If you opt for SBI Singapore personal loans, you may be able to borrow up to 6x your monthly income, provided you have the right income credentials. You may also enjoy flat rates as low as 4.27% p.a. and effective interest rates (EIR) as low as 8% p.a. on a State Bank of India (SBI) Singapore loan. For a secured overdraft facility from the bank, you’ll have to pay interest only for the amount that you have utilised. Read through, to learn more about the various loan products offered by the bank.
Cost-Effective Loan Options From SBI
SBI offers the following personal loan products in Singapore:
Personal Loan (Term Loan): You can borrow up to S$100,000 with this loan. Payments can be made in structured monthly instalments. You can stretch your payments for up to 5 years. You’ll also enjoy affordable interest charges and fees on this loan. You’ll be charged an interest on top of the loan principal. Interest will be charged in accordance with the loan servicing agreement.
Personal Loan (Overdraft): If you opt for this loan, you’ll be charged interest on the amount that you have used in addition to a fixed principal. The tenure on this loan can go up to 5 years. Effective rates of interest start from 10% p.a. on this loan.
Secured Overdraft (OD): Are you holding a term deposit from SBI? You can make it work by offering it as a collateral to get a line of credit. If your cash flow has been disrupted in the short term, this loan can be used to iron out the creases. You’ll have two options to choose from – SGD Overdraft and USD Overdraft. Your OD account will remain active until the maturity of the term deposit that you have pledged.
Let us now look at these three products separately.
Up to 6x Your Monthly Salary as Loan, Interest Rate as Low as 4.27% p.a.: Term Loan
The following are some of the best features and benefits that you’ll enjoy on an SBI Term Loan:
Maximum loan amount: You can borrow up to 4x your monthly income if your annual income is less than S$120,000. If your annual income exceeds S$120,000, you might be able to borrow up to 6 times what you earn in a month. In any case, the loan amount approved may not exceed S$100,000. Conditions may apply.
Minimum loan amount: If you try to borrow any amount less than S$5,000, the bank may reject your application.
Attractive interest rates: Enjoy high interest savings due to low rates of interest that apply to your loan. Effective interest rates that determine your actual cost of borrowing, can be as low as 8% p.a.
Flexible tenure: Depending on your preference, you can choose a tenure in the range of 1 year to 5 years.
Hassle-free application: You may initiate action for submission of a loan application online. Alternatively, you may visit a nearby SBI branch to complete the process.
Limited-period processing fee waiver: Currently, you’ll be charged no processing fee for this loan. The bank can, however, withdraw the promotion, or change the terms and conditions of the offer as per its discretion.
Enjoy Affordable Interest Rates With SBI Term Loan
Depending on the tenure that you have chosen, interest will be charged at the following rates:
Let Us Illustrate
Let us assume that you have a balance of S$10,000 on your card. Assuming that an EIR of 25% applies to it, you’ll have to commit S$2,500 (=25/100x10,000) for payment of interest. Now, if you had borrowed an equal amount through SBI Term Loan and chosen a tenure of 1 year, interest payable would be S$850 (=8.5/100*10,000). Therefore, you can actually save S$1,650 which is 66% [=(2,500-850)/2,500x100] on interest with this loan. That’s not a negligible amount, won’t you agree?
[Disclaimer: Numbers used here are for illustrative purposes only. BankBazaar bears no responsibility for any discrepancy that may exist between this example and actual results.]
Mastercard Debit Card, Multiple Tenure Options: Overdraft
Should you consider this loan? The following are some features/benefits that may get you interested:
- Maximum borrowing limit: Subject to conditions, you may be able to borrow up to S$100,000 with this loan.
- Minimum borrowing limit: You can borrow as little as S$5,000 with the loan. A loan application for any amount less than this may be rejected.
- Adjustable tenures: The bank offers 5 tenure options – 1 year, 2 years, 3 years, 4 years, and 5 years. You can choose the one that meets your financial objective and fits into your budget plans seamlessly.
- Mastercard facilities and privileges on debit card: When you apply for this loan, you’ll get a FREE debit card with Mastercard facilities, on approval. If you want, you can also ask for a cheque-book facility.
- Inexpensive interest charges: Enjoy interest rates (EIR) as low as 10% p.a. with this loan.
Maximise Your Interest Savings With SBI Overdraft (Personal Loan)
The following interest rates will apply to your loan:
To help you understand how much you can save compared to other loan products, let us consider the following example:
Let us assume that you have taken a cash advance of S$7,500 on your card. Let us also assume that the card issuer charges an EIR of 28% p.a. for cash advance and levies a fee of 6% per transaction, subject to a minimum of S$15. Therefore, interest payable on this outstanding balance is S$2,550 (=28/100x7,500+6/100x7,500). Let us now contrast it with interest charges on a similar amount on this loan. If you have chosen a 3-year tenure, you’ll enjoy an EIR of 10% p.a. Your interest payment, in such a case, will be S$750. Your savings? Almost 70.6%[=(2,550-750)/2,550x100]. Are you already thinking about that designer clutch bag that you have always wanted to own? With savings as big as this, it might actually be possible.
[Disclaimer: The example depicted here is for illustrative purposes alone. Any attempt to find a direct comparison or a connection with actual results could prove to be fallacious.]
Fees and Charges That May Be Charged for SBI Personal Loans
If you have an SBI Personal Loan (Term Loan or Overdraft) account, you should know about the following charges:
- A processing fee of S$88 which is currently being waived for Personal Loan (Term Loan), may apply in the future.
