Looking for a personal loan?
When you search “personal loans” online, you will be overwhelmed by the number of results offering loans with various terms, amounts and rates.
One of the options you may come across is DBS Bank’s personal loans. Will these products help you manage your finances?
DBS Personal Loan
You can only apply for a personal loan if you have a DBS Credit Card or Cashline. Take note that your loan application will not be processed unless you open a Credit Card or Cashline account since the loan amount will be based on their credit limit.
If you have both accounts, then you can choose which one to use. If you apply online, there will be a green button which lets you turn off the account you do not want to use for the personal loan.
While DBS promotes that you can borrow up to four times of your monthly salary, it is not the absolute amount you can actually borrow. Remember that there are still certain factors DBS uses to decide how much you can get.
DBS Personal Loan Promotional Interest Rates
For borrowers with annual income of S$20,000 but less than S$30,000, you will not be included with the promotional rates. Only those earning higher than S$30,000 a year will be given smaller interest rates.
Also, bear in mind that you have to pay for the processing fee which is 4% of the principal loan. Let’s say a personal loan worth of S$3,000 has been approved against your credit card account payable for 60 months. The total cost of your loan after adding the interest rate ($330 x 60/12) and the processing fee (S$120) will be S$4,770.
DBS Cashline Balance Transfer
With DBS Cashline Balance Transfer can be used to consolidate your existing debts through your Cashline. Though it has 0% interest rate for a year, do not miss the other existing fees. The administrative fee can range from 3.58% for six months up to 6.38% for 12 months.
While the 0% interest rate is tempting, it is only applicable on the principal loan. Remember that there is still the administrative fee to charge the interest rate on. Also failure to pay the full amount on its due date will incur penalties.
DBS Cashline gives you instant access to cash through funds transfer, cheque book and ATM. You can even borrow up to four times your monthly salary, but the actual loan amount will be on the bank’s discretion. You will only be charged with interest based on the amount you used.
Just like the personal loan, if you have higher gross annual income than S$30,000, you will be charged with lower Effective Interest Rate.
Even if you do not access your cashline, you will still be charged with the annual fee. Failure to pay your balance on time will increase your interest rate by 6% in addition to late payment fee.
Personal loans may have certain promos to entice people, however you must be careful when considering which to apply for. Personal loans are suppose to help you manage your finances, not drag you deeper to debts. Read the terms and conditions carefully. Not all personal loans can fit your needs, and they are not only available in banks.
Licensed money lenders also offer personal loans with more flexible terms and shorter processing time. There is even no required bank account to be opened. All you need is a bank account where the cash can be forwarded to.
If you need a quick cash loan, get it from Cash Mart today.
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