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How FinTech is changing the world with new and innovative money lending ideas?

Fintech

No one can deny the importance of having a growing SME sector in a country as its regularly cited by governments and economists as key to any countries growth as a nation. In Singapore, SMEs account for nearly two-thirds of the working people and a large portion of GDP growth. But if these firms fail to get funding, their failure to thrive has a dampening effect on the larger economy.

For big national level companies and multinationals, the options are endless for accessing credit are established and numerous, but for startups and small businesses, the only solution is to seek a loan.  Their normal route for sourcing loans has been to contact the banks, but for those with no credit history, insufficient collateral, or no proof of a stable revenue stream for repayments, credit solutions offered by banks have remained out of reach – a situation ripe for technological disruption.  

This situation was even become worse by the Global Financial Crisis and subsequent credit crunch in 2008 when banks were no longer able or willing to extend credit of any kind, and small businesses or startups were mostly at the receiving end.  With limited credit resources available, they found few alternatives to the established banks and difficult choices regarding the future viability of their businesses. 

The traditional or manual banking system was too slow for SME’s to get funds to keep their business running and fuel its growth.  According to McKinsey, traditional banks’ average ‘time to decision’ for small business and corporate lending is between three and five weeks, while the average ‘time to cash’ is nearly three months. For those needing access to short-term funding, this effectively renders a loan solution irrelevant, creating a class of businesses underserved by existing institutional offerings. 

How technology can help us overcome this obstacle

Innovation and automation provided the breath of fresh air into lending markets. Computerized applications and back-office processes go part of the way towards delivering the kind of accessible solution that will ease SMEs’ short-term needs.  Many existing lenders realized that it is necessary to shift from traditional system to the new digitalized system they have caught on to this necessity and in some cases have leveraged technology to improve their response times. Digital technology, not just a way of delivering efficiency to existing processes, instead it is proving to be a paradigm shift in how such businesses are structured and run.  FinTech firms are putting pressure on the banks which have the advantage of building their business and systems from scratch and remaining nimble. FinTech firms are moving rapidly into the gaps not covered by the banks, thus they are filling the credit vacuum small businesses previously faced.  They are bringing the change which is much-needed innovation to move forward to a space that has remained traditional for too long.

Utilizing the potential of new technologies such as blockchain, big data, and smart analytics enables new business models to emerge: FinTechs have sharply realized that analyzing client data, including the flows of payments and remittances between counterparties, gives them a powerful tool for accurately assessing risk and creditworthiness.  

In addition to that, digital networks enable innovators to establish lending models that don’t rely on any 3rd party to manage risk and provide liquidity. Other forms of lending are lean, efficient and able to reach parts of the market previously seen as unprofitable or difficult to risk-assess.  This process of avoiding 3rd parties has leverages the inherent flexibility of electronic networks, putting borrowers in touch with lenders in a more direct and efficient way, with smart analysis functioning just like a match-maker to introduce borrowers to lender. 

It’s time to move to new lending models

Apart from making the process smooth, automation has removed the costs out of the process has transformed the economics of lending so as to result it is making smaller amounts cost-efficient to lend to, and smaller borrowers more feasible for both parties. Additionally, technological solutions have also provided convenience in the ways small borrowers can make repayments: in Singapore, technology-based lenders first enhanced the customer experience by offering simple repayments at post offices and via AXS machines. Today, repayments are run largely through online platforms, positively improving business processes for many SMEs each day.     

If you study the business case for FinTechs is mostly very compelling.  It is funded by investors instead of the banks’ reliance on depositors, FinTechs offering very innovative ways of lending are experiencing rapid growth and size of transactions they are handling are set to skyrocket. Statista projects from $64 billion in 2016, the global total could reach $1 trillion by 2025.  

