Originally from Singapore, DBS Bank is now one of the top 10 largest banks in Hong Kong. DBS offers a range of personal loan options in Hong Kong, including a standard instalment loan and a debt consolidation loan. Find out which is best for you.
Max Repayment Period
The DBS Personal Instalment Loan is appropriate if you are looking for fast and convenient disbursement of funds. It has a fairly regular maximum loan limit among banks in Hong Kong, offering up to 12 times your monthly salary or HK$ 2,000,000, whichever is lower. You can choose to repay your loan over a period of 12 to 60 months, in blocks of 6 months.
Only Hong Kong residents aged at least 18 years old are eligible for this loan. You need to be earning at least HK$80,000 a year as well. To apply, you only need to submit your Hong Kong ID and you can get an instant application result. If successful, the loan amount will be disbursed on the same day. (DBS reserves the right to request further supporting documents.)
Should you need cash in the future, DBS also gives you the option to redraw from your loan while you are still repaying it. You need to have paid at least one installment, have a punctual track record, and repaid at least HK$5,000. The application process is minimal and you do not need to submit any documents to do this.
*Calculation based on loan amount of HK$1,500,000 and repayment period of 12 months; the actual APR may vary for individual customers.
Max Repayment Period
The DBS Debt Consolidation Loan helps you tackle high-interest credit card debt by consolidating multiple debts into one loan with a fixed repayment plan. The fixed monthly installment structure makes repaying your credit card bills a lot more manageable, and you save on high credit card interest rates.
You can borrow up to 21 times your monthly income or HK$2,000,000 (whichever is lower), and choose a repayment period of up to 72 months (6 years).
You need to be a Hong Kong Permanent Resident, at least 21 years old, and with a minimum annual income of HK$100,000 to qualify for the DBS Debt Consolidation Loan. DBS will review your application and offer a personalized interest rate depending on your credit record and the debt you're in.
Note: The final loan amount approved by DBS and the loan tenure is evaluated on a case by case basis. Please contact DBS for details.
*Calculation based on loan amount of HK$1,200,000 and repayment period of 48 months; the actual APR may vary for individual customers.
Unlike the DBS Personal Instalment Loan and Debt Consolidation Loan, the DBS Cashline Revolving Loan does not have a fixed repayment schedule.
Instead, DBS Cashline works more like a credit card. You will get a credit limit set by the bank - this can be up to 8 times your monthly salary or HK$800,000, whichever is lower.
You can choose to withdraw from that credit limit by either a Cashline card or cheque book (both provided). Only the amount that you withdraw will be subject to interest. But, as with a credit card, you need to repay it as soon as possible to avoid incurring high interest, which is charged daily. Once you repay the amount, the credit limit will be restored and you can redraw the amount at any time.
Given the distinct nature of the revolving loan, it only makes sense to go for this type of loan if you are very confident that you can repay the amount in a very short time. Otherwise, you may decide to convert your Cashline credit limit into a regular instalment loan (12 to 60 months) for a more manageable loan structure.
DBS Cashline Revolving Loan eligibility requirements are similar to that of the DBS Personal Instalment Loan. You must be a Hong Kong resident, at least 18 years old, and earning at least HK$80,000 a year.
Find a suitable loan product that best fits your financial needs. Make sure you read the fine print and understand the loan structure. Once selected, fill in the application form and submit all the required documents. You can also submit an application on the DBS website or DBS Loans app.
For the DBS Personal Instalment Loan, the application result is instant once you upload your HKID, which cuts short the loan approval process to as little as one minute. Otherwise, a DBS Loan Specialist will contact you after reviewing your application to confirm the terms of the loan.
If you opt for the DBS Personal Instalment Loan, once approved, the loan will be disbursed into your designated bank account on the same day. For the Debt Consolidation Loan, DBS will disburse the loan amount directly to your outstanding credit card accounts. There is no disbursement for the Cashline Revolving Loan until you decide to withdraw against your credit limit.
DBS may offer seasonal promotions for their personal loan products, for example, a cash coupon for online application or reduced promotional interest rate for new customers. While such promotions are tempting, a personal loan is a major financial commitment and it would be unwise to base your decision on a limited-time-only offer. Check the terms of each loan type to make sure that it's the right one for your needs before you apply for it. Also, note that the bank may choose to claw back the offer in certain scenarios, such as if you decide to make early repayment of your loan.
The basic criteria for DBS personal loans are listed above. Minimally, you must be a Hong Kong resident, at least 18 years old, and earn HK$80,000 a year. More stringent criteria will apply if you opt for the DBS Debt Consolidation Loan. You will need to furnish your HKID card and disbursement account to apply for a loan, as well as the following:
DBS does not state the specific type of income proof they require, but it is standard practice to submit at least the past month's payslip or bank statement showing your salary credit. Those who are self-employed or freelancers may need to show additional documents, such as a Tax Demand Note. DBS may also request a practicing certificate issued by a relevant association if it applies to your profession.
Proof of address is another standard document that most banks will ask for before they will lend you any money. For DBS, this needs to be something that was issued within the past two months. It can be a government letter or utility bill with your name and address stated on it.
We have discussed interest rates and loan structures quite a bit above, but it is also important to know about any hidden fees that DBS might charge.
For personal instalment loans, DBS charges 1% to 1.5% handling fee depending on your loan amount. The handling fee for the debt consolidation loan is 1.5%. By law, all banks must include the handling fee in the stated APR interest rate. There is no handling fee for DBS Cashline revolving loan.
It pays to be punctual with your personal loan or debt consolidation loan repayments. Otherwise, you'll be charged HK$300 for each month you do not make the monthly payment in full when it's due. The late repayment fee of HK$150 to HK$250 for Cashline appears more lenient, but you will be charged much higher interest (42.58% per annum) on overdue amounts.
Want to settle your personal loan ahead of schedule? DBS charges a hefty fee of 1.5% multiplied by the number of years left on the loan. So if you have 3 years left on the loan tenure, that's 4.5% of the principal you need to pay. This is a potential cost to bear in mind when deciding on your loan tenure - it doesn't always make sense to choose the longest option, even if the instalments are smaller.