A personal loan may not always be expensive. Let’s take Maybank CreditAble Term Loan as an example to see if it fits the bill. With a flat rate of interest as low as 6% p.a. and a one-time processing fee as low as 2%, you could save provided you make full payments on time. You could borrow up to 2x your monthly income. The loan tenure can go up to 5 years. To learn more about the features of this loan in detail, please read the following section.
Do you think that fixed monthly payments are easier to manage and plan for? May be that could be a reason why you may want to consider this instalment loan. In addition, you may also like the following features:
High Ceiling for Borrowing
The bank may grant a loan amount up to 90% of the credit limit available to you under the CreditAble account.
Low Minimum Loan Amount
You can borrow an amount starting from S$1,000. This means that this loan could be a great option irrespective of whether you need a small or a large loan amount.
Long Loan Tenure
The tenure for this loan can vary from 1 year to 5 years. You can choose a tenure that suits your financial plan and repay the loan by making fixed monthly payments.
Affordable Interest Charges
The flat rate of interest on your loan could be as low as 6% p.a. The effective interest rate could be as low as 12.96% p.a.
Easy to Budget the Loan Expenses
As the monthly payments remain fixed for the entire loan tenure and you’re informed of your monthly commitment at the beginning, you may find it easier to make an allocation for the loan expenses in your budget. This might even help you reduce the chances of default or being overdue.
If you apply for a loan amount of S$9,000 at least and if you’re one of the first 500 successful applicants, you’ll receive a cash credit of S$120. This money will be credited to valid CreditAble accounts of all successful candidates within 1 month from the time of application.
There are, however, some conditions. They are as follows:
Let us see the nominal and effective interest rates that you’ll be charged depending on your chosen tenure (on a loan amount of S$9,000):
|Loan Tenure||Nominal Interest Rate||Effective Interest Rate|
|1 year||6% p.a.||14.45% p.a.|
|2 years||6.38% p.a.||13.58% p.a.|
|3 years||6.88% p.a.||13.77% p.a.|
|4 years||6.88% p.a.||13.31% p.a.|
|5 years||6.88% p.a.||12.96% p.a.|
The following example could help you understand your monthly instalment savings vis-à-vis another debt product which charges higher processing fees and interest rates.
Let us assume that you have applied for a CreditAble Term Loan of S$10,000 and have chosen a 4-year tenure. Then, you’ll be charged a processing fee of 2% and an interest rate of 6.88% p.a. Let us now try to determine the monthly instalment amount.
Since a one-time processing fee of 2% is applied, interest will be charged on the balance of S$9,800 (=10,000-2/100x10,000). Therefore, every month, you’ll have to make a fixed payment of around S$265.
Let us now assume that you had a term loan from Bank X. The loan amount and tenure was the same as the example above. You had to pay a processing fee of 5% (charged upfront) and a flat interest rate of 10% p.a. The loan balance sans the processing fee was S$9,500 (=10,000-5/100x10,000). The monthly instalment was S$287.5 (10,000/48+10/100x9,500/12).
With Maybank’s term loan you can save S$22.5 every month which translates to a saving of almost 8% [=(287.5-265)/287.5x100%] every month.
Just imagine, how much more you could probably save if you compare this loan to a credit card in Singapore.
[Disclaimer: The numbers used above are for illustrative purposes only. Any attempt to compare this result with actual results, may prove to be fallacious.]
The following are some of the fees that may be charged:
Without relevant information, choosing a product/service can become difficult. The same is true for this loan. It’s imperative, therefore, that you know, understand, and carefully weigh the following before you proceed with the application:
To know if you’re eligible, click here. You could also find out more about the documents that you’ll have to submit for verification purposes.
You can apply directly on the bank’s website by filling in the mandatory fields and providing some supporting documents. You could also contact the bank by calling the helpline numbers. Else, you could just fill up and submit the contact form. The bank will contact you. You could also visit a branch to complete the process. Use the Locate Your Nearest Branch feature available on the bank’s website to find a branch that’s closest to you.
Term loans are useful when you wish to know how much you need to aside each month towards to your repayment because the repayments remain fixed throughout the loan tenure. With this loan, you could choose a tenure based on your needs, whether you’re looking for a short-term repayment plan or a long tenure of up to 5 years.