RHB Secured Overdraft Singapore
When faced with an unexpected short-term financial need, you can secure funding at low interest rates by pledging your assets with the RHB Bank. You can secure overdraft against investments such as stocks, shares, properties, insurance policies, and local or foreign currency fixed deposits with the RHB Bank. The bank offers 100% credit limit for SGD fixed deposits pledged as collateral.
Features of RHB Secured Overdraft facility
The features of an RHB Secured Overdraft facility are:
- You can get 100% overdraft limit for pledging SGD fixed deposits as collateral.
- The interest is calculated only on the amount utilized. It is calculated on a daily basis due to the market fluctuations of the value of the pledged assets.
- There is no minimum monthly repayment for a secured overdraft facility.
- There is no annual fee or processing fee charged for a secured overdraft facility.
- The RHB Bank accepts the following assets as collaterals:
- The interest rate and the overdraft limit are determined based on the type of assets you have pledged as collateral with the bank.
Benefits of RHB Secured Overdraft facility
Following are the various benefits of opting for an RHB Secured Overdraft facility:
- You can use the funds from the approved overdraft facility for any financial purpose such as an investment or business financing.
- RHB Bank offers competitive interest rates as low as 4.25% p.a. for secured overdrafts.
- You can meet your short-term financial needs without selling your long-term financial investments.
- The interest rate of secured overdraft is lower than unsecured lending rates.
Listed below are the secured overdraft rates for various assets pledged with the RHB Bank:
||5.50% p.a. (Insurance Overdraft Rate of 8% minus 2.50% p.a.)
||6% p.a. (Prime Lending Rate of 5.70% plus 0.30% p.a.)
RHB Secured Overdraft comes with competitive interest rates as low as 4.25% p.a. The interest is calculated only on the utilised amount.
Fees and charges
Following are the applicable fees and charges for a RHB Secured Overdraft facility:
||0.25% of the approved limit if the overdraft facility is cancelled prior to activation upon signing the Letter of Offer.
||Custodian charges apply.
|Annual fees for insurance policy
||0.125% of the approved limit with a minimum fee of S$50. The annual fee is waived for the first year.
|Cancellation fees for insurance policy
||1% of approved limit if the overdraft facility is cancelled after acceptance of the Letter of Offer. The minimum cancellation fee is S$50 and the maximum is S$200.
Borrowers must meet certain eligibility criteria to qualify for an RHB Secured Overdraft facility such as:
- You must be a Singapore citizen or permanent resident.
- You must be 21 years of age or above.
- Foreigners can apply for a RHB Secured Overdraft facility but the application is subject to approval on a case-to-case basis.
- If you are pledging an insurance policy as collateral:
- You must be the policyholder.
- The CASH policy should have a minimum guaranteed cash or surrender value of S$5,000.
- CPF type policies or investment linked policies are not accepted.
- Policies should still be effective and not fall under Section 73.
Here is a list of documents required to apply for an RHB Secured Overdraft facility:
- The completed Secured Overdraft application form.
- A photocopy of your NRIC (both sides) or passport.
- If you are pledging your insurance policy as collateral, a copy of your insurance policy has to be submitted.
- If you are pledging your shares as collateral, the latest CDP Statement for Singapore shares and CDS statement for Malaysia shares has to be submitted.
- Salaried employees have to submit income documents for Secured Overdraft against insurance policies or shares:
- The latest salary slips.
- Previous 6 months’ CPF contribution statements or Income Tax Notice of Assessment.
- Self-employed persons have to submit Income Tax Notice of Assessment for the last 2 years.
Income proofs are not required for fixed deposits pledged as collateral.
Explore the Loans Offered By RHB Bank:
Following are the frequently asked questions about the RHB Secured Overdraft facility:
- What are the acceptable collaterals at the RHB Bank?
You can secure overdraft against collaterals such as:
- SGD fixed deposits
- Foreign currency fixed deposits
- Approved shares and stocks
- Insurance policies
- How to apply for a Secured Overdraft facility with the RHB Bank?
Download the application forms (Secured Financing and Insurance Overdraft) from the RHB Bank website. Book an appointment with the bank by filling out an online form. Once that is done, a bank representative will contact you to guide you through the application process.
- What is the current Prime Lending Rate?
The PLR is currently at 5.70% p.a.
- Who can I contact for additional information on the RHB Secured Overdraft facility?
For additional information on the Secured Overdraft facility, call the bank customer service, email the bank or visit the nearest RHB Bank branch.
- Can foreigners apply for the RHB Overdraft Facility?
Foreigners can apply for the RHB Overdraft Facility but the approval is based on a case-to-case basis.
Read More about Personal Loans in Singapore