And for lenders, the investment case can be very appealing, as they have to provide relatively low upfront capital demand, alternative lending can offer handsome mid-range return on investment. Across the U.S. industry, lenders gain an average 4.4% return, making alternative lending significantly more profitable than a savings account or other low-yield investments. Investors willing to offer higher-risk loans can access yields of 10% to 12%. In some markets, like India, returns can reach 18-26%, according to lender Faircent.com.

Responsible business practices you must follow

We have to keep in mind that the alternative lending space for SMEs is still very new and both parties involved need to take a responsible approach to some forms of alternative lending.  China, which took to the Peer-to-Peer (P2P, one of the faster-moving types of alternative lending) model very passionately and experienced rapid growth. China has recently introduced rules and regulations to protect consumers after concerns that the model could be misused by some unethical operators.  Having snowballed, growth has now decreased as greater regulatory oversight has driven many platforms out of business. With protections for both lenders and borrowers a key element of ongoing market health, responsible FinTech firms should keep abreast with relevant regulatory developments and ensure compliance. 

For Capital C Corporation, taking a proactive approach is key when it comes to feeding new ways of lending. We see the success of FinTechs’ alternative offerings as something with very long-term potential so avoiding the issues experienced in markets like China is the only way to build confidence and trust.  As a result, confidence and trust make for a strong foundation for long-lasting lending businesses. They build a trustworthy base of returning clients who, satisfied with the service they have received, will come back again and again.

A responsible approach to building alternative lending businesses will eventually lead to a sustainable and flexible alternative credit space occupied by companies providing suitable and sustainable sources of finance. A growing SME sector is important for any country’s economy and we feel strongly that with suitable lending options in place SMEs that were in the past underserved by traditional credit institutions can continue to in the long term as Fintech is the only way forward.

Personal loan for Malaysian working in Singapore

Personal Loan for Malaysia worker

You are working in a neighboring country like Singapore and you are short on cash and financial difficulties seem overwhelming, finding reliable access to fast cash is the best solution to ease all your concerns. The First best solution that will come into your mind would be getting a personal loan. But being a Malaysian can you apply for a “Personal Loan” in Singapore? The answer to that question is YES, and the good news is that it’s not as complicated as it seems.

Banks in Singapore provides best interest cost, fees, loans tenures, and promotions. The average effective interest cost of all personal loans in Singapore is about 13% to 15% but some banks charge lower interest rates, 5% to 7%, making them more affordable. As it allows you to make affordable monthly payments with as short of tenure as you can manage.

Now the question is which requirements need to be fulfilled for a Malaysian in order to get a personal loan.

  • Minimum monthly income of RM 3,000
  • Must be 21 years old or above
  • A copy of passport, visa or work permit
  • Bank account statement for the last six months
  • Three months salary slip

You will have to full out an application form among the necessary documents mentioned above and then wait for the application to be processed.

Your application will be approved in 48 hours. You can get the least interest cost i-e 5%, depending on which bank you are applying, and get loan tenure up to 7 years. For best services, we prefer HSBC Personal Loan, HL Bank Singapore, and CIMB Bank Singapore.

You see it’s not difficult for Malaysians to apply for Personal Loan in Singapore. Besides these, here’s what you need to know before applying.

Does the type of company you are work at the effect you obtaining personal Loans?

If you are working in a multinational company (MNC) then the chance of getting your loan approved by the bank will definitely be higher than if you work for a foreign company that the bank has never heard of. Banks tend to trust employees of a reputable company more as they believe it indicates that you are a skilled employee and that there is less chance for you to lose your job.

What should be your minimum income to apply for Personal Loan?

Being a Malaysian, you should be earning at least an equivalent of RM $300 per month before you think about applying for a personal loan.

How much Loan amount will you be granted by the bank?

As for the personal loan, the amount depends on your monthly income. Suppose, if you earn RM 3,000 per month then you can borrow up to 6 times their monthly salary.

Conclusion

So just because you are Malaysian, it doesn’t mean that you can’t take a loan in Singapore. We hope that we have managed to answer your questions pretty well and you find this article wiser to plan for your loan.

