As we know, domestic helper loans are used to pay for the expenses of the domestic helper and her family members, such as medical expenses and visa renewals.
The interest rate and fee charged on a domestic helper loan is dependent upon the amount borrowed and the tenure of the loan.
A one-time loan processing fee of 2% will be charged on all domestic helper loans. This non-refundable fee will be deducted from your total loan amount.
This 2% processing fee covers processing your application, conducting due diligence, and disbursement of funds. You can pay off your loan in full at any time without any prepayment penalty.
The interest rate for domestic helper loans is based on the borrower’s creditworthiness and requested loan amount.
The maximum interest rate is 24% per annum. There are no other fees or charges on top of this rate.
Type of Loan
There are several types of loans to choose from when applying for a domestic helper loan.
These include personal loans, car loans, home loans, credit card debt consolidation, and more. The type you choose will depend on your needs and preferences.
A personal loan is the most common type of domestic helper loan and can be used for any purpose, including paying off bills or starting up a business.
It’s an unsecured loan which means the lender requires no collateral to get approved;
however, there may be additional requirements, such as having an active bank account or credit card in good standing with them before approval.
The interest rate on these types of loans tends to be higher than most other options but still considerably lower than what banks charge their customers due to their higher risk tolerance associated with lending money without adequate security against defaulting on their payments.
Average bank loan interest rate in Singapore
The interest rate is the amount charged for borrowing money. The interest rate is calculated as a percentage of the amount borrowed and can be applied to both short-term and long-term loans.
The interest rates on loan agreements range from 0% to 100%, depending on whether you’re looking at a personal or business loan and who you’re borrowing from a bank versus another individual.
A high-interest rate means you’ll pay more over time than someone with a lower one would; however, it’s important that your lender has enough capital available in case there are any unexpected problems with their customers’ payments or defaulted loans.
This ensures they won’t run out of business funds themselves while trying to help others get out of debt problems – which could lead them into bankruptcy!
Fees and Charges
The bank can charge charges on your behalf. These are usually a percentage of the loan amount and will be deducted from your total loan amount at any time during the life of your domestic helper loan.
The following are the common fees you may incur when taking out a domestic helper loan:
Application fee: This is a one-time fee paid when you apply for your loan.
Documentation fee: This is the amount you pay to submit all the required documents for your application to be processed.
Pre-qualification fee: This is an amount you pay when you find a lender who wants to offer you a pre-qualification letter.
A pre-qualification letter shows how much money you may borrow from a particular lender based on your current financial situation.
This amount may change once they receive your official financial documents and income information from your employer or sponsor.
The Bank determines the interest rate on your loan. It considers your credit score, income, and employment history when determining your eligibility for a loan.
If you’re approved for a personal loan from the Bank, read through the contract carefully before signing it: some special conditions apply only to domestic helper loans.
When making payments on an installment loan at some point in the future, we may charge you interest on those installments and any fees due at that time.
We are glad you decided to take out a loan for your domestic helper. We hope the information provided above helps you make an informed decision about the loan you choose and its terms.