UOB personal loans are among the least popular personal loans here in Singapore, with good reason.
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Read ahead for more information on how UOB bank personal loans work, and how it could be your choice.
Features and Benefits
A UOB loan in Singapore offers instant cash upon approval of your request. Applications can be submitted from 8 am to 9 pm online, and the money is transferred directly to your account after processing.
UOB personal loan repayments can go for as low as SGD 0.66 a day, which makes their pricing an affordable option considering the quick approval of your application. This repayment is calculated from an approved loan amount of SGD 1,000 with a loan tenor of 60 months, an interest rate of 3.68%p.a., and a 1% processing fee.
Individuals who are not eligible for loan applications in other lending institutions can turn to a UOB personal loan. They might have a higher interest rate compared to other banks, but you can still be in control of your finances when you avail of this loan. These personal loans have fixed monthly repayments and a minimum processing fee compared to credit cards and other loans, making planning and budgeting easier.
Rates and Fees
To give you an overview of how much repayment and the corresponding interest rate you should be expecting if you apply for a UOB personal loan, the following table can serve as your guideline.
You can use this table to create a scheme for controlling your finances after applying for the loan, all rights reserved to UOB Bank for the details.
|Loan Tenor (Months)||Processing Fees (%)||Flat Rates (%p.a.)||Effective Interest Rates (%p.a.)|
Note: The effective interest rate or EIR pertains to the interest rate that takes into account the total charges and the manner with which repayments are made. It is the actual interest rate incurred when using the loan facility. The interest therefore is computed as:
(EIR x the Outstanding Loan Amount) ÷ (365 or 366 days × number of days to the next Credit Card/CashPlus statement date)*
*The interest rate payable to your 1st UOB personal loan installment, if there are less than 30/31 days from your loan approval to the date of your next credit card statement date, will be pro-rated (365 or 366 days basis), all rights reserved to the UOB bank for this formula.
There are no other charges such as the processing fee as it is typically waived, that you will have to pay when processing a UOB personal loan. However, you must carefully plan your repayments to minimize additional charges on your UOB cash plus or credit cards and the total loan amount.
The bank charges SGD 150 for early repayment fees which could increase to 3% of the outstanding loan amount. Whichever amount is greater will be the fee that you will have to pay, so be very careful in planning your repayment scheme.
How Does UOB Personal Loan Compare to Other Banks?
UOB personal loans, as already mentioned above, offer higher interest rates of 4.25%p.a. with an EIR of 7.96% p.a., as compared to other banks and licensed lending institutions.
Their EIR proves to take a toll on you the longer your loan tenor (can be as long as 5 years) is, despite its promising number if you are not well-versed with how much in total you are repaying.
This is an expensive personal UOB credit loan with a high-interest rate that should be reserved as a last-case scenario, as there are cheaper options available.
What Makes UOB Stand Out Among Other Banks?
However, UOB personal loan has an instant approval scheme for their new and existing customers with credit cards which is helpful when you are in an urgent situation.
As discussed above, your application can be passed online from 8 am to 9 pm and once it is processed, your loan amount is available in a savings account of your choice.
You can loan a minimum of $1000 and the maximum loan amount will depend on your monthly salary, despite having a barely minimum annual income which should still fit the eligibility requirements.
The higher the amount you loan, however, the more cashback you can receive from the bank with their scheme of up to $1200 cashback for loans with tenures of 3-5 years.
Eligibility and Requirements
To qualify for application for UOB personal loan in Singapore, you must meet the following eligibility requirements:
- Be between the ages of 21 to 60 years old
- Be a Singaporean or a permanent resident
- Must have a minimum annual income of SGD 30 000
- Have an existing UOB credit card/Cash Plus UOB account.
You can apply online for a personal loan with the following requirements needed alongside filling an application form. For salaried employees, this includes:
- Photocopy of the front and bank of the NRIC
- Photo of your signature
- Latest computerized payslip or 12 months CPF Contribution History Statement
Meanwhile, those who are self-employed need:
- NRIC photocopy
- Most recent tax payment receipt form
- 3 months’ worth of bank statements that proves credit score
How to Apply for UOB Personal Loan
If you are already an existing UOB credit card account holder or are a UOB CashPlus customer, getting a UOB personal loan is easy. You just have to follow the procedure below and you can get your loan approved in no time:
- Proceed to the UOB site
- Apply online by filling the form
- Submit the form and other supporting documents
Those who are new however need to open a UOB account while applying for the loan.
Nonetheless, you can do both applications online, but be careful to study and observe the eligibility requirements.
Some important FAQs are listed below to give you more insight on how the UOB personal loan works:
Can a foreigner apply for a UOB Personal loan in Singapore?
If you are not Singaporean and yet you find yourself wanting to apply for a UOB personal loan, you may do so, just make sure to secure permanent residency status.
How much personal loan can I get on my salary?
You can get a minimum loan amount of SGD 1000 as long as you meet the minimum salary requirement but you can borrow as much as 95% of your credit limit
Which personal loan is best in Singapore?
Albeit being relatively expensive, UOB personal loans are still good options when you find yourself in a pinch. However, the best personal loan in the country is relative, it depends on what policy would fit well with your current situation.
To know more about loans and how you can manage your finances well, you should ask help from the experts of Loan Advisor.
They are the most trustworthy loan comparison site in Singapore, doing most of the tedious work for their clients’ convenience. The team is passionate about giving their customers the quickest, safest, and most rewarding options when it comes to money, hence you too should trust them.
You may contact Loan Advisor through the site, and you can be assured of a life-changing financial consultancy with the best possible place to seek advice from here in Singapore.