POSB Personal Loan Review: Borrow Up to 10 Times Your Monthly Income
Are you thinking of applying for a personal loan? Irrespective of the nature of your need, POSB has a plethora of loan products ready for you. Need a standby line of credit for emergency expenditures? You’ll find one here. Need an instalment loan? You may not have to look around anymore. You can lower your interest charges from multiple cards by using a balance transfer plan or register for a debt consolidation from the bank if you want to escape an imminent debt trap.
Looking for a Loan That Is Customised to Your Needs? You May Find One Here
You don’t need to be told that specific classes of personal loans serve specific purposes. POSB has a number of different loans in its portfolio to cover your specific needs. Here is a list of all the personal loan products that they offer:
POSB Personal Loan: If you want instant cash in your account at rates as low as 3.88% p.a. or if you want to borrow up to 10x your monthly income, you can opt for this loan. The tenure can be from 1 year to 5 years. Thanks to fixed monthly instalment payments, you may be able to inject better discipline and control over your finances.
Cashline: A standby line of credit can often be of great help, especially if you’re looking to tackle unexpected, unbudgeted expenses. If you opt for this loan, you’ll have to pay interest as low as 0.05% per day. By some estimates, you can save up to 80% on interest payments when compared to credit card cash advances. You can conveniently access cash through multiple channels.
POSB Balance Transfer: If you wish to transfer interest-bearing outstanding balance from multiple cards into one, you may find this loan product to be an ideal option. You can borrow up to 93% of the credit limit available in your account. The loan can be settled over 6 months or 1 year. You’ll be charged an applied interest rate of 0% p.a. if you choose this loan product.
POSB Debt Consolidation Plan: Debt is often more dangerous than quicksand. If you leave it unattended for too long, it can take away the life that you have so meticulously built. Consolidate all the unpaid dues on your existing unsecured credit arrangements and make a single payment every month. Flat interest rates can be as low as 3.98% p.a. and the tenure can go up to 8 years.
Low Interest, High Borrowing Limit: Features and Benefits That You Will Enjoy
With a POSB loan, you may regain your lost peace of mind. Here are the features and benefits that you’ll get:
Maximum borrowing limit: Borrow up to 10x your monthly income with the term loan from the bank, subject to a maximum of 95% of the credit limit available in your Cashline account or POSB/DBS card.
Minimum borrowing limit: For most loans, the minimum limit has been fixed at S$500. For a DCP loan, the amount has to exceed 12 times your monthly earnings.
Loan repayment period: The loan tenures available for the instalment loan are 1 year, 2 years, 3 years, 4 years, and 5 years. If you choose the debt management programme, you can stretch your payments up to 8 years. Two tenures are available with the balance transfer loan, which are 6 months and 1 year. The line of credit doesn’t have a fixed tenure. You’ll have to, however, make the minimum payment at least to avoid higher interest charges and additional fees.
High interest savings: Talk to anybody about personal loans and they may caution you against it. The reason is simple. Everybody worries about high interest charges on these loans. With Cashline you can pay as little as 0.05% per day on your loan. With the Personal Loan, applied rates start from 3.88% p.a., 3.98% p.a. for the Debt Consolidation Plan, and 0% p.a. for Balance Transfer.
Greater financial control: Whether it’s a DCP loan or a credit card balance transfer, you can streamline your cash flow and become financially disciplined. If you use the term loan or the line of credit responsibly, you could be this disciplined without having to adopt austere or frugal measures.
Fast turnaround: Provided your documents are in order and your application is complete, approval won’t take long. After approval, money will usually be credited to the designated account within a short period of time.
Attractive promotional offers: Enjoy promotions every now and then when you borrow from the bank. Promotions could be in the form of lower interest charges, cashback, gift vouchers, fee waivers, or something else.
Honour Your Financial Commitments Without Paying High Interest Charges on Your Loan
If you’re worried that high interest charges would ruin your plans of effectively utilising one or more of these POSB loans, you needn’t worry. When you choose to set up a credit facility with POSB, you may be able to lower your interest burden significantly.
The following table gives you an estimate of the interest rates that apply on various POSB loans:
Personal Loan Product Name
Nominal Interest Rate
Effective Interest Rate
POSB Personal Loan
Starts from 3.88% p.a.
Starts from 7.56% p.a.
Interest applicable only on the funds used
19.8% p.a. or 0.05% per day
POSB Balance Transfer
0% p.a. during the introductory period
Between 5.06% p.a. and 5.34% p.a. (Promotional rates) (Includes cards and Cashline)
POSB Debt Consolidation Plan
Starts from 3.98% p.a.
Starts from 7.23% p.a.
What Are the Important Fees and Charges That May Apply to Your Loan?
When you apply for a personal loan from POSB, you may have to pay the following fees on the approved loan:
A processing fee will apply for most loans.
An early settlement fee may apply for premature account termination.
A late payment charge may apply for late payments.
A default interest rate, which is higher than the prevailing rate, may apply if you don’t make payments on time.