- A processing fee of S$88 will apply to Personal Loan (Overdraft).
- Early settlement of a loan in full will attract prepayment fees as follows:
- 3% of the outstanding balance, subject to a minimum of S$300, if you settle your loan within a year of approval.
- 2% of the outstanding balance, subject to a minimum of S$100, if you settle your loan after the first year but before loan maturity.
- The bank will impose a flat fee of S$50 if any principal amount and/or interest remains unpaid every month.
- The bank may also levy fees for operating, servicing, maintaining, handling, adjusting, and administering your loan account.
Don’t Forget to Ponder Over the Following: Partial Prepayment of a Loan Is Not Allowed
Here are a few things that you should consider before you apply for a Personal Loan from SBI:
- The bank won’t allow you to make a partial early loan settlement.
- The loan can be used by you to cover personal expenses only.
- You can’t use the overdraft facility to pay the bank any money that you owe.
- You can’t borrow any amount in excess of the overdraft limit that has been set by the bank. SBI will consider all the interest and charges accrued to determine the limit.
- The bank will have to be notified in writing at least 30 business days before the early settlement of a loan.
- If you spot a possible error in any statement of account issued by the bank, you’ll have to inform the bank of the same within 30 days. Otherwise, you may lose your right to demand a remedial action.
- Monthly instalment payments will be due on the first day of each subsequent month after the disbursement of your loan. Interest will continue to accrue and it will have to be paid along with the principal amount until the debt has been settled in full.
- If you don’t use a sanctioned overdraft facility within 3 months from the date of approval, the bank can use its discretion to terminate it.
Are You Eligible for These SBI Personal Loans? Find Out Here
You’ll be eligible to apply for a Term Loan or an Overdraft facility from SBI if:
- You’re a permanent resident of Singapore or a Singaporean.
- Your yearly earnings can’t be less than S$30,000.
- You’re aged between 21 years and 55 years.
- You’re a salaried/commissioned employee or you’re self-employed.
- You have a loan-servicing account with SBI. You’ll either need to have Check Plus Account or SBI Special Savings Account.
Submit the Following Supporting Documents
Here are a few documents the bank will ask for to process your application:
- A copy of your NRIC.
- A copy of the completed application form.
- Proof that you already have an SBI loan-servicing account.
In addition, you’ll have to submit the following income documents:
- For a salaried employee:
- Provide computerised salary slips for the last 3 months. AND
- Provide proof of all your contributions to your CPF Account for the last 1 year OR Income Tax Notice of Assessment (NOA) for the last 1 year. AND
- Prove that your work experience in Singapore is no less than 2 years.
- For a self-employed professional:
- Provide copies of NOA for the last 2 years. AND
- Prove that you have been working in Singapore for at least 3 years.
- For a commission-based/variable earner:
- Provide copies of your CPF contribution history statement for the last 15 months OR provide copies of NOA for the last 2 years.
- Establish that you have been working in Singapore for at least 2 years.
Want to Apply? Here’s How You Can
You might use either of the following modes of application:
- Apply directly on the bank’s website.
- Visit an SBI branch and consult a relationship manager.
Let us now see what a Secured Overdraft loan from SBI Singapore has to offer.
Same/Alternate Currency Financing, Low Interest Charges: Secured Overdraft
Do you need instant cash? This secured overdraft facility could be an option that you may want to include in your probable list of loans. Here are some benefits that you’ll get:
- Multiple currency options: This loan is available in two currencies, namely Singapore dollars (SGD) and US dollars (USD).
- Same and alternate financing: Financing is available in same and alternate currencies.
- ATM card: You’ll get an ATM card with an SGD Secured Overdraft account.
- Reasonable interest rates: Save on interest payments with low interest rates. Interest will be charged on a daily basis only on the amount that you have utilised.
- Long tenure: The tenure of your facility would depend on the maturity period of the term deposit that you have pledged.
Fees and Charges That You Should Be Aware of
You may have to pay the following facilities on your secured credit facility:
- No processing fee will be charged.
- A default interest rate, which is 2% above the regular overdraft interest rate, will be charged on any amount that exceeds the overdraft limit. This will be subject to a minimum charge of S$20.
- The bank may impose other administrative charges and service charges for maintenance of your account on a discretionary basis.
Keep in Mind: Approval of Loan Depends on the Bank’s Discretion
Here are some things that you should deliberate on before submitting your application:
- Submission of documents and a completed application form doesn’t automatically guarantee approval.
- A term deposit with tenure less than 3 months can’t be pledged.
- The bank may not accept any valuables as security other than term deposits held with it.
Do You Meet the Eligibility Criteria for This Loan?
You’ll be eligible for this loan if:
- You’re aged 21 years or above.
- You belong to any nationality.
- You can offer an SGD/USD term deposit with a minimum tenure of 3 months, as security.
- You’re a first-party applicant i.e. you’ll use this facility to satisfy your personal needs only.
Furnish the following documents additionally to support your application:
- The completed application form.
- A letter of approval that is accepted by the borrower(s).
- A demand promissory note.
- A security deed that transfers title of ownership of your term deposit (s) to the bank.
Planning to Apply? Here’s How You Can Proceed
Walk into the nearest SBI branch and meet a relationship manager. He/she will help you complete the process. Whether your need for money is short-term or long-term, a loan from SBI Singapore could help you overcome your problems. Use it responsibly and make it count.