Want to enjoy the convenience of structured monthly payments on your loan? Or do you fancy a credit line because it offers you instant cash for your emergency needs? You may want to consider loans from Bank of China (BOC) to enjoy such benefits and more. With applied interest rates as low as 0% p.a., you can save significantly if you choose the right BOC loan. Read on to know about your loan options.
Want a BOC Loan? Know Your Options Here
BOC offers the following personal loans in Singapore:
BOC Debt Consolidation Plan (DCP): Is the need to make multiple payments on your existing unsecured loans making your life difficult? Save precious time and more importantly reduce your interest burden by consolidating them with this BOC loan. Don’t want a bigger monthly payment burden? Simply choose a longer tenure. You can stretch your payments up to 10 years with this loan. Thanks to nominal interest rate as low as 7.8% p.a., settling debt can be much easier.
Overdraft Facility (OD): With this secured overdraft facility, you can withdraw money from your current account up to a predetermined limit anytime you want. Interest is payable only when you overdraw your account. Interest will only apply to the overdrawn balance on a daily basis. Depending on the collateral offered, you may be able to borrow between 70% and 100% of the total account limit. You have two OD options – SGD and USD. The collateral can be an SGD Time Deposit or a foreign currency ACU Deposit. Interest rate will be 0.5% to 1% lower than the bank’s prime lending rate, subject to certain conditions.
MoneyPlus Fund Transfer: Do you want to pay down unpaid debt on a credit line/credit card or inject fresh funds to one of your savings/current account? You can transfer idle funds from your MoneyPlus account to these accounts at 0% interest. You’ll enjoy 3 tenure options – 3 months, 6 months, and 1 year. According to the bank, your savings can be as high as 79%.
MoneyPlus Line of Credit: A line of credit is a great option if you have frequent emergency cash needs. With this loan, you can borrow up to 4x your monthly income. Interest charges can be as little as 1.9% per month or 2.38% per month, depending on your annual income. Access cash anytime you want via mobile/online banking, telephone call, ATM machine, or cash withdrawal from a bank branch. You may even request the bank to transfer cash from your line of credit to a bank account of your choice, whenever you want.
MoneyPlus Term Loan: If you’re comfortable making fixed monthly payments for a loan, you may want to consider this instalment loan. Benefits include low interest rates (flat rate starts from 6.38% p.a.), flexible repayment period (tenure can be between 1 year and 3 years), and competitive, one-time processing fee (as low as 2%). As instalments are fixed, budgeting and planning for the future may be easier.
BOC $martLoan: For cash needs not exceeding S$10,000, this loan can be an ideal option. With daily payments as little as S$6, settling the loan may not be too difficult. You can also make convenient and structured monthly payments until you settle your dues. Loan tenure can be between 1 year and 7 years. Pay nominal interest rates as low as 6.48% p.a. to enjoy the benefits offered by the loan. As the bank uses reducing-balance method for interest computation, your interest savings could be high. A one-time processing fee of 3% (subject to a minimum of S$150) may apply.
Low Processing Fee, Low Interest Charges: Can You Save Substantially With These Loans?
Here are some interesting facts about BOC loans that you may want to learn about:
Maximum borrowing amount: If you opt for the overdraft facility offered by BOC, you may be able to borrow up to 100% of the limit available, depending on the value of your pledged asset. With the bank’s line of credit, you can borrow up to 4x your monthly income, subject to certain restrictions. Up to S$10,000 can be borrowed with BOC $martLoan. If you apply for DCP, you may get an amount equal to the total interest-bearing outstanding balance on your existing credit facilities (unsecured only). If you’re applying for this class of loan for the first time, the bank will offer an allowance of 5%. This will act as a headroom to accommodate any incidental charges not covered.
Minimum borrowing amount: For Overdraft Facility and MoneyPlus Line of Credit, there will be no minimum borrowing requirement. You can borrow as little as you want at any time. With BOC DCP, the loan amount approved has to exceed 12 times your monthly income. No amount less than S$1,000 per transaction, can be transferred with BOC MoneyPlus Funds Transfer, in general.
Affordable interest charges: Want to opt for BOC DCP? Enjoy applied interest rate as low as 7.8% p.a. For SGD OD, the interest rate will be SGD prime lending rate minus A, subject to certain conditions. For USD OD, the interest rate will be USD prime lending rate minus A, subject to conditions. A is a variable ranging between 0.5% and 1%. The effective interest rate (EIR) on MoneyPlus Line of Credit starts from 22.8% p.a. EIR for MoneyPlus Term Loan can be as low as 14.58% p.a. Interest rate on MoneyPlus Fund Transfer will be in the range of 5.6% p.a. and 7.49% p.a.
Flexible tenures: Enjoy fixed repayments every month up to 10 years with BOC DCP. Tenures can vary between 3 months and 1 year for the bank’s fund transfer facility. If you choose MoneyPlus Term Loan, you can repay it in 1 year, 2 years, or 3 years in accordance with the agreement you have entered with the bank. The tenure on a $martLoan can’t be lower than 1 year or higher than 7 years.
