OCBC Cash-on-Instalment Review: Excellent Short-Term Rates

OCBC Cash-on-Instalment Review: Excellent Short-Term Rates

Best 2-year personal loan, less competitive for other tenures.

Good for

  • Individuals seeking a 2-year loan

Bad for

  • Borrowers seeking long-term loans of more than 24 months
  • Individuals seeking a specific-use loan (e.g. car loan, home loan)

Editor's Rating


OCBC's Cash-on-Instalment is the cheapest 2-year personal loan currently available. This is because OCBC is offering an exclusive rate for 2-year Cash-on-Instalments through ValueChampion and a cashback promotion.

Summary of the OCBC's Cash-on-Instalments
Cheapest 2-year personal loan: 8.2% EIR (including cashback promotion)
Low minimum loan amount: S$1,000
Minimum income requirement: S$30,000
Promotion: Up to S$320 cashback (S$80 per S$8,000 in total loan amount)

Table of Contents

What Makes OCBC Cash-on-Instalments Stand Out to Borrowers

OCBC's Cash-on-Instalments may be a good alternative to traditional personal loans, especially for borrowers seeking 2-year loans. These products allow individuals to convert their available credit limit into a fixed monthly instalment loan. While OCBC offers instalments of 12 to 60 month tenures, ValueChampion's exclusive 2-year rate makes it one of the cheapest 2-year personal loans available in Singapore. While there are other banks that advertise slightly lower rates, their rates are not guaranteed. Additionally, OCBC's cashback promotion makes it cheaper than any other 2-year personal loans offered in Singapore for loans of at least S$8,000.

OCBC's exclusive rate through ValueChampion is a 2-year loan with a flat interest rate of 0% and a 9.0% processing fee, which translates to 9.0% EIR. Combined with its special cashback promotion of up to S$320, the EIR drops to 8.2%, which is by far the best offer available for this specific tenure. However, OCBC's offerings aren't the best for other tenures. For example, OCBC charges a 6% processing fee based on the approved loan amount and 0% interest for 12 month tenures, a duration for which Citi offers lower rates. For longer tenures, OCBC charges flat interest rates of 5.8% and a 2% processing fee, while HSBC offers better terms for personal loans with longer tenures.

Cost of OCBC Cash-On-Instalment Loans

Loan DurationFlat RateFeeEffective Interest RateMonthly PaymentTotal Cost
1 year0%6%11.47%S$833.33S$600
2 years0%9%9.00%S$416.67S$900
3 years5.80%2%12.11%S$326.11S$1,940
4 years5.80%2%11.71%S$256.67S$2,520
5 years5.80%2%11.38%S$215.00S$3,100
Promotion: Up to S$320 cashback (S$80 per S$8,000 in total loan amount)
*Assuming Annual Income above S$30,000, loan of S$10,000

Who Can Apply: Eligibility Criteria

Consider this if you seek the cheapest 2-year loan

Eligibility S$30,000 of annual income (S$45,000 for foreigners)
Max. Loan Amount Maximum available credit limit
Min. Loan Amount S$1,000
Processing Fee 6% for 12 month loans, 9% for 24 month loans, 2% for 36 - 60 month loans
Approval Time Unknown

To be eligible for OCBC's Cash-on-Instalments applicants must be at least 21 years old. Singaporeans and permanent residents must have annual incomes of at least S$30,000. Foreigners residing in Singapore are eligible for the Cash-on-Instalments with annual incomes of at least S$45,000.

Other Charges and Fees

OCBC charges processing fees ranging from 2% to 9%. When combined with the bank's interest rates, these fees make OCBC the most affordable lender for 2-year personal loans. It is slightly less competitive for 1-year loans and significantly less competitive for loans with longer tenures, in terms of total cost of borrowing. For a complete breakdown of processing fees and interest rates, please refer to the table above. In addition to its processing fee, OCBC charges a S$100 account termination fee.

How to Apply: Application Process

Individuals interested in OCBC's Cash-on-Instalments can apply by clicking any of the "Apply Now" buttons on this page. Applicants will be required to provide their phone number, NRIC/passport number and bank account information. Upon approval, OCBC will credit applicant's bank account.

Comments and Questions

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