You might consider taking out a personal loan if you need extra cash. One option available to you is the OCBC Cash-on-Instalment plan.
This plan allows you to borrow money from your unused credit limit and repay it with fixed monthly instalments over up to 60 months. But is it worth considering?
Before making any decisions, it’s essential to understand the pros and cons of the OCBC Cash-on-Instalment plan. Plus, it’s an excellent option for new customers without a credit history with the bank.
Additionally, it can be a cheaper alternative to traditional personal loans if you need to borrow money for a period of 4-5 years. However, this may not be the best option if you’re looking for a specific-use loan, such as a car loan.
1-Minute Read: Unlocking the OCBC Cash-on-Instalment
Thinking about a loan in Singapore? Look no further than the OCBC Cash-on-Instalment plan! Here’s the lowdown in simple terms:
- Need a Cash Boost? This plan lets you convert your unused credit limit on your OCBC credit card into a loan.
- Flexible Repayments: Spread the loan over 1 to 5 years with fixed monthly instalments, making budgeting a breeze.
- Competitive Rates: New OCBC customers might snag attractive interest rates that are potentially lower than traditional personal loans.
But hold on, it’s not all sunshine and rainbows! Remember, borrowing comes with responsibility. Here are some key things to consider:
- Total Loan Cost: Factor in processing fees and interest to understand the loan’s actual cost.
- Credit Score Impact: Borrowing can affect your credit score, so make sure you can handle the repayments comfortably.
Is OCBC Cash-on-Instalment the Perfect Fit?
Maybe! It offers convenience, potentially lower interest rates, and manageable repayments. However, it’s crucial to assess your financial situation. Can you comfortably afford the monthly instalments? Do you have a plan to repay the loan within the chosen timeframe?
The Bottom Line: Digging Deeper Makes Sense
OCBC Cash-on-Instalment is a compelling option for Singaporeans seeking a loan solution. But remember, knowledge is power! Delve deeper to understand the nitty-gritty – interest rates, processing fees, and repayment terms. This way, you can make an informed decision that aligns with your financial goals.
Understanding OCBC Cash-on-Instalment
If you’re looking for a personal loan in Singapore, you might want to consider OCBC Cash-on-Instalment. This loan product is designed to help you get cash quickly and easily, with a repayment plan that works for you.
Key Features and Benefits
OCBC Cash-on-Instalment allows you to convert your unused credit limit into cash, which you can then repay in fixed monthly instalments over a period of 12 to 60 months. The loan amount can range from S$1,000 to up to 6 times your monthly salary, subject to your credit limit.
One of the key benefits of OCBC Cash-on-Instalment is the low interest rate. For new customers, the interest rate starts at 3.5% p.a., which is one of the lowest in the market. Additionally, if your approved loan is above S$10,000, you will receive 2% unlimited cashback.
Another benefit of OCBC Cash-on-Instalment is that it is available to both OCBC credit cardholders and non-credit cardholders. If you don’t have an OCBC credit card or EasiCredit loan, this loan product is a great way to get access to cash quickly and easily.
How It Differs from Other Personal Loans
OCBC Cash-on-Instalment is different from other personal loans in several ways. First, it is available to both OCBC credit cardholders and non-credit cardholders. This means that even if you don’t have an OCBC credit card, you can still get access to this loan product.
Second, the interest rate for OCBC Cash-on-Instalment is lower than many other personal loans in the market. For new customers, the interest rate starts at 3.5% p.a., which is one of the lowest in the market.
Finally, OCBC Cash-on-Instalment allows you to convert your unused credit limit into cash, which you can then repay in fixed monthly instalments over a period of 12 to 60 months. This means that you can get access to cash quickly and easily, without having to go through a lengthy application process.
Overall, if you’re looking for a personal loan in Singapore, OCBC Cash-on-Instalment is definitely worth considering. With its low interest rate, flexible repayment terms, and fast application process, it’s a great way to get access to cash quickly and easily.
Eligibility and Application Process
Who Can Apply
If you are a Singaporean or Permanent Resident aged 21 and above, with an annual income of at least $20,000, you are eligible for OCBC Cash-on-Instalment. Foreigners residing in Singapore are also eligible for the Cash-on-Instalment with annual incomes of at least $45,000. You must also have an OCBC Credit Card or EasiCredit account with an available credit limit.
Online Application Steps
To apply for OCBC Cash-on-Instalment online, follow these simple steps:
- Log in to your OCBC Internet Banking account.
- Click on “Apply for OCBC Cash-on-Instalment” under the “Apply for” section.
- Fill in the required details, including the loan amount, repayment period, and purpose of the loan.
- Submit your application and wait for the bank’s response.
Alternatively, you can also apply for OCBC Cash-on-Instalment through the OCBC mobile app or by visiting any OCBC branch.
Before applying for OCBC Cash-on-Instalment, ensure that you meet the eligibility requirements and have a clear understanding of the application process. This will help you make an informed decision and ensure a smooth application process.
