UOB Personal Loan Singapore | Personal Loans in Singapore

Loans | Personal Loans

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. Let’s take a look at the 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. When you sign up for a personal loan online, UOB is presently offering a 3.4 percent annual interest rate. The UOB personal loan’s effective interest rate (EIR) is expected to be 6.42 percent per annum for a three-year loan.

Related – Personal Loans in Singapore 

Promotions for UOB personal loans

Until April 30, 2022, UOB is giving a cash rebate of up to $600 when you apply for a $30,000 UOB Personal Loan with a loan term of 3 years, 4 years, or 5 years. But would we advise borrowing MORE money only to get to the highest cashback tier? Certainly not! Because the cashback will be eaten up by the interest you pay UOB upon returning the loan.

UOB Personal Loan vs. UOB Cash Plus

When you need money quickly, UOB has two options: the UOB Personal Loan and the UOB Cash Plus. But what’s the distinction? 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 You will then be charged interest on the withdrawn funds.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Repaying money withdrawn using UOB Cash Plus, on the other hand, is similar to repaying credit card debt.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, normally charge substantially higher interest rates of 20.9 percent than personal loans.

Until 30 June 2022, UOB Cash Plus is offering promotional three, six, or twelve-month loans with no interest and low processing fees. Effective interest rates (EIR) range from 1.11 to 1.22 percent. However, if that time period expires, you will be charged interest rates comparable to credit card interest rates. Proceed with caution!

How long does it take to have a UOB personal loan Singapore 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.

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