When you transfer the balance on your existing credit cards to another one, the first thing you expect is savings on interest payments. POSB Balance Transfer (BT) gives you just that. This product will work for if you’re looking to consolidate credit card debt and reduce your monthly debt commitments. You can transfer the debt from multiple cards at the same time, up to 93% of the credit limit assigned to you. You can transfer as low as S$500, which is one of the lowest minimum BT amounts in the Singapore market.
Apply for a 12-month balance transfer facility online in a single application or combined applications on the same day and get cashback of up to S$500. This offer is valid for both POSB card and DBS Cashline customers. In order to enjoy this offer, you’ll have to apply on or before 30 September 2018. The cashback amount will depend on the loan amount approved and it will be credited to your account on a tier-basis as shown below:
|Loan Amount||Cashback Quantum|
|Greater than or equal to S$15,000 and less than S$30,000||S$150|
|Greater than or equal to S$30,000 and less than S$50,000||S$300|
|S$50,000 and above||S$500|
During the qualifying period, you’ll also enjoy a one-time administrative charge of 4.5% on a 12-month tenure.
|Tenure||Applied Interest Rates (Flat Rates)||Normal Effective Interest Rate (EIR)||EIR During the Promotional Period (Until 30 September 2018) (Online Applications)*|
|6 months||0% p.a.||7.52% p.a. (Cashline) 7.61% p.a. (Card)||5.27% p.a. (Cashline) 5.34% p.a. (Card)|
|12 months||0% p.a.||7.12% p.a. (Cashline) 7.32% p.a. (Card)||5.06% p.a. (Cashline) 5.2% p.a. (Card)|
[*The EIR depends on the assumption that the one-time promotional administrative fee (exclusively for online applicants) of 2.5% (6-month loan)/4.5% (12-month loan) are paid upfront and the minimum monthly due of 2.5% (Cashline)/3% (Card) is paid on time.]
Affordability of a loan usually depends on two factors – interest charges and fees. While saving on interest charges can certainly help you lower your expenses, the same is true for lower fees and charges. The following are the important fees and charges applicable on this POSB personal loan:
|Minimum monthly payment (Cashline)||2.5% of the outstanding balance, subject to a minimum of S$50|
|Minimum monthly payment (DBS/POSB Card)||3% of the outstanding balance, subject to a minimum of S$50|
|One-time administrative charge (Regular)||3.58% (6-month tenure) 6.38% (12-month tenure)|
|One-time administrative charge (Online-exclusive promotional offer)||2.5% (6-month tenure) 4.5% (12-month tenure)|
|Overlimit fee||As determined by the bank from time to time|
|Late payment fee||As determined by the bank|
Click here to learn more about the general eligibility criteria and supporting documents required for POSB/DBS personal loans.
If you’re an existing DBS/POSB cardholder or have a Cashline account, you can apply online without any need to submit supporting documents. New customers can apply directly on the bank’s website, apply at a branch, or apply through the telesales division of the bank. You may also leave your details with the bank and they will call you back at an appropriate time.
Q. Can I apply online if I don’t have iBanking login credentials?
A. You may login using your card and PIN. If you have don’t have either, contact the bank first for additional information.
Q. How will I pay the one-time administrative fee?
A. The administrative charge will be debited from your Cashline account or card.
Q. In what order will payment for any outstanding balance be settled?
A. If you have multiple debts, payments would be used to pay down debts in the descending order of value. The order of settlement will be interest charge, fees, and the principal at last.
Q. If I apply for this balance transfer, can it affect my credit score adversely?
A. It might. That’s because you’re starting a new line of credit and timely payments, the tenure of the loan, missed payments, and other factors could all affect your credit score. Moreover, be mindful of the total debt servicing ratio.
Q. If I applied for multiple balance transfer facilities during the promotion period on different days, which one would be considered for the cashback promotion?
A. The earliest application, which meets all the eligibility criteria for the cashback promotion, will be considered. Cashback will be awarded based on the tier under which the approved loan amount falls.