Generally, you can’t borrow more than 4 times your monthly salary with a personal loan subject to your income, and the applicable terms of the offer. With this personal loan, however, you can borrow up to 10x your monthly salary, subject to fulfilment of conditions.
Putting off an important event, due to lack of funds, is often the end of it. When you have a reliable loan option such as the DBS Cashline term loan, you may not have to nip it in the bud. You may also stand to benefit from the affordable interest rates and fast cash disbursal.
What, according to you are the most important markers for selecting the right loan? You would, in all probability, name ‘loan amount’, ‘interest rate’, ‘turnaround time’, and ‘tenure’ as the most important parameters for selection.
Currently, the bank is running two promotions for new-to-bank customers. If you satisfy the terms of the promotions, you can get a full waiver on processing fee and also receive NTUC vouchers worth S$120.
High interest rates can often ruin your plans of getting an affordable personal loan. Your search for the right loan may end now. The flat rate of interest on this DBS loan starts from 3.88% p.a. and the effective interest rate (EIR) starts from 7.56% p.a. Compared to other forms of credit, you can expect to save substantially when you apply for this loan.
Let Us Illustrate:
To make our point, we’re going to assume that you have a credit card on which you’re charged a cash advance interest rate of 28% p.a. Let us also assume that you’ll be charged a cash advance fee of 6% p.a., subject to a minimum of S$15. If you borrow S$6,500 on your card, you’ll have to pay a cash advance fee of S$390 (=6/100 x 6,500) and an interest charge of S$1,820 (=28/100 x 6,500). So, your total liability would come up to S$2,210.
If you were to borrow the same amount through this DBS instalment loan on which you can enjoy an EIR of 7.56% p.a., your interest charges, for the whole year, would be S$491.4. So, how much much are you saving? A whopping S$1,718.6 for the whole year! The importance of saving money is probably not unknown to you. The key to stable finances is to save and earn continually. So, happy savings!
[Disclaimer: The numbers used here and the results arrived at, are for illustrative purposes only and could be different from the actual results.]
|Late payment fee||S$105|
|Early termination fee||S$150|
|Minimum monthly payment||2.5% of the outstanding balance, subject to a minimum of S$50|
|Default interest rate||19.8% p.a. or 29.8% p.a. (if you don’t clear the outstanding balance on time)|
When funds dry up and become hard to come by, desperation can seem to be the only solution. However, acting reckless can only exacerbate your situation and make things ugly. While the benefits of this loan can’t be denied, make sure that it’s the loan that you really want.
In order to find out whether or not you meet the eligibility criteria, click here. You can also learn about the supporting documents that you’ll have to provide. The minimum annual income criterion for this loan is S$20,000 as opposed to the more common S$30,000 p.a. requirement.
If you want to apply online, you may do so in the following ways:
In case you need further assistance, you may fill up the contact form on the bank’s website. The bank will get in touch with you.
Need More Information? Here Are Some of the Most Frequently Asked Questions
Q. The bank says that processing fee on loans exceeding S$30,000 will be waived until 31 December 2018. But, despite my loan amount being greater than that, I have been charged a processing fee. Why?
A. According to the terms of this promotion, the processing fee would be charged by the bank upfront upon loan approval. However, it will be credited back to your DBS Cashline or DBS credit card, as the case may be, within 60 days from the date of approval.
Q. I have been granted a loan amount lower than what I had applied for, despite me meeting all the eligibility conditions. Why?
A. The bank reserves the right to determine your loan amount in accordance with its internal criteria and policies. It also reserves the right not to offer a formal explanation to you.
Q. How can I find out about the status of my loan application?
A. If you’re an existing Cashline account holder, you’ll receive an SMS confirmation after your loan application has been approved. The approval letter will be mailed to your address within 3 business days from the time the SMS was sent. If you don’t have a Cashline or card account, you’ll receive an SMS after your loan is approved. A debit card will be sent to your address shortly after loan approval. Check the designated bank account to see if the loan amount has been credited or not.
Q. How does the bank calculate the remaining principal payable?
A. The bank uses the “Rule of 78” amortisation method to calculate the interest charges and the monthly instalments. This means that the biggest proportion of interest in a monthly payment, would be charged during the first instalment and this proportion would keep decreasing with every subsequent payment.
Q. What is the payment hierarchy for Cashline loans?
A. For loan instalment you deposit to your Cashline account, a portion will be used to settle the interest first, another portion to settle the fees, and the remaining part to settle the outstanding principal, in that order.