Singapore Term Loan Interest Calculator 2026 — Monthly Repayment, Full Month-by-Month Amortisation Schedule, Extra Payment Savings Simulator, Flat Rate to EIR & Interest vs Principal Stacked Chart for Personal & Business Term Loans

A term loan in Singapore is any loan with a fixed principal, fixed interest rate (or margin over a benchmark), fixed repayment schedule, and defined end date after which the borrower is debt-free. Term loans in Singapore include: personal loans (unsecured, 1–7 years); renovation loans (specific purpose, S$30,000 cap, 1–5 years); car hire-purchase loans (secured on vehicle, 1–7 years); education loans (for tuition and living costs, 1–20 years); SME business term loans (secured or unsecured, 1–10 years); property mortgage term loans (secured on property, 5–35 years). This calculator is designed for personal and business term loans — not mortgages (which are covered in the Property section). What they all share: each monthly payment consists of an interest component (declining over time) and a principal component (increasing over time), so the loan is fully amortised by the final payment.

An amortisation schedule is a complete month-by-month breakdown of every payment in a term loan, showing for each month: the total payment made; how much of that payment covers interest (cost of borrowing the outstanding balance for that month); how much of that payment reduces the outstanding principal; and the remaining balance after the payment. For a Singapore reducing balance term loan, the interest component is highest in Month 1 (when the balance is largest) and decreases each month as the balance falls. The principal component correspondingly increases each month. The total monthly payment remains constant throughout. This schedule is invaluable for: understanding how much of your money is “going to the bank” vs reducing your debt; planning early repayments at high-impact points; determining whether refinancing is worthwhile at a given stage.

The extra payment simulator calculates two separate amortisation schedules: the standard schedule (monthly payment only) and the accelerated schedule (monthly payment plus extra amount each month). The difference between the two gives: months saved (how much sooner you become debt-free); interest saved (total interest paid in the standard schedule minus total interest in the accelerated schedule). Example: S$50,000 loan at 7% EIR, 5 years. Standard: S$990/month, 60 months, S$9,400 total interest. With S$100 extra/month (S$1,090/month): clears in approximately 55 months, saves approximately S$800 in interest. Note: the savings from extra payments are highest when made consistently from the start of the loan, because they reduce the balance on which future interest is calculated. Late-tenure extra payments have less impact.

Singapore bank term loan rates in 2026 vary significantly by loan type and security: Personal unsecured term loans: 5.5%–13% EIR (3%–7% flat) from major banks; Renovation loans: 6.5%–8.5% EIR (3.5%–4.5% flat); Business SME unsecured term loans: 7%–15% EIR; Business SME secured term loans: 3%–7% EIR; Government-assisted EFS Working Capital Loans: lower rates through risk-sharing. Comparing rates: always use EIR (Effective Interest Rate) for fair comparison between offers. A flat rate of 4% may look better than an EIR of 7% at the same bank — but EIR 7% is approximately equivalent to flat rate 3.78% for a 5-year loan, making the flat 4% offer actually more expensive. Use the flat rate to EIR toggle in this calculator to compare any two offers accurately.

Reducing balance (EIR basis): interest is calculated each month only on the outstanding principal remaining. As you repay principal each month, the interest charge for the next month is smaller. The monthly payment is constant but the interest-to-principal split changes over time. Flat rate: interest is calculated on the original principal for the entire tenure, regardless of repayment. Monthly payment = (Principal + Principal × Flat Rate × Years) / Months. The interest charge is the same every month (flat), making the monthly payment calculation simple but understating the true annual cost. For the same loan: flat rate of 4% p.a. for 5 years ≈ 7.42% EIR. The interest you pay in total is identical under both methods for the same monthly payment — the difference is in how the rate is expressed. MAS requires Singapore banks to disclose EIR in all loan documentation. Many commercial term loan contracts from non-bank lenders quote flat rates.

Yes — early repayment is allowed for most Singapore term loans, but may attract a penalty. Common Singapore bank early repayment penalties: personal and renovation loans: typically 1%–3% of the outstanding balance, or equivalent to 1–3 months of interest; business term loans: varies more widely, may be a percentage of outstanding or a fixed fee; car hire-purchase loans: interest is computed using the Rule of 78 or actuarial method — early settlement amount is the present value of remaining payments at the contracted rate. Before making an early repayment: request a settlement quote from your bank — they will provide the exact outstanding balance and any penalty; calculate whether the interest saving from early repayment exceeds the penalty. Generally, early repayment is most beneficial in the first half of the loan tenure (when the interest component of each payment is higher). See our Early Loan Redemption Calculator for this analysis.

