Would you believe us if we told you that you could access instant funds through a personal loan for just S$6 a day? Well, there is a loan from BOC that fits this description well. With the $martLoan from BOC, you can borrow up to S$10,000 at nominal rates of interest starting from 6.48% p.a. You can also stretch your loan payment up to 7 years and enjoy the convenience of making fixed payments every month. Check out the following section to know more about such features.
To understand if this loan can actually give you the liquidity you need without foisting a heavy interest burden on you, check the following benefits first:
High Loan Ceiling: Get up to S$10,000 with this loan. The loan amount finally approved by the bank will be subject to a maximum of 95% of the credit limit available on your MoneyPlus account at the time of application.
Long Repayment Period: Multiple tenure options are available. The tenure can be between 1 year and 7 years. You’ll enjoy one of the longest repayment periods, available in the market, with this loan.
Attractive Interest Rates: Nominal rates on this loan can be as low as 6.48% p.a. The effective interest rate on this loan starts from 13.86% p.a. The bank will use the reducing-balance method for computation of interest charges on your borrowing.
FREE Line of Credit: With the complimentary MoneyPlus credit line that you would receive with this credit facility, you might find it easier to manage your daily expenses.
Until the time your $martLoan account is valid, you’ll enjoy the same interest charges on both your BOC $martLoan account and MoneyPlus credit line. However, after the term loan expires, any outstanding balance on the line of credit will be charged interest at prevailing rates.
The Option of Loan Rescheduling: According to the bank rules, only one $martLoan can be granted under a MoneyPlus account at any point in time. However, if you wish to utilise any unused credit in the existing account after the initial drawdown, you could request the bank to reschedule your loan.Under this new arrangement, any outstanding balance from the existing account will be clubbed together with any new amount that you may have requested for drawdown. Hence, a new $martLoan could be approved with modified terms and conditions but with the same MoneyPlus account.
Easy Monitoring of Transaction Records: The bank will send you statements of account periodically. The statement will offer you an overview of all the loan-related transactions that you have made in the past and the payments that you’ll have to make in the near future.
Fixed Monthly Repayment: As soon as your loan is approved, you would know how much you have to pay every month. The payments will be fixed. This could mean that allocating funds for repayment of the loan could be easier than you thought. That’s because you would know beforehand how much your monthly instalment charges would be.
Are you wondering if high interest charges would dilute the benefits of this loan? Check the rates applicable below and decide for yourself:
|Loan Tenure||Flat Rate of Interest (p.a.)||Applied Rate of Interest (p.a.)||Effective Rate of Interest (p.a.)|
To help you understand how much you could really save on interest payments with this loan, let us provide you with an example which you can hopefully relate to:
Let’s say that you have borrowed S$10,000. Let us further assume that you have chosen the 5-year loan tenure. That would mean that your actual cost of borrowing could be measured by the applicable effective rate of interest of 13.86% p.a.
So, your interest expense for 1 year on the loan would be S$1,386 (=13.86/100x10,000).
Let us now compare it to interest charges on a generic credit card X. Let’s assume that you’re being charged an effective interest rate of 26% p.a. on this card. That would mean that your interest charges for 1 year would be (considering the loan amount remains the same) S$2,600 (=26/100x10,000).
How much can you save on annual interest expenses if you replaced this generic card with the BOC $martLoan? You could save S$1,214 or almost 47% [=(2,600-1,386)/2,600x100%].
[Disclaimer: The numbers used in the example above may have no real basis. This is just an illustration. You should contact the bank if you wish to know the actual numbers]
The following are some of the most commonly imposed fees and charges:
|Type of Fee||Amount|
|Processing fee (Non-refundable)||3% of the outstanding balance, subject to a minimum of S$150|
|Prepayment or termination fee||S$100|
|Late payment fee||2% of the minimum amount due, subject to a minimum of S$100|
Here are some important points that you should take note of and analyse before going forward with the application:
Before you can apply, you’ll have to be sure that you meet the loan eligibility conditions. Click here to learn more about the BOC personal loan eligibility conditions. You can also find out more about the documents needed for verification.
In order to apply, you can use either of the following options:
This loan could be a great option for relatively small financial needs. The low interest rates and long tenures could prove to be extremely advantageous. This is especially true for those who are looking for low monthly instalments. Start using it to understand the benefits yourself.
If you have questions about personal loans in general, try this page. Are you worried that your less-than-desirable credit score might get your application rejected? Click here to know how you can get one even with a less-than-good credit score.