Dealing with the ever-increasing living expenses with limited means can sometimes throw your finances into disarray. However, the CIMB CashLite term loan can be of help to you during times of duress. The interest rates are extremely competitive and the application process is fuss-free. If you’re a CIMB cardholder, you may apply for this loan and get instant cash.
While it’s true that personal loans in Singapore aren’t always the most affordable borrowing options, the same may not be true when it comes to this particular CIMB loan. Check out the table below to understand the point we’re trying to make:
|Tenure||Applied Interest Rate (Flat)||Effective Interest Rate (EIR)|
|1 year||Interest rates start from 4.5% p.a.||8.21% p.a.|
|2 years||8.41% p.a.|
|3 years||8.41% p.a.|
|4 years||8.36% p.a.|
|5 years||8.29% p.a.|
Let Us Illustrate:
Let us assume that you have been approved a loan of S$17,500. Considering that on an average credit card in Singapore, an EIR of 25% p.a. (approximately) would apply for 1 year, you would have paid S$4,375 (= 25/100 x 17,500) as interest. Had you taken a cash advance on the card for the same amount for 1 year, your interest charges (assuming a cash advance rate of 28% p.a. applies) would have been S$4,900 (=28/100 x 17,500). Add to this a cash advance fee of approximately 5% to 6% of the withdrawn amount or S$15, higher of two and your total borrowing cost goes up to S$5775 (5/100 x 17,500 = 875 + 4,900).
With this instalment loan, your interest charges for 1 year would come up to S$1,436.75 (8.21/100 x 17,500). Hence, your savings compared to retail charges on cards for 1 year, would be S$2,938.25. When compared to interest charges on cash advance on an average card for 1 year, you would have saved S$3,338.25 with this loan.
[Disclaimer: The numbers considered here are for illustrative purposes only. The actual results could be different. Get an update on the latest rates and charges from the bank before you apply.]
|Minimum monthly payment||Full monthly instalment amount as stated in the letter of approval, and any outstanding balances and charges, if any.|
|Late payment fee||S$100|
|Early termination fee||3% of the outstanding balance, subject to a minimum of S$250|
|Fees on an overdrawn account (i.e. exceeding the credit limit approved)||5% of the excess amount, subject to a minimum of S$50|
|Monthly statement fee||
No charges for e-statements.
S$1 per month for hard-copy statements.
|Fees for returned cheque||S$40 per cheque|
|Fees for rejected GIRO payment||S$10|
|Fees per sales draft request copy||S$5|
You should have a CIMB card account which is at least 2 months old. For the remaining eligibility conditions and the full list of supporting documents that you may have to submit at the time of application, click here.
If you want to apply online, you can do so easily by downloading the relevant form, fill it up, placing it inside a business envelope available on the bank’s website, and mailing it to the Robinson Road branch of CIMB. For more information on the process/modes of application, you may contact the bank in one of the following ways:
Q. How quickly can I get the money after my application is approved?
A. The total turnaround time will depend on the time taken for approval. However, after the loan is approved, the cash may be disbursed quickly.
Q. How can I track my transactions?
A. The monthly repayments will be reflected in the monthly statements of your card account. The payments will be governed by the terms and conditions that apply for the CashLite Instalment Loan, and also those which apply to your card.
Q. The bank has rejected my application without providing a reason for it. Can I challenge this decision?
A. No, you can’t. The bank’s decision is final in case of any dispute. It is not binding on the bank to reveal the factors it used to evaluate your application.
Q. The bank has not granted me the maximum loan amount I am eligible for despite meeting all the eligibility criteria. Why?
A. The bank may use your credit report, risk profiling, and other internal criteria for deciding the loan amount, the tenure, the interest rates, and indeed all other terms that apply to you. The bank’s decision on all such matters are absolute and can’t be challenged.
Q. Will my CashLite transactions earn me rebates?
A. No. The bank doesn’t offer rebates on transactions related to this credit facility.