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POSB Balance Transfer Review

A loan with flexible repayments and no interest for up to 12 months.

The POSB Balance Transfer loan comes with flexible repayment schemes, a DBS debit card for consolidated expenditure and no interest rates for up to 12 months. This review will explore the benefits of and drawbacks of POSB’s Balance Transfer loan, including its features and potential costs.

Pros and cons


  • Interest savings. Enjoy 0% interest rates for a limited time period
  • Easy and flexible repayments. Pay as little as $50 or 2.5% of your statement
  • Promotions and deals. Enjoy lower fees and costs when you sign up online


  • Administrative fees may get costly. 2.5% of your statement could add up
  • Interest charges may add up. After the limited free interest charges, interest rates may go up to 5.06% or more

Main points to consider with the POSB Balance Transfer

A POSB Balance Transfer loan is best suited for individuals looking for flexible repayments, centralised expenditure and best for those with a 12-month borrowing period. In spite of its 12-month 0% interest offer, its subsequent interest rates may be costly depending on your financial needs. However, if you’re internet savvy and interested in online sign-ups, you may be able to snag a good deal and get more bang for your buck.

Features of the POSB Balance Transfer

  • Low initial interest rates. Enjoy 0% interest rate for up to 12 months.
  • Flexible repayment options. Pay either $50 or 2.5% of your statement balance, whichever is higher.
  • Centralised expenditure. Consolidate all your credit card balances into a DBS Credit Card.

Fees and charges to look out for

Although the ultimate cost of depends on your financial situation, you may expect the following interest charges and fees:

  • Processing fee. There’ll be a one-time fee charged upon the approval of your balance transfer. The processing fees are 2.5% and 4.5% for 6-months and 12-months balance transfers respectively.
  • Minimum monthly payment. You’ll need to pay at least 2.5% of the statement balance for DBS Cashline / 3% of the statement balance for DBS/POSB Credit Card, or $50, whichever is greater.
  • Finance charge. Prevailing interest rates of 20.5% to 29.8% p.a will apply on the outstanding DBS Cashline balance transfers amount, and 26.8% p.a. on the outstanding DBS/POSB Credit Card balance transfer amount.
  • Late repayment fee. You’ll incur a $100 late payment fee for Credit Card or $120 for Cashline if you miss the monthly loan repayment date.

How to apply for the POSB Balance Transfer

POSB Balance Transfer loans are only available to existing POSB customers. Customers with a credit card or Cashline account may simply apply through their iBanking apps or with their card details on the POSB website. You may apply for a minimum balance transfer of $500.

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