Cash woes? A personal loan to the rescue!

    OCBC Cash-On-Instalments Loan

    How would you react if you were told that you could convert unused credit on your credit card or credit line into extra cash and enjoy interest savings? Well, with this OCBC loan, you’ll not only enjoy this benefit but also have the option to make fixed monthly repayments. The tenure can go up to 5 years and the flat rate of interest starts from 5.8% p.a. We’re going to take a closer look at these features in the following section.

    Fixed Instalments, Low Rates: Can This Loan Help You With Financial Management?

    Take a look at the features that you would enjoy with this loan and see how much you could benefit from them:

    High Maximum Borrowing Amount: In general, if you want to take this loan on an eligible OCBC card, you may not be able to borrow more than 90% of the credit limit available on the card. The limit will be decided after deducting the processing fee upfront from the loan amount upon approval of your loan application. If you want to draw this loan on your EasiCredit account, you may be eligible for a loan up to the approved credit limit minus the processing fee.

    Low Minimum Borrowing Amount: Under this facility, you may not be able to borrow any amount less than S$1,000. This applies to both OCBC cards and EasiCredit credit line.

    Affordable Interest Charges: The nominal rate on this loan can be as low as 5.8% p.a. and the effective rate of interest can be as low as 11.38% p.a. With lower interest rates, you can expect savings on your borrowing.

    Fixed Monthly Repayments: As you’ll have to make fixed repayments for the entire duration of the loan, you may find it easier to manage your finances. This could make your life easier when budgeting for expenses because you would know the exact instalment amount that you’ll have to make allocations for every month.

    Fast Disbursal of Funds: Upon approval of your application, OCBC will credit the loan amount directly to a bank account designated by you.

    Save More on Your Loan With This Special Offer

    If you’re a new OCBC card or EasiCredit customer, you may be eligible for one of the lowest interest rates in Singapore when you apply for this loan. However, the offer is valid only until 31 January 2019. Under this special offer, you’ll enjoy a flat rate of interest of 3.5% p.a. The effective interest rate on this loan will start from 6.96% p.a.

    Wondering If the Loan is Cost-Effective or Not? The Following Rates Could Give You an Idea

    Interest charges, to a large extent, determine how economical a loan really is. Take a look at the rates below and decide for yourself how cost-effective this loan is:

    Loan Tenures Applied Interest Rate Effective Interest Rate
    1 year 5.8% p.a. 14.33% p.a.
    2 years 5.8% p.a. 12.80% p.a.
    3 years 5.8% p.a. 12.11% p.a.
    4 years 5.8% p.a. 11.71% p.a.
    5 years 5.8% p.a. 11.38% p.a.

    Go through the following illustration. We’ll compare the monthly instalment you will pay for this loan vis-a-vis another generic instalment loan and analyse the savings on the two.

    [Disclaimer: The numbers used in the example above may bear no resemblance to actual values. They serve no purpose other than illustrative.]

    Here’s What You May Be Charged in Terms Of Fees

    Are you afraid thinking that the interest savings could be eroded to an extent by high fees and charges? That may not be the case with this loan. The following are the types of fees that you need to be aware of:

    • A one-time, non-refundable processing fee of 2%, charged on the approved loan amount.
    • An administrative fee of S$100, in case of loan account termination.
    • Other legal and service-related charges, where applicable.

    Careful Consideration Recommended: Interest Not to Be Refunded Under Any Circumstance

    Here are some points that you may want to consider, analyse, and remember before you apply:

    • Once interest is charged on the loan, it won’t be refunded, even if the account is cancelled.
    • The amount disbursed may be lower than the amount applied for. That’s because a one-time processing fee would be deducted from the loan amount before disbursal. In any case, the bank reserves the right to approve an amount smaller in size than what you had asked for. It may offer no explanation for the same.
    • The designated account must be a Singapore-dollar denominated deposit account held with a bank or financial organisation in Singapore.
    • Upon approval of your loan application, the credit limit on your card or EasiCredit account would be reduced by an amount equal to the amount approved. With every single instalment payment, your credit limit would be restored by a corresponding amount.
    • Transactions made in relation to this loan on your OCBC card won’t earn you reward points such as LinkPoints, OCBC$, or Robinson$.
    • If monthly payments are not made in full and on time, the bank may impose interest charges at its determined prevailing rate.

    Not Sure If You Fulfil the Eligibility Conditions? Look for Relevant Information Here

    You may be eligible for this loan if:

    • You’re aged 21 years and above.
    • Your annual income is:
      • At least S$20,000, if you’re a citizen or resident (permanent) of Singapore.
      • At least S$45,000, if you’re a foreigner.
    • You’re a principal owner of an OCBC card or an EasiCredit account.

    To check the supporting documents that OCBC might ask for, please click here.

    Apply Through Convenient Channels

    The following are the modes available for submitting your application:

    • You can apply online.
    • You can send an SMS to the bank (refer to the bank’s website to check the prescribed format).
    • You can call the bank’s relevant hotline.

    Term loans are convenient. But, if you already have multiple open credit facilities, making a new enquiry could lead to a possible lowering of your credit score. However, in this case, you don’t have to open a new account. You’re simply converting unutilised credit to an instalment loan.The right loan at the right time can often inject you with optimism in addition to solving your money woes. This OCBC product could be such a loan for you. If you have an OCBC card or EasiCredit account and need fresh funds, you could consider it as an option.

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