Have you run up a considerable debt on your cards? Are you planning to renovate your house? Do you need money to clear unpaid medical bills? This Standard Chartered Bank (SCB) loan offers fast cash at competitive rates and even a complimentary credit card to manage your daily expenses better. To top it all, if you apply now, you’ll also get cashback as a welcome gift.
Apply for a CashOne Loan before 30 September 2018 and get cashback of up to S$2,088 upon approval of your loan. Here’s how the cashback amount will be decided:
|Type of Customer||Loan Amount||Amount of Cashback||Cap on Cashback|
|New-to-bank customer||Below S$50,000||1.6% of the approved loan amount||S$2,088|
|S$50,000 or more||2% of the approved loan amount||S$2,088|
|Customer with existing relationship with the bank||Below S$50,000||0.8% of the approved loan amount||S$1,088|
|S$50,000 or more||1% of the approved loan amount||S$1,088|
If you apply online during the qualifying period, you’ll be eligible for additional gifts. Apart from an additional cashback of S$50, you’ll also receive a cash credit of S$199 to offset the first year annual fee of S$199 that will be charged upfront and deducted from the loan amount approved.
The bank claims to offer low interest rates on this personal loan. Depending on the loan tenure and the amount approved, the interest rates are as follows:
|Type of Interest||Lowest Rate||Highest Rate|
|Applied or flat interest rate||6.88% p.a.||10.8% p.a.|
|Effective interest rate (EIR)||12.75% p.a.||27.56% p.a.|
Let Us Illustrate:
Let us assume that you have been granted a loan of S$4,000. For the sake of simplification, let us assume that an annual fee of S$199 was charged on your loan account (disregarding the fact that you’ll receive a cash credit later to offset this fee charged upfront) and consider it as a component in the effective interest rate applicable. The following table shows the flat rate and EIR on the approved loan amount for loan tenures of 1 year, 2 years, and 3 years:
|Loan Tenure||Flat Rate||EIR|
|1 year||9.8% p.a.||27.56% p.a.|
|2 years||9.8% p.a.||23.14% p.a.|
|3 years||10.8% p.a.||22.99% p.a.|
[Disclaimer: The numbers used in the table are for illustrative purposes alone. The actual values and results may vary. Check with the bank for the latest rates before you apply.]
The fees that you pay along with the interest charges also go some way in determining the affordability of your loan. Hence, lower the fees, higher could be your savings. The following fees will apply on your borrowing:
|Annual fee||S$199 for the first year S$50 from the second year till the expiry of the loan|
|Early repayment charge||3% of the outstanding balance, subject to a minimum of S$250|
|Loan restructuring fee (for changing the initial tenure)||S$50 per change|
|Default interest rate||4% p.a. will be added to the original EIR|
|EIR on balance carried forward||25.9% p.a. or 0.071% per day|
|Late payment fee||S$80|
|Annual fee on the SCB card||S$192.60 (Waived for the first 5 years)|
|Minimum payment||3% of the outstanding balance in addition to any outstanding on your Paylite loan, subject to a minimum of S$45|
Q. How does the bank calculate the interest on my loan?
A. The bank uses the front-end, add-on method to compute the interest chargeable on your outstanding dues. Under this method, the approved loan amount is multiplied by the flat interest rate for the full tenure of the loan.
Q. Is partial repayment of my CashOne Loan possible?
A. The bank doesn’t allow partial repayments. For premature account cancellation or early redemption, certain fees may be added to the outstanding principal and interest charges.
Q. What is default interest?
A. If you fail to pay the monthly instalment at least twice within a six-month period, an additional interest rate of 4% p.a. will be charged by the bank along with the normal EIR. This rate is called the revised interest rate and it will become effective from the next statement cycle.
Q. Once the default interest rate becomes effective, will it apply for the remainder of the loan tenure?
A. From the time the revised interest rate comes into effect, if you make full payments on the outstanding loan within the due date for 6 consecutive months, the bank may revoke the revised rate and reinstate the original EIR.
Q. How is the monthly instalment calculated?
A. The monthly instalment (MI) is calculated thus:
MI = (A+B)/C, where A = the loan amount, B = the interest applicable over the full tenure, C = the number of months in the loan tenure.