• Maybank Secured Overdraft

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    Maybank Secured Overdraft Singapore

    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.

    Features of Maybank Secured Overdraft

    The following features make Maybank Secured Overdraft a convenient facility to have:

    • Linked to the asset: You don’t have to meet a minimum income requirement to get Secured Overdraft. The amount you get depends on the value of the asset you pledge with the bank. This leaves the decision of how much to borrow in your hands rather than that of the bank.
    • Safeguard your assets: With a secured overdraft, you don’t need to worry about liquidating your fixed deposit, bonds or unit trust. You can continue to own the assets and also be able to get cash for your immediate needs.
    • Ease of access: You can get the money you need any time. You can withdraw money from secured overdraft account through cheque book, ATM card or online funds transfer.
    • Flexible interest charges: You need to pay interest only on the amount you use from the Secured Overdraft approved for you, and not for the entire approved amount. This can save you a lot of money in interest charges.

    Interest rates and fees

    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:

    Charge type Rate
    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.

    Eligibility criteria

    To apply for a Maybank Secured Overdraft, you need to be:

    • At least 21 years old;
    • A Singapore citizen or permanent resident;
    • Have an asset to pledge with the bank.

    Documents required

    • Identity proof: Copy of the NRIC and/or passport
    • Income proof: Computerised payslips, CPF Contribution History Statement, Income Tax Notice of Assessment
    • Security: All documents related to the asset that you’re planning to pledge.

    How to apply for Maybank Secured Overdraft

    To apply for Maybank’s Secured Overdraft, you can:

    1. Download the application form, fill it up and present it to your nearest Maybank branch along with the required documents, OR
    2. Visit a Maybank branch and meet the Relationship Manager to begin the application process.

    Explore Other Loan Products offered by Maybank Singapore:

    FAQs

    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.

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