deal by lowering the advertised interest rates for both to the special GoBear rate of only 4.55%! Get the lowest interest rates by applying through GoBear today.

If the two options above aren’t what you’re looking for or if you simply want to do your research and explore other loan providers (as you should!), you can compare and contrast options using the GoBear website.


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