Need cash quickly? Consider a Personal Loan from OCBC

Isaac Anil
Last updated Jun 19, 2018

Man getting a loan from the bank -SingSaver

See how the new OCBC Personal Loan compares against the other loans in the market.

You need to replace a household item that has broken down suddenly and a couple of other unexpected expenses have also come up. You want a small injection of funds but want to be disciplined about settling them promptly. Well, a Personal Loan from OCBC is the perfect solution.

Interest Rates in a newspaper ad -SingSaver

0% Interest For 2 Years (Singsaver Exclusive)

If you apply for the Personal Loan via SingSaver, there is no interest charge; just an upfront processing fee of 9% on the total loan amount. It might sound like a lot, but it is actually much lower than many personal loan offerings from other banks. Let’s break it down for you.

Loan amount                        – $10,000

Interest                                 – 0%

One-time processing fee     –  9%

Front-ended                         – $900 will be deducted upfront. You receive $9,100

Repayment period               – 24 months

Monthly Repayment             – $416.67

EIR                                       – 9.15%

Say Hello To Singapore’s Only Auto-instalment Card!

Once your loan is approved, you will receive a free Cashflo credit card. That is, if you don’t already have an existing OCBC credit card or Easicredit account as the loan amount will be deducted from the available credit limit. The Cashflo credit card is the only one that automatically converts all your purchases* into interest-free instalments. In addition, you even enjoy up to 1% cash rebate^ on all your spending. So, not only do you pay no interest on your purchases, you get rewarded for using the card. We are sure you can live with that.

plus and minus sign -SingSaver

The Upside

  • It doesn’t discriminate between the high and low earners. Some banks offer customers with higher credit profiles a better rate (DBS) while others require a higher annual income (HSBC). With OCBC, however, anyone with an annual income of $20,000 and above qualifiesº for the loan.
  • An EIR of 9.15% for a 2-year old is a pretty good deal. Usually, the longer the loan tenure, the lower the effective interest rate.
  • The fixed monthly repayments ensure you are committed to repaying the loan on time. Thus, preventing the loan from snowballing into a bigger amount over time.
  • The Cashflo credit card does the same with your purchases. Breaking down your spending into manageable repayments helps you be disciplined with your finances. Of course, the 1% cash rebate doesn’t hurt either.

The Downside

  • The loan tenure that works best is 24 months. The rates for loan tenures of 12 and 36 months work out to be higher than competitors (refer to table below).
  • There are other loan offerings with lower interest rates. Some banks have Funds Transfer Promotions with EIR as low as 4% to 6% p.a. These work better if you have a very short time frame of 6 months to a year.
  • It works best when you want to repay the loan over a longer period of time. If you are hoping to pay the minimum each month and settle the loan amount at the end of the year with your bonus, the OCBC Personal Loan may not be for you.

The Verdict

The OCBC Personal Loan is great for those with short to mid-term expenses which they wish to repay over a specific period of time. It may be especially useful for those who do not meet the high income requirement of some banks. While the interest is higher than some Funds Transfer promotions, it is definitely better than comparable offerings from other banks. If you need help managing your spending, the free Cashflo credit card makes a lot of sense too. It ensures you don’t over extend yourself as your loan and spending are part of one combined credit limit. And remember, it is an exclusive offer with SingSaver. To apply, simply click on the link.

bar chart -SingSaver

Comparison Chart

Bank Loan Tenure Nominal Interest Rate Effective Interest Rate

(new customers only)

1 year 4.94% p.a. 9.0% p.a.
2 years 4.82% p.a. 9.0% p.a.
3 years 4.55% p.a.# 8.5% p.a.#
HSBC 1 year 7.2% p.a 13% p.a
2 years 7.1% p.a 13% p.a.
3 years 4.8% p.a. 9% p.a.
OCBC 1 year 0% 11.47% p.a.
2 years 0%† 9.15% p.a.
3 years 5.80% p.a.+ 12.11% p.a.


* Minimum purchase of $100

Repay over 3 months when you spend below $1,000

Repay over 6 months when you spend $1,000 and above

^0.5% cash rebate with monthly bill below $1,000

1% cash rebate with monthly bill of $1,000 and above

º Terms & conditions apply. Subject to bank’s approval.

`Upfront processing fee of 6% of approved loan amount  

† Upfront processing fee of 9% of approved loan amount

+ Upfront processing fee of 2% of approved loan amount

# Exclusive to SingSaver only with a minimum loan amount of $20,000.


By Isaac Anil
Isaac thinks life is what happens in between football matches. He is a born again dog lover who thinks cats are overrated. Having tried his hand at multiple vocations, he holds the same opinion about hard work. Till he can figure a way to beat the system, he relies on whiskey to get by.


Isaac Anil June 19, 2018 22273