Important Information
Important changes to the prevailing interest rate for all outstanding balances of Salary Advance and Preferred Line of Credit accounts
With effect from 4 April 2021 (inclusive of this date), the prevailing interest rate for all outstanding balances of Salary Advance accounts and Preferred Line of Credit accounts, will be revised to 6.88% p.a. as illustrated below.
The revised prevailing interest rate which is applicable to the outstanding balance of your Salary Advance account or Preferred Line of Credit account, as the case may be, is as notified to you by us in writing and can also be found in all statements issued by us, on or after 4 April 2021, for your Salary Advance account or Preferred Line of Credit account, as the case may be.
A new paragraph will be added to the “Personal Credit / Salary Advance / Personal Line of Credit” section of the Pricing Guide to reflect the changes which are stated above. The revised pricing guide which will take effect on 4 April 2021.
| OUTSTANDING BALANCE | PREVAILING INTEREST RATE | PREVAILING INTEREST RATE FROM 4 APRIL 2021(INCLUSIVE OF THIS DATE) |
|---|---|---|
| S$0 – S$3,000 | 0% p.a. | 6.88% p.a. |
| >S$3,000 | 17.9% p.a. |
Here are some examples to show how the change in the prevailing interest rates may impact you:
Scenario 1: If the outstanding balance of your Salary Advance or Preferred Line of Credit account is S$100 on 3 April 2021 and during the period of 3 to 5 April 2021 (both dates inclusive), no sums are credited to and no further withdrawals is made from your Salary Advance account or Preferred Line of Credit account, as the case may be.
Assumption: Statement cycle is on the 1st of every month.
| 3 APRIL 2021 (PREVAILING INTEREST RATE) | 4 APRIL 2021 (REVISED PREVAILING INTEREST RATE) | 5 April 2021 (REVISED PREVAILING INTEREST RATE) | |
|---|---|---|---|
| Daily interest calculated on S$100 of outstanding amounts | S$100 * 0% * (1/365) = S$0.00 | S$100 * 6.88% * (1/365) = S$0.02 | S$100 * 6.88% * (1/365) = S$0.02 |
Scenario 2: If the outstanding balance your Salary Advance or Preferred Line of Credit account is S$4,000 on 3 April 2021 and during the period of 3 to 5 April 2021 (both dates inclusive), no sums are credited to and no further withdrawals is made from your Salary Advance or Preferred Line of Credit account, as the case may be.
Assumption: Statement cycle is on the 1st of every month.
| 3 APRIL 2021 (PREVAILING INTEREST RATE) | 4 APRIL 2021 (REVISED PREVAILING INTEREST RATE) | 5 APRIL 2021 (REVISED PREVAILING INTEREST RATE) | |
|---|---|---|---|
| Daily interest calculated for 1st S$3,000 of outstanding amounts | S$3,000 * 0% * (1/365) = S$0.00 | S$3,000 * 6.88% * (1/365) = S$0.57 | S$3,000 * 6.88% * (1/365) = S$0.57 |
| Daily interest calculated subsequent S$1,000 of outstanding amounts | S$1,000 * 17.9% * (1/365) = S$0.49 | S$1,000 * 6.88% * (1/365) = S$0.19 | S$1,000 * 6.88% * (1/365) = S$0.19 |
| Total daily interest charged | S$0.49 | S$0.76 | S$0.76 |
A new paragraph will be added to the “Personal Credit / Salary Advance / Personal Line of Credit” section of the Pricing Guide to reflect the changes which are stated above. Please click here for the revised pricing guide which will take effect on 4 April 2021.
To learn more, please refer to the Frequently Asked Questions below, or call our 24-hour Client Contact Centre at 1800 747 7000.