How to Get a Cash Loan From Your Card’s Credit Limit



Last updated 28 December, 2018

Life doesn’t always go according to plan -- actually it never does. And in those situations, you would ideally fork out cash savings to deal with unexpected expenses. But that’s not always going to be the case. Sometimes, we need to borrow small sums to handle emergencies and keep going.

In these situations, it’s tempting to use your credit card’s cash advance feature. This lets you withdraw part of your card’s credit limit in cold hard cash, as though it were a debit card. While this means having cash on hand in minutes, cash advances come with higher fees and high interest rates if you can’t repay the full amount by the due date.

But what if you could borrow cash from your credit card’s available credit limit, and repay it in easy monthly instalments at a low interest rate?

If you already have an OCBC credit card, you can do exactly this with the OCBC Personal Loan. As the name suggests, OCBC Personal Loan lets you convert your available credit limit into an easy-to-pay cash instalment loan, at one of the lowest interest rates in the market.

5 Reasons to Use OCBC Personal Loan

Here’s why you might want to make use of your card’s remaining credit limit with the OCBC Personal Loan.

Reason 1: Low interest rates from 3.5% p.a. (EIR from 6.96% p.a)

Interest rates are the most important consideration when taking a personal loan, and you should always aim to get the lowest rates.

If you’re a new OCBC credit card or EasiCredit account holder, you get access to a new promotional rate of just 3.5% p.a. (EIR from 6.96% p.a.). This is still easily one of the lowest rates around, compared to the average personal loan interest rate of 6%.


















Assuming $10,000 loan
Repayment Period 12 months 24 months 36 months 48 months 60 months
Interest Rate (Per Year) 3.50%
Processing Fee 1% of approved loan amount
EIR 8.27% 7.57% 7.27% 7.09% 6.96%
Monthly repayment $862.50 $445.83 $306.94 $237.50 $195.83


But even if you had your OCBC credit card for a while, you still enjoy rates as low as 5.80% p.a. (EIR from 11.38% pa.) for up to the 60-month instalment plan, still lower than the average personal loan interest rate of 6%.


















Assuming $10,000 loan
Repayment Period 12 months 24 months 36 months 48 months 60 months
Interest Rate (Per Year) 5.80%
Processing Fee 2% of approved loan amount
EIR 14.33% 12.80% 12.11% 11.71% 11.38%
Monthly repayment $881.67 $465.00 $326.11 $256.67 $215.00


As opposed to a cash advance, which has an interest rate of 28.92% p.a. calculated on a daily basis, the rates offered by Personal Loan are way easier on the pocket.

Reason 2: Long tenure of up to 60 months

When taking out a loan, it helps to know how much you can afford to pay back each month. This makes it easier for you to decide how much time you need to pay the loan back (also known as the loan tenure).

OCBC Personal Loan has a range of tenures to choose from, starting at 12 months and for as long as 60 months. Having a longer tenure can be easier on your cash flow, as it allows you to make smaller monthly payments.

Reason 3: Lower processing fees  

When choosing a loan, look at processing fees and other up-front costs.

A credit card cash advance has up-front fees of around $15 or 6% of the amount withdrawn, whichever is greater. Some personal loans charge processing fees from $100. Even putting an instalment plan onto your credit card has processing fees that range from 3% to 9% of the transaction amount.

In contrast, OCBC Personal Loan’s processing fee is 2% of the approved loan amount (1% if you’re new to OCBC), which will automatically be deducted from the loan when it’s transferred.

Reason 4: Easy monthly repayments

Making monthly payments is as simple as paying your credit card bill. Each monthly instalment will be charged to your card account on the same day each month, so you’ll always remember to pay it on time. However do note that, interest is subject to compounding if the monthly interest charges are not repaid in full.

Reason 5: Ideal for sums $1,000 or more

The minimum amount for each OCBC Personal Loan loan is $1,000, which makes it an option for financing big-ticket purchases and other large expenses.

How to Get the OCBC Personal Loan

Applying for the OCBC Personal Loan loan is simple and straightforward. To qualify, you must be the principal cardmember of an OCBC credit card or have an EasiCredit standby credit line.

You also need a loan amount of at least $1,000. The amount you’re applying for and the interest charged on top of it should not exceed 90% of the available credit limit on your account.

It takes several days for your application to be processed, after which the funds will be credited into your account (minus the processing fee).

No matter how dire your emergency might be, take a few minutes to consider your options before taking a loan. There’s more to an instalment plan than getting cash on hand. You also need to think about how the repayments will affect your monthly cash flow.

If you have available credit limit on your OCBC credit card, the OCBC Personal Loan is a good option for a cash loan. With low interest rates, easy repayments, and long tenures, the OCBC Personal Loan can help you manage your situation and repay your loan comfortably and on your own timetable.

Apply OCBC Personal Loan now

This article was written in collaboration with OCBC.


Use a personal loan to consolidate your outstanding debt at a lower interest rate!

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