Convenient modes of repayment: Subject to restrictions imposed by the bank and the loan product that you have chosen, you may be able to make payments via internet banking, mobile banking, AXS, crossed cheques, online bill payment facilities offered by other banks, iNETS, FAST payment facility, ATMs, and BOC branches.
Attractive promotional offers: The bank may run promotional campaigns from time to time. Keep an eye out for these offers to enjoy fee waivers, higher interest savings, and more.
Greater control over your finances: Without sound financial planning, life can easily veer off the track. Borrowing won’t necessary lead to financial woes if you can maintain a stable cash flow. These BOC loans can be great for maintaining a steady cash flow, meeting your expenses, and for enjoying higher monthly savings.
Save More on Your Loan Courtesy Lower Interest Rates
Thanks to competitive interest rates on BOC loans, you can make significant savings. The following table will give you an interest rate range for every single BOC loan products:
|BOC Debt Consolidation Plan
||Starts from 7.8% p.a.
||Starts from 8.63% p.a.
|Singapore Dollar Overdraft Facility
- Prime rate – (0.5% to 1%)
- Rate can’t be less than 1% over and above 3 months’ SGD SIBOR
|US Dollar Overdraft Facility
- USD prime rate – (0.5% to 1%)
- Rate can’t be less than 1% over and above 3 months’ USD LIBOR
|MoneyPlus Fund Transfer
||From 5.6% p.a. to 7.49% p.a.
|MoneyPlus Line of Credit
||From 1.9% per month to 2.38% per month
||From 22.8% p.a. to 28.55% p.a.
|MoneyPlus Term Loan
||From 6.38% p.a. to 8.68% p.a.
||From 14.58% p.a. to 19.46% p.a.
||From 6.48% p.a. to 8.86% p.a.
||From 13.86% p.a. to 18.72% p.a.
Are Fees and Charges on BOC Loans Affordable? We Can Help You Form an Opinion
Are you worried that you may have to pay too many fees and charges on loans from BOC? Before you draw a conclusion, get an idea on the type of charges applicable and the fee rates here:
- A processing fee that starts from 1.8% and goes up to 5%.
- Minimum monthly payment.
- Late payment charges.
- Annual membership charges.
- Overlimit fee.
- Overdraft charges.
- Cancellation fee.
- Service charges such as fees on returned cheques or unsuccessful GIRO payments.
[Disclaimer: Not all the charges mentioned above may apply to a particular loan. We have simply tried to compile all the charges that apply to various BOC loans.]
Refer to the specific BOC loan pages on our website to get full information pertaining to fees and charges.
What You Should Know: BOC Loans Can’t Be Used to Pay Interest and Fees on Other BOC Facilities
Before you submit your application, take some time to mull over the following points:
- The bank may not let you use a loan approved by them to pay for interest charges and other financial commitments that you may have in relation to another BOC credit facility or deposit account.
- The bank can collect, use, process, and disclose your personal data to third parties for the purpose of loan approval and maintenance of your loan account.
- Certain classes of personal loans can’t be consolidated under the bank’s debt consolidation programme.
- Any request for increase of credit limit including temporary increase won’t be entertained by the bank as long as you have unsettled balance in your DCP loan account.
- If you don’t meet one of more of the age, minimum income, or other criteria set by the bank for a particular loan, your application may be rejected.
- You’ll have to abide by the minimum and maximum withdrawal limits set by the bank for your loan.
Eligible for Your Chosen BOC Loan? Find Out Here
In order to be eligible, you have to satisfy the following conditions:
- Aged between 21 years and 65 years (Could be slightly different for certain BOC loans).
- Earning at least S$20,000 p.a. (Could be different for some loans). Foreigners earning less than S$60,000 may not be eligible.
- Singaporeans and PRs are eligible for all BOC loans. Foreigners may not be eligible for certain products.
There could be additional prerequisites for specific BOC loans. Turn to the specific product pages for more information.
Do You Have the Following Documents? Applications Without These May Not Be Processed
Submit the following documents to ensure that your application gets properly processed:
- A copy of your NRIC, if you’re a Singaporean or PR.
- A copy of your employment pass and passport, if you’re a foreigner. The employment pass should have a minimum validity of 9 months.
In addition, you’ll have to submit one of the following income documents:
- If you’re a salaried employee, provide either of the following:
- Your latest payslip and your latest Income Tax Notice of Assessment (NOA).
- Evidence of CPF contributions made by you over the last 6 months and the latest NOA.
- If you’re self-employed, a variable earner, or a commissioned employee, you’ll have to provide one of the following:
- NOA evidencing your tax contributions for the last 2 years.
- Proof of contributions made by you to your CPF Account over the last 1 year.
[Disclaimer: Certain BOC loans may have additional requirements.]
Apply Conveniently Through Any One of the Following Modes
Depending on the loan of your choice, you may be able to employ any of the following channels to submit your application:
- Download the relevant form and send it to the bank after filling it up.
- Send an SMS to the bank.
- Contact the bank’s customer service.
[Disclaimer: You may not enjoy all the options stated above for all BOC loans. Check with the bank for more information.]
Today, you may find yourself battling financial hardships despite your best efforts to avoid them. However, it may not be the end of the road for you. With the right loan product, you may be able to fight back. If you give it a try, you may find a loan from BOC to be a handy weapon.