If you need cash and have an unused credit limit on your OCBC credit card, you might want to consider the OCBC Cash-on-Instalment option. This feature allows you to convert your credit limit into cash and pay it back in fixed monthly instalments over 12 to 60 months.
With low interest rates and a simple application process, it’s no wonder many Singaporeans turn to this option when they need extra funds.
But is the OCBC Cash-on-Instalment option the right choice for you? In this review, we’ll look closer at this service’s features, pros, and cons to help you make an informed decision.
We’ll cover everything from eligibility requirements to processing fees so you can better understand what to expect. Whether you’re considering this option for a specific-use loan or need some extra cash, keep reading to learn more about OCBC Cash-on-Instalment Singapore.
1-Minute Read: OCBC Cash-on-Instalment
Short on time? Need the nitty-gritty on the OCBC Cash-on-Instalment plan before diving deep? This section’s got you covered!
Fast Facts:
- Borrowers can access cash at rates as low as 3.8% p.a. (Effective Interest Rate: 7.49% p.a.)
- Repayment options are flexible, ranging from 1 to 5 years.
- You’ll enjoy the predictability of fixed monthly repayments.
- Apply online for potentially instant approval and receive the cash quickly.
- The minimum loan amount is S$1,000.
Singapore, is your financial future calling? The OCBC Cash-on-Instalment plan might be the answer. But that’s just a taste – there’s a whole world of information waiting to be explored!
Will it be the perfect fit for your needs? Could it unlock exciting new possibilities? Dive deeper and discover the details that could change your financial game.
Understanding OCBC Cash-on-Instalment
If you are looking for a flexible and affordable way to borrow money, then OCBC’s Cash-on-Instalment might be the perfect solution. This section will explain what Cash-on-Instalment is, how it differs from personal loans, and what makes OCBC’s offering unique.
What Is Cash-on-Instalment?
Cash-on-instalment is a loan that allows you to borrow money at a lower interest rate than most credit cards, with fixed monthly repayments over a set period. You can use the loan for any purpose, such as home renovations, medical expenses, or debt consolidation. The loan amount can range from $1,000 to $100,000, with 1 to 5 years of repayment terms.
How Does It Differ from Personal Loans?
While Cash-on-Instalment is similar to a personal loan, some key differences exist. Firstly, personal loans usually have a higher interest rate than Cash-on-Instalment. Secondly, personal loans often require collateral or a guarantor, while Cash-on-Instalment does not. Lastly, personal loans may have a longer repayment period than Cash-on-Instalment.
OCBC’s Unique Offering
OCBC’s Cash-on-Instalment is a unique offering that allows you to borrow money at a lower interest rate than most credit cards, with fixed monthly repayments over a set period. The loan amount can range from $1,000 to $100,000, with 1 to 5 years of repayment terms. One of the unique features of OCBC’s Cash-on-Instalment is that it does not require collateral or a guarantor, making it easier for you to get the loan you need.
Another unique feature is that OCBC offers an exclusive rate of 3.50% p.a. to new customers, making it one of the cheapest borrowing options for individuals who do not currently have OCBC credit cards or OCBC EasiCredit loans. Additionally, you can get instant approval and cash disbursement when you apply online, making the process fast and convenient.
In summary, OCBC’s Cash-on-Instalment is a flexible and affordable way to borrow money, with fixed monthly repayments over a set period. It differs from personal loans in that they have a lower interest rate, do not require collateral or a guarantor, and have a shorter repayment period. With its exclusive rate and instant approval process, OCBC’s Cash-on-Instalment is an excellent option for those who need to borrow money.
Eligibility and Application
If you need quick access to cash for a big purchase or an emergency, OCBC Cash-on-Instalment is a great option. Here’s what you need to know about eligibility and the application process.
Who Can Apply?
To be eligible for OCBC’s Cash-on-Instalment, you must be at least 21 years old. Singaporeans and permanent residents must have annual incomes of at least S$20,000. Foreigners residing in Singapore are eligible for Cash-on-Instalment and have yearly incomes of at least S$45,000.
Required Documents
To apply for the Cash-on-Instalment, you must provide identification and income documents. For Singaporeans and permanent residents, a copy of your NRIC is required. Foreigners will need to provide a copy of their passport and employment pass.
You must also provide income documents such as payslips, tax assessment notices, or bank statements.
Online Application Process
Applying for Cash-on-Instalment is easy and convenient with OCBC’s online application process. Fill out the online form with your personal and financial information. You must provide details such as your name, NRIC or passport number, mobile number, and email address. You must also specify the amount of money you wish to borrow and the repayment period.
Once you have submitted your application, OCBC will review your application and notify you of the outcome. The funds will be disbursed directly to your OCBC deposit account within three working days if your application is approved.
Overall, OCBC’s Cash-on-Instalment is an excellent option for those needing quick cash access. With easy eligibility requirements and a convenient online application process, you can get the funds you need quickly.
Financial Details
If you’re considering taking out a personal loan with OCBC, it’s important to know the financial details of the Cash-on-Instalment loan. This will help you determine if it’s the right loan for you and allow you to budget accordingly.
