POSB Renovation Loan

Frequently Asked Questions

How much can I borrow for a home renovation loan?

You may borrow up to 6 times of your monthly income or S$30,000, whichever is lower. Please note that this is also subjected to approval based on your credit eligibility.

What are the requirements for joint application?

Main Applicant: Minimum income of S$24,000 per annum
Joint Applicant: Minimum Income of S$12,000 per annum (Main Applicant’s parent, spouse, child or sibling)

The lower monthly income (up to 12 times) of the two applicants will be used to compute the loan amount in a joint application. Please note that the maximum loan amount that will be considered is S$30,000.

For example:

If your monthly income is S$4,000 and the joint applicant’s monthly income is S$1,500, you can borrow up to a maximum of S$18,000 (S$1500 x 12).

What can I use my renovation loan for?

Your Renovation Loan can be used for:

  • Installation of Solar Panels
  • Electrical and wiring works
  • Built-in cabinets
  • Painting and redecorating works (e.g. wallpaper)
  • Structural alterations
  • External works within compound of the house
  • Flooring and tiling
  • Basic bathroom fittings

Please note that the Renovation Loan cannot be used to pay for furnishings or for any other purpose besides renovation. If you need help to finance your home furnishings, get ready cash with POSB Personal Loan.

Is a renovation loan an unsecured loan?

Renovation loan is an unsecured loan as there is no collateral involved.
However, a renovation invoice/quotation is required to be submitted along with your application to show that the loan is to be used for home renovation works.

How are the handling fee and insurance premium charged?
Approved loan amount:Fees payable:Disbursed loan amount:
S$10,000Handling Fee
(2% of S$10,000) = S$200
Insurance Premium
(1% of S$10,000) = S$100
S$9,700
(S$10,000 – S$200 – S$100)
What can I expect after applying for a renovation loan?

You will receive a letter on the outcome of your renovation loan application at your mailing address within 5-7 working days if all documents submitted are in order.

The approved loan amount will be disbursed in cashier’s orders as indicated in the application.

If additional information or documentation is required, you will receive an email with the details.

We appreciate your patience if the processing time takes longer when there are additional follow-ups required.

What do I do with the cashier’s orders after receiving them?

The cashier’s orders will be issued under your appointed renovation contractor’s name. You may pass them to your renovation contractor progressively as per the agreed payment schedule in the renovation invoice.

Can I change my renovation loan amount?

To reduce your Renovation Loan amount, you may use the Service Request form here to submit your request.

To increase your Renovation Loan amount, kindly submit a fresh application for the incremental loan amount (minimum S$5,000) using the application form here and provide your latest renovation invoice and income documents.

How do I make repayments?

The monthly repayment amount will be automatically deducted from your loan servicing account on the 1st working day of every month. Please ensure sufficient funds in your account to avoid incurring the late payment fees.

Can I have 2 renovation loans?

You can have a maximum of 2 renovation loans with DBS/POSB, as long as the total loan amount does not exceed S$30,000. Please note that this is also subjected to approval based on your credit eligibility.