Whether you’re living alone or with loved ones, the space we call home is an important one. It’s where we relax, play, rest, and live most of our lives outside of work. To beautify our abodes and increase our quality of life, we often look towards renovations. But renovation is expensive and we often have to take loans; we thus have to carefully consider renovation loans and renovation loan interests.
In this article, we compare renovation loan interest rates offered by banks with those offered by licensed money lenders in Singapore.
Renovation Loan For Banks Overview
One of the main factors you would be considering would be the interest rates. In general, some banks charge monthly interest based on the outstanding balance, whereas others base it on the total amount loaned. Also, tenures (amount of time you’re given to repay a loan) given by banks are normally at most only 5 years, and the maximum loan amount is typically 6 times your monthly wages and a cap of $30,000.
To qualify for a renovation loan from banks, you are usually required to
- Own a property.
- Be a Singaporean Citizen or PR.
- Fulfil minimum income requirement as determined by each bank.
- Be in a certain age range.
- Have an acceptable credit score.
Other than these criteria, one other important limitation is that banks normally determine what the loan can be used for. For instance, most banks do not allow the loan to be used for purchasing furniture.
Renovation Loan Interest Rates For Banks
Here are five renovation loan interest rates for well-known banks.
One of the more popular renovation loans from banks, its selling point is its lower-income requirement of $24,000 per annum.
The interest rate for existing loan customers is at 2.88% p.a.
The interest rate for new customers starts at 3.88% p.a.
Should you qualify for their Green Renovation Loan, the interest rate can be as low as 2.68% p.a.
The OCBC renovation loan boasts a simple process, with the loan transferred to your account 1 day after approval.
The interest rate is at 4.18% p.a.
OCBC also offers the Eco Care Renovation Loan. This requires your home to be energy efficient as verified by the Tropical Home Energy Efficiency Assessment (THEEA). If you qualify for this loan, you stand to enjoy a lower interest rate of 3.98 p.a., along with other benefits.
As with POSB, May Bank’s interest rate is much lower if you are already an existing customer.
The interest rate for existing Home Loan customers is at 2.88% p.a.
The interest rate for new customers is at 4.1% p.a.
DBS’s renovation loan is quite similar to the other banks.
The interest rate is at 3.88% p.a.
However, if you fulfil the requirements for their DBS Green Renovation Loan (POSB also offers a similar one), the interest rate can go as low as 2.68% p.a.
RHB’s interest rates are higher than other banks. However, it offers a unique refurbishing loan that most other banks do not.
The interest rate is at 5.8% p.a.
Interest Rates for Licensed Money Lenders
If you are not satisfied with the interest rates or other factors like repayment terms, licensed money lenders in Singapore might just offer a more attractive and fully legal option.
Consider Galaxy Credit. Galaxy Credit is a licensed money lender that is registered with the Ministry of Law. It is committed to getting the best loan deals for its clients, and offers a quick and streamlined process for its loans.
Galaxy Credit’s renovation loan boasts a much lower interest rate of starting from 2.27% flat interest per month because the firm understands just how expensive home renovations can get.
But that’s not all. The loan can also be used for purchasing furniture, which most institutions do not allow. In addition, Galaxy Credit assures transparent and professional customer service that will carefully assess your loan amount and finances, eventually reaching a customised package for you.
You can be sure that when it comes to building your dream home, Galaxy Credit offers loans with the most freedom and the least worry.
For borrowing options or financial insights from one of the most trusted moneylenders in Singapore, visit Galaxy Credit now.