Financial Considerations
If you are considering taking out a loan with OCBC Cash-on-Instalment, there are a few financial considerations to keep in mind. Here are some key factors to consider before taking out a loan:
Interest Rates Explained
The interest rate is the amount charged by the bank for borrowing money. With OCBC Cash-on-Instalment, the interest rate starts from as low as 3.5% p.a. for new customers and 4.5% p.a. for existing customers [1]. However, it is important to note that the interest rate is not the only factor to consider when taking out a loan.
The effective interest rate (EIR) is another important factor to consider. The EIR takes into account all fees and charges associated with the loan, including the processing fee and any other charges that may be applicable. This means that the EIR gives you a more accurate picture of the actual cost of borrowing money.
Fees and Charges
In addition to the interest rate, there are other fees and charges that you should be aware of when taking out a loan with OCBC Cash-on-Instalment. For example, there is a processing fee of $100, which is payable upfront when you take out the loan. There is also an account termination fee of $150 if you decide to terminate your loan before the end of the loan term.
If you are late with your payments, there is a late payment fee of $80. It is important to make your payments on time to avoid this fee.
Calculating Your Repayments
Before taking out a loan with OCBC Cash-on-Instalment, it is important to calculate your monthly repayments. You can use a loan calculator to help you do this. The loan calculator will take into account the loan amount, the interest rate, and the loan term to give you an estimate of your monthly repayments.
It is important to note that OCBC Cash-on-Instalment uses the front-end add-on method to calculate interest. This means that the interest is calculated based on the original loan amount, rather than the outstanding balance. As a result, your interest payments will be higher than if the interest was calculated based on the outstanding balance.
Overall, OCBC Cash-on-Instalment can be a good option for those who need to borrow money. However, it is important to consider all of the fees and charges associated with the loan, as well as the interest rate and EIR. Use a loan calculator to help you calculate your monthly repayments and make sure you can afford to make your payments on time to avoid any late payment fees or other charges.
[1]: https://www.ocbc.com/personal-banking/loans/cash-on-instalments-fixed-repayment
Tip: Build Credit History Strategically
While OCBC Cash-on-Instalment can be a helpful tool, consider this: Timely repayments on a smaller Cash-on-Instalment loan can significantly improve your credit score.
This improved score can then unlock better loan options with more favourable terms in the future, potentially saving you thousands of dollars on larger loans like mortgages or car loans.
Advantages of OCBC Cash-on-Instalment
If you are looking for a way to borrow money, OCBC Cash-on-Instalment is a great option to consider. Here are some of the advantages of using this service:
Lower Interest Rates Compared to Credit Cards
If you are considering using your credit card to borrow money, you may want to think again. Credit card interest rates can be incredibly high, with some cards charging over 20% APR. In contrast, OCBC Cash-on-Instalment offers much lower interest rates, starting from just 3.50% p.a. for new customers. This can save you a significant amount of money in interest charges, especially if you need to borrow a large amount of money for an extended period.
Flexible Repayment Options
OCBC Cash-on-Instalment also offers flexible repayment options, allowing you to choose the repayment period that best suits your needs. You can choose to repay the loan over a period of up to 60 months, with fixed monthly instalments. This can help you to manage your finances more effectively, as you will know exactly how much you need to repay each month.
Additionally, if you have extra money and want to pay off the loan early, you can do so without incurring any penalty fees. This means that you can pay off the loan faster and save money on interest charges.
In summary, OCBC Cash-on-Instalment offers lower interest rates than credit cards and flexible repayment options, making it an attractive borrowing option for many people.
Strategic Uses of Cash-on-Instalment
If you’re looking for a way to manage your finances, OCBC Cash-on-Instalment could be an excellent option. This service allows you to borrow money at a low-interest rate, and repay it over a fixed period. Here are some strategic uses of Cash-on-Instalment.
Consolidating High-Interest Debt
If you have high-interest debt, such as credit card debt, you may find it challenging to pay it off. With Cash-on-Instalment, you can consolidate your debt into one manageable payment with a lower interest rate. This way, you can pay off your debt more efficiently and save money on interest charges.
Financing Large Purchases
If you need to make a large purchase, such as a new appliance or furniture, Cash-on-Instalment can help you spread the cost over several months. This way, you can make the purchase you need without having to pay for it all at once. Plus, with a low-interest rate, you’ll save money on interest charges.
Building an Emergency Fund
If you don’t have an emergency fund, Cash-on-Instalment can help you build one. By borrowing money at a low-interest rate and repaying it over time, you can build up a fund to cover unexpected expenses. This way, you won’t have to rely on credit cards or other high-interest loans to cover emergencies.
Overall, Cash-on-Instalment can be an excellent tool for managing your finances. Whether you need to consolidate high-interest debt, finance large purchases, or build an emergency fund, this service can help you achieve your financial goals.
Promotions and Offers for New Customers
If you are a new customer of OCBC Cash-on-Instalment, you can enjoy exclusive rates and promotions. Currently, new customers can enjoy a promotional interest rate of 3.50% p.a. (from 6.96% EIR) for a loan amount of S$1,000 and above. This offer is only applicable for loan tenures of 12 to 60 months.