Interest Rates and EIR
The interest rate for the OCBC Cash-on-Instalment loan varies depending on your chosen loan tenure. For loans of 4 and 5 years, the interest rate is most competitive. As of April 2024, the prevailing interest rate for these loans is 4.7% p.a. This rate is also fixed for the entire loan tenure, so you won’t have to worry about fluctuations in interest rates.
It’s important to note that the effective interest rate (EIR) for the Cash-on-Instalment loan is higher than the advertised interest rate. This is because the EIR takes into account the processing fee and any other fees and charges associated with the loan. The EIR for the Cash-on-Instalment loan can range from 9.43% p.a. to 10.65% p.a. depending on the loan tenure and loan amount.
Fees and Charges
In addition to interest, there are other fees and charges associated with the Cash-on-Instalment loan. These include a processing fee of $100, an account termination fee of $150, and a late payment fee of 3% of the overdue amount. It’s important to factor these fees into your budget when considering the loan.
Calculating Your Instalments
To calculate your instalment amount for the Cash-on-Instalment loan, you can use the loan calculator on the OCBC website. Simply enter the loan amount, loan tenure, and interest rate to get an estimate of your monthly instalment amount.
Overall, the OCBC Cash-on-Instalment loan can be a good option if you need cash and want a fixed interest rate for the entire loan tenure. However, be aware of the EIR and other fees and charges associated with the loan, and make sure to factor these into your budget before applying.
Tip: Build Your Credit Score
A higher credit score can qualify you for a lower interest rate. Aim to pay bills on time and maintain a low credit utilisation ratio (amount owed divided by credit limit) to improve your score for a potential future loan.
Studies have shown a strong correlation between credit scores and loan interest rates. A 2023 study by Experian found that borrowers with excellent credit scores (above 780) received an average interest rate 3.2 percentage points lower than borrowers with fair credit scores (670-739).
Repayment Terms
If you’re considering taking out a Cash-on-Instalment loan from OCBC Bank, it’s essential to understand the repayment terms. Here’s what you need to know:
Repayment Period Options
OCBC Bank offers a flexible repayment period ranging from 12 to 60 months. You can choose a repayment period that best suits your financial situation.
Monthly Instalment Details
With Cash-on-Instalment, you’ll enjoy the benefit of fixed monthly instalments. This means you’ll know exactly how much you must pay each month, making it easier to budget and plan your finances.
Additionally, you can use the OCBC personal loan calculator to estimate your monthly repayment amount based on your desired loan amount and repayment period.
What Happens in the Case of Early Repayment?
You may be subject to early repayment fees if you decide to repay your loan early. However, it’s important to note that this fee only applies if you choose to repay your loan in full before the end of your repayment period. You won’t be charged any fees if you make early partial repayments.
Overall, the repayment terms for OCBC Cash-on-Instalment loans are flexible and transparent, making it easy to manage your finances. With fixed monthly instalments and a range of repayment period options, you can choose a plan that works best for you.
Advantages of OCBC Cash-on-Instalment
If you’re looking for a loan option with lower interest rates and flexible repayment options, OCBC Cash-on-Instalment could be the perfect solution. With this loan, you’ll have immediate access to funds, making it an ideal choice for emergency funds. Here are some of the advantages of OCBC Cash-on-Instalment:
Lower Interest Rates Compared to Credit Cards
You may want to think twice if you’re considering using your credit cards to finance a purchase. Credit cards often come with high interest rates, making it difficult to pay off your balance. With OCBC Cash-on-Instalment, you’ll enjoy lower interest rates from 3.5% p.a. (EIR from 6.96% p.a.) and a one-time processing fee. This makes it a more affordable option compared to credit cards.
Flexible Repayment Options
OCBC Cash-on-Instalment offers flexible repayment options that allow you to choose a repayment period that suits your needs. You can choose to repay your loan throughout 1 to 5 years, making it easier to manage your finances. With fixed monthly repayments, you’ll know exactly how much you need to pay each month, making it easier to budget and plan your expenses.
Immediate Access to Funds
When you apply for OCBC Cash-on-Instalment, you’ll enjoy immediate access to funds. This makes it an ideal choice for emergency funds or unexpected expenses. You can apply online and receive instant approval and cash disbursement. This means you can get the funds you need quickly and easily without having to wait for days or weeks.
In summary, OCBC Cash-on-Instalment offers lower interest rates than credit cards, flexible repayment options, and immediate access to funds. If you’re looking for an affordable, flexible, and convenient loan option, OCBC Cash-on-Instalment could be the perfect solution for you.
Potential Pitfalls
When considering OCBC Cash-on-Instalment as a financing option, it is crucial to be aware of the potential pitfalls. Here are some things to keep in mind:
Understanding the Fine Print
Before applying for a cash-on-instalment loan, understand the terms and conditions, including the interest rate, processing fee, and repayment period. Be aware that the interest rate may be higher if you are an existing customer. If you miss a payment or pay late, you may incur additional fees and interest charges.
