Have an emergency that requires a large sum of money or want to consolidate credit card debt? Or perhaps your house needs some repairs or you want to renovate. Well, a personal loan might just be what you need.
With banks reducing interest rates on savings accounts and some dangling cashback on loan amounts to sweeten the deal, it’s a good idea to take advantage of the personal loan promotions out there.
Read on to find out if the UOB Personal Loan is right for you.
UOB personal loan interest rate
Currently, UOB is offering a promotional rate of 2.88% per annum for its personal loan, with an Effective Interest Rate (EIR) of 5.43% p.a. for a loan tenor of 1 to 5 years.
Want to know the difference between the regular interest rate and EIR? The EIR is the actual rate you pay after factoring in charges incurred for taking out the personal loan, as well as your loan tenor. If you’re interested, learn how banks calculate EIR.
In short, always look at the EIR as the actual rate you pay as a percentage of your loan. The minimum loan amount is $1,000 and the maximum amount depends on your monthly income.
For new and existing customers, UOB provides instant approval and cash disbursement as long as you apply online between 8 am and 9 pm. You should be between 21 and 65 years old, and have a minimum annual income of $30,000.
Say you take out a loan of $10,000 for 3 years, you’re looking at shelling out a total of $1,020 in interest. Our advice? We recommend comparing personal loan rates from other banks before deciding.
UOB personal loan promotions
From now until 30 April 2024, UOB is offering up to 2% cash rebate when you borrow $15,000 and above with a minimum tenor of 36 months. The cash rebate you’ll receive depends on your loan amount. For example, if your loan ranges from $15,000 to $50,000, you’ll get back 0.50% of the loan. If your loan amount is $50,000, you get the full 2% rebate.
Additionally, you can choose from flexible repayment terms ranging from 12, 24, 36, 48 and 60 months.
UOB Cash Plus vs UOB Personal Loan
So UOB has two solutions if you’re cash-strapped: UOB Personal Loan and UOB Cash Plus. What sets them apart?
Think of UOB Cash Plus as your trusty line of credit. You apply for it upfront, and once it’s greenlit, you’ve got cash on standby, ready for whenever you need it. You withdraw the money at an ATM and the bank charges you interest on the withdrawn amount.
On the flip side, UOB Personal Loan requires you to know exactly how much you need and how long you’ll take to pay it back. Once your loan is approved, you’re looking at paying a fixed sum every month.
This is the part you should pay close attention to: repaying money withdrawn through UOB Cash Plus is akin to paying off credit card debt. That means that if you only pay the minimum sum on your monthly bill, a large sum potentially rolls over to the next month due to the interest charged. We don’t recommend doing so as UOB Cash Plus charges very high interest rates–its default interest rate is a whopping 29.98%!
From now until September 2024, UOB Cash Plus is offering 0% interest for 3, 6 or 12 months for online applications. Depending on your loan amount, a nominal fee of 1.6% or 3.0% applies, with the EIR ranging from 0% to 3.34% p.a..
UOB personal loan vs. DBS, POSB, OCBC, SCB personal loan interest rates
How does SCB’s CashOne loan stack up against other banks’ loans? We’ve listed some loans from the big banks:
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A word of warning about personal loans
Before you go on a loan spree, a word to the wise—personal loans might seem like a better solution compared to credit cards or UOB Cash Plus, but they still pack a punch in the interest department. You’ll be able to secure the cash you need but at the cost of paying high-interest fees. Bottom line? Treat personal loans as an emergency option, not a default go-to for quick cash.
Do you have any experience with the UOB Personal Loan? Share your reviews in the comments!
The post UOB Personal Loan Review 2024: Low Interest Rates from 2.88% Per Annum, Up To 2% Cash Rebate & Flexible Repayment Terms appeared first on the MoneySmart blog.
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The post UOB Personal Loan Review 2024: Low Interest Rates from 2.88% Per Annum, Up To 2% Cash Rebate & Flexible Repayment Terms appeared first on MoneySmart Blog.
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