A personal line of credit is a credit arrangement between a lender and a borrower, wherein the lender extends a credit facility to the borrower with a predetermined limit.
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|Bank||Interest Rate||Annual Fee||Annual Income Requirement||Maximum Credit Limit|
|HSBC Personal Line of Credit||12% p.a. and above||S$60||S$30,000 and above||Up to 6x your monthly income|
|Citi Ready Credit||20.95% p.a. and above||S$100 (Waived for 1 year)||S$30,000 and above||Up to 4x your monthly income|
|Maybank CreditAble||19.8% p.a.||S$80 (Waived for 2 years)||S$30,000 and above||Up to 4x your monthly salary|
|DBS Cashline||19.8% p.a. to 29.8% p.a.||S$100 (Waived for 1 year)||S$20,000 and above||Up to 10x your monthly income, up to a maximum of S$200,000|
|UOB CashPlus||19.98% p.a. and above (Effective from 1 July 2018)||S$100 (With effect from 1 July 2018)||S$30,000 and above||Up to 6x your monthly salary|
|OCBC EasiCredit||19.98% p.a. and above||S$80 (Waived for 1 year if annual income is S$30,000 or more)||S$20,000 and above||Up to 6x your monthly salary|
|CIMB CashLite||8.21% p.a. and above||-||-||Up to 80% of the credit limit available|
|BOC MoneyPlus Line of Credit||22.80% p.a. or 28.55% p.a.||S$100||S$1,700 per month and above||Up to 4x your monthly income|
This credit facility allows you to draw and redraw money within the approved credit limit till the maturity of the loan. This is an ideal credit arrangement for those who have frequent need for liquidity. You can not only withdraw money whenever you want till your loan tenure expires but also vary the borrowing amount depending on your immediate need. You can use it to solve your short-term and long-term financial needs.
HSBC Personal Line of Credit
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|Eligibility Criteria||Documents Required|
A personal line of credit gives you easy access to cash. When you apply for one, your lender will extend a credit line with a pre-approved credit limit. An unsecured term loan, commonly known as a personal loan, is a loan with a fixed tenure and fixed monthly instalments. There is no minimum payment due. You have to pay the instalment amount in full if you want to avoid additional borrowing charges.
With a credit line, you can borrow whenever you want through an ATM, a cheque, online banking, or mobile banking, as long as you don’t exceed the credit limit. A credit card is also a revolving debt facility that allows you to pay for your expenses on a monthly basis. You can also borrow cash in times of emergency. Most lenders, however, charge a higher interest rate for cash advances. No additional interest will be charged if you settle the full outstanding balance every month within the due date.
Q. Can I utilise the full credit limit available to me?
A. It depends. For instance, with DBS Cashline you can utilise the full credit limit but with CIMB CashLite, you can borrow up to 80% of your credit limit.
Q. Can I draw more than my credit limit?
A. Most lenders allow you to borrow more than your approved credit limit. You’ll, however, be charged an over-limit fee and higher interest rates.
Q. Is early repayment/termination possible?
A. Yes, most lenders will allow you to prepay your loan before the maturity of the loan. For example, if you want to prepay your CIMB CashLite credit line, you’ll have to pay 3% of the outstanding balance, subject to a minimum of S$250.
Q. How long does the process of approval take?
A. The process of approval usually takes 2 to 3 business days. But, if your documents aren’t in order or the bank requires more clarifications, more time may be required. Talk to the lender in details before applying.
Q. What are the common modes of repayment?
A. Some of the common modes of repayment are online banking, ATMs, FAST, GIRO, iNETS, mobile banking, bulk cash deposit machines, SAM SingPost, and cheques.
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