A carefully managed loan can offer a great boost to finances. They also allow customers to finalize personal projects they don’t always have cash lying around for. Loans can also be a bit tricky when they’re not used for the right things, or when customers confuse wants with needs. Thankfully, with competitive interest and a variety of options, a few wants can also be accommodated in these loans. DBS Bank Loans tick a few boxes on our review list. Read on to learn whether they tick all our boxes.
About DBS Bank
When Singapore became independent, the financial institutions were at the heart of the rebuilding of infrastructure. During the sixties, a collaboration between government, industries, and citizens provided the means necessary to see Singapore undergo a modernization change. This was taxing on all parties concerned and the entire process took around 20 years to complete. Once done, however, it elevated Singapore’s status as one of the most prosperous nations in the world. DBS Bank was founded to assist with these changes and now reap the rewards of that initial support to the economy.
What to Look Out For In A Loan Product
Loans have the tendency to meet the needs of customers to their satisfaction, however, this is only true when the right loan is used for specific products. For instance, customers who wish to buy expensive items such as appliances may be better off applying for a personal loan than putting it through on a credit card. This depends on the conditions of the products, the cost, and restrictions.
Take a Look at the Rates
Although personal loans often have a lower rate than credit cards, this is not guaranteed. Credit cards may also offer discounted rates and fees and customers are recommended to check all their options thoroughly. For instance, banks often need to be more competitive where credit cards are concerned and may offer 0% interest on purchases for a period of time. Personal loans, on the other hand, have the interest added from the start of the loan. Should customers be able to settle the card before the end of the 0% interest period, the credit card could be a better option.
Look for Product-Specific Loans
Customers who wish to take out a loan for gadgets or even vehicles may have a loan product specifically for that need. This means their rates are determined based on those products as well, as they may be good assets. If a normal loan is applied for to purchase a new vehicle, customers may not experience the full benefit of the finance. Comparisons will need to be done.
Consider the Hidden Costs of Each Product
The regular of an installment should be a certain amount, however, customers are often caught with escalating fees and they don’t know the reason. Some of these fees could include contract fees, early settlement fees, late payment fees, monthly maintenance fees, transaction fees, and more. A closer look at the pricing schedule before applying for the product should prevent this.
Another bank that offers personal loans products, is the National Bank of Abu Dhabi.
DBS Bank Loans Product Offerings
DBS Debt Consolidation Plan
This loan type is ideal for those who are struggling to keep on top of a number of installments for smaller loans. The consolidation will ensure the installments are in one, easy to manage loan package.
- Customers enjoy a very competitive interest rate.
- Furthermore, there is one monthly fixed payment that is auto deducted from the chosen DBS/ POSB account.
- Also, customers have access to a flexible loan tenure of up to 8 years.
- The loan may assist customers to save on interest if the rates were substantially higher.
- There are certain fees and charges that apply.
- Customers can apply for loans that are up to 12x their monthly income.
- Finally, customers may pay more over the period as the consolidation will extend the period again.
DBS Personal Loan
This loan type provides customers with up to 4x their monthly income for those who earn under S$120,000 per annum. Those who earn in excess of this can access up to 10x their monthly salary.
- Customers enjoy fixed interest rates for the duration of their loan.
- Furthermore, the loan period is between 1 to 5 years.
- Also, the loan application is fast and simple. Once the loan is approved, the funds are disbursed immediately.
Customers who require access to a line of credit for use when they need it will find this product a good match. Furthermore, customer access to the funds is flexible and there is no need to reapply over and over.
- This account provides customers with access to up to 4x their monthly salary. However, those who earn in excess of S$120,000 have access to up to 10x their monthly salary.
- Also, customers have quick access to the cash using fund transfer. Customers receive a complimentary checkbook and can withdraw from any DBS/POSB ATM with no withdrawal fees.
- Finally, customers only pay interest on what they use and the payments are flexible.
DBS Balance Transfer
This is a suitable product for customers who have a credit card or cash line account. Furthermore, these customers don’t need to provide any documents.
- Customers enjoy 0% interest for up to 12 months.
