Among BOC’s several personal loan options, the Overdraft Facility gives you the easiest access to necessary funds on a revolving credit basis. With the Overdraft Facility, you can withdraw a higher amount from your current account.
BOC’s Overdraft Facility has the following interesting features for customers:
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 If you have withdrawn more than your approved overdraft limit or if you make an overdraft withdrawal after cancelling the facility, you will have to pay an interest of 5% + Prime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.
To apply for a BOC Overdraft Facility, you must fulfil the following conditions:
You can apply for a BOC Overdraft Facility by visiting one of the bank’s branches in Singapore.
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.