What you should know about the Foreigner loans in Singapore?

Foreigner loans in Singapore

If you are new to Singapore or are employed in Singapore as a foreigner? You might face a financial crisis and want to get a loan to resolve your problems. Then what you need is a foreigner loan. The good news is that in Singapore you can get a foreigner loan and advice with your loan will be provided by almost all licensed moneylenders.

Basic requirements to get a foreigner loan

Some of the basic requirements you need to achieve to avail a foreigner loan are as follows:

  1. Have a Work Permit, E-Pass, S-Pass or a passport.
  2. An employment letter sent from your company.
  3. Provide an existing Residential tenancy agreement.
  4. Must have a Paid Utility bill.
  5. Bank statement for the past 6 months.

Things to look out for when getting a loan

Before applying for a loan, you should know that the bank and check if it is licensed and the given package is ideal for you compare it with other banks or loan services. Confirm that the bank or moneylender provides all its customers the financial help they require. The interest rate is depending on the type of your loan; if it’s collateral-free then the interest rate will be higher if not then the interest rate will be low. But it is important to know the interest rate should not be exorbitant. Also here is a list of things you need to consider before taking out a loan.

  • Foreigners who each less than $10,000 annually can only take a loan of a maximum of $500.
  • Foreigners who earn between $10,000 to 20,000 a year can borrow up to $3000.
  • Foreigners who earn at least $20,000 can borrow up to six times their monthly income.

According to the new rules set by the ministry of law, moneylenders will also not be able to accept foreigners as guarantors, which helps the grantors from becoming liable to pay the debt if borrowers are unable to do so. Also, Moneylenders will not be allowed to lend more than 300 borrowers or exceed $150,000 in total principal loans to foreigners at any point in time. According to the new rule, the maximum number of foreigners loans a moneylender can give is 15 while not exceeding more than 50 foreigner loans a year.

What are the new rules for foreign loans from the ministry of law? 

  • The number of foreigners borrowing money has increased over the last few years and with these new laws, the credit association of Singapore said these new laws will be devastating to the industry. This new restriction will be used as an excuse to deny loan requests for foreigners who have a low income because of the low-interest rate and that the low loan will still be counted as a foreigner’s loan which is capped at 15 per month and 50 per year. So, most of the foreigners will lean towards the Loan Sharks.

    One thing to note about the new laws is that the moneylending authorities are also not allowed to refer a client to another company if their quota is full this will result in the foreigner to look other alternatives themselves which are a hassle in itself as most moneylenders would advise customers according to best of their abilities.
  • According to the new laws, the moneylenders can not advertise directly to any vulnerable groups which will result in low-income domestic workers to not be informed about the help they can avail from licensed moneylenders during any case of emergency.

    Foreigner loans already come with a higher interest rate as they do not have any properties or assets in Singapore which can serve as collateral.

Creating new ways of managing Fintech through New Innovative Ideas

fintech new inovative ideas

The “out of box” thinking start-up Crawfort is changing the rules when it comes to loan granting solutions

Management of finances and regularizing cashflow is a challenge for many Singaporeans. In Singapore, there is a community of people faced with limited credit access.

In cases where such help is needed, a top-rated licensed microfinance company, Crawfort, offers an attractive financial solution. Founded by brothers John and James Cheow, the company is best in the market when it comes to upping the ante on the traditional models of money lending and bringing it into a new era of technology-enabled consumer finance.

According to Mr. John Cheow, co-founder and chief investment officer: “Our experience as entrepreneurs has made us realise how hard it is to access capital when you need it the most. Because of this, we identify and empathise with others like us, and want to help individuals, and small and medium enterprises, who need access to credit facilities.”

STARTING A REVOLUTION

Crawfort was founded in 2011 by Jjohn and James Cheow, the firm is leading others when it comes to drive innovation and leverage on the emergence of smart digital processes. With these capabilities in force, the company was able to achieve a new high in the streamlining of internal processes and optimizing resources to achieve greater efficiency and productivity.

