Credit Card Interest Installment Plan | Credit Cards | Singapore
Credit Cardsby Priyadarshini 20 September 2023
Have you been planning to buy the latest iPhone or secretly wanting to make a big-ticket purchase? In these times, it may a little difficult to shell out a big sum of money. But does that necessarily mean you have to put your plans on hold? No! And that’s because bring you financial hacks to make a big spend and yet not lose your mind. Have you heard of a 0% interest installment plan? In this blog, we tell you about the credit card interest installment plan for avoiding paying a large amount upfront. This will also save you with emergency cash at hand.
What is a 0% Credit Card Interest Installment Plan?
In Singapore, there are two main types of 0% interest installment plans. One that is offered by companies like tech start-ups, and the other that is offered by banks. The first type is usually by companies like Hoolah, Atome and Rely does not charge interest or processing fees. You can, however, only use these plans when shopping at partner merchants. They make money by charging their partner merchants transaction fees, rather than customers.
The next category that is by banks given to their customers is typically meant for all purchases. These plans mostly advertise themselves as interest-free but actually charge one-time processing fees equivalent to a percentage of your transaction. They also charge an early payment fee if you try to pay up earlier or cancel the credit card with which you paid.
Credit Card Interest Instalment Plans
DBS Payment Plans
DBS Bank offers payment plans that let you pay for any expenses of $100 and above over a period of 3, 6, 12, 18 or 24 months. If you sign-up for a plan which goes beyond 6 months, you will have to pay a one-time processing fee. It is calculated basis your transaction amount-
- 12 months – 5% (effective interest rate of 9.5% p.a.)
- 18 months – 6% (effective interest rate of 7.86% p.a.)
- 24 months – 6% (effective interest rate of 5.98% p.a.)
Remember for you to sign up for the DBS Payment Plan, you have to pay for your purchase first, and then you can apply for the DBS Payment with Internet banking.
The UOB SmartPay credit card offers three, six, and twelve-month installment plans for any expenditure of at least $500 made through a UOB credit card. However, you’ll be charged a processing fee as given below –
- 3 months: 3% (effective interest rate of 18.18% p.a.)
- 6 months: 3% (effective interest rate of 10.43% p.a.)
- 12 months: 5% (effective interest rate of 9.50%p.a.)
To reap the benefits of SmartPay, you have to first make your purchase and then apply within 14 days of your credit card statement. You can do this with the help of SMS, net banking, phone, or an online application form on the website.
Standard Chartered EasyPay
With Standard Chartered’s EasyPay installment plan you can pay for purchases of at least $500 over a period of 6 to 12 months depending on your expenses. It is applicable on any transactions, online, domestic, or overseas. You will be charged a one-time service fee depending on the amount of expense. To give a rough idea, for an expense of $3,000 bill, you can expect it to be around 5% for both 6- and 12-month loans. You will have to make the purchase with your Stanchart credit card. And then submit an EasyPay request via net banking or phone banking.