POSB Balance Transfer for Personal Line of Credit

    When your personal loan debt is piling up and you don’t think you can pay the interest for much longer, you need to consider transferring your credit card or credit line balance to another bank under the balance transfer facility. Balance transfer plan is offered by most leading banks, and it allows you to pay a very low interest for the first 6 to 12 months, which will help cut down the rising interest charges. Balance transfer applies to both line of credit and credit cards.

    POSB, one of Singapore’s oldest banks, also offers a balance transfer plan for your cards or line of credit. POSB promises savings, flexible repayment and better financial control when you transfer your existing card or credit line balance from another bank to its products. POSB’s line of credit is known as Cashline.

    Features and benefits of the POSB Balance Transfer for personal line of credit

    • POSB offers 0% p.a. interest rates for a tenor up to 12 months. This gives you ample time to pay off the balance.
    • The amount that you wish to transfer should be a minimum of S$500 and a maximum of 93% of your credit limit. In case your outstanding dues are higher than your credit limit, POSB will charge you an over-limit fee. This charge is at the discretion of the bank.
    • The minimum amount of repayment is S$50 or 2.5% of the statement balance for Cashline. You must pay the higher amount out of the two. In case you fail to pay the amount in time, the bank will levy a late payment fee. The amount will be as determined by the bank.
    • If you have a Cashline or credit card account with DBS, then documents are unnecessary, as you can simply log in to the POSB website and fill the form. Once you submit a request, you will not be allowed to cancel the request or change the amount.
    • The bank has the right to reject your application if it thinks you will not be able to pay the amount back. This is in cases where the amount exceeds the credit limit set by the bank for your income.

    POSB Balance Transfer Interest Rates

    The table below shows the interest rates for Cashline balance transfer plans:

    6-month tenure 12-month tenure
    Interest Rate (p.a.) 0% 0%
    Effective Interest Rate (p.a.) for POSB Cashline online applications 5.27% 5.06%
    Effective Interest Rate (p.a.) for POSB Cashline offline applications 7.52% 7.12%
    Processing Fee for online applications 2.5% 4.5%
    Processing Fee for offline applications 3.58% 6.38%

    POSB Balance Transfer Promotion for personal line of credit

    POSB has two promotional offers for online applicants of balance transfer. You can get the following rewards on applications until 31 December 2017:

    • Administration/processing fee of 4.5% for a 12-month balance transfer plan;
    • NTUC vouchers worth up to S$200

    To get the NTUC vouchers, you need to apply for a 12-month tenure and choose to transfer both your line of credit and credit card from another bank to POSB. The application should be done online – either on the same day or combined in a single application. The vouchers are awarded based on your approved balance transfer amount as per the table below:

    Loan amount Voucher value
    S$8,000 to less than S$15,000 S$60
    S$15,000 to less than S$25,000 S$120
    S$25,000 or more S$200

    POSB Balance Transfer eligibility for personal line of credit

    To be eligible for POSB Balance Transfer, you need to meet the following parameters:

    • You should meet all the eligibility requirements of POSB Cashline.
    • The amount you wish to transfer should not be higher than your credit limit or four times your monthly salary.

    Documents required for POSB Balance Transfer

    No documents are required if you already have a Cashline or credit card account with DBS or POSB. If not, you need to submit the following documents:

    • NRIC copy (both the sides)
    • Copy of passport (or foreigners)
    • Work permit/employment pass (for foreigners)
    • Most recent computerised payslips
    • Most recent Income Tax Notice of Assessment OR CPF Contribution History
    • Bank statement for the last three months

    How to apply for POSB Balance Transfer

    The easiest way to apply for POSB Balance Transfer is to do it online. You can visit the POSB website and click on the ‘Apply now’ button at the bottom of the page. You could also visit your nearest POSB or DBS branch to apply.


      Q. Can I transfer the balance of more than one credit line to POSB?

      A. Yes. As long as the balance on the multiple credit lines you want to transfer is lower than your credit limit or your four months’ salary, you can transfer more than one account’s balance to POSB.

      Q. Can I get a 3-month balance transfer tenure?

      A. No. POSB Balance Transfer starts at 6 months.

      Q. Do I have to pay the processing fee separately to POSB?

      A. No. The processing fee will be debited from the Cashline account in your name.

      Q. How do I save using POSB Balance Transfer?

      A. Your interest payments during the period of balance transfer would be lower than what you are paying on your current line of credit. POSB Balance Transfer gives you an EIR of 5.06% to 7.61% p.a., but line of credit interest rates range between 19% and 30% p.a. generally.

      Q. Can I earn reward points or cash rebate on balance transfers?

      A. No. There will be no points or rewards for balance transfers.

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