Now, Crawfort has become a top rated and most trusted name among the firms offering a suite of loans ranging from personal, business to bridging, for a wide range of customers. The company has seen an uptick in returning customers which shows its quality of service and appeal of its comprehensive range of products. Serving as a further testimony of its outstanding customer service standards and delivery, Crawfort has achieved up to 96 percent customer satisfaction reviews.

According to Mr James Cheow, co-founder and chief executive officer:  “At Crawfort, customers are our primary focus. Sincerity, respect and empathy are at the heart of our corporate culture and we believe excellent customer service is a direct reflection of these values. We build trust through the way we’ve approached customer service, and we place a huge emphasis on building a partnership with our customers. We treat every customer with the utmost respect, and we like to make them feel at home. Over time, because of this, we have come to gain their trust and confidence.”


TRAILBLAZING THE WAY

Nowadays, the government has implemented new moneylending regulations, as a result, the industry has largely shrunken in terms of providers — Crawfort has stayed aligned with these changes and has witnessed fast growth. By innovating and steadying its overall approach to conducting business, it has always stayed ahead from the rest of the pack and is continually changing perceptions around moneylending.

Crawfort offers the best customer service and hospitality. It conducts transactions in a comfortable and friendly environment and provides on-time service delivery through quality customer care. Its onboarding and approval processes also provide customers with a simple and seamless experience in applying for access to credit facilities.

Additionally, it appeals to a new generation of customers who are seeking an intuitive and impeccable user experience. Crawfort has deployed the use of innovative solutions to process its loan applications using proprietary algorithmic formulas in its predictive scoring credit methodologies. Crawfort’s approval process is fast and delivers responsible lending, without compromising on compliance and face-to-face customer screening.

As  Mr John Cheow himself says: “We’ve always sought to be a pioneer in the industry in many respects. For instance, we were the first moneylending business to use AXS and SAM machines and post offices for repayment transactions. Thanks to our adoption of the best of today’s technology, we have optimized internal processes, and this has translated to happy customers.”

What do you need to know about Unsecured Loans in Singapore?

unsecured loan singapore

The world is evolving at a fast pace. Similar to the needs of people are moving in the fast lane. Most of the people are stuck in situations where they need financial assistance. Savings are not enough they approach for bank loans. Well, further bank loans are divided into different categories to ease the facility of loans. One of the kinds that are most feasible and avail by the people of Singapore are Unsecured loans. Well, there are many benefits but as well as some cons of this loan. So, before you are going to avail the opportunity, just make sure that it is suitable for your position and not damaging anything directly.

Information is necessary for you to get the right loan and make a decision that is beneficial for your financial situation. This information will not only save from any trouble but you can ensure the security of your assets.

Banks might have a little difference in the policy but rates are almost the same. However, we will help you to understand the basics of Unsecured loans in Singapore in a precise manner. Just explore the article and you will get the information.

What is an unsecured loan?

Unsecured Loans are also preferred as personal loans. It is clear by the name that it is dependent on borrowers credit score. These loans are avail without any security of assets. A person must have high credit to get his loan approved.

Types of Unsecured Loans

These unsecured loans have different types which can include personal loans and student loans.

  1. Revolving loan: the loan can be spent, repaid and spent again. It is more like credit cards.
  2. Term Loan: this is the type of loan in which a person is responsible to pay equal installments till all payments are done by the term.
  3. Consolidation Loan: pay off credit cards or signature loans fall in the category of consolidation loans and also unsecured loans.

What you should be concerned about the loan?

If a borrower defaults on a secured loan, the lender can reclaim the collateral to earn the losses. On the contrary, if a borrower avoidances on an unsecured loan, the lender cannot claim assets. However, the lender can take other actions, such as ordering a collection agency to assemble the debt or taking the borrower to the law court. If the court rules in the lender’s favor, the borrower’s pays may be enhanced, a lien may be located on the borrower’s home or the borrower may be otherwise ordered to pay the debt. However, before the approval. The borrower needs to understand the criticality and need of the loan. So, before you file for approval, ensure that you have complete clarity on your needs. Take guidance from a different lender. It is always good to have different options. A slight change in the policy can make it feasible for you. Therefore, do not forget to do your research before applying for Unsecured loan in Singapore. 

