With zero fees and maximum flexibility, this personal loan is redefining borrowing
Amid mounting inflation and rising living expenses, it’s no surprise that some individuals are turning to personal loans to ease their cash flow challenges.
“For many consumers, personal loans can be a lifeline, especially when unexpected crises arise, such as medical emergencies. However, the process of researching, applying for and awaiting loan approval during such times only compounds stress and anxiety,” said Ms Jenn Ong, head of retail at GXS, a digital bank backed by Grab Holdings and Singtel.
In response to the demand for a flexible personal loan solution, GXS has introduced GXS FlexiLoan, a personal credit line offering customers prompt access to cash reserves through a few taps on their smartphones.
A personal loan may seem like a quick fix in a financial pinch, but it entails a certain level of commitment. From maintaining timely repayments to navigating hidden fees, it’s understandable why many individuals harbour reservations about engaging with such products. Ms Ong sheds light on common concerns surrounding personal loans.
“Taking a bank loan entails substantial costs.”
While most people who take on personal loans are mindful of interest rates, it is important to consider the broader spectrum of associated fees. These include a one-time processing fee to cover administrative costs, an annual fee for loan account maintenance and late payment fees imposed when borrowers miss scheduled payments or make only partial repayments by the due date. A fee that often takes borrowers by surprise is the penalty fee imposed for early full repayment as compensation for potential lost interest income for the lenders.
A GXS survey in March 2023 revealed that 77 per cent of respondents expressed a desire to repay their loans ahead of schedule. However, they are put off by obstacles such as early repayment penalties and the absence of interest reductions.
GXS FlexiLoan distinguishes itself by being the first bank product to offer interest savings for early repayments. Borrowers enjoy the benefit of no early repayment fees when settling their instalments ahead of schedule. GXS is also the first bank that does not collect annual fees and processing charges typically associated with maintaining such lines of credit. Furthermore, GXS does not levy late fees, though late interest charges applies in the event of delayed repayments.
“The loan terms offered by banks do not fit my needs.”
In the same survey, at least half of the respondents expressed a preference for loan tenures of under 12 months.
With GXS FlexiLoan, customers have the flexibility to borrow up to 10 instalment loans with loan amounts from as small as S$200. Customers may also tailor the duration of their instalment loan according to their needs – from as low as a two-month tenure – and select the monthly repayment date that best fits their cash flow needs.
