A personal loan is not something you should take out on a whim just because your bank account balance is getting low at the end of the month but you want to go shopping.
UOB is currently offering a 3.4 per cent per annum interest rate on their personal loans when you sign up online. The Effective Interest Rate of the UOB personal loan is estimated at 6.42 per cent p.a. for a three-year loanWell, when you take out a personal loan, the hidden fees and charges can add up. In UOB's case, the zero per cent or one per cent processing fee are also factors to consider.
Well, let's see. For a loan of $10,000 taken over a period of three years, this is how much you would be paying in total:So, how do these interest rates measure up compared to the personal loans offered by other banks in Singapore? UOB Cash Plus is a line of credit. How it works is that you apply for the line of credit ahead of time, and once approved you have it on standby to use whenever you want.
You should definitely not do so, however, as credit lines like UOB Cash Plus typically charge much higher interest rates at 20.9 per cent than personal loans. Compared to credit card debt or UOB Cash Plus's line of credit, the interest rate charged by the UOB personal loan doesn't sound that high.