Five Powerful Morning Habits to Help You Become More Successful

Morning Habits

Success is not a destination rather it is a journey.

With that being said,

It is important to layout the truth here, that you don’t become successful overnight. It takes a lot of effort and sacrifice. You build the ladder to success, yourself. The key to success is developing certain habits that help you be more productive and result-oriented.

One of the most essential habits that is crucial for your success is your morning routine.

Powerful Morning Habits

We all can agree that morning is probably the most important part of the day. It dictates how the rest of your day goes.

In order to help you climb the ladder to success,

Here are the top vital morning habits that will help you perform at an optimal level.

1.       Early to Bed, Early to Rise

A habit that all the successful entrepreneurs have in common, is that they wake up early, before everyone else.

Starting your day early can help you be more efficient as it will give you more time to focus on your goals.

Try to start your day at 4:00 am or 5:00 am by latest. This will give you an edge over others.

2.      Daily Dose of Motivation

You can never be motivated enough. Your brain requires a constant reminder as to why you’re doing all that you’re doing in order to stay focused.

To keep yourself motivated, you need to dedicate an hour of your morning to inspirational anecdotes or quotes.

Listening to inspirational podcasts can make you emotionally invest in your daily objectives, that will, in turn, increase your productivity.

3.      Incorporate Exercise

Exercising is crucial for your mental and physical health.

Including exercise in your morning habit, is an excellent way of getting your body ready to tackle the day. There are countless benefits of exercise for your brain. Also, the metabolism rate of your body is enhanced, as a result, you feel fresh throughout the day.

Blowing-off some steam in the morning will enlighten your mood as well.

4.      Prioritize

To carry out the daily tasks effectively, you need to know how you will be spending your day.

Time can be your best friend or your worst enemy, depending upon how you utilize it.

Scheduling your day, jotting down everything that’s important and then prioritizing them according to their significance, can save you a lot of time.

Before starting your day, make sure you’re organized to compete for the tasks in an orderly fashion.

5.      Intake of Nutrients

Healthy breakfast is an essential part of your morning.

Intake of nutrients that are good for your brain, will help increase your cognitive performance. As a result, you will be able to function better and your mind will be full of energy.

Try to have breakfast that includes;

  • Omega-3
  • Vitamin K
  • Vitamin E
  • Iron

Morning habits play a vital role in setting the tone of your day. So, make sure you have the best morning habits to conquer your dreams.

Best Personal Loan and how it Works?

Personal Loan

What is a Personal Loan?

A Personal Loan is a type of loan that is issued by banks and financial institutions including private lenders in Singapore. It is the perfect solution when you are in need of extra funds to finance personal expenses like your home renovation, holidays, education cost, business, medical bills, or anything else. Personal Loans gives you the financial flexibility to use the funds as per your convenience and needs.

How Does Personal Loan Work?

Personal Loan works in the same way any other bank loan works. You apply for a specific loan amount from the bank to pay for things you want or need. If your loan application is approved, you will receive the lump sum amount that you applied for and then pay the bank back in regular monthly bank installments. The monthly repayment amount includes the principal amount plus fees and interest. Personal Loans typically have shorter repayment periods than other types of loans, ranging from 6 months to 10 years.

Does Personal Loan require collateral?

As its name suggests, personal loans are unsecured loans. This means that you don’t need to offer any collateral or assets. Bank will simply review your financial backgrounds, such as your minimum salary and credit score and give you a loan.

Types of Personal Loans that can be the best choice for you

They are personal loans, they come in handy when you need quick cash in emergency situations. They require low-income of RM $1,000, low-interest rate, no early settlement penalty, 48 hours approval and no hidden charges.

