UOB Personal Loan Singapore | Debt Consolidation Loans in Singapore
Loans | Personal Loans
by Priyadarshini
3 January 2022
A personal loan is not something you should take out on the spur of the moment because your bank account balance is about to run out at the end of the month and you want to go shopping. However, if you are already in debt, consolidating it with a personal loan that has lower interest rates than your current lenders can be a wise decision. In this blog, we tell you about UOB personal loan Singapore to determine if it’s worth your time.
The Interest Rate on a UOB Personal Loan Singapore
When it comes to personal loans, the most essential issue for most of us is the interest rate. After all, the whole point of merging your loans is to achieve a cheaper interest rate than you’re now paying. If you sign up for a personal loan online, UOB is presently offering a 4.25 percent annual interest rate. The UOB personal loan’s effective interest rate (EIR) is around 7.96 percent per annum for a three-year loan.
Related – Personal Loans in Singapore
The distinction between regular and effective interest rates?
When you get a personal loan, the hidden fees and charges can quickly pile up. The 1.5 percent processing charge is presently eliminated in UOB’s case, although the length of the loan and payback schedule are additional factors to consider. In any case, the EIR is the actual interest rate you pay as a proportion of your loan balance. When evaluating personal loans, always consider the EIR rather than the quoted rate. The minimum loan amount is $1,000, and the maximum loan amount will vary according to your monthly income.
How long does it take to have a UOB personal loan approved?
UOB provides quick approval for both new and existing UOB clients who apply between the hours of 8 a.m. and 9 p.m. The funds will be sent to a savings account of your choice.
UOB Personal Loan Singapore vs. UOB Cash Plus
When you need money quickly, UOB has two options: the UOB Personal Loan and the UOB Cash Plus. UOB Cash Plus is a credit line. You apply for the line of credit ahead of time, and once accepted, it is available for use whenever you wish. When you want to use the money, you withdraw it, usually from an ATM machine. You will then be charged interest on the withdrawn funds. With the UOB Personal Loan, you must decide how much money you require ahead of time and how much time you require to repay it. Once the funds are disbursed, you are obligated to repay a set amount each month.
Repaying money withdrawn using UOB Cash Plus, on the other hand, is similar to repaying credit card debt. To get the debt collectors off your back, you only need to pay the minimum amount on your account each month. That means you could potentially carry a large sum forward to the following month.
However, you should not do so because credit lines, like UOB Cash Plus, often have significantly higher interest rates than personal loans. Carefully compare various loan plans before you decide to buy one in Singapore.
