• Bank of China Overdraft Facility

    Personal Loan BYTES FROM OUR KITCHEN

    Bank of China Overdraft Facility Singapore

    Bank of China (BOC) is one of China’s largest state-owned commercial banks that has been operating in Singapore since 1936. Among its several personal loan options, the Overdraft Facility gives you the easiest access to necessary funds on a revolving credit basis. With the Overdraft Facility, a customer can withdraw a higher amount from their current account.

    Features of BOC Overdraft Facility

    BOC’s Overdraft Facility has the following interesting features for customers:

    • Available for individuals and companies: The Overdraft Facility is available to individuals as well as sole proprietorships and partnership firms.
    • Secured loan: The Overdraft Facility is a secured loan. You can pledge assets such as fixed deposits to get an approved overdraft. The amount you can borrow depends on the collateral you pledge. With Singapore Dollar Fixed Deposits, you can get an overdraft of 100% of the value of the collateral, while the amount will be 70% to 90% on other currency fixed deposits.
    • Flexibility in withdrawal: You can withdraw as much amount as you need from the sanctioned overdraft, as long as you stick within the allowed credit limit.
    • Flexibility in repayment: You can repay the amount borrowed from an Overdraft Facility as per your convenience and cash availability. Once you pay off everything you’ve borrowed, the overdraft limit is restored and you can borrow again.
    • Flexibility in interest charges: Interest is charged only on the amount you withdraw from the Overdraft Facility and not on the entire approved amount. This helps you save money compared with a personal loan.

    Interest rates and fees

    The interest rate charged on your overdraft depends on the collateral pledged and the loan amount. A minimum interest charge of S$10 is levied on the borrowed amount every month. If you have withdrawn more than your approved overdraft limit or if you make an overdraft withdrawal after cancelling the facility, you will have to pay an interest of 5% + Prime rate. A cancellation fee of 0.0625% of the overdraft amount sanctioned to you will be charged if you terminate the account within 3 months of getting an approval for it.

    Eligibility criteria

    To apply for a BOC Overdraft Facility, you need to be:

    • 21 to 65 years old;
    • A Singapore citizen or permanent resident;
    • A sole proprietorship or partnership firm;
    • Have an asset to pledge with the bank.

    Documents required

    • Identity proof: Copy of the NRIC and/or passport
    • Income proof: Computerised payslips, company’s balance sheet and profit and loss statements, bank statements, CPF Contribution History Statement, Income Tax Notice of Assessment
    • Security: All documents related to the asset that you’re planning to pledge.

    How to apply for BOC Overdraft Facility

    You can apply for a BOC Overdraft Facility by visiting one of the bank’s branches in Singapore.

    Other products offered by Bank of China Singapore

    FAQs

    Q. What is the tenure of the Overdraft Facility?

    A. Overdraft Facility does not have a fixed repayment tenure. You can withdraw as much as you need from the approved overdraft limit, and you can make repayments in phases. Your credit limit is restored as and when you make repayments. If you don’t need additional funds any more, you can close the Overdraft Facility by paying all the pending amount. If you close the account before 3 months of its approval, you will need to pay a cancellation charge.

    Q. Can I get an Overdraft Facility to make investments?

    A. Yes. If you are certain of getting good returns on the investment you are planning to make, and the interest charges and other fees applicable on the Overdraft Facility can be covered with the investment, then you can go ahead and invest your loan amount.

    Read More about Personal Loans in Singapore

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