Keep these fast approval loans in mind!

  • Debt Consolidation Loans

It’s a type of loan that you take to consolidate or combine more than one existing loans under your name.

  • Fast Approval Loans

These loans can be distributed to your bank account in as fast as 24 hours or up to 2-3 working days. Suitable if you are in urgent need of financing and cash, or need to pay for an emergency.

  • Business Loans

For first-time business owners or starting up a franchise, getting a personal loan can help you secure the seed money to start up your business ventures.

  • Housing Loans

You can use it finance the down payment on your home or even finance all the fringe costs that come buying a home including stamping duties, processing fees, property tax, maintenance fees and to repay the monthly installments on your mortgage.

  • Car Loans

You can use this to put money down for down payments, to service your vehicle, and any related vehicle expense you have. Perfect for your next car or motorcycle.

  • Wedding Loans

A personal loan for your wedding day expenses, which would ideally cover all associated costs such as decoration, venues, food catering and more!

  • Home Renovation Loans

It is a loan to help cover your home renovations or maintenance expenses. It allows you to fund your home renovation projects to turn your house into your dream home.

If you’re in Singapore and looking for personal loans, we can help you with all the details and quick capital too.

Personal loan for EP holders in Singapore

Personal loan for EP holders in Singapore

EP stands for “Employment Pass”. It is a visa scheme designed for foreign professionals with excellent skills who want to work and live in Singapore. Every kind of nationality can apply for this pass. Singaporean companies offer jobs and give them visas. EP holders earn at least S$36,00 per month if they are new graduates, experienced candidates are offered high salaries. EP holders can bring certain family members with them. When it comes to daily life financial problems Singapore seems to help their employees and offer them a variety of personal loans. Although foreigner loans in Singapore have strict requirements for foreigners. But until or unless you have valid work pass you are in luck.

EP holder Personal loan Application procedure

  • Fill your personal, financial, and employment details.
  • Select a suitable amount of loan and tenure you required.
  • Submit required documents to the bank’s representatives.
  • Receive the money in your bank account within 24 hours.

Let’s take a look at Singapore banks which introduced special personal loans for EP holders.

Overseas-Chinese- Banking Corporation (OCBC Bank)

OCBC Personal Loan has organized two kinds of personal loans for EP holders.

  1. OCB personal cash loan: It considered to be a “true” personal loan; you can borrow up to 6X your monthly salary. But its interest rate is a little high.
  2. OCBC Cash-on-Installment: If you don’t need that much money go for OCBC Cash-on-instalment. This loan is drawn from your personal line of credit, it converts the basic credit limit into cash and has a low-interest rate.

Eligibility Criteria for EP holders is the same as any other PR or foreigner i-e age should be 21 or above, minimum annual salary should be S$45,000. If you qualify, you will get 4X of your monthly salary or 6X if your monthly salary is above S$120,000.

United Overseas Bank Limited

UOB offers personal loans to those EP holders who have UOB CashPlus or UOB credit card. But if you are new to UOB, you can apply for a personal loan and for a credit card at the same time. It is one of the few banks that approve EP holders in an hour if they qualify. Their key objective is customer’s satisfaction. They have thousands of EP holder customers.

Eligibility Criteria Foreigner / EP holders or PR. Age 21 or above. Minimum annual income S$30,000, the interest rate is 4.7% p.a., processing fees is 1%, you can get a maximum loan amount of your credit limit.

Bank of China Singapore

Singapore banks have designed new packages of personal loans for foreigners/ER holders. HSBC is renowned for its longest tenure, 7 years, but now its new rival is “Bank of China”. It has the lowest interest rate, longest tenure, flexible monthly repayment amount. BOC seems to be more lenient for ER holders who have relatively low annual income.

Eligibility Criteria: Foreigner / EP holder/ Singaporean, minimum monthly salary S$17,00 /$20,400 annual, interest rate 6.5% p.a., processing fees 3%.

