A "low interest" loan shouldn't mean you have very little interest in paying it back!

    RHB Renovation Loan Singapore

    For most of us who own a home that is pretty old or outdated in terms of design and needs a facelift, the thought of renovation triggers an adrenaline rush. Be it a minor cosmetic revival or a major renovation, it ought to bring excitement to your doorstep. There will be some major hurdles in this process, the most predominant one being the monetary requirement. Personal savings may not really fund the corpus required to trigger the renovation dream.

    One of the best solutions to the problem above will be to finance the amount by means of a Renovation Loan. A debt instrument exclusively designed to fulfill home renovation needs, this loan provides extensive monetary support for a wide range of restoration needs which includes construction of additional floors.

    You’re probably eligible for a RHB Home Renovation Loan if you are

    RHB Renovation Loan Minimum Age

    RHB Renovation Loan Minimum Age - 21 years

     RHB Renovation Loan Maximum Age

    RHB Renovation Loan Maximum Age - 50 years

    RHB Renovation Loan Eligible Employment Type

    Salaried / Self-employed with regular income

    RHB Renovation Loan Minimum Income

    S$30,000 for single and/or joint applicants

    Your RHB Home Renovation Loan amount eligibility is based on these factors

    RHB Renovation Loan Minimum Salary

    RHB Bank Renovation Loan Min Salary - S$30,000

    RHB Renovation Loan EMI

    Existing Loan EMI - EMIs of other loans lower your eligibility

    Increase your eligible RHB Home Renovation Loan amount by these steps

    RHB Renovation Loan Add Spouse as Co-applicant

    Make your immediate family member a co-applicant, and his income will add to your eligibility

    RHB Home Renovation Loan Basic Details Updated on 20 Feb 2019

    RHB Home Renovation Loan Basic Details
    Min Loan Amount S$10,000
    Max Loan Amount S$30,000
    Max Loan Tenure up to 5 years
    Interest Rates 5.37%
    Monthly EMI S$379

    RHB Bank Berhad is a Malaysian based bank that has its operations in Singapore and offers an array of banking services and products to meet various financial interests of the Singaporean market. The bank offers customers with home renovation loans at affordable rates of interest with fixed monthly repayments over tenures stretching up to 5 years. Let’s take a look at the salient features of the RHB Renovation Loan, while also looking at the fee details, interest charges and some frequently asked questions.

    Features and Benefits of the RHB Renovation Loan

    As a customer who wishes to apply for a renovation loan from RHB Bank Berhad, here is what you can expect from the bank’s product:

    • Tenures range from 1 year to 5 years. You can select a tenure of your choice depending on your financial status and convenience.
    • The bank provides both renovation loans as well as loans for furnishing. If you take a loan for both furnishing and renovation, you’ll get a much cheaper rate package. You will need to contact the bank for the same.
    • The interest rates are affordable. They are amongst the lowest interest rates in the Singaporean market.
    • The loan allows joint applicants to also apply. Relevant documents need to be submitted in this regard.
    • The loan comes in a combination of two interest rate packages - the monthly flat rate package and the monthly rest package. You can choose a package that best suits your interests.

    RHB Renovation Loan Interest Rates

    The following table denotes the interest rate for the Flat Rate Package:

    Tenure of loan Below S$15,000 Between S$15,000 and S$30,000
    Applied Interest Rate (p.a.) Effective Interest Rate (p.a.) Applied Interest Rate (p.a.) Effective Interest Rate (p.a.)
    1 year 3.68% 8.60% 2.98% 7.32%
    2 years 3.68% 7.90% 2.98% 6.60%
    3 years 3.68% 7.60% 2.98% 6.31%
    4 years 3.68% 7.41% 2.98% 6.14%
    5 years 3.68% 7.27% 2.98% 6.02%

    Interest rate for monthly rest package:

    Renovation Loan:

    Loan Tenure Interest Rate (p.a.) Effective Rate of Interest (p.a.)
    1 year 5.80% 7.61%
    2 years 5.80% 6.72%
    3 years 5.80% 6.41%
    4 years 5.80% 6.25%
    5 years 5.80% 6.16%

    The Applied Interest Rate is calculated based on the RBR, which is currently 8.25%. The interest rate is RBR minus 2.45%.

    RHB Furnishing Loan:

    Loan Tenure Interest Rate (p.a.) Effective Rate of Interest (p.a.)
    1 year 8.80% 10.59%
    2 years 8.80% 9.71%
    3 years 8.80% 9.40%
    4 years 8.80% 9.24%
    5 years 8.80% 9.14%

    The rate is calculated based on the Prime Lending Rate (PLR), which is subject to change. The current PLR is 5.70%. Applied interest rate is PLR+3.10%.

    RHB Renovation Loan Fees and Charges

    Loan Processing Fee 1% of the approved loan amount
    Late payment charges 5% of the Prime Lending Rate (PLR)
    Pre-payment fee 2% of the prepayment amount
    Complete repayment of loan 2% of outstanding loan amount
    Cancellation charges 1% of the amount cancelled

    Eligibility criteria for RHB Renovation/Furnishing Loan

    • The applicant has to be at least 21 years of age.
    • The minimum annual income of the applicant should be S$24,000.
    • In case of joint applicants, the joint applicant has to be an immediate family member of the main applicant. In any case, the main applicant should have an annual income of S$24,000.

    Documents Required for RHB Renovation Loan

    • Front and back copy of NRIC
    • Invoice from contractor or quotation from contractor.
    • Permit to proceed with renovation.
    • Proof of relationship with joint applicant - marriage certificate or birth certificate.
    • Income documents including salary slips, Income Tax Notice of Assessment and CPF Contribution History.
    • Proof of ownership of property (sales and purchase agreement, Certificate of Title in case of private property, HDB Approval in case of an HDB flat).

    How to Apply for the RHB Renovation Loan

    You can visit the official RHB Singapore website and download the application form for the type of loan you wish to apply for - renovation loans and furnishing loans are the two available options in this respect.

    You can also contact your nearest branch and physically fill out the online application form. RHB’s website also allows you to book an appointment. When you do so, an executive from the bank will get in touch with you to help you initiate the application process.


    Q. What is the maximum loan amount that I can apply for?

    A. The maximum loan amount that you can apply for is capped at S$30,000. It can be extended in the case of joint applicants - you will need to contact the bank for this.

    Q. Is the RHB Loan available to foreigners?

    A. No, the loan is only available to Singaporean citizens and Permanent Residents.

    Q. How much can I borrow under RHB Renovation Loan?

    A. If your income is between S$20,000 and S$29,999, you can borrow two times your monthly income. If your annual income is in excess of S$120,000, you can borrow up to 6 times your monthly income.

    Q. Are rates always adjusted to PLR or RBR?

    A. Yes, as of now, the interest rates are determined by the Renovation Board Rate and the Prime Lending Rate.

    Q. Can I pre-close my renovation loan?

    A. Yes, the bank allows you to do so. You will need to contact the bank for information regarding this.

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