The Oversea-Chinese Banking Corporation Limited, more popular by the abbreviation OCBC Bank, is a public scheduled financial and investment services organization that is headquartered in Singapore. Even though it is a listed as a public bank, it is noted that the bank’s biggest stakeholder by a humungous margin is the esteemed Lee Group of Companies. Established by Lee Kong Chian in 1919, the Lee clan still has a tremendous influence in the functioning of the OCBC Bank. And two of the major board seats are currently held by Lee Tih Shih and Lee Seng Tee.
OCBC Renovation Loan Minimum Age - 21 years
OCBC Renovation Loan Maximum Age - 59 years
Salaried / Self-employed with regular income
S$24,000 for single and/or joint applicants
OCBC Bank Renovation Loan Min Salary - S$24,000
Existing Loan EMI - EMIs of other loans lower your eligibility
Make your immediate family member a co-applicant, and his income will add to your eligibility
|Min Loan Amount||S$5,000|
|Max Loan Amount||S$30,000|
|Max Loan Tenure||up to 5 years|
OCBC is one of the biggest banks in Singapore, offering home loans as well as home renovation loans to Singaporeans. Here we look at the OCBC Renovation Loan product. We look at the loan’s features, various benefits associated with taking the loan, eligibility criteria, how to apply for the loan and supporting documents to be submitted, among others.
OCBC offers the following types of home loans:
|Processing Fee for the loan||S$200|
|Partial Pre-payment Fee||2% of the prepaid amount|
|Late payment charge||S$80|
|Administrative fee||1% of the loan amount|
You can apply for the loan by contacting the bank’s customer service center and request to apply for the loan. An executive from OCBC will then contact you and help you complete the remainder of your loan application.
You can also visit your nearest OCBC branch in Singapore and physically fill out the online application form at the branch. You will also need to submit your supporting documents, following which OCBC will contact you and help you complete your application so that it can be processed by the bank.
Another way to apply for the loan is by placing an online request by filling out the enquiry form available on the OCBC Home Renovation Loan webpage. The bank will contact you once you submit the enquiry form and help you complete your application formalities.
OCBC provides renovation loans only to Singaporean citizens and Permanent Residents. The loan is currently not available to foreigners.
Q. If I have an HDB flat, will I be able to choose a renovation contractor of my choice?
A. No, in the case of renovation of HDB flats, only licensed HDB contractors in Singapore can carry out the home renovation process. Also, the renovation loan will only be provided to licensed HDB flats in Singapore.
Q. What is EIR?
A. EIR is the effective rate of interest that is calculated and charged on the outstanding amount, after taking into account repayments made over the loan period. EIR reflects the real interest on the loan, as the interest you’d be paying on your loan will be in line with the Effective Interest Rate charged by the bank. The Effective Interest Rate will vary depending on the loan tenure.
Q. Can I pre-close my renovation loan with OCBC?
A. Yes, OCBC allows you to do that. You will need to contact the bank in case you want to pre-close your existing renovation loan with the bank.
Q. Will I have to pay the processing fee separately?
A. No, the processing fee, which is equivalent to 2% of the approval loan amount, will be deducted from your bank account upon the disbursal of your loan amount.
Q. Will an insurance cover be provided for the Home Renovation Loan?
A. No, the bank doesn’t customarily provide an insurance cover. You will need to separately apply for an insurance cover for your renovation loan.
Q. Is the interest rate on the OCBC Renovation Loan a fixed rate of interest?
A. Yes, the interest rate is fixed, which means that your monthly repayments will be fixed throughout the tenure of the loan. Floating rate packages and SIBOR-adjusted packages are only available with the OCBC Housing Loan.