Managing Your Debt
While cash-on-instalment loans can be a helpful way to consolidate high-interest debt, they should not be considered a long-term solution. Make sure you have a plan to pay off your debt, and avoid taking on more debt than you can handle.
Consider working with a financial advisor to help you manage your debt and create a repayment plan.
Considering Other Financing Options
Cash-on-instalment loans should be considered a last resort when it comes to financing. If you have high-interest debt, consider debt consolidation or other loan options. Additionally, if you struggle to make ends meet, consider seeking financial counselling or assistance from a non-profit organisation.
Remember, while cash-on-instalment loans can be a valuable tool for managing debt, they should be used with caution and only when necessary. Make sure you understand the terms and conditions, have a plan to manage your debt, and consider other financing options before applying.
Promotions and Offers
If you are considering taking out an OCBC Cash-on-Instalment loan, you may be interested in the current promotions and offers available to you. Here are some of the promotions and offers that you should know about.
Current OCBC Promotions
OCBC is currently offering a promotion where you can enjoy processing fee waiver for loan tenor of 36 months and beyond. This promotion is available to anyone above 21 years old, Singaporean or Singapore PR with an annual income of at least $20,000, or foreigner with an annual income of at least $45,000.
Additionally, until 30 June 2022, you can receive 1.2% and $100 cashback when you apply online for an OCBC Cash-on-Instalments credit line for new customers taking a $10,000 loan or more.
Cashback and Rewards
You may be eligible for cashback or rewards when you apply for an OCBC Cash-on-Instalments loan. For example, you can receive up to S$3,888 cashback when you apply for Cash-on-Instalments online. This is one of the cheapest borrowing options for individuals who do not currently have OCBC credit cards or OCBC EasiCredit loans.
It is important to note that while cashback and rewards can be enticing, you should always ensure you can afford to repay the loan before taking out any new credit. Additionally, read the terms and conditions of any promotions or offers before applying to ensure eligibility and understand the requirements.
Overall, if you are considering an OCBC Cash-on-Instalment loan, it is worth checking out your current promotions and offers. With the proper promotion or offer, you may be able to save money or receive cashback or rewards on your loan.
Conclusion
Congratulations! You have made a wise decision by considering OCBC Cash-on-Instalment as your financial product. With its flexible repayment terms and low-interest rates, you can easily manage your finances and achieve your financial goals.
By choosing OCBC Cash-on-Instalment, you can access a range of loan tenures, from 12 to 60 months, which allows you to tailor the loan to your specific needs. Moreover, you can convert your unused credit limit into cash, which you can repay in fixed monthly instalments at low interest rates.
In conclusion, OCBC Cash-on-Instalment is an excellent financial product that can help you meet your financial needs. Its competitive interest rates, flexible repayment terms, and fast approval process make it an excellent option for anyone looking for a reliable and convenient loan product.
Frequently Asked Questions
How can I apply for an OCBC ExtraCash Loan, and what are the benefits?
To apply for an OCBC ExtraCash Loan, you can do so online or visit any OCBC Bank branch in Singapore. The benefits of an ExtraCash Loan include the ability to borrow up to six times your monthly salary or S$100,000, whichever is lower.
You can also enjoy a flexible repayment period of up to five years and a fixed interest rate for the entire loan tenure.
What are the latest interest rates for OCBC Personal Loans, and how do they compare to others?
OCBC Personal Loans currently offer interest rates as low as 3.5% per annum, making them one of Singapore’s most affordable personal loan options. The interest rate is fixed for the entire loan tenure, allowing you to plan your finances more accurately.
However, it’s important to note that interest rates may vary depending on your credit score and other factors.
Could you explain how OCBC EasiCredit works and what its payment structure is?
OCBC EasiCredit is a flexible credit line that allows you to borrow up to six times your monthly salary or S$30,000, whichever is lower. Depending on your financial situation, you can choose to pay only the minimum monthly payment or more. The minimum monthly payment is 3% of the outstanding balance or S$50, whichever is higher.
You can also convert your EasiCredit balance into a term loan with a fixed interest rate and repayment period of up to five years.
What are the advantages of using OCBC’s Cash-on-Instalment feature?
OCBC’s Cash-on-Instalment feature allows you to convert your unused credit limit into cash and repay it with fixed monthly instalments at a low interest rate. This is a great way to access additional funds without applying for a new loan.
You can choose a repayment period of up to five years, giving you greater flexibility in managing your finances.
How do I use the OCBC Personal Loan Calculator to plan my finances?
The OCBC Personal Loan Calculator allows you to estimate your monthly instalment payments based on your loan amount, repayment period, and interest rate. This can help you plan your finances and determine whether a personal loan is the right option.
You can access the calculator on the OCBC Bank website or mobile app.
What must my credit rating be for a successful application with OCBC Bank Singapore?
Your credit score is an essential factor in determining your eligibility for a personal loan with OCBC Bank Singapore. While there is no minimum credit score requirement, a higher score will increase your chances of approval and may result in a lower interest rate.
It’s crucial to maintain a good credit score by paying your bills on time and avoiding excessive debt.
Loan Limits? Quick Credit Opens the Door to Financial Freedom
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