In case of the standby line of credit and balance transfer (both card and Cashline account), you’ll have to make a minimum monthly payment to keep the ball rolling. There is no fixed instalment amount. The minimum amount could be 2.5% of the outstanding balance, subject to a minimum of S$50.
You may also have to pay an overlimit fee, where applicable, if you borrow in excess of the total credit limit available to you.
In addition, you may also have to pay certain other service-related fees and charges. These could be stop-cheque-request fee, failed GIRO transaction fee, request for reissuance of older statements, and request for replacement of an ATM card, where applicable.
The bank may also levy other fees as it deems fit and at its absolute discretion. Check the specific POSB loan product pages on our website to learn more about the applicable fees and charges.
Don’t Forget: Cashline Credit Line Can’t Be Used to Settle Dues on Other DBS Credit Facilities
Before you apply for a POSB loan, do give the following points some thought:
You can’t use your POSB line of credit to settle outstanding balances on other credit facilities or pay for the banking services offered by POSB.
There could be a minimum borrowing and maximum borrowing limit on certain POSB personal loans.
Partial prepayment may not be possible.
Partial consolidation of debt isn’t possible with your POSB DCP loan.
The bank may use criteria other than those mentioned on its website to determine your loan eligibility. Also, the rate offered to you may be different from the published rate or from what other customers have been offered. The bank can, for example, do a risk analysis on your profile to determine your chances of loan default and offer you a deal accordingly.
Balance transfer on your cards may not be eligible for rewards.
Restructuring of your loan may not be possible.
Certain classes of unsecured loans may not be eligible for debt consolidation.
If you’re a foreigner, you may not be eligible for certain loan programmes. Even if you are, the eligibility criteria and the maximum loan tenure available, could be different.
Do You Satisfy the Following Eligibility Requirements?
Here are the common eligibility requirements for POSB loans:
You should be a Singaporean or a PR in Singapore. Foreigners may be eligible for some loans.
Your age shouldn’t be lower than 21 years and more than 65 years. For some loans such as the Cashline loan, the upper age limit could go up to 70 years.
Your annual income should be at least S$20,000. For some loans such as POSB DCP, the minimum annual income required is S$30,000.
For product-specific requirements, please check the individual loan product pages on our website.
Submit the Following Documents to Support Your Application
Without proper documentation, approval could get delayed at best and withdrawn at worst. Hence, make sure that you underpin your application with the following documents:
Proof of mailing address if it is different from the one on your NRIC.
Depending on your nature of employment, you may also be needed to submit the following documents:
Proof of contribution to your CPF Account for the last 9 months at least.
Income Tax Notice of Assessment (NOA) with tax details for the last 1 year or your latest electronic payslip or proof of salary credit to your POSB/DBS savings account.
CPF contribution history documents for the last 9 months (at least) or NOA for the last 1 year.
Income Tax NOA for the last 1 year.
The bank may ask for additional documents for verification at its absolute discretion.
Planning to Apply? Here Are the Modes That You May Use
The bank offers different set of channels for different loan products. The ones that are common are:
Applying on the bank’s website.
Filling out the contact form and waiting for a bank representative to reach out to you.
Applying through telesales.
If you wish to apply for a DCP loan, you can even apply on our website.
Life is full of uncertainties. You may not be able to predict them always. As a result, despite your efforts to save for rainy days, you may still face financial emergencies that may force you to borrow. In such cases, you may consider loans from POSB to enjoy convenience, peace of mind, and high interest savings.
How to Check the Loan Status?
Checking the status of your POSB Personal Loan application is simple. Existing Cashline account customers and credit cardholders will receive an SMS once their loan application is approved. The approved amount is credited to your designated account. Within 3 working days of receipt of the message, you will receive an approval letter for the loan. This letter will be sent to your mailing address.
If you are a customer without a Cashline account or credit card issued by POSB, then the first step involves opening either one or both of these accounts. An SMS will be sent to your registered number once this is approved. A message regarding approval letters will also be sent. Once your account is active, you can apply for a personal loan. The steps to check your loan application status post this is the same for existing cardholders and Cashline account customers.
Runtime period: This promotion is valid until June 30, 2017.
Particulars: Apply for a POSB loan online and receive cashback of up to S$388! In order to enjoy this benefit, you will have to get a minimum loan amount of S$10,000 approved. You will get cashback of S$188 if your approved loan amount is between S$10,000 and S$19,999. If you get a loan of S$20,000 and above, you will get cashback of S$388.
Terms and conditions: To enjoy this offer, you will have to apply online for a POSB personal loan on your own by visiting the official website of the bank. You will receive the cashback only once. You cannot transfer or exchange this cashback for anything else.
17th April 2017
POSB Study Loan Promotion
Run Time – This is an ongoing offer
Get benefits when you take an education loan from POSB bank to apply in one of their selected institutions. The benefits you will avail are as follows –
• Interest rates as low as 4.6% per annum with a processing fee of 2 percent
• Flexible repayment period of up to 10 years
• A loan amount, which is 10x of your combined income every month capped at the unpaid fees or SGD 80,000 (whichever is lesser). The minimum amount of loan given is SGD 2,000
To get more information about the offer and the selected list of institutions, please contact the bank or visit their website.
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