DBS Cashline Personal Line of Credit Review: Most Affordable Option for Low-Income Borrowers
DBS Cashline Personal Line of Credit Review: Most Affordable Option for Low-Income Borrowers
ValueChampion Rating 
Pros
- Low income requirements
- High credit limit for high income borrowers
Cons
- Not the cheapest personal line of credit for individuals S$30,000 and above
DBS's Cashline personal line of credit is the cheapest option for individuals with annual incomes between S$20,000 and S$30,000. The bank charges these borrowers an annual interest rate of 29.8%, waives its annual fee for 1 year and offers up to S$80 in Grab vouchers. It also offers the highest credit limit for personal lines of credit among lenders in Singapore, which makes it worth considering for those individuals that qualify for these loans. Hence, it is one of the best options for those who are on the lookout for the best personal line of credits in Singapore.
| Summary of DBS Cashline |
|---|
| Low Minimum Income Requirement: S$20,000 |
| Average Interest Rates: 19.8% to 29.8% |
| Highest Credit Limit: 10x for individuals with annual income of at least S$120,000 |
| Promotion: Up to S$80 in Grab vouchers |
Table of Contents
What Makes DBS Cashline Stand Out to Borrowers
DBS is unique because it is 1 of 2 banks that offer personal lines of credit to individuals with annual incomes of less than S$30,000. To compare the two, DBS offers the same interest rate for those with annual incomes of S$20,000 to S$30,000 as OCBC (29.8%); however, it unique because it waives its annual fee for one year and offers a promotion that provides Grab vouchers to borrowers.
| Borrowing Criteria | Promotion |
|---|---|
| S$350 usage in the first 2 consecutive months | S$30 in Grab Vouchers |
| S$850 usage in the first 2 consecutive months | S$80 in Grab Vouchers |
DBS's Cashline may also attractive to some high income earners as it offers the highest possible credit limits of up to 10 times the monthly salary of individuals with annual incomes of at least S$120,000. With that said, DBS's interest rates are not the cheapest available, which makes their credit lines more expensive than those of other lenders.
Summary of DBS Cashline Costs
| Annual Income | Interest Rate | Credit Limit |
|---|---|---|
| $20,000 to S$30,000 | 29.8% | 2 times monthly salary |
| S$30,000 to S$120,000 | 19.8% | 4 times monthly salary |
| S$120,000+ | 19.8% | 10 times monthly salary |
Who Can Apply: Eligibility Criteria
To be eligible for DBS's Cashline personal line of credit, applicants must be Singapore Citizens or Permanent residents and be at least 21 years old. Additionally, eligible applicants must earn at least S$20,000, which is a lower requirement than those of other banks.
Other Charges & Fees
DBS charges a few standard fees including an annual fee of S$100, which is waived during the first year of the loan. The bank also charges a late payment fee of S$105 and an overlimit fee of S$40. Additionally, DBS requires minimum monthly payments of 2.5% of the outstanding balance or S$50, whichever is higher. We strongly advise borrowers to carefully review the terms of any loan in order to avoid fees, which can significantly increase the total cost of borrowing.
| Fee | Amount |
|---|---|
| Annual Fee | S$100 (waived for 1 year) |
| Late Payment Fee | S$120 |
| Overlimit Fee | S$40 |
| Early Repayment Fee | N/A |
How to Apply for DBS Cashline
To apply for the DBS Cashline borrowers must fill out an online application, provide their NRIC and submit documents proving their income. For salaried applicants this means their latest 12 months' CPF contribution history statement and either the latest Income Tax Notice of Assessment, computerised payslip or salary crediting into their POSB/DBS account. Variable and commission-based employees must provide their latest 12 months' CPF contribution history statement or their Income Tax Notice of Assessments for the last 2 years.
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.