Now that most pandemic restrictions have been lifted, the number of things we can spend money on has skyrocketed, from vacations abroad to clubbing sessions.
This may be the reason why there has been an increase in searches for personal loans recently. Ouch!
Now, we sincerely hope that no one takes out loans to go on vacation or open bottles of Martell in KTV lounges.
But if you really need a personal loan for a legitimate reason like a medical emergency or to consolidate your existing credit card debt, we’re going to look at the Standard Chartered (SCB) CashOne Personal Loan, which you might have heard of before. talk thanks to the bank’s aggressive marketing.
Are personal loans bad?
“Not all debt is bad,” says one of Standard Chartered’s marketing slogans. Technically, it’s true – an HDB loan isn’t bad, for example. But that doesn’t mean you have to take out loans whenever you want.
Monthly payments can really add up, and personal loans and credit card debt are considered high-interest debt that can bankrupt some people. Also be aware that some banks *cough cough* are clearly using shady marketing tricks to lure unsuspecting people into debt.
By the way, you should do thorough research and compare loans before deciding to take out a personal loan, as this is a long-term commitment and it could be a few years before you get it. repay.
Now that we have eliminated all that, here is the truth about SCB personal loan and how it compares to DBS personal loan, OCBC personal loan and UOB personal loans.
CashOne Standard Chartered Personal Loan Application Criteria
The SCB personal loan is called CashOne.
To qualify for the loan, you must meet the following criteria:
- From 21 to 65 years old
- Singapore and PR citizens: minimum annual income of USD 20,000
- Foreigners: minimum annual income of $60,000, must hold a valid Singapore Employment Pass
SCB Personal Loan Application and Approval Time
You can apply online with the following documents:
- Copy of NRIC or Passport
- Last computerized payslip or last statement of CPF contribution history for the last six months
- Income Tax Notice of Assessment (if you wish to be considered for a higher loan amount)
- Employment Pass (foreigners only)
- Proof of address (foreigners only)
If you are an existing customer with no change in income/employment as per SCB records, congratulations! You do not need to provide supporting documents.
In theory, SCB offers instant approval of loan applications made online or through their mobile app. However, if the bank needs more information from you, you may have to wait until one business day for your request to be assessed.
SCB personal loan interest rate (2022)
SCB currently offers interest rates starting at 3.48% per annum, which corresponds to an effective interest rate (EIR) of 6.95% for a loan term of one to five years.
You must also pay an annual fee of $199 in the first year, which will be deducted from your approved loan amount.
These interest rates are very competitive, with local banks UOB and OCBC charging significantly more at this time.
If you want to double-check interest rates, use MoneySmart’s personal loan comparison tool to see what different banks offer for your desired loan amount and term. Remember that the interest rate and TIE vary depending on the amount and term of your loan.
StanChart CashOne Personal Loan Interest Rates vs DBS, POSB, OCBC, UOB
Suppose you need to borrow $10,000 and plan to pay it back over three years.
Here is a comparison chart for you to see how Standard Chartered’s personal loan would compare to that of local banks.
|Interest rate||RIE||Monthly payment||Total amount to pay|
If you can afford it, always go for the shorter term, as the total amount of interest you will have to pay over the years will be lower. Banks often try to impose longer loan terms on you, such as five years. Don’t fall for the trap, because you’ll end up paying for it in the long run.
Using MoneySmart’s personal loan comparison tool, you can determine the interest rate and total amount to pay for your loan amount and term.
Standard Charter Personal Loan Promotions
Standard Chartered currently offers the following personal loan promotions:
Get $100 to $2,400 back when you take out a personal loan of at least $10,000 with terms of three to five years by June 30, 2022.
JumpStart account holders get up to $2,688 cash back upon approval of a personal loan of at least $5,000 with a term of three to five years by June 30, 2022.
SCB Personal Loan Calculator
Want to know exactly how much you will have to pay per month and at what interest rate? You can use the SCB Personal Loan Calculator at the top of this page.
Alternatively, you can use MoneySmart’s Personal Loan Calculator, which not only shows you your monthly repayments and interest rates, but also shows the processing fees.
Here are the key parameters you need to consider:
- Monthly repayments – Shows how much you have to pay each month in installments
- Total Repayable Amount – This is the total amount of money, consisting of the amount borrowed + interest payments, that you will repay over the life of the loan.
- Applied/Effective Interest Rate – This is the actual interest rate you will pay when all fees and charges are taken into account.
Paying your monthly installments in full is important! If you don’t, you’re slapped with a $100 late payment fee. Ouch! Not really nice when you are already in debt!
You can pay your monthly installments through online banking, through the Stanchart mobile app, or through AXS and ATMs. But the easiest and most convenient way is with GIRO – this ensures that you will never miss a payment, as it will be automatically deducted from your savings account.
What happens if you find a stash of money hidden under your bed and decide to pay off your loan early? You can, but you will have to pay an early redemption fee of $150 or 3% of your outstanding principal, whichever is greater. Once the loan is repaid, your account will be closed.
Standard Chartered CashOne Personal Loan vs SCB Credit Card Funds Transfer vs Debt Consolidation
Debt consolidation is a different beast from personal loans. Instead of borrowing new money, you simply transfer your existing debt from various other loans or credit cards to a single loan, usually to take advantage of lower interest rates.
SCB credit card funds transfer works the same way as debt consolidation, but only applies to credit card debt. So you can transfer your debt from other cards to an SCB plan. It makes your life easier because you only have to pay one credit card bill instead of juggling several.
As you can see, the CashOne personal loan is quite different, in that it allows you to borrow new funds, which you will then pay off in addition to your debt from any other loan or credit card.
Be careful with personal loans
If you’ve read this entire article, chances are you’re seriously considering getting a personal loan. Here’s yet another reminder that personal loans are for needs, not wants, and due to high interest rates, they should never be taken out for anything that isn’t absolutely necessary.
So if you have a medical emergency or your refrigerator breaks down, you can take out a personal loan to avoid going into credit card debt. But for everything else – vacation, shopping, party, wedding, baos, etc., you just have to save.
ALSO READ: Everything you need to know about debt consolidation loans in Singapore
This article was first published in MoneySmart.