Would you trust Trust? The local digital bank is backed by a partnership between Standard Chartered Bank and FairPrice Group, so it’s safe to assume it won’t disappear with our money.
That means taking out a loan should be fine… right? Well, with loans, it all depends on what you need the loan for, what fees are involved, and how much you can pay back including interest. Let’s see how Trust Bank’s instant loan stacks up.
Criteria for applying for an instant loan from Trust Bank
Before we get into the differences, here are the participation criteria:
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You must be a citizen or permanent resident of Singapore.
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Be between 21 and 65 years old
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Do you have a minimum annual income of $30,000
Sounds pretty simple, but we’re not sure why there’s this age limit. Do they doubt your ability to repay the loan when you’re older?
As the name suggests, the instant loan is truly instant. Trust Bank claims that you can get the loan in just 60 seconds, so basically instant. (Although we all know how long 60 seconds can take when you do a plank).
However, you must first apply for a Trust credit card – but this is not a problem as it takes less than 3 minutes. Only if the bank requires further clarification from you, the application process can take up to 3 working days.
The credit amount you receive will come from your unused credit card limit, which can be converted into cash. According to Trust, “the bank will convert a portion of your available balance on the Trust credit card into cash that will be deposited into your savings account.”
Anyone who already has a Trust savings account and a credit card can get the loan in 60 seconds.
After you submit your application and select the loan amount (at least $500 up to your card’s available credit limit), you can also choose the loan repayment term of up to 60 months.
Trust also says there are no processing or hidden fees.
Trust Bank Instant Loan Interest Rate (2024)
With an interest rate of 2.87% per annum (EIR 5.41% per annum), Trust Bank’s instant loan rate is one of the lowest in the market. In comparison, the next highest personal loan rate in the market is 2.88% and is offered by UOB, DBS and Standard Chartered.
Per month
S$2,200
Per month
Exclusively at MoneySmart
Trustworthy instant loan
EIR: From 5.27%
Exclusively at MoneySmart:
Receive up to S$900 in cash via PayNow when you apply for a Trust Instant Loan through MoneySmart! Terms and conditions apply.
Valid until 31 May 2024
Apply now
Further details
Main features
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Low rates, no processing fees
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Flexible repayment
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Fast approval
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For a limited time only, you can benefit from low interest rates starting at 2.79% (EIR starting at 5.27%)
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The interest rate of 2.79% is not guaranteed and is based on the applicant’s credit risk.
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*Please note that the prices provided to you are customized and may differ from the prices shown here.
View all loan details
If you borrow $50,000 and want to repay the money within 24 months (2 years), your repayment will be approximately $2,202.92 per month at an interest rate of 2.87% (EIR 5.43% pa).
Please note that 2.87% is just the simplified version. The actual interest rate offered depends on the loan amount, the term chosen and your risk profile.
Use Trust Bank’s handy calculator to easily determine how much interest you will have to pay based on the desired loan amount and term.
Wondering what the difference is between interest rate and EIR? EIR is the actual interest rate You will pay for your loan.
Trust also says you can save interest if you pay off your loan early, BUT they charge a 3% prepayment penalty on your outstanding principal balance if you do so. In the Trust app, you can easily see what your remaining loan payment is and how much interest you can save if you pay it off early.
Special offers for instant loans from Trust Bank
Unfortunately, Trust Bank does not currently offer any special offers on its website.
But the low interest rate is a real incentive. Plus, if you apply for your loan through MoneySmart, you can get a cash bonus of $50 to $900, depending on the amount of your loan.
Trust Bank instant loan compared to POSB, DBS, OCBC, UOB
The main advantage of Trust’s instant loan seems to be the low interest rate and no annual fees, but it is best to compare the loan with other banks to find out which one is best for your needs.
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Per month
S$439
Per month
Online advertising
POSB Personal Loan
EIR: From 5.43%
Read more
Further details
Main features
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Existing POSB/DBS users can directly request an instant cash withdrawal to your POSB/DBS account!
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*Please note that the rates provided to you are customized and may differ from those displayed here. POSB Bank is regulated by the Monetary Authority of Singapore.
View all loan details
Per month
S$462
Per month
OCBC ExtraCash Loan
Effective annual interest rate: 12.11%
Read more
Further details
Main features
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Loan term from 12 to 60 months
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Borrow up to 6x monthly salary for annual income of S$120,000 and above, 4x monthly salary for annual income of S$30,000 to S$119,999 and 2x monthly salary for annual income of S$20,000 to S$29,000
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Make repayments conveniently via online or mobile banking transfer, check deposit or cash deposit machine
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Easy ways to manage your account with online and mobile banking
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Please note that the rates provided to you are customized and may differ from those displayed here. OCBC Bank is regulated by the Monetary Authority of Singapore.
View all loan details
Compare the best personal loans
Whatever happens, don’t rush into taking out a loan! Think carefully about what you need the money for. Even if the interest rate seems tempting, avoid borrowing money for things like vacations or luxury items.
Loans are best for expensive necessities and only when you are sure you can pay them back. This means you have a steady income and a steady job. Remember that loans always come with interest, so you will end up paying back more than you borrowed.
Think a loan will suit your needs? Check out MoneySmart’s personal loan comparison page to find the best interest rates from banks in Singapore.
The post Trust Bank Instant Loan Review 2024 — Low Interest Rate and Instant Application appeared first on MoneySmart Blog.
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The article Trust Bank instant loan test 2024 – Low interest rate and immediate application appeared first on MoneySmart Blog.
Original article: Trust Bank instant loan test 2024 – Low interest rate and immediate application.
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