A Quick Analysis of UOB Personal Loan

A Quick Analysis of UOB Personal Loan

Are you someone who needs personal loans in Singapore? In times of financial crisis, most of us are looking to get additional funds financially, especially if it is a sudden need. Most banks and money lenders offer different loan plans for the people who badly need the money. Choosing the best possible option for you can be very challenging as there are a lot of financial institutions and money lenders who can offer you a variety of almost everything that you need. 

UOB Personal Loan – One of the best choices

While the UOB personal loan might be one of the more expensive personal loan options due to its higher interest rates, the loans offer better advantages to a borrower instead of other Singapore personal loans available in the market. The UOB personal loan comes highly recommended to anyone who isn’t able to get a cheaper personal loan. It isn’t recommended for those who want to have the cheapest loan available. 

Types of UOB Personal Loan

There are two major types of personal loans available to the public if you need a personal loan quickly; the UOB Cash Plus Loan and UOB Credit Card Personal Loan.

UOB Cash Plus

UOB Cash Plus Loan

You first need to apply for the line of credit and by the time you get approved, you will have the privilege to use it when you would want to, it can be a standby solution so that you can get money when you need it the most. You can get the money through an ATM whenever you need to fund yourself. An interest rate will be charged to you based on the amount of money that you have withdrawn. You can get cash up to 6 times your monthly income and the minimum is S$1,000. 

UOB Credit Card

UOB Credit Card Personal Loan

If you have a UOB credit card, UOB Corporate Card, UOB Purchasing Card, or UOB Private Label Cards, you can apply for this type of loan. The minimum amount for this loan is S$1,000 and the loan amount should not be more than your available credit limit. The amount to be paid every month should be charged to your credit card account. There will be a nonrefundable processing fee as well as an interest rate. If you wish to cancel, there will be a cancellation fee of S$150 or 3% of your outstanding loan amount. The bank will process your credit card personal loan application within 7 to 10 business days, not including Saturdays and Sundays as well as holidays. 

What are the interest rates and tenors?

The UOB personal loan can be more competitive than other banks as the bank charges an interest rate of 4.25% per annum interest rate on their personal loans when you sign up online while currently, the Effective Interest Rate (EIR) of UOB personal loan hovers around 7.75% to 7.86% for a 1-5 year tenure. This does not include the processing fee as there is a 0% fee for it.

Who is Eligible?

Any Singaporean and permanent residents of the country above 21 are eligible for UOB personal loans. They are able to loan from $1,000 up to 98% of their credit limit. Most banks will require the borrowers to be at least 21 years of age up to 64 years old and possessing an annual income of a minimum of $30,000. 

What are the requirements?

You will need to submit a photocopy of your National Registration Identification Card or NRIC.  Photocopy both the front and the back. You will also need to submit an image of your signature if you are doing it online. You will also need to submit your Central Provident Fund Contribution Statement as well as your latest proof of salary or your payslip.

Businessmen Signed papers

How do I apply for UOB Personal Loans?

You should be able to complete an application for and complete your requirements as well as the proof of your income, employment, and identity. You will also need to choose between the two types of UOB Personal loans which are the Cash Plus Personal Loan and the Credit Card Personal Loan.

Are there other fees and charges?

There is no processing fee being charged for a UOB Personal loan but you will be charged an advance repayment fee of at least $150 or the 3% interest rate of your loan amount, whichever of the two is higher. It is highly recommended that the borrowers are carefully planning their repayment schedules and budgeting so that they will not incur additional fees besides the interest rates on top of their loan amount.

Interest

Is there a way to get a lower interest rate?

Getting a low interest rate can be difficult especially if you are dealing with a bank and interest rates can be very important in choosing the best loan that you can get. UOB is now offering applications online wherein you can get a 4.25% annual interest rate for a personal loan. 

Are they offering promotions?

UOB offered a promotion to their personal loans that ended in March 2020. They gave up to S1,200 cashback if you applied for their best personal loan that had a loan tenure of 3, 4, and 5 years. If ever you have been approved for a $15,000 up to $29,000 loan, you will be able to get $200 cashback. For $30,000 – $44,999 loans, your cashback will be $600. For $45,000 and above loans, you will get the $1,200 cashback.  Too bad the promotion period has ended but you can still check them out every once in a while to check if they have promotions by the time you need a loan.

How long is the approval process?

For both existing and new UOB clients, they offer fast approval, almost the same day. You will just need to process your application from 8 in the morning until 9 in the evening. The approved loan amount will be credited to the bank account that you have chosen.

Conclusion

If you would want to get a loan from other financial institutions and money lenders other than a bank, make sure you make the necessary research and investigation first  whether you are dealing with a legal money lender or not. The top licensed money lender in Singapore will always be transparent with their fees and charges as well as their terms and conditions. You can check A1 Credit for more information and if you are interested in asking for financial assistance. There are a lot of illegal lenders that may lure you into getting a loan from them but then you will end up paying a lot more than what you have thought you’d pay. With this, it may be best to get a loan from a bank just to be sure that you are dealing with a legit money lender than end up with the illegal ones that can also get you into trouble. 

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