Have you accumulated a large outstanding debt on your existing credit facilities? With this UOB loan, you could succeed at wiping it clean. You could consolidate the unsettled balances across multiple existing loan accounts with this single loan. What’s better? There are no applied interest charges. 3 loan tenure options are available with this loan. Read on to learn about the features of this loan in detail in the next section.
Caught in the middle of a snowballing debt crisis? If you’re wondering if equipping yourself with this loan could help you fight back, check the following features of this loan before you make a decision:
High Borrowing Limit: If you apply for a Funds Transfer loan on your CashPlus account and if it is approved, you could borrow up to 95% of the credit limit available.
Low Minimum Borrowing Amount: You could borrow as little as S$500 with a CashPlus Funds Transfer loan.
Consolidate Debt With a Single Loan: Consolidate the outstanding debt on your existing loans with this single loan. Not only could it shrink the size of your debt due to interest savings, it could also make life easier for you. That’s because you‘ll have one payment to make instead of many, every month.
No Fixed Monthly Payments: With CashPlus Funds Transfer, you can pay as little as 2.5% of the outstanding balance at the end of a billing cycle, subject to a minimum of S$30. With Funds Transfer on UOB cards, you can pay as little as 3% of the outstanding, subject to a minimum of S$50. This gives you the flexibility to decide how much of the debt you want to settle at the end of the month and how much you want to roll over.
Fast Turnaround: In general, the bank may need up to 5 business days to process your loan application. It could take longer under special circumstances. The actual time required will be determined by the bank at its absolute discretion.
To answer this question, let’s take a look at the interest rates first. The rates could vary depending on the loan tenure that you have chosen. The interest rates for funds transfer on a UOB card or CashPlus are as follows:
|Loan Tenure||Flat Interest Rate||Processing Fee||Effective Interest Rate on Funds Transfer With UOB Card||Effective Interest Rate on Funds Transfer With UOB CashPlus Account|
|6 months||0% p.a.||2.5% p.a.||5.34% p.a.||5.27% p.a.|
|1 year||0% p.a.||4.5% p.a. (Online Exclusive is 3.88% p.a.)||5.2% p.a. (Online Exclusive is 4.49% p.a.)||5.06% p.a. (Online Exclusive is 4.37% p.a.)|
|18 months||0% p.a.||4.88% p.a.||4.09% p.a.||3.92% p.a.|
Let us now present an illustration to help you understand your potential savings. Let us assume that you have a debt of S$20,000 on a credit card. Interest is charged at a standard rate of 25% p.a. Total interest for 1 year would be S$5,000 (=25/100x20,000). That means that on a monthly basis, you have to spend almost S$417 (=5,000/12) on interest payments.
Now, let’s make another assumption. Let’s assert that you have used the UOB CashPlus Funds Transfer loan to wipe clean the same debt of S$20,000. Assuming that you have chosen the 1-year tenure, interest would be charged at 4.37% p.a. (online exclusive).
Then, interest for 1 year would be S$874 (=4.37/100x20,000). Interest for 1 month would be almost S$73 (=874/12). So, every month, you can save S$344 or approximately 83% (=344/417x100%) on interest charges if you use this UOB personal loan vis-à-vis a credit card.
[Disclaimer: Numbers used in this example are for illustrative purposes only. They may be different from the actual results.]
The following are the fees and charges that you may have to deal with:
Get in touch with the bank to know more about these fees.
Here are some things to consider:
To be eligible, you must satisfy the following:
Contact the bank to learn more about the eligibility criteria and the supporting documents required for processing.
If you’re an existing UOB card or CashPlus account holder, you could apply through the following channels:
If you’re a new customer, you could apply online.
Click here to learn more about the general personal loan application process.
Whether you want to compress your unsecured debts or whether you need money in your account for a financial emergency, this interest-free loan could give you access to easy and fast liquidity. Also, the process is very convenient because the entire process can be completed online. To know more about personal loans from UOB, click here.