Bank of China $martLoan Review (2020)

A review of the BOC $martLoan that offers a long tenure of up to 7 years and the reasons why this personal loan is one to consider.

Key Features

Pros

Up to 7 years’ loan tenure
Fixed monthly repayments
Uses balance reducing method instead of flat rates

Cons

One of the highest flat rates at 6.52% per annum
High processing fee at 3%
Only one BOC $martLoan can be granted under a MoneyPlus account

Summary

Interest Rate: From as low as 6.52% p.a (EIR 14.69% p.a)
Loan Tenures: Between 1 year to 7 years
Max. Credit Limit: Up to 95% of credit limit
Min. Loan Amount: S$1,000
Turnaround Time: Up to 10 working days

Why should you choose Bank of China $martLoan?
Who can apply?
What charges or fees you should look out for?
How to apply?
Summary of Interest Rates for all tenures

Compare Personal Loans

Why should you choose Bank of China (BOC) $martLoan?

1. Balance Reducing Loan

Instead of a fixed interest rate that is offered by many banks, with BOC, the interest charged will be different every month because it constantly decreases. $martLoan interest rate is calculated from your loan’s remaining balance.

While the monthly repayment starts out high, it gradually decreases. This is often preferred by borrowers over than flat rates, as you'll eventually pay much less every month while your loan tenure goes by. If you're a borrower who prefers to pay a larger sum upfront, then you'll get to save more from interest rates that is charged on you monthly.

2. Low annual income required

Despite the fact that the interest rate will start from 6.52% p.a, terms and conditions of BOC’s MoneyPlus personal line of credit is also applicable to $martLoan thus, the minimum income required is only S$1,700 per month.

Knowing that the longer the terms are with personal loans, the flat interest rates are usually higher, BOC can be a great option for lower income earners considering that BOC allows terms up to 7 years. This could make your repayments more affordable and suitable for your monthly budget along with its balance reducing method. Only HSBC and BOC allow tenures this long. The income requirement is at least S$30,000 per annum or minimum S$2,500 per month.

3. Generous loan amount up to 95% of the available credit limit

While BOC only meets the market standard minimum loan amount required of S$1,000, Bank of China offers more flexibility by allowing you to loan up to 95% of your available credit limit.

However, take note of charges such as a processing fee of 3% (minimum charge of S$150) which will be added to the approved loan amount. Late payments would also incur a late payment charge of 2% of minimum payment sum or $100, whichever is higher. BOC also imposes fixed monthly repayments so that you can manage your loan more responsibly.

4. Loan application available via SMS

There’s no generic ‘Apply now’ button in BOC’s $martLoan website. Aside from calling BOC’s 24-hour Customer Service to apply, it’s unlikely that you can apply a personal loan via SMS with other banks thus, can be an added convenience for some. You only have to text SMS BOCMP<space>SLWS<space>Name<space>NRIC to 79777, and you’ll be assisted further.

5. Complimentary MoneyPlus Line of Credit

Having extra cash to meet your emergency needs is made easier with BOC MoneyPlus. With low income requirement of just minimum S$1,700 per month, you can get cash for up to 4 times of your monthly income and ease of withdrawing cash anytime, anywhere via BOC Personal Online/Mobile Banking and BOC Branches/BOC ATM Machine for cash transfer to any bank account of your choice.

Who can apply?

To apply for the BOC $martLoan, you have to meet the following criteria to be eligible.

Age: At least 21 years old
Annual Income: S$30,000 (Singaporeans/PRs); S$40,000 (Foreigners)

What charges or fees should you look out for?

Here are the potential charges and fees you could incur.

Processing fee: 3% (minimum S$150)
Late payment charges: 2% of minimum payment sum or $100, whichever is higher
Rescheduling fee: $100 for restructure of loan tenure
Early settlement penalty: S$100

How to apply?

Once you have decided to take up for this loan, call BOC’s 24-hour Customer Service hotline at 1800-338-5335 or via SMS: BOCMP<space>SLWS<space>Name<space>NRIC to 79777

Summary of Interest Rates for all tenures

Here are the interest rates for the different loan tenures when you take a BOC $martLoan (assuming you take a S$20,000 loan).

Loan Tenure (Years)	Flat Interest Rate (p.a)	Effective Interest Rate (p.a)	Processing Fee	Monthly Instalment	Total Repayment (Including Processing Fee)
1	6.62%	18.72%	3%	$1,777	$21,924
2	6.48%	15.73%	3%	$941	$23,192
3	6.52%	14.69%	3%	$664	$24,512
4	6.57%	14.18%	3%	$526	$25,856
5	6.66%	13.86%	3%	$444	$27,260
6	8.63%	17.05%	3%	$422	$30,956
7	8.86%	16.89%	3%	$386	$33,004