RHB Renovation Loan Flat Rate

RHB Renovation Loan Flat Rate Review: Best For Large Loan Amount Borrowers

RHB offers flat rate and monthly rest renovation loans. You can get a low rate of 2.98% per annum if you successfully apply for a loan over S$14,999. Besides, S$100 shopping vouchers are available to loan clients. However, you may have to beware of early prepayment or loan cancellation charges.

Key Features

  • You can get up to six times your monthly salary or a maximum of S$30,000, whichever is lower.
  • A repayment period of one to five years is available at your discretion.
  • RHB offers two renovation loan packages: Flat rate and rest rate packages.
  • The processing fee is only 1% of the loan amount.
  • The loan amount is higher than S$15,000; the interest costs are lower.
  • The longer the repayment period, the interest costs are lower.

 

RHB Renovation Loan – Flat Rate Package

Assume Michael borrows a flat rate loan of S$28,000 and has yet to decide the loan period. The five-year flat rate is 2.98%. Below are the repayment details:

Loan repayment period in years Monthly repayment amounts Total interest costs
1 S$2,403 S$834
2 S$1,236 S$1,668
3 S$847 S$2,502
4 S$653 S$3,336
5 S$536 S$4,170

 

RHB Renovation Loan – Monthly Rest Rate Package

Michael wants to look at the option before making any decision. The interest rate is 4.18% per annum. The table below is the rest rate offer:

Loan repayment period in years Monthly repayment amounts Total interest costs
1 S$2,386 S$641
2 S$1,219 S$1,246
3 S$829 S$1,837
4 S$634 S$2,428
5 S$518 S$3,046

The figures in the above table rounded to the nearest dollars are for reference only. 

Pros

  • RHB is one of a few banks offering flat and rest rate loans. Applicants have more options for a suitable package.
  • Clients can get a Grab Gift Card of S$100 if they succeed in applying for a renovation loan of S$20,000 or above for five years before this year-end.
  • An existing renovation loan client is still qualified to apply for RHB’s furnishing loan package. The furnishing loan is an additional financing option for home renovations and decorations.
  • The bank offers interest cost relief for larger loan clients. Clients for S$15,000 to S$30,000 can reduce the interest by 0.7% off 3.68% to 2.98%.

Cons

  • Borrowers may not pay for the renovation expenses in full as the maximum amount is the lower of S$30,000 or six times the monthly salary. Though they can apply for others like the furnishing loan, higher costs may apply.
  • The loan tenure is short compared to a home loan. A fully renovated or furnished flat usually lasts for ten or more years. Longer repayment time reduces a borrower’s payment pressures.
  • You should beware of the service fees, e.g., additional loan disbursements, late payment charges. They can cause losses to your budgets in loan planning.
  • Besides, if you plan to cancel or prepay the loan in whole or part early, you will get penalized by paying charges. You may need good planning beforehand.

 

How RHB Renovation Loans Compare To Other Renovation Loans

Banks Maximum loan amount Interest rates Loan tenure Minimum income requirements Processing fees Admin. fees
RHB The lower of six times the monthly salary or S$30,000 2.98% & 4.18% Five years maximum S$30,000 or above per annum 1% of loans disbursed 0%
OCBC The lower of six times the monthly salary or S$30,000 3.98% & 4.18% Five years maximum S$24,000 or above per annum 0% 0.5% of loans disbursed
CIMB The lower of six times the monthly salary or S$30,000 4.2% Five years maximum S$24,000 or above per annum 1% 0%
Maybank The lower of six times the monthly salary or S$30,000 4.1% Five years maximum S$30,000 or above per annum 1% 0%
Standard Chartered The lower of four times the monthly salary or S$250,000 3.48% Five years maximum S$20,000 or above per annum 0% 0%

 

What We Think Of RHB Renovation Loans

RHB offers more product choices, such as the flat and the monthly rest packages, and you can pick one appropriate to your circumstances. In addition, you may like the large loan deal as it offers a lower interest rate – 2.98% than others. Now, shopping vouchers of S$100 are available to successful applicants during the promotion period. 

More than that, you can apply for a refurnishing loan with RHB even if you are an existing renovation loan client.

RHB’s products are not competitive regarding the income requirements and maximum loan amount, and loan tenures. The products are still for further reference with other options on the table.

 

Passing of House Keys

How To Apply For RHB Renovation Loan

Eligibility

  • You must be a Singapore citizen or permanent resident.
  • You are 21 to 55 of age.
  • You’ve earned S$30,000 minimum per annum.
  • For a joint applicant, you are a sibling or spouse of the principal applicant and have an annual salary of S$30,000 per annum.
  • Either the principal or joint applicant must be an owner of a property to be renovated.

Requirements

  • A copy of the invoice with a renovation contractor
  • Annual or monthly income proof
  • Proof of house ownership
  • Proof of relationship for a joint applicant

You may apply through the bank’s website or in-person with the documents required for review.

Fees

Processing fee 1% of the loan amount(included in the monthly repayment amounts)
Disbursement fee
  • Free for the first Cashier’s Order for disbursement to your contractor
  • Subsequent Cashier’s Orders are chargeable at $10 each
Late payment fee 5% above prime lending rate(currently 5.7%) on any overdue installments
Cancellation fee 1% of any not yet drawn loan amount canceled (maximum S$200)
Full repayment fee 2% of the outstanding loan amount
Partial repayment fee 2% of the prepaid loan amount

 

We Are Answering Some Of Your Most Asked Questions:

1. What are the differences between a flat rate and a monthly rest rate when applying for a loan?

The bank calculates and disperses the interest cost of a flat rate loan throughout the whole loan tenure. The loan borrower pays the same interest amount in each installment through the loan period.

For a monthly rest loan borrower, he will pay more interest during the early portion of a loan period. In the latter part of a repayment period, he repays most of the remaining principal.

2. Can I take an additional Furnishing Loan on top of my Renovation Loan? 

What makes RHB’s offerings unique is that borrowers may apply for a Furnishing Loan in addition to an existing Renovation Loan. This kind of financing isn’t typically available with other banks. However, with interest rates from 9.14% – 10.59%, this can be way too taxing for the borrower. We recommend that you seek alternative financing options with a more comfortable interest rate. Click here to find out the best renovation loans in Singapore

Our Final Thoughts

The RHB renovation loans are ideal for applicants requiring larger loan amounts or a further refurnishing loan with the bank.

Our Key Takeaways:

  • RHB offers two types of renovation loans: a flat rate and a monthly rest packages.
  • Competitive rates are available to loan amounts applied over S$15,000.
  • A renovation loan client can apply for a furnishing loan.
  • Shopping vouchers of S$100 are available to successful applicants for a five-year loan of S$20,000.

Home and other space improvements can really be costly. And even if we choose a more economical alternative, money will always be a driving force in your project. If your budget isn’t enough and you have yet to decide on your financing strategy, Instant Loan can help you with that.

Our loan comparison tool allows you to get up to three personalised loan quotes for free from trustworthy licensed moneylenders in Singapore. Enough with the time-consuming manual comparison and get right into refined loan plans that fit your exact needs. Get your free quotes now! 

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