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Long Tenures From the Bank of China Personal Loan: Is It Worth It?

bank of china personal loan
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The Bank of China (BOC) offers its $martloan that has the longest tenure here in Singapore. The repayments that you pay over time become lesser and lesser as the BOC has conditions called the balance, reducing loan policy in place.

Banking with BOC is more than just their credit cards, MoneyPlus Line of Credit, they also have one of the most competitive terms when you get your debt through their banking services rather than applying in finance platforms like SingSaver.

Pros Cons
  • Tenure of up to 7 years
  • Fixed monthly repayments
  • Uses balance reducing policy instead of setting up flat interest rates
  • Has one of the highest flat interest rates pegged at 6.52%p.a.
  • A high processing fee is charged
  • Only one BOC $martloan can be charged under a MoneyPlus account

Editor’s Rating: 4.3/5.0

Features and Benefits

The $martloan from BOC is a unique policy as it does not charge fixed interest rates but rather uses the balance reducing loan in their method. With this, the interest rate you will be charged will go lesser and lesser, starting at a high initial rate.

BOC also has one of the longest possible tenures for a personal loan in Singapore as you can pay your $martloan with up to 7 years worth of repayments. And, you can borrow 95% of your available credit limit (from your BOC credit cards, BOC MoneyPlus Line of Credit, and other BOC credit banking products), a generous and highly flexible amount that is not offered by many other banks and institutions like SingSaver.

Rates and Fees

Assuming you get S$20,000 for your BOC $martloan, you can refer to the following table for the interest rates and charges that will be included in your monthly repayment.

Duration Flat Rate Fee Effective Interest Rate Monthly Payment Total Cost
1 year 6.62% 3% 18.72% S$1,777 S$21, 924
2 years 6.48% 3% 15.73% S$941 S$23,192
3 years 6.52% 3% 14.69% S$664 S$24,512
4 years 6.57% 3% 14.18% S$526 S$25,856
5 years 6.66% 3% 13.86% S$444 S$27,260
6 years 8.63% 3% 17.05% S$422 S$30,956
7 years 8.86% 3% 16.89% S$386 S$33,004

Other fees (e.g., the processing fee and payment sum for charges when certain BOC banking terms are not complied with) that the BOC can charge when you take out a $martloan is also presented in the following table:

Processing fee 3% of the loan amount with a minimum of S$150
Late payment charges 2% of minimum payment sum or S$100, whichever is higher
Rescheduling fee S$100 for restructure of the loan tenure
Early settlement penalty S$ 100

Note: All of these charges and instalment terms can either be paid in cash or through your BOC MoneyPlus account, as long as it does not exceed your credit limit (similar to how repayments work in Singsaver and other similar banking and financial institutions).

How Does It Compare to Other Banks?

Compared to other personal loans from banks and financial institutions (e.g., SingSaver) in Singapore, the $martloan from BOC has higher processing fees and interest rates. You can refer to the following table for the comparisons between their banking account benefits when you borrow cash, which includes the processing fee, tenures, maximum amount of cash you can get, fees, and rates:

Bank Loanable Amount Interest rate Monthly repayment Processing Fee
OCBC Up to 6x monthly salary 8.2%p.a. – 13.1%p.a. Lowest at S$238 2% of the loan amount or S$200
DBS-POSB Up to 10x monthly salary 3.88%p.a. Lowest at S$199 1% of the loan amount
Bank of China Up to 95% of your credit limit 6.52%p.a. S$332 3% of the loan amount or S$150
Citibank Up to 4x monthly income 4.94%p.a. – 7.79%p.a. Lowest at S$214.92 3.5% of the loan amount
HSBC Up to 8x monthly salary 3.7% Lowest at S$149.88 S$88

What Makes It Stand Out Among Other Banks?

Unlike other personal loans from banks and establishments like SingSaver here in Singapore, the BOC uses the balance reducing method for its personal loan. It charges a high-interest rate that is not among the market’s competitive interest rates, but this figure decreases as the tenure lengthen.

Your next interest rate will be computed from the remaining credit you have on the $martLoan under your name. It results in you paying less and less cash to BOC as your tenures lengthen, which helps those who have some funds now but are projecting the need to cut down on their credit limit later on.

Eligibility and Requirements

If you are interested in applying for a $martloan from the BOC here in Singapore with its space for long tenures, you must meet the following criteria:

  • At least 21 years old
  • Earn at least S$30,000 annually (Singapore and permanent residents) and S$40,000 if a foreign borrower
  • Singapore residents and permanent residents, as well as foreigners, can apply for the $martloan

If you qualify, you can then proceed to prepare the following documents for submission to the bank:

  • Front and back copy of NRIC, Passport/Employee Pass (if it applies)
  • Completed and signed Letter of Instruction
  • For salaried employees:
  • Electronic payslip for the past 3 months
  • Latest 6 months’ CPF statement (for Singaporeans and Permanent Residents)
  • The latest income tax statement
  • For self-employed individuals:
  • Latest 12 months’ CPF statement (for Singaporeans and Permanent Residents)
  • Latest income tax statement (for the past 24 months)

How to Apply

Unlike other banks with an online application process, the Bank of China offers its products via SMS (BOCMP space SLWS space your details) rather than over the internet. You may follow the procedure below to proceed with your application:

  1. SMS BOCMP (space) SLWS (space) Name (space) NRIC.
  2. Send it to 79777.
  3. Wait for the bank’s confirmation that they have received your application, and you will be assisted.

You can also opt to contact the Bank of China’s customer service through the hotline number 1800-338-5335. It is a 24-hour customer service hotline, so you can contact them at any time that is convenient for you. Enjoy this offer unlike any other from financial institutions (e.g., SingSaver and different banks) because of its remarkable tenures with their simplified application process.

Closing: FAQs

Which personal loan is the best in Singapore?

There is no such thing as the “best” personal loan in Singapore. What you need for your circumstance could be considered your best offer (e.g., borrowing from BOC rather than from SingSaver).

How does BOC personal loan work?

The BOC offers you a personal loan whose interest rate decreases the longer your loan tenure is. It is known as the balance of reducing the loan method.

What is the best company to get a personal loan from?

The best company to get a personal loan from here in Singapore is the one that can address your current need (could be banks or a financial institution). Each has a different personal loan policy that can fulfill your demand.

There are several options that you can choose from when getting a personal loan and this can get overwhelming because you have to understand each of their policies to choose which option works the best for you. To prevent yourself from doing tons of research, you can contact Loan Advisor to help you find the perfect deal for yourself.

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