What are the things that you would generally associate with a term loan? Tenure, charges such as the processing fee, and interest rates, right? What if we told you that there’s an instalment loan for which you won’t be charged a processing fee? The Maybank FlexiCash loan is one where you are not required to pay such a fee. This loan is ideal if you wish to repay the loan within 1 year or 2 years. You’ll also enjoy competitive interest rates on the loan.
Affordable interest charges mean that you can save more. The following nominal and effective interest rates apply:
|Tenure||Flat Interest Rate||Effective Interest Rate (EIR)|
|1 year||5.88% p.a.||10.68% p.a.|
|2 years||6.88% p.a.||12.7% p.a.|
The following example will help you understand the magnitude of your savings on the loan vis-à-vis a credit card:
Let us assume that you have an outstanding balance of S$10,000 on your card on which an effective interest rate of 25% p.a. is charged. Your interest charges for the year would be S$2,500 (=25/100 x 10,000). This means, your monthly charges are S$208.33 (approximately).
Your interest charges on this loan for 1 year would be S$1,068 (=10.68/100 x 10,000). So, your monthly interest charges will be S$89. If you compare the two cases, you will realise that you’re saving S$119.33 per month by borrowing through the FlexiCash loan. Had you chosen a 2-year tenure, you would have paid S$105.83 (=12.7/100 x 10,000/12) per month. Savings per month? S$102.5. By saving on interest charges, you may succeed in optimising a cost component that plays a significant role in your annual budget.
[Disclaimer: The actual figures and results may be significantly different from the ones shown in the above example.]
In order to be eligible, you’ll have to be the principal owner of a Maybank card. Still don’t have a card from Maybank? See the criteria for application here. You may also learn more about the supporting documents, generally required for Maybank personal loan applications, here.
Q. How do I register my interest for the loan?
A. If you’re a principal cardholder and want to apply for FlexiCash, download the relevant registration form from Maybank’s website, complete it, and send it to the bank. This registration will extend to transactions made to and from the designated bank account.
Q. How does the bank calculate interest rates for this product?
A. The bank uses a front-end, add-on interest-computation method to calculate interest charges on your outstanding balance. The rates are decided by the bank at its discretion and may be mentioned on your letter of approval.
Q. After my loan application was approved, I noticed a dip in my card credit limit. Why?
A. As soon as your loan application is approved, the credit limit on your card will be reduced by an amount equal to the loan amount, including interest charges and other upfront fees. However, with each instalment settlement, the credit limit will be restored by an amount equal to the instalment amount.
Q. If I take this loan, can my credit score be affected?
A. It depends. If you’re meeting the government-mandated Total Debt Servicing Ratio (TDSR) requirement, if you don’t have too many other open lines of credit, if you have repaid the outstanding balance on your borrowings on time, and if you’re not applying for too many credit products within a short span of time, your credit score may not be affected negatively.
Q. What are TREATS Points?
A. TREATS Points are reward points that are awarded by Maybank on retail transactions charged to your Maybank credit/debit card. You can earn 1 TREATS Point per S$1 on credit cards and 1 TREATS Point per S$5 on debit cards. However, FlexiCash transactions are not eligible for this rewards programme.