While a credit card can be a great option for retail transactions unless you have maxed it out, a line of credit such as the OCBC EasiCredit is a viable option for your immediate/emergency cash needs. In addition to the fact that it is easy to access cash anytime with this line of credit, you can also borrow up to 6x your monthly income with this loan, which is significantly higher than the usual 4 times the monthly income limit. What’s more, you’ll be paying interest only on the amount drawn. If you had to put your planned solo trip to British Virgin Islands on the backburner in 2017 due to lack of funds, don’t let shortage of funds stop you from being “adventurous” in 2018. After all, an SMS (to OCBC Bank) is all it takes to set the wheels in motion!
Are you worried that high interest rates would cancel out the benefits of having a credit line on standby? This may not always be the case. With this loan, for example, you’ll enjoy convenience along with affordability. Reasonable interest charges will ensure that your borrowing remains affordable for the entire duration of the loan. The interest rates applicable to the credit facility, would depend on your annual income, and the administrative fees, as follows:
|Annual Income||Credit Limit||Effective Interest Rate (EIR)||Monthly Minimum Repayment|
|≥S$20,000 and <S$30,000||2x your monthly earnings||29.8% p.a.||5% of the due amount, subject to a minimum of S$50|
|≥S$30,000 and <S$120,000||4x your monthly earnings||19.98% p.a.||3% of the outstanding balance, subject to a minimum of S$50|
|>S$120,000||6x your monthly earnings||19.98% p.a.||3% of the due balance or S$50, whichever is higher|
Let Us Illustrate:
Let us assume that your annual income is S$50,000. You have borrowed S$12,000 with this credit facility. Assuming that an EIR of 25% p.a. applies on an average on credit cards in Singapore, your interest charges would have been S$3,000 (=25/100 x 12,000) for 1 year. Let us assume that the card charges an annual fee of S$180. Your total cost on the card would have been S$3,180.
Had you borrowed funds on your card (cash advance), a higher rate of 28% p.a. (in general) would have applied. In that case, your total cost of borrowing would have been S$3,540 (=28/100 x 12,000+180). Additionally, you will also have to pay a cash advance fee of 5%-6% of the amount drawn or S$15, whichever is higher. Taking 5% charge as the cash advance fee, your cost of borrowing will shoot up further to S$4,140, where S$600 will be charged as the cash advance fee (5/100 x 12,000). Interest on EasiCredit Line of Credit at 19.98% p.a. will be S$2,397.6 (=19.98/100 x 12,000). If you consider the annual fee of S$80, your total cost of borrowing will be S$2,477.6. So, your savings in both the cases are significant. If you compare it with regular interest charges on the card, you’re saving S$702.4 and if you compare it to cash advance charges on the card, you’re saving S$1,062.4 with this line of credit.
[Disclaimer: The numbers used here are for illustrative purposes only. The actual results and figures may be different.]
While low interest rates can ensure that a loan stays affordable for users such as yourself, high fees can often cancel out the benefits. With this OCBC line of credit, however, you can save on both – interest and fees.
|Annual fee||S$80 (Waived for the first year if your annual income is at least S$30,000)|
|Minimum interest charge||S$5|
|Fee on returned cheques||S$40 per cheque|
|Over-the-counter deposits and payments||S$25 per transaction|
|Excess fee||S$50 (if you borrow more than the credit limit approved)|
|Default interest rate||Up to 36% p.a. (applicable only if you fail to make the minimum monthly payment on time)|
You’ll be eligible if you’re:
To learn more about the complete list of supporting documents, click here.
Application is fast and convenient. Choose a mode in accordance with your choice and convenience:
Q. Even after meeting the eligibility criteria, I wasn’t granted the maximum credit limit possible. Why?
A. The bank may use other internally decided factors and your risk profile for evaluating your application. Any decision taken by the bank is final and absolute. In any case, the bank may at its absolute and sole discretion, may, reduce, modify, cancel, or even increase the credit limit.
Q. Can the bank share my personal details or credit information with third parties?
A. The bank may share your credit standing/report with credit reporting agencies, past/present employers, and a professional body that you’re a member of, from time to time, and its sole discretion.
Q. How are the interest charges calculated?
A. Interest will be calculated on the daily balance maintained and charged only on the amount that you have used. Interest will be calculated on a 365 day-year basis. Interest charges will be debited from your account at the end of each month or as decided by the bank. The bank also reserves the right to change the basis of calculation of interest or the rates applicable, at its sole discretion.
Q. How do I convert my account into a joint account?
A. If you want to convert your sole-account-holder account into a joint account, you may have to make a request to the bank. The bank may accept or reject your application at its discretion.
Q. I want to update my personal details and particulars. How do I inform the bank of the changes?
A. Contact the bank if you want to update your latest address or employment particulars. Under all circumstances, you’re expected to inform the bank of any changes to your personal details. If your whereabouts are unknown to the bank for 6 months or more, it may terminate the line of credit and ask you to settle the loan dues immediately.