Learn the quick facts and overview of UOB Personal Loan. It saves you from overwhelming emotion. Thus, it helps you get by on your first time getting a personal loan from a bank.
Most banks and money lenders offer unsecured personal loans with different interest rates and requirements. So it gives most Singaporeans the chance to bridge financial gaps. And with so many options served on a silver platter, will the loan services of UOB fit you best?
Read on to know if this is the best choice for you.
We all know that loans are not free. Banks and financial institutions need to earn, and one way is through the interest rates and processing fees.
UOB charges a processing fee of 1.8% of the total loan amount regardless of your chosen loan tenor. UOB personal loan can be as short as 12 months up to 60 months, depending on your preference or need.
While the offered flat rate of 8% per year, you need to consider the Effective Interest Rate per annum. It is the most reliable interest rate which you can use to compare loans. UOB’s personal loan interest rate is higher as the loan tenor gets shorter. Let’s say your loan stretches to 12 months. Then the interest rate is 17.94% per year. If you have a 60-month personal loan, the EIR will be 14.94%.
The personal loan is offered to Singapore citizens and permanent residents between 21 to 64 years old. The minimum income of the borrower must be S$30,000 a year.
You can’t get a personal loan from UOB if you neither have a UOB CashPlus Personal Loan nor UOB Credit Card Personal Loan.
With UOB CashPlus Personal Loan, you can borrow from S$1,000 up to six times (6x) your monthly salary. The loan processing fee may take three to five business days. It will mainly depend on your ability to provide the complete required documents needed to assess your creditworthiness.
If your loan application gets approved, but you change your mind. Note that you cannot cancel it anymore, nor are you allowed to make a partial prepayment. Should you make a cancellation, expect a cancellation fee worth S$150 or 3% of your outstanding balance.
If you plan to apply for a personal loan with a UOB Credit Card, you must first know if your credit card is valid for this transaction. UOB Purchasing Cards, UOB Private Label Cards, and UOB Corporate Cards do not give you the benefit of having a personal loan.
If you have a valid UOB Credit Card, you can apply for a minimum amount of S$1,000 up to an amount not exceeding the card’s credit limit. The loan process will take seven to 10 days business days before it gets approved. Take note that you must also have a good standing as a credit cardholder to prove your creditworthiness.
The total amount of the personal loan, including the processing fee and interest rate, will be charged on the credit card. It means that if you add up all the costs and the loan amount, the total should not go beyond the credit limit.
They will charge the instalment amount to your UOB Credit Card account every month. Should you want to cancel the loan, you will have to pay a cancellation charge of S$150 or 3% of the remaining balance.
If you are a non-UOB CashPlus Account holder or a non-Credit Cardholder, you will not complete your loan application. You will have to open a UOB CashPlus account first. Once your loan gets approved, it will be disbursed to the designated savings account from the UOB CashPlus account. Remember that your UOB CashPlus account has an annual membership fee of S$80. If you are not willing to open a CashPlus account, you have to find another personal loan to fit your need.
Also, as mentioned above, the loan process takes around a week or more. Therefore, if you need cash for specific emergency needs, you need to find another personal loan. Look for licensed moneylenders with faster processing, such as Cash Mart’s Personal Loan.
Cash Mart offers a personal loan with flexible terms, competitive interest rates and fewer requirements. Also, you can get your cash in just 30 minutes upon visiting its office at 277 Balestier Road. So apply today and experience the best customer service.