Cash woes? A personal loan to the rescue!

    OCBC ExtraCash Instalment Loan Review – Enjoy Convenient Repayment Options

    Borrowing isn’t evil. Debt is. Borrowing may not be dangerous. Debt could be if left “unattended”. The crux is that if you borrow, make sure that you repay on time. However, it could be easier said than done. With an instalment loan from OCBC, making payments is usually as easy as borrowing. There are multiple convenient payment plans to choose from. You might also find it easier to repay the loan if you have a proper budget and plan since your monthly payments would be fixed.

    High Borrowing Limit, Easy Account Management – Is This Loan Value for Money?

    • High borrowing cap: You can borrow up to 6x your monthly income with this instalment loan.
    • Low minimum annual income requirement: If you’re a Singaporean citizen or PR, you may be eligible for this personal loan if you have a minimum annual income of S$20,000 and above. If you’re a foreigner, you may be eligible if you have an annual income of S$45,000 at least.
    • Convenient repayment: While online payment may be convenient for someone, offline could be convenient for someone else. With this loan, you’ll have multiple options. You can make a cheque transfer, deposit cash at a cash deposit machine, use a mobile banking funds transfer facility, or settle the dues online.
    • Smart payment plans: Unlike most instalment loans, you don’t just have one payment scheme, namely, the fixed monthly payments. You can also choose the deferred payment plan under which the first payment is deferred by a period as mentioned in the application form or as mutually agreed upon by you and the bank, and mentioned in the approval letter. Interest would accrue on a daily basis on your loan during this period. Once this period expires, regular monthly payments have to be made and the interest accrued during the deferred payment period, will have to be paid with the final instalment.
    • Multiple modes of application: As per your convenience, you may apply online, by sending an SMS to the bank, or by calling the bank.
    • Easy account monitoring and management: Monitor your account transactions at all times with mobile banking and online banking facilities that will be available to you.
    • Flexible loan tenure: Choose a tenure from 1 year to 5 years to settle your loan.
    • Competitive rates and fees: Enjoy low interest rates with this loan. A processing fee will only be charged once and will be deducted upfront.

    Competitive Interest Rates – A Key Feature of This Loan

    Affordability and attractiveness of any loan is usually determined by the interest charges and the fees. The interest applicable on this term loan is calculated using the monthly rest method and can change depending on the approved loan amount and the tenure. The applied interest rate, which depends on your minimum annual income, will be 15% p.a. if your annual income is greater than or equal to S$20,000 but less than S$30,000 and it will be charged at 22% p.a. if your annual income is S$30,000 or above. The effective interest rate (EIR) will include a one-time processing fee.

    [Disclaimer: The numbers shown in the above tables are for illustrative purposes only and may be different from the actual figures.]

    What Are the Fees and Charges That You Will Have to Pay?

    Reasonable fees and charges also contribute to affordability of this loan. Here are the ones that you should be aware of:

    Processing fee
    • S$100 if your annual income exceeds S$20,000 and is less than S$30,000
    • 2% of the loan amount, subject to a minimum of S$200 if your annual income exceeds S$30,000
    Late fee S$80
    Early partial or full redemption fee 3% of the amount repaid, subject to a minimum of S$1,000
    Restructuring fee 3% of the outstanding balance
    Immediate redemption 1 month interest in lieu

    Keep in Mind: One-Month Interest in Lieu Will Be Charged for Immediate Redemption

    Consider the following points before you submit your loan application:

    • If you apply for this loan and redeem it immediately, you will be charged interest for one full month in lieu.
    • For partial or full early repayment, the minimum amount can’t be less than S$1,000.
    • Missed or late payments may attract additional interest and other charges.
    • Since the monthly-rest method of interest computation will be used, the interest payable may be a little higher than if the daily-interest computation method were used.

    Planning to Apply? Check the Eligibility Criteria First

    • You’re aged 21 years or above.
    • Your annual income is at least S$20,000 if you’re a Singaporean citizen or PR.
    • Your annual income is at least S$45,000 if you’re a foreigner.

    Don’t forget to keep your supporting documents ready when you’re ready to apply.

    Get Ready for a Hassle-Free Application Experience

    Applying for this loan is usually smooth. You can use any of the following modes for applying:

    • Apply on our website in matter of minutes.
    • Call the bank.
    • Send an SMS to the bank.

    What Else Should You Know?

    Q. What is monthly rest interest?

    A. Under this method, interest on the loan is calculated based on the outstanding balance from the last month.

    Q. Will I be penalised if I fail to clear the outstanding dues on time?

    A. If you don’t clear your monthly instalment or other dues on time, the bank may levy an additional interest rate on the payable amount. You’ll also have to cough up a late payment fee.

    Q. I want to cancel my loan. Will the bank impose a cancellation fee?

    A. The bank may impose a cancellation fee at its absolute discretion. The value would also be determined by the bank.

    Q. I also plan to apply for a home loan. Can I do so immediately after I have applied for this loan?

    A. In Singapore, the Total Debt Servicing Ratio (TDSR) can’t exceed 60% at any point of time. This means that your total borrowings can’t exceed 60% of your gross monthly income. You can apply for this personal loan and any other loan, provided your TDSR doesn’t breach the limit.

    Q. I want to restructure the loan. What is the procedure?

    A. If you decide to restructure your loan, talk to the bank. The bank will review your request and inform you of its decision. A loan can be restructured only if its tenure is 4 years or less.

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