Standard Chartered Personal Loan Review 2024: Should You Take the SCB CashOne Personal Loan?

Need money for your flat or condo downpayment? Perhaps you have big renovation plans or you’ve had a bit of an emergency that requires a large amount of cash in a short time. A personal loan may be the solution. 

Before you do, we must caution you that personal loans can come with high interest rates and you’ll need to be financially secure to be able to pay back the loan, otherwise, you’ll face even more penalties. 

But if you genuinely need cash for a legitimate reason, check out the 8 best personal loans in Singapore. 

We’ll be reviewing Standard Chartered’s CashOne personal loan so you can see if it’s something that may suit your needs. 

 

Standard Chartered CashOne personal loan application criteria

Standard Chartered Bank’s (SCB) personal loan is called CashOne.

To qualify for the loan, you must satisfy the following criteria:

• Aged 21 and above 
• Singapore Citizens and PRs: Minimum annual income of $20,000
• Foreigners: Minimum annual income of $60,000, must hold a valid Singapore Employment Pass

 

SCB personal loan application & approval time

You can apply online with the following documents:

• SingPass MyInfo or copy of NRIC or Passport
• Latest computerised payslip OR latest 6 months’ CPF contribution history statement
• Income Tax Notice of Assessment (if you wish to be considered for a higher loan amount)
• Employment Pass (foreigners only)
• Proof of address (foreigners only)

For existing SCB credit cardholders, there’s no need to submit any documents. But if there’s a change in your income, you need to submit the relevant documents during the application process.

In most cases, SCB offers instant approval of loan applications made online or the mobile app. However, if the bank requires more information from you, you may need to wait up to 1 working day for your application to be assessed.

 

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ALSO READ: 8 Best Personal Loans in Singapore with Lowest Interest Rates (Apr 2024)

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SCB personal loan interest rate (2024)

The interest rate for Standard Chartered Cashone currently stands at 2.88% per annum, with an Effective Interest Rate (EIR) of 5.84% p.a. for a loan tenor of 1 year.

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. It’s better to look at the EIR to know how much you’ll have to pay back.

SCB also has a loan calculator on its website to easily calculate how much interest you’ll pay depending on the loan amount you take out and tenure. 

For instance, if you take a loan tenure of $20,000 for 2 years, the EIR is 6.42% p.a., with monthly repayment $881.33. 

If the loan tenure for the same amount is 4 years, the EIR is 5.96% p.a., with a monthly repayment of $464.67. 

Remember that the interest rate and EIR will vary depending on your loan amount and loan tenure. 

 

Things to consider before taking a personal loan

When considering a personal loan, remember that shorter repayment terms are generally to your benefit. While banks might promote longer loan terms (like 5 years) that offer lower monthly payments, this can be a trap. The shorter the loan tenure, the less total interest you’ll pay overall. So, it’s best to pay less and choose a repayment period that allows you to clear the loan quickly and save money in the long run.

There’s also an initial annual fee of $199 to pay, deducted from your approved loan amount. For subsequent years, the fee will be $50 but this will be waived if all payment is received by the due date for the past 12 months. 

Remember to pay your monthly instalments in full! If you don’t, it’ll be considered a late payment and you’ll be charged $50 on top of the annual fee. If you want to change your loan tenure, you’ll also be charged $50. 

What if you don’t need the loan anymore and want to pay it off early? Well, they also penalise you for it. In SCB’s case, if you repay the loan back in full before the lock-in period, the fee is $150 or 3% of the outstanding principal, whichever is higher. 

While SCB’s 2.88% p.a. interest is one of the lowest rates out there, it’s best to shop around. Some banks may advertise attractive headline rates, be sure to factor in the Effective Interest Rate (EIR) which includes additional fees. You can use MoneySmart’s personal loan comparison tool to compare what the other banks are offering for your desired loan amount and loan tenure. 

 

StanChart CashOne personal loan promotions

Standard Chartered is currently running the following promotions if you take up the CashOne personal loan: 

• 3X cashback on the first month’s interest
• New Stanchart clients get an extra 1% of the approved loan back in FairPrice E-Vouchers 
• If you take a loan between $8,000 – $9,999 for a tenure of 3 to 5 years, you’ll stand to get a MoneySmart Gift Incentive of S$100 cash transferred to you via PayNow. For loans above S$10,000, check out the MoneySmart website for more promos. 

 

Standard Chartered CashOne personal loan vs SCB Credit Card Fund Transfer vs Debt Consolidation

The SCB Credit Card Fund Transfer lets you consolidate your credit card debt from other banks. You can transfer your debt from other cards to SCB and pay off only one credit card bill rather than monitor a few.

Debt consolidation is a different beast from personal loans. Instead of borrowing fresh money, you’re simply transferring your existing debt from various other loans or credit cards to one single loan, typically to take advantage of lower interest rates.

With the CashOne personal loan, it’s different as you will be drawing fresh funds, not just reshuffling your debts into one place. 

 

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ALSO READ: Should You Take A Personal Loan To Help With The Rising Costs Of Living?

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Comparing Standard Chartered CashOne personal loan vs DBS, POSB, OCBC, UOB personal loan interest rates

How does SCB’s CashOne loan compare to other banks’ loans? We’ve listed the current loans from the big banks: 

 

Be careful when taking personal loans

Remember, personal loans are best suited for essential needs, not material wants. The higher interest rates can make them a costly option for non-critical expenses. If you’re reading this article with that dream holiday or luxury handbag in mind, we’d advise saving for them in the good ol’ fashioned way. 

 

Not sure if the Standard Chartered personal loan is right for you? Take a look at all the best personal loans in Singapore.