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.
The key benefits and features of RHB Secured Overdraft facility include:
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.)|
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)|
The following eligibility criteria will hold valid for RHB Secured Overdraft facility:
A separate set of eligibility criteria will be applicable for insurance policies. These criteria are as follows:
You can apply for the RHB Secured Overdraft facility in one of the following ways:
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.