UOB Personligt Loan Review 2023
Total assets exceed S$500 million (as of latestAnnual report for the third quarter of 2022), United Overseas Bank Limited (UOB) is one of the prominent banks in Singapore that provides personal loans to Singaporeans, permanent residents and foreigners. UOB Personal Loan offers a competitive interest rate of 3.4% per annum. (effective interest rate of 6.36%) from 29 December 2022, ongoing promotion (until 31 December 2022), offering you up to S$3,288 or 2.5% of the approved loan amount for a period of 2, 3 , 4 or 5 years.
In this review, we'll share the most important information about using UOB personal loans and do a quick comparison with some of its closest competitors.
Mana benefits
an advantage
- Apply online for instant loan approval and cash payout
- Check in faster with the convenience of online check-in with SingPass
- competitive interest rate
- Waiver of processing fee (24 - 60 months of employment)
- Open to Singapore citizens aged 21 to 65, permanent residents with a Singapore Employment Pass
- Minimum annual income of US$30,000 for Singaporeans and permanent residents
- Flexible choice of repayment term (1 year to 5 years)
lack
- Existing UOB Credit Card/CashPlus user required
- It does not apply to foreigners with a Singapore Employment Pass
Requirements for a UOB personal loan in 2023
Singapore Citizens or Permanent Residents (PRs) are eligible to apply for a UOB Personal Loan if they are between the ages of 21 and 65. However, this loan is not available to foreigners. Since the minimum annual income for Singapore residents is US$30,000, Permanent Residents, Singapore Citizens and Permanent Residents with a lower annual salary, especially those with an annual income below US$30,000, will not be eligible for this loan. You must also be an existing UOB Credit Card/CashPlus user to apply for this loan, which you can do using your SingPass MyInfo details. This loan application requires a copy of your NRIC (front and back), latest computerized payslip or CPF contribution history for the last 6 months, so please remember to prepare this before applying online. For those who wish to apply for larger loan amounts, you must also prepare the latest Notice of Assessment (NOA).
UOB rates and fees for private loans
UOB is one of the few banks that does not charge any processing fee or initial annual fee. However, only if your loan period is between 24 months and 60 months.
Currently UOB offers 3.4% p.a. for your personal loans with an estimated effective interest rate (EIR) of 6.36% per annum. or more, depending on the term of your loan.
EKS is basically the effective interest rate that you will pay as a percentage of the UOB personal loan. So if you're looking for a more attractive EKS when comparing personal loans, you might want to use a platform like MoneySmart's personal loan comparison tool to save time doing your research.
Considering that S$1,000 is the minimum amount you can borrow with a UOB personal loan, the loan seems manageable. The maximum loan amount actually depends on your monthly income. To understand this more easily, let's take an example.
For example, if you apply for a loan of $10,000 with a term of 3 years and your annual income is $30,000, you will pay approximately:$11,020 – $10,000 = $1,020 due
However, this is for illustration purposes only. As interest rates are individualized, not all customers pay the same interest rate and therefore the rate proposed by UOB may differ from this example.
Compare prices and fees for UOB personal loans
| Loan term 1 year | Loan term 2 years | Loan term 3 years |
|---|---|---|
| 3.48% of interest costs | 3.48% of interest costs | 3.48% of interest costs |
| 1% commission | there is no handling fee | there is no handling fee |
| 8.03% effective interest rate | 6.40% effective interest rate | 6.42% effective interest rate |
| $862 in monthly installments | $445 in monthly installments | $306 in monthly installments |
UOB Application for a personal loan
Before you start applying for a UOB personal loan or any other personal loan, it is important to plan your finances well and only use a manageable loan amount that you can afford to repay in monthly installments and consider other costs involved, such as the effective Expense Rate (EIR), Commission, Annual Fee and vice versa. Here are 3 easy steps to apply for a UOB personal loan:
trin 1
Apply through MoneySmart's personal loan page
You just need to click on our UOB Personal Loan Application link to start your application. The application can be completed online using your SingPass MyInfo account details. Once the required information is entered, UOB will pull your identity and income information (verified) from SingPass, reducing processing time. In principle, you can expect the approval page to appear within a few minutes of submitting your MyInfo data.
