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    RHB Secured Overdraft

    RHB provides a Secured Overdraft facility to its customers to help them with their personal investments. This facility allows customers to not only invest but also expand their business. This facility lets you accomplish your financial objectives by providing interest rates as low as 4.25% p.a. Moreover, with the RHB Secured Overdraft facility, you can use collaterals in the form of an insurance policy, Singapore dollar fixed deposits, foreign currency fixed deposits, or other approved stocks and shares.

    Features and Benefits

    The key benefits and features of RHB Secured Overdraft facility include:

    • Credit limit: You can borrow up to 100% of your available credit limit on the Singapore Dollar Fixed Deposit.
    • Interest rates: You can enjoy interest rates as low as 4.25% p.a. Moreover, interest is calculated daily and only on the sum utilised.
    • Wide choice of collaterals: You can choose from a wide array of collaterals which include an insurance policy, Singapore dollar fixed deposits, foreign currency fixed deposits, or other approved stocks and shares.
    • Monthly repayment: You don't have to make regular monthly payments for this facility.
    • Annual fee: There is no annual fee charged on this secured overdraft facility.

    Interest Rates You Will Be Charged

    The following table illustrates the interest rates against different collaterals applicable for this secured overdraft facility:

    Type of collateral Rate of interest (p.a.)
    Insurance policy 5.5% p.a. (i.e. current Insurance Overdraft Rate of 8% p.a. minus 2.5% p.a.)
    Fixed deposits 4.25% p.a. (Current Secured Overdraft against FD of 4.25% p.a.)
    Shares 6% p.a. (Current Prime Lending Rate of 5.7% p.a. plus 0.3% p.a.)

    Fees and Charges

    The following table illustrates the fees and charges applicable to this facility:

    Type of fee Fee charged
    Fee in case of shares Custodian fees are applicable
    Termination fee 0.25% (if this facility is terminated before activation, once you have signed the Letter of Offer)
    Insurance Policy
    Annual fee
    • Fee waiver for the first year
    • 0.125% charged on the approved limit subject to a minimum sum of S$50, starting from the second year
    Termination fee
    • 1% of the approved limit (if this facility is terminated after you have accepted the Letter of Offer)
    • It is subject to a minimum sum of S$50 and is capped at S$200

    Check Your Eligibility

    The following eligibility criteria will hold valid for RHB Secured Overdraft facility:

    • You must be at least 21 years of age or above to be eligible.
    • Singapore citizens and permanent residents can apply for this facility.
    • Foreigners can also apply for this facility, however, their application will be subject to evaluation on a case-by-case basis.

    A separate set of eligibility criteria will be applicable for insurance policies. These criteria are as follows:

    • You have to be an insurance policyholder.
    • CASH policy is applicable where the minimum promised cash/surrender value is S$5,000.
    • The policies can’t be investment-linked or CPF type.
    • The policy must still remain in force, and shouldn’t be classified under Section 73.

    How to Apply for This Loan

    You can apply for the RHB Secured Overdraft facility in one of the following ways:

    • Download the Secured Financing Application Form, complete it, and submit it to the bank.
    • Download the Insurance Overdraft Application form, complete it, and submit it to the bank.
    • Submit your personal contact details online and the bank will get in touch with you to help you with the application process for the secured overdraft facility.

    What Else You Need to Know

    Q. Do I have to submit a copy of the insurance policy?

    A. Yes, you must submit a copy of the insurance policy if it is used as a collateral.

    Q. What is the income document that I must submit as a self-employed individual if I obtained a secured overdraft against the insurance policy, property, or shares?

    A. You have to submit the Income Tax Notice of Assessment for the last 2 years if you’re a self-employed individual.

    Q. Do I need to submit income documents if fixed deposits are used as collateral?

    A. You don’t need to submit any income documents in this case.

    Q. What is the insurance coverage I can get on Singapore Dollar deposits under Singapore Deposits Insurance Corporation?

    A. The Singapore Deposits Insurance Corporation provides an aggregate insurance coverage of up to S$50,000 for each depositor per Scheme member.

    Q. Will I be insured for foreign currency deposits, structured deposits, and dual currency investments under SDIC?

    A. No, SDIC will not insure you for your foreign currency deposits, structured deposits, and dual currency investments.

    Read More about Personal Loans in Singapore

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