A personal loan often comes to the urgent rescue of the cash-strapped, and the fact that they can be used for any purpose (unlike a car loan or a home loan) makes them a great financing option.
The problem, however, is that many refuse to apply for a personal loan because of the processing time involved. Most loan applications will take anywhere from a few days to a few weeks to be processed. And then there is the time involved in waiting for the loan amount to be disbursed.
But what if we told you that there is in fact a personal loan available in Singapore which is approved in just a day, and you get the money in your account the very next day!
And this convenience doesn’t cost you an arm and a leg since the interest rates are competitive. Plus it comes with a credit card whose annual fee is waived for 5 years!
The Standard Chartered CashOne Personal Loan is one such personal loan.
Looking for a personal loan? Check this out: How to Apply for a Personal Loan on BankBazaar Singapore
Read on to see why Standard Chartered’s CashOne could just be the personal loan you have been looking for.
1. Enjoy 1-day loan approval
One of the best features of the Standard Chartered CashOne Personal Loan is the fact that you can get your loan approved in a day and the money in your account in the next working day! This reduces that hassle of waiting for long periods of time and makes it easier to get started on your plans.
That being said, you need to submit the completed application form and relevant documents to the bank before 2:00 p.m. on a working day to ensure you get the loan amount disbursed the next working day.
Keep in mind that the application must satisfy the bank’s criteria for approval and that the funds will only be disbursed between Monday and Friday, excluding public holidays. You will be notified via SMS and writing about the status of your application.
Suggested reading: 3 Aspects of Personal Loans You Need to Understand Before Getting One
2. Get up to 4x your monthly income
Depending on how much you earn each year and your credit history, your loan amount may be up to 2x or 4x your monthly income.
If your annual income is between S$20,000 and S$29,999, you will be granted a loan that is up to 2x your monthly income. For those who earn S$30,000 p.a. and above, the loan amount is 4x your monthly income up to a maximum of S$250,000 – and along with the loan you also get Standard Chartered’s Platinum Visa Credit Card.
You can also apply for more than one CashOne loan whose combined limit cannot exceed 98% of your CashOne credit limit.
3. Enjoy cash and credit with a Standard Chartered Platinum Visa Credit Card
As mentioned earlier, only customers with an annual income of S$30,000 or more are eligible for this credit card. The annual fee (S$192.60) for this credit card is waived for five years.
Here’s where the mechanics may get slightly complicated, but we’ve simplified it for you!
According to the CashOne terms and conditions, “the available credit limit for the credit card will be provisionally reduced by the approved CashOne(s) loans”.
Screenshot from the CashOne Personal Loan terms and conditions page
Let’s understand this with the help of an example. If we assume that your monthly income is S$3,500, you are eligible for a personal loan of S$14,000. The credit limit on your credit card is also 4x your monthly income (S$14,000). Now, let’s say you require a loan of S$8,000.
Your CashOne loan gets approved (yay!) and you get the Platinum Credit Card as well. The card’s credit limit isn’t the S$14,000 you are eligible for but is reduced by the approved loan amount. So, it is now S$6,000 (S$14,000 – S$8,000). As and when you repay your personal loan, the credit limit on your card increases by the instalment amount that has been paid.
What happens if the loan amount you apply for is S$14,000? Well, you’ll still get the credit card, but you will be able to use it for retail transactions only when you begin paying the instalment on your loan. So, if your first month instalment is S$100, then your credit card limit becomes S$100. With each instalment payment, the credit limit on your card increases.
If you already have a credit card with Standard Chartered, the following will apply:
If you have a Standard Chartered credit card with a S$500 limit and your annual income in between S$20,000 and S$29,999, your card will be closed once your CashOne Personal Loan application has been approved.
If you have a credit balance, the amount will be refunded to you. If you have a debit balance, the outstanding amount will be combined with your CashOne account or in any other way that the bank deems fit.
