Maybank’s credit products are well known for low interest rates. Secured Overdraft is extra credit line that you can avail by pledging one of your assets such as fixed deposits or unit trusts. Maybank Secured Overdraft allows you to get access to additional funds when you need it without having to take a personal loan or payday loan at high interest rates.
The following features make Maybank Secured Overdraft a convenient facility to have:
The interest rate charged on Secured Overdraft depends on the value of the pledged asset and the loan amount you take. The starting rate for Secured Overdraft is the Maybank Prime Lending Rate, rates and fees applicable on Secured Overdraft are as detailed in the table below:
|Prime Lending Rate||5.25% p.a. (as on March 3, 2017)|
|Minimum monthly interest||S$20|
Apart from this, annual fee, processing fee and late payment fees are applicable on the Secured Overdraft account as per the bank’s discretion. Check with the Maybank executive about these details before choosing the product.
To apply for a Maybank Secured Overdraft, you need to be:
To apply for Maybank’s Secured Overdraft, you can:
Q.Can I pledge my car or house as an asset to get Secured Overdraft?
A. Technically you can, but ideally you should not. Secured Overdraft is a short-term loan which gives you access to funds to meet your immediate needs. The amount you’re approved for Secured Overdraft depends on the asset that you pledge. If you pledge your car or house, you may be able to secure a large overdraft amount, but you might not want to put your house or car as collateral with the bank as you can get low-interest loan products such as mortgage loan with your house and can put it to better use.
Q.What is the tenure of my Secured Overdraft?
A. Secured Overdraft does not come with a fixed tenure. You are approved a credit limit and you can use it as long as you need it, and can withdraw in phases or in one go. Repayment has to be made regularly on the amount you repay, and as you make repayments, the credit limit is restored. You can close the Secured Overdraft account once you’ve paid the bank all your dues and don’t need access to extra funds any more.
Q.How do I know the status of my Secured Overdraft account?
A. Maybank will send you a monthly statement with information such as withdrawn amount, dues, interest charges, minimum payment required, etc.
Q.Can I take a Secured Overdraft and use that money to buy stocks and shares?
A. Yes you can. In fact, if you tell the bank about such a purpose, the bank will help you open a stock broking account, and the stocks and shares you buy with the borrowed money will be considered as the collateral.
Q.Can I take a Secured Overdraft for other investments?
A. Yes. This totally depends on you. If you are sure that the investment you are planning to make will cover the interest charges and other fees applicable on your Secured Overdraft account and still allow you to make profits, then investment with the Secured Overdraft amount is a wise plan.