In addition to the promotional interest rate, new customers can also enjoy a processing fee waiver for loan tenors of 36 months and beyond. This can save you up to S$200 in processing fees.
To apply for the Cash-on-Instalment loan, you can do so conveniently online using the OCBC Rewards website. As a new customer, you can also receive up to S$480 cashback for your approved loan. Terms and conditions apply, so be sure to read them carefully before applying.
Overall, if you are a new customer looking for a personal loan in Singapore, OCBC Cash-on-Instalment is definitely worth considering, especially with the current promotional rates and offers available.
Managing Your Cash-on-Instalment Plan
If you have decided to take out an OCBC Cash-on-Instalment plan, it is important to manage it effectively to avoid any late fees or penalties. Here are some tips to help you manage your plan:
Understanding the Terms and Conditions
Before signing up for a Cash-on-Instalment plan, it is important to read and understand the terms and conditions. This will help you to know what you are getting into and what is expected of you. Some of the key terms and conditions to look out for include:
- Interest rates: Cash-on-Instalment plans come with interest rates, which can vary depending on the amount borrowed and the repayment period. Make sure you are aware of the interest rate before signing up for a plan.
- Repayment period: You will need to choose a repayment period when you sign up for a plan. This can range from 3 to 60 months, depending on the plan you choose.
- Late fees: If you miss a repayment, you may be charged a late fee. Make sure you know what the late fee is and how to avoid it.
Online and Mobile Banking Features
OCBC offers a range of online and mobile banking features that can help you manage your Cash-on-Instalment plan more effectively. Here are some of the features you can use:
- Internet banking: You can use OCBC’s internet banking platform to view your Cash-on-Instalment plan details, make payments, and check your repayment schedule.
- Mobile banking: OCBC’s mobile banking app allows you to view your Cash-on-Instalment plan details, make payments, and check your repayment schedule on the go.
- Alerts: You can set up alerts to remind you when your payment is due or when your account balance falls below a certain level. This can help you to avoid late fees and penalties.
By understanding the terms and conditions of your Cash-on-Instalment plan and using OCBC’s online and mobile banking features, you can manage your plan effectively and avoid any unnecessary fees or penalties.
Conclusion
By now, you should have a good idea of whether OCBC Cash-on-Instalment is worth considering for your financial needs. With its flexible repayment terms and low-interest rates, it can be a great option for those who need a quick infusion of cash.
When making a decision about whether to take out a loan, it’s important to consider your current financial situation and whether you will be able to make the monthly repayments. You should also think about the purpose of the loan and whether it is a necessary expense.
Overall, if you are looking for a loan with a low-interest rate and various promotions and benefits, OCBC Cash-on-Instalment is a great option to consider. Keep an eye out for promotions and cashback offers to make the most of your loan.
Remember to always read the fine print and understand the terms and conditions of any loan before signing on the dotted line. With careful consideration and responsible borrowing, you can make the most of OCBC Cash-on-Instalment and achieve your financial goals.
Frequently Asked Questions
How can I benefit from the OCBC Cash-on-Instalment programme?
The OCBC Cash-on-Instalment programme allows you to borrow money at a fixed interest rate and repay it in fixed monthly instalments over a period of your choice. This can be an attractive option if you need a lump sum of cash for a large purchase or to consolidate your debts. Additionally, if your approved loan is above $10,000, you will receive 2% unlimited cashback.
What are the interest rates for OCBC Cash-on-Instalment compared to other personal loans?
While OCBC offers instalments of 12 to 60 month tenures, its rates are most competitive for loans of 4 and 5 years. With that being said, OCBC’s cash-on-instalment loans are not the cheapest personal loans available in Singapore, even with its promotional rate for new customers. However, the interest rates are still competitive when compared to other banks in Singapore.
Are there any early repayment penalties for OCBC Cash-on-Instalment plans?
No, there are no early repayment penalties for OCBC Cash-on-Instalment plans. In fact, you can save on interest charges by paying off your loan early.
How does the OCBC Cash-on-Instalment impact my credit score?
Taking out a loan can have an impact on your credit score, but if you make your repayments on time and in full, it can also have a positive effect on your credit score. The same applies to the OCBC Cash-on-Instalment programme. If you make your repayments on time, it can help improve your credit score.
What are the eligibility criteria for applying for an OCBC Cash-on-Instalment?
To be eligible for OCBC’s Cash-on-Instalment programme, you must be a Singaporean or Permanent Resident aged 21 and above, with an annual income of at least $20,000. Additionally, you must not have any existing delinquent accounts or credit facilities with OCBC.
How does the OCBC Cash-on-Instalment differ from the EasiCredit facility?
The OCBC Cash-on-Instalment programme is a personal loan that allows you to borrow a lump sum of money and repay it over a fixed period of time. On the other hand, EasiCredit is a revolving credit facility that allows you to borrow money up to a certain credit limit and repay it at your own pace. The interest rates for EasiCredit are also different from those for Cash-on-Instalment.
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