Singapore personal term loans (unsecured): maximum 7 years from major banks (DBS, OCBC, UOB, Standard Chartered). Some banks cap at 5 years. Renovation loans: typically 1–5 years. Education loans: 1–20 years (MOE TFL up to 20 years). SME business term loans: 1–10 years for most products. Longer tenure benefits: lower monthly payment (better cash flow). Longer tenure costs: significantly higher total interest paid. Example: S$50,000 at 7% EIR — 5-year tenure: S$990/month, S$9,400 total interest. 7-year tenure: S$752/month, S$13,168 total interest. Extending from 5 to 7 years saves S$238/month but costs an extra S$3,768 in total interest. The optimal tenure depends on your cash flow requirements — if the S$238 monthly saving is critical (e.g., for business working capital), the longer tenure may be justified despite the higher total cost.

Singapore SME business term loan options in 2026: Commercial bank term loans: DBS Business Term Loan (from 7% EIR); OCBC SME Term Loan; UOB BizMoney Term Loan; Standard Chartered SME Business Instalment Loan. Government-assisted schemes via Enterprise Singapore (ES): Enterprise Financing Scheme (EFS) Working Capital Loan — for daily operations financing, ES risk-shares with banks to lower rates; EFS SME Fixed Assets Loan — for equipment and machinery; EFS Venture Debt — for startups. Eligibility for EFS: Singapore-registered business; at least 30% local shareholding; annual revenue below S$500 million. Apply through ES’s partner financial institutions. Also relevant: Productivity Solutions Grant (PSG) for specific IT and technology solutions; Enterprise Development Grant (EDG) for capability upgrading. Check startdigital.sg and enterprisesg.gov.sg for the latest schemes and eligibility criteria.

For an EIR/reducing balance Singapore term loan: Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1] where P = principal, r = monthly rate = Annual EIR/12, n = number of months. Example: S$50,000 at 7% EIR, 5 years. r = 7%/12 = 0.5833%/month. n = 60. Monthly Payment = 50,000 × [0.005833 × 1.005833^60] / [1.005833^60 − 1] = 50,000 × [0.005833 × 1.4176] / [1.4176 − 1] = 50,000 × 0.008271 / 0.4176 = 50,000 × 0.01980 = S$990/month. For a flat rate loan: Monthly Payment = (P + P × Flat Rate × Years) / Months. This is simpler but understates the true annual cost. The amortisation schedule then allocates each monthly payment between interest (balance × monthly rate) and principal (payment − interest).

The stacked chart in this calculator shows two stacked areas: the cumulative interest paid (red, growing each month as interest costs accumulate) and the cumulative principal paid (indigo, also growing as you repay the original loan). Over time, both areas grow, and their combined height equals the total amount paid to date. The “crossover point” (where cumulative principal equals cumulative interest paid) is a useful benchmark: before the crossover, more than half of all money paid has gone to interest; after the crossover, more than half has gone to principal repayment. For most Singapore term loans at 6%–10% EIR: 3-year loan: crossover at approximately Month 20–22; 5-year loan: crossover at approximately Month 32–36; 7-year loan: crossover at approximately Month 44–50. The crossover is also a useful guide for refinancing timing — refinancing significantly before the crossover (when you’re still mostly paying interest) is generally worth considering.

The savings from S$100 extra per month depend on the loan size, rate, and tenure. Representative examples for Singapore term loans: S$20,000 loan at 6.52% EIR, 3 years: S$100 extra saves approximately S$210 interest and 4 months. S$30,000 loan at 7% EIR, 5 years: S$100 extra saves approximately S$1,100 interest and 7 months. S$50,000 loan at 7% EIR, 5 years: S$100 extra saves approximately S$700 interest and 4 months. S$50,000 loan at 10% EIR, 7 years: S$100 extra saves approximately S$2,200 interest and 7 months. The pattern: the higher the rate and the longer the tenure, the more valuable extra payments become. On a Singapore licensed moneylender loan at 60% EIR, S$100 extra per month would save even more — which is why early repayment of high-rate debt always takes priority. Use the extra payment simulator with your actual figures for a precise calculation.