If your annual income is S$30,000 or more and you have a Standard Chartered credit card, the combined credit limit of your CashOne loan and the credit card will be altered at the discretion of the bank. The credit limit will be restored as and when you make payments towards your personal loan.
Check out: Our Credit Card Reviews
4. Get some of the best interest rates available and annual fee waiver
CashOne Personal Loan’s applied interest rates start from 6.88% p.a. (EIR 12.75% p.a.) up to 10.8% p.a. (27.56% p.a.) for tenures ranging from 1 to 5 years.
With regards to the fees and charges, the annual fee for the first year (S$199) is deducted from the approved loan amount. So, if the bank has approved a loan S$5,000, the actual amount you will receive in your account will be S$4,801.
From the second year onwards, the annual fee of S$50 will be waived if you have paid your monthly instalments by the payment due date for the last 12 months.
5. Other fees and charges
Here are the other fees and charges applicable to the loan:
|Early redemption||3% of the outstanding principal or S$150. The higher amount will be charged.|
|Late payment fee||S$80 if the minimum amount is not received by |
|Interest rate applicable if payment is not received by the due date twice in 6 months||Original EIR + 4% p.a.|
|Change of loan tenure||S$50 for each change|
How does this loan work?
Once your loan is approved, the interest you will have to pay each month is calculated using the ‘front-end-add-on’ method. This basically means that the principal is multiplied by the applied interest rate or the flat interest rate for the entire tenure of your loan. So, the amount you end up paying as instalment is the same each month.
Keep in mind, that the interest you pay is not spread equally throughout the tenure of your loan. The amount of your instalment payment that goes towards servicing the principal and the interest amount varies each month. In the first month, the amount that is allocated towards the interest component of your loan is the highest. This amount decreases each month until the completion of your tenure.
If you fail to make a payment twice in six months, not only will the interest rate be increased by 4%, but the tenure of your loan will also be increased so that the monthly instalment amount remains unchanged. This is applicable even if your loan is for the maximum tenure of 5 years. The bank will extend the loan period at its discretion.
Like mentioned earlier, you can apply for multiple CashOne loans as long as their combined limit is within your approved CashOne limit. Your overall credit limit will be restored as and when the principal amount is received by the bank via each instalment payment you make.
Note: Minimum loan amount for your application to be considered is S$1,000.
You may like: Quick Guide to Loans for All Working Adults
Here’s what you will need to apply for the loan
- Be between 21 and 65 years of age
- Minimum annual income for Singaporeans and Permanent Residents (PR): S$20,000
- Minimum annual income for foreigners with P1, P2, or Q type (with a minimum validity of 1 year) employment pass: S$60,000
Documents you will need
Identity proof: NRIC/Employment Pass/Passport
Documents for salaried employees (any one)
- Latest payslip and income tax notice of assessment
- Last 6 months’ CPF contribution statement and latest income tax notice of assessment
- CPF contribution statement of the last 6 months
- Latest payslip
Documents for commission earners (any one)
- Last 3 months’ payslip and latest income tax notice of assessment
- Last 3 months’ payslip
- Last 6 months’ CPF contribution history statement
- 100% commission earners: Latest income tax notice of assessment
Documents for self-employed individuals
Latest income tax notice of assessment. Keep in mind that if you are self-employed, you need to have been in business for at least 2 years to be eligible for CashOne.
As you can see, Standard Chartered’s CashOne Personal Loan is an effective option if you need cash immediately especially because you can get your loan approved in one day! Moreover, CashOne is a great loan option for those whose annual income is between S$20,000 and S$29,999 since few banks in Singapore offer personal loans for this income group.
At the end of the day, do keep in mind that a personal loan can help you in times of emergencies and joys alike, but it’s critical that you have complete clarity on the loan mechanism, the interest structure and the penalties involved for late payments before you take the plunge.
Most importantly, you should go for any loan only if you can afford to repay it in full on time. Failing to do so would not just attract hefty penalties but would severely damage your credit score too.
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