 

How to make the most of a failed business strategy

failed business strategy

As an entreprenur, you must know that failure is inevitable but to achieve success you must move forward. Keep a positive mindset and a flexible attitude. It is important to learn from the mistakes and what makes them succeed from previous business owners. A real entrepreneur is not defined by its failures but by how he overcomes that. Following are some ways to get rid of failures and let your business thrive.

You should be ready for every kind of failure either it is in the form of loss of buyers or product etc. Before initiating your business you must set a vision. It will guide you and give you clarity.

To overcome the failure you must know what is going wrong. You must take feedback from your customers it will tell what is missing or flawed in your business. Then make every effort to correct it. You should not be emotional about your business and keep yourself separate from the business. You must run your business like an owner without letting your emotions come between. You must not take money out from your business to quickly and continue investing and reinvesting it. It is irresponsible to eat money from your business just because you are the boss. Your team is what matters for a successfull business. Choose your team carefull. Choose a competitive, capable and skilled team then trust your team. You must make your team believe that this business is as much theirs as yours. Some people just work for their paychecks and have no interest in your ideas behind the business. Such type of people will harm your business.

A fundamental part of the business is to satisfy your customers. Give them what they want. Try to gain their trust. Demand and supply is the core of your business. Find out what your customers desire and try to fulfill them. Your business will not flourish by just one client, continue the search for new clients and add them. Invest in a low budget advertising agency.

Constantly keep a check on your business. Know your strengths, weakness, and profits. Monitor your accounts and all your collected data. If you have faced some problem try to get to its roots. Remain ready to make some hard decisions. Know your errors, either you are paying more salaries than the income you earn or the product is more expensive than its price. Lay off some staff if you need to manage your budget. Remember nothing comes before business.

Keep yourself aware of your surrounding especially your competitors. Know your state policy, most states and countries have laws that promote small business by cutting off some slack and taxes. If your company is still failing to review all the assets. They might be the only money you got. Some time assets act as a lifeline to keep you in the run further. Don’t make emotional decisons especially in dire circumstances. Don’t sell your products and machinery on a hasten impulse because there are a lot of people that will use your these costly mistakes for themselves.

DBS Singapore- DBS Bank

DBS Singapore- DBS Bank

DBS Bank was established in 1968 by the government of Singapore with the main purpose of providing loans and financial aid to industries to help establish and upgrade existing industries in Singapore. The company was known as “The Development Bank of Singapore Limited” and in 2003 the name was changed to “DBS Bank”.

DBS is the largest bank in South East Asia by assets and among the largest banks in Asia. It has a dominant position in treasury and market, asset management, consumer banking, securities brokerage, equity and debt fund-raising in Singapore. The bank was also awarded the Best Digital Bank in the world in the year 2016. With operations in 17 markets, the bank has a regional network spanning more than 250 branches and over 1100 ATM across 50 cities.

Available Loans:

Home Loans: When you want to build your own house and need financial assistance you can apply for a home loan at DBS Bank which they have enhanced to offer a fixed monthly repayment and a protection coverage against sudden loss of income or any unexpected event.

Personal Loans: Personal loans are the most common types of loans that you can apply for at DBS Bank. DBS Bank has an affordable package for a personal loan with a fixed repayment method, low-interest rates and tenure leading up to 5 years.

Car Loans: Purchasing a car is one of the biggest financial commitments a person makes, which usually means taking out a loan. This is called car loan and DBS Bank has one the best packages with low interest for you to give you greater peace of mind with a loan tenor from 1 to 7 years.

Education Loans: Education is becoming more and more expensive students who have the potential for further studies miss out on them because they cannot afford the tuition fees. DBS Bank offers an interest-free loan during the course of study and features up to 20 years repayment period DBS Banks aims to provide students with the best and affordable package for a student’s better future.