Yes — business term loans can be used for working capital in Singapore, though there are more appropriate products for different purposes. Term loans for working capital: suitable for predictable, recurring working capital needs (inventory purchase cycles, seasonal cash flow gaps); provides certainty of monthly repayment for cash flow planning; typical tenure 1–3 years for working capital term loans. Revolving credit facilities: better for unpredictable working capital needs (draw down and repay as needed); only pay interest on the drawn amount; higher interest rate than term loans but more flexible. Trade financing: specific to import/export businesses (Trust Receipts, Letters of Credit); self-liquidating (repaid when goods are sold). Enterprise Singapore EFS Working Capital Loan: available from S$5,000 to S$500,000 with partial government guarantee; suitable for ongoing working capital needs at lower rates. Consider all options before committing to a term loan for working capital purposes.

Singapore SME business term loan documentation (typical requirements from DBS, OCBC, UOB): Company documents: ACRA business profile (via Bizfile); Memorandum and Articles of Association; Company resolution authorizing the loan application; Shareholder list and identification documents. Financial documents: last 2–3 years of company financial statements (audited if available, or compiled by accountant); latest 6 months of business bank statements; company’s management accounts (if not yet 2 full years old). Director/guarantor documents: NRIC or passport; last 2 years of personal income tax NOAs or payslips; personal bank statements (if personal guarantee is required). For government-assisted EFS schemes: all above plus Enterprise Singapore eligibility confirmation. Digital applications: most Singapore banks accept applications via their business banking portals using SingPass/CorpPass (MyInfo Business integration) to auto-populate company details from ACRA.

For Singapore businesses (companies, sole proprietorships, partnerships): interest expense on term loans taken for business purposes is generally tax deductible against business income under Section 14 of the Income Tax Act, provided: the loan is used for income-producing purposes (not for private or non-business use); the interest expense is incurred in the production of income chargeable to tax; proper documentation is maintained. IRAS requires loan proceeds to be traced to specific business purposes — loans used for mixed purposes (business and personal) require apportionment. Capital expenditure interest: if the loan is for acquiring fixed assets, interest during the period of asset construction may be capitalised and then claimed through capital allowances. Sole proprietors and partnerships: interest on loans for business operations is deductible against business profit, which is then subject to personal income tax. Consult a Singapore tax professional or IRAS for specific guidance on deductibility in your situation. See our Singapore Corporate Income Tax Calculator for business tax analysis.

Term loan: fixed lump sum disbursed upfront; fixed monthly repayment (principal + interest); fixed tenure with defined end date; interest on the full outstanding balance; paid down progressively. Revolving credit facility (e.g., overdraft, line of credit): flexible drawdown — borrow up to a credit limit as needed; only pay interest on the drawn amount; can repay and redraw repeatedly; no fixed end date (renewable annually); higher interest rate than term loans but more flexible. When to choose a term loan: for a specific, known expenditure (equipment, renovation, education, business expansion) where you need the full amount upfront and have predictable cash flow for repayment. When to choose revolving credit: for variable working capital needs, emergency buffers, or cash flow timing gaps — where you don’t know in advance exactly how much you’ll need or when. Most Singapore businesses use both: term loan for capex + revolving credit for working capital.

Always compare using total interest paid (not monthly payment alone, not flat rate alone, not EIR alone). Step-by-step: (1) Convert both offers to EIR if any quote flat rates — use our Flat Rate vs EIR Calculator. (2) Ensure you’re comparing the same loan amount. (3) Compare total interest at the same tenure: lower total interest = lower true cost. (4) If tenures differ: use this calculator’s amortisation feature to compare total repayment (principal + total interest) across the full life of each loan. (5) Include processing fees in the comparison — a lower rate with a high fee may be more expensive than a higher rate with no fee. (6) Check for early repayment flexibility: if you plan to repay early, a loan with no prepayment penalty is worth choosing even at slightly higher headline rate. The critical mistake Singapore borrowers make: choosing based on lowest monthly payment (which can be achieved by longer tenure at higher total cost) or lowest advertised flat rate (which ignores the EIR difference).