Cash woes? A personal loan to the rescue!

    BOC SmartLoan Review: Enjoy Low Daily Interest Charges

    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.

    Borrowing Cost of S$6 a Day, Long Tenure: Can This Loan Solve Your Money Problems?

    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.

    Enjoy a Lower Cost of Borrowing With Attractive Interest Rates

    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.)
    1 year 6.62% 12% 18.72%
    2 years 6.48% 12% 15.73%
    3 years 6.52% 12% 14.69%
    4 years 6.57% 12% 14.18%
    5 years 6.66% 12% 13.86%
    6 years 8.63% 15% 17.05%
    7 years 8.86% 15% 16.89%

    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:

    [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]

    Important Fees and Charges That You Should Have Thorough Knowledge of

    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
    Overlimit fee S$40
    Late payment fee 2% of the minimum amount due, subject to a minimum of S$100
    Rescheduling fee S$100

    Examine These Points Carefully: Prior Written Notice Mandatory for Prepayment

    Here are some important points that you should take note of and analyse before going forward with the application:

    • You have to give the bank an intimation in writing at least 30 days prior to any proposed prepayment/cancellation of the loan.
    • If you wish to reschedule or restructure your existing BOC $martLoan before its expiry, you’ll have to pay a fee.
    • If you wish to utilise the unused credit in your MoneyPlus account after the expiry of your BOC $martLoan, you’ll be charged interest at the bank’s prevailing rate.
    • You may not be granted a loan that exceeds 95% of the credit limit approved for your MoneyPlus account.
    • The bank has the right to reject your application without offering any explanation.
    • The bank will use the interest-reducing method to compute interest on your loan. This means that interest won’t be computed on the principal loan amount but on the outstanding balance at the end of each month.
    • If you withdraw money from the complimentary MoneyPlus Line of Credit, you’ll be charged a cash advance fee of 6% of the withdrawn amount, subject to a minimum of S$20.

    Not Sure If You Fulfil the Loan Prerequisites or Not? Get Your Answer Here

    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.

    Want to Apply? Here Are the Modes Available

    In order to apply, you can use either of the following options:

    • Call the bank’s 24-hour customer service.
    • Send an SMS to the bank.

    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.

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