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What Makes Standard Chartered CashOne an Attractive Personal Loan Option

Withdrawable trading bonus
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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.

Read:
Beginner’s
Guide to Taking a Personal Loan

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”.

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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.

Read
also: 4
Credit Cards with No Annual Fees in Singapore

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

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Screenshot of Standard Chartered CashOne website

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.

Read: 4 Important
Things You Need to Do When Getting Personal Loans

5. Other fees and charges

Here are the other fees and charges
applicable to the loan:

Fee Type Amount
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 the instalment payment date. 26.9% p.a. interest will be calculated on a daily basis on the outstanding amount.
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.

Check out: Did Your Personal Loan Get Rejected? Here Is What Could Have Gone Wrong

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.

You
may also like:

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    Wedding: Is a Personal Loan the Answer?
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    About Them
  • Financial
    Issues? Here Are 6 Tips to Avoid Having Them
  • Personal
    Loan vs Car Loan: Which Should You Choose

All information provided in this article/blog, published on this website is strictly for general information purpose only. Bankbazaar does not provide any warranty about the authenticity and accuracy of such information. Bankbazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Please visit the websites of respective banks/financial institutions for more details about products.

 

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