CIMB’s Cashlite Personal Loan Review

CIMB’s Cashlite Personal Loan Review

The CIMB Singapore Cashlite personal loans offer the lowest interest rate of 3.5%p.a. for their new-to-CIMB bank applicants who seek competitive loan rates and new few CIMB bank credit cards.

Key Features

Pros

  • Gives quick disbursement for a personal loan
  • Does not charge processing fees
  • Low interest rates for new clients (competitive rate of 3.5%p.a.)

Cons

  • You can only borrow up to 90% of your credit cards’ limit
  • Foreigners not eligible
  • Those who are holding supplementary CIMB bank credit cards are not eligible

Features and Benefits

You can get a loan interest rate of 3.5%p.a. if you are new at CIMB, which is one of the lowest interest rates here in Singapore. They offer this competitive advantage to new applicants who might be hesitant to take out a loan because of fear of the high-interest rates.

After getting your loan approved, you can quickly get your loan amount in your ATM or use it to get a 1 fill Cash Plus Personal, regardless of whether you are an existing CIMB credit card member or a recruit to the bank. They do not discriminate with their customers, the service available to one is the same service available to you.
The CIMB Cashlite personal loan also has a flexible loan tenure with no hidden fees. 

You can choose to pay the personal loan quickly from your monthly income; take your time and pay it from 1 to 5 years. This gives you the option of being more flexible in terms of personal financing. Thus, you can better budget the repayments you have to pay for the personal loan, while also making sure that it does not hinder your other expenses (e.g. credit lines for Cash Plus Personal in Bank Berhad or other institutions).

 

Rates and Fees

Perhaps the most important consideration when looking at a personal loan is the interest rate that the credit institution charges. The following table can be your guide for when you decide to get a personal loan to supplement your monthly income. All rights reserved to the CIMB Bank for these details, copyright 2020.

 Tenure New-to-bank Promos Existing Customers
Interest Rate (%p.a.) Effective Interest Rate (%p.a.) Interest rate (%p.a.) Effective Interest Rate (%p.a.)
1 year  

 

3.50

6.40  

 

4.50

8.21
 2 years 6.58 8.41
 3 years 6.60 8.41
 4 years 6.58 8.36
 5 years 6.54 8.29

When you borrow a personal loan from a credit institution, the actual amount of interest that you will be paying with your monthly income is called the effective interest rate (EIR), which from the above table is higher than the interest rate that the firm discloses.

Most credit institutions do not report the effective interest rates, but you have to know what it is to not get confused when you receive your bills statement. The normal interest rate does not cover the compounding interest as well as other fees that come with financial products. EIR on the other hand already considers these, hence the higher number.

Unlike other personal loans that charge 1% of the loan amount as a processing fee, the CIMB Cashlite personal loan does not charge a processing fee. Thus, you can focus your attention on budgeting for the repayments of the loan. You may be charged $100/month as a late payment fee if you do not pay on time within the 5 years of maximum tenure. And, 3% of your outstanding loan amount or $250, whichever amount is higher, for early termination fee if you do not follow the agreed loan tenure.

 

How does CIMB personal loan compare to other banks?

Similar to offers in other banks, the minimum loan amount that you can get for your CIMB personal loans is SGD 1,000. The following table then presents the interest rate and monthly repayments that highlights the differences between CIMB personal loans and other offers such as the Cash Plus Personal. The loan amount for these numbers is set at SGD 10,000 with a repayment period of 3 years.

Loan Source Interest Rate (%p.a.) Monthly Repayment (SGD)
CIMB CashLite 3.50 307
UOB 3.68 308
HSBC 3.70 309
DBS 3.88 310
POSB 3.88 310
Citibank Quick Cash 4.55 316
Maybank CreditAble Term 5.86 327
BOC SmartLoan 6.52 332

 

What makes CIMB stand out among other banks?

As can be seen from the table above, CIMB offers the lowest interest rates among the banks in Singapore.
This is exclusive for their new customers however so if you have not tried applying for a CIMB Cashlite personal loan, you should get one as soon as possible.

This competitive rate for new clients is their best feature, but the fact that they have no processing fees is also commendable. Also, they make sure that you get your money quickly and even offer a flexible loan tenure to make budget planning easy.

 

Eligibility and Requirements

To qualify for the personal loan offered by CIMB, you should meet the following criteria:

  • At least 21 years old
  • Citizen of Singapore or a permanent resident
  • Have a minimum annual income of SGD 30,000
  • If a foreign resident, show proof of permanent residence in Singapore to qualify.
  • Borrowing a minimum loan amount of SGD 1,000, amounts lower will not be approved by the bank

The bank also requires you to submit the following documents:

  • Latest computerized payslip if your income exceeds SGD 72,000 as a salaried employee

On the other hand, if you are self-employed or are a commission or variable-based earner, you need:

  • Last 2 years of income tax notice
  • Latest 3 months’ worth of bank statements

For submissions done fully online, you would need:

  • Your SingPass with 2FA enabled ready for the submission of the CPF
  • A copy of the back and front of your Principal Card Applicant NRIC
  • Supplementary Card Applicant NRIC
  • Valid passport, if needed

 

How to Apply

The bank offers three quick and easy ways to apply for a personal loan. You can choose to apply online, through SMS, or through requesting a bank member to contact you online.
For online application, the following steps are followed:

  1. Fill a form
  2. Submit required documents
  3. Wait for the confirmation email

If you choose to do it via SMS:

  1. Send “CASHLT PG (full name)” to 72008
  2. Wait for instructions that will be sent through text

Lastly, if you want a bank member to contact you online, you can request through their site.

Another perk for new customers who might want to apply for a CIMB loan is the fact that they get their cash disbursed immediately after the loan is approved. Typically, this should take about 5 business days upon submission. On the other hand, existing CIMB credit cardholders can convert their available credit balance to cash immediately. They just have to apply with CIMB Clicks Internet Banking and await confirmation.

 

Conclusion

The following FAQs are compiled to help answer the common queries for this loan:

How long does it take to get approval for a CIMB personal loan?

 If you submit your application with complete documents, your loan can be initially approved within 10 minutes. Full and final processing will take about 24 hours, and afterward, you can enjoy your borrowed loan.

How can I check my CIMB loan status? 

To check the status of your loan, you can go to the Product Menu and select “My Loan”.

Which personal loan is best in Singapore? 

At the end of the day, the best personal loan in Singapore will be the loan that fits your current needs while also being affordable for your budget.

Choosing which loan among the many options like the Cash Plus Personal credit lines, quick cash loans, etc., to invest in can be hard, and you would not want to be regretful of your choices later on.

Good thing Loan Advisor is present here in Singapore to guide you through your finance choices. They are the most trustworthy loan comparison site in the country and they live for helping you make your dreams into reality through loans and other financial opportunities.

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