- Also, the account allows flexible repayments. Customers can pay as little as 2.5% for cash line accounts and 3% for credit cards.
- Finally, this facility provides customers with financial control of their products.
This is extra financing for those who wish to pursue further education, but don’t have the funds to do it.
- Customers enjoy up to 20% of the subsidized tuition fee and or up to S$3,600 annual living allowance.
- The loan is interest-free during the course of the studies.
- After graduation the interest rate, if applicable, is a prime rate of DBS, OCBC, and UOB.
- The loan provides up to 20 years repayment period for interest bearing loans and up to 5 years for interest-free loans. Furthermore, the repayment commences after course completion.
- Customers are required to make a minimum monthly payment of $100.
- The guarantor should be aged between 21 and 60 and not be discharged as bankrupt.
- Finally, there are certain limitations and restrictions that apply.
- Students enjoy up to 25% of the subsidized tuition fees payable by Singapore students, and or up to S$2,000 annual living allowance.
- Furthermore, the loan is interest-free during the course.
- Once students graduate, the repayments will commence. The interest rate will also kick in, if applicable.
- Interest rates are charged at average prime rates of DBS, OCBC, and UOB.
- Also, customers should make a minimum monthly repayment of $100.
- The loan repayment period is up to 5 years for interest bearing loans. It offers a term of up to 2 years for interest-free loans.
- Certain restrictions may apply to the loans.
- Finally, the guarantor must be aged between 21 to 60 and is not discharged as bankrupt.
Tuition Fee Loan
This loan type is specific to those who wish to pursue their education dreams without worrying about interest.
- The loan includes up to 90% of the subsidized tuition fees payable by Singapore students.
- Furthermore, customers enjoy an interest-free loan during the course. Thereafter, the rate is charged at an average prime rate of DBS, OCBC, and UOB after graduation.
- Customers enjoy a repayment period of up to 20 years which starts after their course is completed.
- Customers are required to make a minimum payment of $100 per month.
- The guarantor should be aged between 21 and 60 and not discharged as bankrupt.
- Finally, there is no income requirement or age restriction.
- Students enjoy up to 75% of the subsidized tuition fees payable by Singapore students.
- The loan is interest-free during the study course. Thereafter, a rate charged at the average prime rate of DBS, OCBC, and UOB kicks in.
- Customers start the repayment of their loans after graduation.
- The loan provides a repayment period of up to 10 years.
- The guarantor of the loan should be aged between 21 and 60 and not be discharged as bankrupt.
- There is no income or age requirement for this loan.
- Finally, the loan requires a minimum monthly payment of $100.
This is an interest-free loan that requires students to make a payment of at least $100 per month. Furthermore, the loan repayment commences after course completion and enjoys a term of up to 30 months.
- Applicable only for NUS undergraduates and full-time postgraduates.
- Also, the loan is subject to approval and loan fund available.
- Finally, the guarantor should be between the ages of 21 to 60 and not discharged as bankrupt. Furthermore, they cannot be party to more than one other active loan.
Customers enjoy an interest-free loan that allows a repayment period of up to 24 months. Furthermore, there is a minimum loan repayment of $100 per month.
- The loan is applicable for Nanyang Polytechnic and Ngee Ann Polytechnic only.
- Also, the guarantor should be between the ages of 21 and 60 and not be discharged as bankrupt.
Another loan type that is quite popular, is the mortgage range. We recently did a review on DBS Bank's Mortgage range.
This is a loan facility that helps customers leverage their share investments for better investment flexibility and cash flow management. Furthermore, this loan type provides greater investment power and improved cash flow.
Customers who have a fixed deposit account, have access to this product. They enjoy low interest with flexible repayment options.
Critical Reviews Rating DBS Bank Loans – 10 of 10
This is a full house of products that just meet all the requirements and tick all the boxes. There is no need to look around and have products at a number of banks. Customers merely need to choose the product that suits their needs best and then maintain their monthly repayments. The interest rates on these accounts are reasonable and very competitive.
There is simply no reason to fault DBS Bank for these products. Overall, a good selection and a well-deserved perfect score.
Customers who prefer to save up for their purchases should have a look at DBS Bank's savings range.