trin 2
Prepare all necessary documents
Next, prepare all the necessary documents that UOB requires for the approval of your personal loan application. The list of documents includes:
- ID or other identifying information
- Updated computer salary
- Statement of CPF contribution history for the last 6 months
- If you want to get a higher loan amount, submit an updated Notice of Assessment (NOA)
trin 3
Pay attention to current loan repayments
Once UOB approves your online application, the loan will be disbursed immediately.
Compare UOB Personal Loan, SCB CashOne and HSBC Personal Loan
Currently, there are different types of personal loans on the market, so apart from UOB personal loans, there are other types of popular personal loans such as Standard Chartered CashOne and HSBC Personal Loan. When you compare the different rates and benefits of the many personal loan options available onlineMoneySmart's online personal loan guide, you will be able to make better decisions.
Interest rates, annual fees, minimum annual income requirements and loan disbursement speed are usually the main factors we focus on. When comparing the 3 personal loans, SCB CashOne appears to have the highest interest rate of 3.48% plus an initial annual fee of $199. This makes the 3.4% UOB Personal Loans an even more attractive option as it comes with a lower interest rate and no annual fee. UOB personal loans also have faster disbursal times compared to HSBC personal loans.
However, if you have a lower minimum annual income of $20,000, SCB CashOne may be a more viable option for you, as HSBC Personal Loan and UOB Personal Loan have higher minimum annual income requirements for Singaporeans and Permanent Residents of $30,000 .
Comparison of UOB personal loan vs. SCB CashOne and HSBC
| UOB Personal loan | HSBC personal loan | Standard Chartered Cash One |
|---|---|---|
| Should: 3.4% | Should: 3.2% | Should: 3.48 % |
| Annual fee: None | Annual fee: None | Annual fee: $199 for the first year (no fee after the second year) |
| Minimum annual income: Singapore citizens and resident foreigners of USD 30,000 are not eligible. | Minimum annual income: Singapore residents and permanent residents US$30,000, foreigners US$40,000 | Minimum annual income: Singapore residents and permanent residents US$20,000, foreigners US$60,000 |
| Loan disbursement rate: Within 1 day (if you have a UOB credit card and apply between 8am and 9pm) | Loan disbursement rate: 3 to 5 working days | Loan disbursement rate: 15 minutes |
Frequently asked questions
How much annual fee and processing fee do I have to pay if I apply for a UOB loan?
- UOB does not charge any annual fee or processing fee.
How can I apply for a UOB personal loan?
- You can apply for a UOB personal loan in 3 easy steps. 1. Click 'Apply Now' on the UOB Personal Loan option on the MoneySmart Personal Loan page 2. If you want to get a larger loan amount, provide your NRIC or other identification details, latest computerized pay slip, CPF contribution history for the last 6 months and the most recent notice of assessment (NOA)3. Receive your loan immediately.
Am I eligible for a UOB personal loan?
- If you are a Singapore citizen, Permanent Resident (PR), you are eligible for a UOB Personal Loan as long as you are between the ages of 21 and 65 and have an annual income of at least US$30,000. Foreigners with a valid Singapore Employment Pass are not currently eligible for this loan.
Is there a penalty for late payment of monthly installments?
- Late payment charges are S$60 and default interest of 24% p.a. is also applied, but the minimum amount is S$20 (if your annual income is S$20,000 – S$29,999). If your annual income exceeds S$30,000, the default interest will be 4% of the prevailing interest rate on your loan.
When will the approved loan amount arrive in my bank account?
- Your application will be reviewed by UOB after submission. If your application is completed online, you will receive the loan amount immediately after the loan is approved.