POSB Renovation Loan
At a Glance
Hassle-free online applicationNEW
Submit your application online with your digibank credentials
*Effective Interest Rate (EIR) – 5.60% and 5.41% respectively based on 60-months loan tenure and inclusive of 1% handling fee and 1% insurance premium
Limited to the first 30 eligible customers of each month!
Features & Benefits
Borrow up to S$30,000
Issuance of Cashier’s Order
Borrow up to 6 times of your monthly income or S$30,000, whichever lower
Monthly repayment of up to 5 years with interest rate from 4.68% per annum (EIR: 5.41%*)
Up to a maximum of 4 Cashier’s Orders will be issued under your appointed renovation contractor’s name
Please note that the issued Cashier’s Orders will be valid for 6 months.
POSB Eco-aware Renovation Loan
POSB Eco-aware Renovation Loan aims to raise awareness about the eco-friendly choices you can make in your home renovation process.
Whether it’s selecting non-toxic paint, choosing energy-efficient appliances, or leveraging smart technology to reduce carbon footprint, there are many easy ways you can incorporate conscious choices into your daily living.
What’s more, fulfil at least 6 out of the 10 items under the “Eco-aware Renovation Checklist” and enjoy an attractive interest rate of 4.68% p.a. (EIR 5.41%*) on your renovation loan.
*Effective Interest Rate (EIR) – 5.41% based on 60-months loan tenure and inclusive of 1% handling fee and 1% insurance premium
Terms and conditions apply.
Eligibility & Fees
Who can apply
Singapore Citizen or Permanent Resident
21 - 65 years old
Owned by applicant, OR applicant’s related family member (parent, spouse, child or sibling)
S$24,000 per annum
The following fees are payable and deducted from the approved loan amount:
1% of approved loan amount
1% of approved loan amount (In the event of death or total permanent disability, Manulife will pay off your outstanding renovation loan balance)
Cashier’s Order Issuance
First Cashier’s Order is free A fee of S$5 will be chargeable for each subsequent Cashier’s Order (Deducted from your designated loan servicing account)
1% of approved loan amount
1% of outstanding loan amount
Late Payment Fee
S$35 for each month or part thereof during which any instalment and/or interest is not paid
Site visits will be conducted post-disbursement to ensure that the loan proceeds are used for the stated renovation works as listed in the quotation.
Full terms & conditions can be found here.
You will need a DBS / POSB deposit account to service your loan. If you do not have one, click here to apply before submitting your Renovation Loan application.
For Single Applicants (Online Application)
Prepare the following documents to be submitted along with your application:
- Requirements for Renovation Quotation
- Requirements for Income Documents
- Requirements for Proof of Ownership
Click here for a detailed guide on the application process.
For Joint Applicants / Non-owner Borrowers
Download the application form and send it to us with the required documents to:
DBS Bank Ltd (CP No. AH0025)
Orchard P.O. Box 360
Get more Benefits with POSB Renovation and Personal Loan
Double the cashback, Double the joy
Realise your dream home with POSB Renovation and Personal Loan! Enjoy double cashback when you apply for both Renovation and Personal Loan by 30 September 2023.
Terms & Conditions apply.
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.
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:|
(1% of S$10,000) = S$100
(1% of S$10,000) = S$100
(S$10,000 – S$100 – 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.
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.
You may submit your request to amend or redeem your renovation loan online with these forms below.
Full Redemption of Loan
Change in Contractor/ Loan Tenure
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