Cash woes? A personal loan to the rescue!

    UOB CashPlus Line of Credit Review - Why Should You Consider This Loan?

    With UOB CashPlus credit facility, your investments and expenses can become more streamlined, thereby putting you in control of your finances. Affordable rates, great experience, and reliable performance are considered to be its hallmarks.

    Is this UOB Debt Product Worth It? Important Features and Benefits

    A line of credit from UOB may be considered if you’re unsure how much your planned investment or expense will cost you. It is also a great option if you want to use a single debt product to meet multiple expenses. You can borrow up to the stipulated credit limit and continue to revolve it by simply paying the minimum monthly due. Here are the most important features and benefits of this loan:

    • Maximum loan amount: If your monthly income exceeds S$10,000, you may get a credit limit of up to 6x your monthly income, subject to a maximum of S$200,000. If your monthly income falls in the S$2,500 to S$10,000 bracket, you may be extended a line of credit with a limit of up to 4x your monthly income.
    • Easy access to cash: Withdraw cash anytime you want from over 1,200 ATMs across the island or from one of the 40+ UOB branches in the country. You may also access cash conveniently using your chequebook or your internet banking account. The complimentary ATM card can be used at more than 877,000 ATMs across the world.
    • Draw and redraw multiple times from the same credit facility: Use any amount up to the limit available to meet your needs. As soon as you repay the due, the limit gets restored and you can draw cash again for another purpose.
    • Track your transactions with ease: The surest way to stay on top of your finances is to methodically and meticulously track your financial transactions. When you use the CashPlus line of credit, you can stay in firm control of your expenses and borrowings by checking the monthly statements or by simply logging into your online banking account.
    • Credit limit review: Have you recently got a promotion or a salary hike? If you feel that your credit facility isn’t sufficient to meet your expenses, you may request the bank to re-examine it.
    • Low interest rate: Your savings could be substantial when you use this facility because interest rates could be as low as 1.65% per month.
    • Fast turnaround: If you apply at a branch, you may receive an update on the status of your application within 1 hour, subject to certain terms and conditions. Online applications may fetch you approval within the same day, provided conditions are fulfilled.

    Consider the Following before Submitting Your Application

    • You may attract default interest rate, which is much higher than the prevailing rate, if you fail to make the minimum monthly payment.
    • For late or missed payments, late fees and other penalty charges may apply in addition to higher interest rates.
    • If you overdraw from your line of credit, an over-limit fee may apply.
    • You’ll have to pay an annual fee for maintaining your CashPlus account. Service fees may be charged by the bank, where applicable.
    • No interest will be paid by the bank on credit balances in your CashPlus account.

    Offers Can Rain Any Time During the Year With UOB CashPlus

    The value offered by this loan doesn’t end at the low rates you enjoy or the convenient cash withdrawal channels that exist. If you’re eligible for one of the promotional offers, you’ll realise that the value proposition on this credit line is probably stronger than you had initially anticipated. If you apply for a UOB CashPlus account on or before 30 September 2018, you can enjoy a flat rate of 0% and a one-time processing fee of 1% on a CashPlus funds transfer, provided:

    • The tenure of the funds transfer loan is 6 months.
    • The funds transfer amount exceeds S$500.

    The effective interest rate (EIR), during the period, on the funds transfer facility will stay fixed at 2.12% p.a. Thereafter, prevailing rates will apply.

    Every Loan Claims to Be Affordable. How Far Is It True for the UOB Line of Credit?

    Interest payable on this loan is calculated on a daily reducing-balance basis. If you fail to make the minimum payment due within the due date mentioned on your statement or your letter of approval, a higher interest rate, known as the default interest, will apply. The default rate will continue to apply for three consecutive months if minimum payments are made on time during this period. Thereafter, the prevailing rate will take over. While the interest will be calculated on the outstanding balance on a daily basis, compounding will be done every month, starting from the due date till the time full repayment is made. The minimum monthly interest charge stands fixed at S$5. Any changes to your annual income won’t affect the agreed upon interest rate. Interest rates may, however, be changed as per the discretion of the bank, from time to time. Since the average daily outstanding balance is considered by the bank, the interest is expected to be lower than if other methods of interest computation were used.The current rates of interest are:

    Type of Interest Rate
    Prevailing 19.98% p.a.
    Default 29.98% p.a.

    What Are the Important Charges That You Should Know About?

    When you borrow, a number of fees and charges may apply. While most of these charges may be unavoidable, depending on the magnitude of these numbers, a loan may seem to be affordable or expensive because these charges are reflected by the effective rate of interest. The following fees and charges are applicable on the CashPlus credit facility:

    Type of Fee Amount
    Minimum monthly payment 2.5% of the due, subject to a minimum of S$30
    Annual fee S$100
    Late payment fee S$105
    Over-limit fee S$50
    ATM card replacement S$5
    Cheque payment stop S$30
    Return cheque fee S$40
    Retrieval of statements

    Up to 1 year – S$20 per copy

    Between 1 year and 3 years – S$30 per copy

    3 years or more – S$50 per copy

    Are You Eligible for this UOB Loan?

    If you satisfy the criteria mentioned here, you’re eligible for the loan. Don’t forget to check the list of supporting documents that you’ll have to furnish.

    Planning to Apply? You Can Do So Through Any of the Following Channels

    Applying for this loan is simple and convenient. Use any of the modes mentioned below, as per your convenience:

    • Fill out an online form, available on the bank’s website. If you apply within 1:00 p.m. on a business day, you may receive an in-principle approval on the same day, subject to certain conditions.
    • Visit a branch and apply directly at a teller counter. If you apply between 9:00 a.m. and 1:00 p.m. on a regular working day, you may get to know the status of your application within 1 hour and also get an in-principle approval, subject to terms and conditions.
    • Call the bank’s toll-free hotline and apply.

    A medical insurance policy, however comprehensive, won’t cover certain costs usually. A salary, however big, may fail to pay for certain lifestyle choices you make. A business venture, however solid, will usually fail to attract seed funding on day 1 of its existence. For such costs and more, considering UOB CashPlus credit as a viable option, may prove to be a prudent decision. Whether your life revolves around olive martinis, Aston Martins and exotic beaches or mostly in Singapore between your home, office, and the local supermarkets, a steady source of money can be a big help.

    What Else Should You Know?

    Q. What are the modes available for settlement of dues?

    A. You may use any of the following modes of payment:

    • Make a payment using your phone banking or internet banking credentials.
    • Visit a UOB ATM anywhere in the island to make a payment.
    • Issue a crossed cheque to the bank. Put it in a business envelope, available for download on the bank’s website, and mail it to the bank.
    • Transfer funds from your bank account to settle the outstanding balance.
    • Make payment in cash at a branch or via a cash deposit machine.

    Q. Is there a daily withdrawal limit on the complementary ATM card?

    A. You can withdraw up to S$3,000 per day in Singapore. Outside Singapore, you may be able to withdraw a similar amount in local currency, subject to the maximum limit set for the ATM.

    Q. Are local ATM withdrawals free?

    A. Withdrawals made from local UOB ATMs are absolutely free. The first two withdrawals from ATMs under shared networks, every month, are free. A charge of S$0.30 will apply on subsequent withdrawals.

    Q. How do I request a review of the limit on my credit facility?

    A. Download the relevant form from the bank’s website, complete it, and send it to the bank along with your income documents. For more information, contact the bank.

    Q. Can I set up a GIRO standing instruction?

    A. Yes. Download the relevant GIRO form from the bank’s website, indicate the name of the instructing bank, the details of the account, the name of the account holder, and other relevant details, and send it to UOB for processing.

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