Foreigner loans: Now foreigners can apply for “Foreigner loan” in their financial needs with all the benefits that they deserve. It involves a simple process that is not demanding and has no restrictions. DBS Singapore gives financial freedom to foreigners to cover their expenses. 

Things to know before applying for a loan:

Before applying for a loan, you should know that the bank and check if it is licensed and the given package is ideal for you compare it with other banks or loan services. DBS Bank provides all its customers the financial help they require. The interest rate is depending on the type of your loan; if it’s collateral-free then the interest rate will be higher if not then the interest rate will be low. But it is important to know the interest rate should not be exorbitant. Also here is a list of things you need to consider before taking out a loan.

Eligibility Criteria:

  • Age must be between 21 and 65 
  • Provide proof of income
  • Utility bills and proof of residence
  • Work permit (only required for Foreigners)
  • Copy of NRIC card

How much you can borrow:

For personal Loans, you can get up to 4x of your monthly salary and 10x if your annual income is S$120,000 on monthly installments of 1 to 5 years.

For Home loans, the amount is dependent on the amount of loan and the interest will be calculated on the average salary and other factors.

Interest rates & Repayment Methods:

The interest rates of a loan are subject to change as a penalty for late payment and can become a hassle for a borrower but in October “Moneylending Advisory Committee” introduced a 4% cap interest rate. And DBS Bank follows this rule to provide the best services to its customers.

When a customer takes a loan from a bank, the bank expects that customers will be able to repay this loan. Interest rates are charged on the amount of money. You can repay your loan in three different methods.

Equal Instalments: When you want to make bigger repayment at the beginning go for this repayment method. Normally installment remains the same but according to the interest rate it varies: the increase in reference rate causes an increment in repayment; a decrease in reference rate causes a decrement in repayment.  

Fixed Equal Payment: When you know how much you are going to repay; it is a handy repayment method because increment in reference rate extends the tenure period and decrement in reference rate shortens the tenure period. 

Choose the repayment method that suits you.

News Room: 

Enjoy 0% interest and up to S$500 cashback: 

This online exclusive promotion gives you instant cash with a fast and easy online application. This offer gives you a short-term loan with 0$ interest and you only have to pay a one-time promotional administration fee. And you can get up to S$500 if you fulfill these conditions.

  • Apply for a 12-month tenure Balance Transfer,
  • In a single application or same-day combined applications on both Cash line and Credit Card.
  • The application must be submitted via a self-apply online application platform.

Up to $1,088 cashback with DBS Personal Loan: 

This online exclusive offer is only for people who apply for a personal loan at DBS bank using online services.

You will need to fulfill these conditions:

  • Minimum approved loan amount of S$30,000,
  • In a single application or same-day combined applications on both Cash line and Credit Card.
  • You will be entitled to only a one-time Cashback in the respective tier and an additional S$200 only if you are a New-to-Bank customer.

Customer Reviews: 

Online customer reviews can be simply thought as personal recommendations and users will trust a brand or a service based on its customer service and in this online review play a vital role in giving anyone an idea of how your experience will be with this company or service. 

“I have never experienced such great customer service at a bank or services organization like this before! Filzah greeted me as I walked in and what I have been told is a very complicated process (setting up a new account as a foreigner moving to Singapore) became a breeze. She told me all the documents I needed and even went inside to double-check. After getting the documents I returned to have my slot held and straight to Chee Man who spent more than 45 minutes (after closing) setting up my account, producing a card and even helping me set up the DBS app! Wow! Other organizations need to take note of how to provide an exceptional CX! All my banking will be with DBS based on this moving forward.” ~ Muralee Kanagaratnam

“It was quite a pleasant experience while I opened an account.  Especially a staff opening an account always smiled and answered clearly that I could understand the Singapore banking system in an hour.  The only opportunity would be making a separate source of information on the documents. Applicants must prepare prior to the visit make it easier for the customers.  And hope that kind of information can be easily searched through google. It was a great experience anyway!” ~ Brian Cho.

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