GXS, a joint venture by Grab and Singtel, holds a prominent position in Singapore's evolving digital banking space with its full digital bank license. Among its various offerings, the GXS FlexiLoan has been a topic of interest. This new loan offering has created a buzz in Singapore’s financial circles. Let's delve into its features and see how the GXS FlexiLoan aligns with other loan products in the market.
How does GXS FlexiLoan work?
As a digital bank, applying for a GXS FlexiLoan is entirely online. This makes the loan application and loan approval process seamless once you have downloaded the GXS app from the App Store or Google Play Store. Upon approval, you'll be assigned a credit limit, enabling you to borrow as little as S$200, up to the maximum amount determined by your credit limit.
Aged between 21 and 65 years old;
A Singapore Citizen or a Singapore Permanent Resident; and
Have a minimum annual income of S$20,000
Key Features of GXS FlexiLoan
1. Flexible Borrowing:
GXS FlexiLoan claims to redefine flexibility, and this is their main value if you are flexible with loan amount, loan tenure, and repayment arrangements. Once your loan is approved, you can draw down funds as needed. Choose from loan durations ranging from 2 to 60 months, and borrow as little as $200. This feature positions GXS FlexiLoan as a standby resource, ready when you are, without any charges for inactivity.
2. Flexible Repayment
Unlike conventional structures, there are no early termination fees, enabling you to close the books on your loan early (got a bonus coming?). you can repay your loan, in full or partially, whenever you're ready. This flexibility is perfect for those looking to decrease financial burdens quickly. The daily, non-compounding interest calculation means you only pay for what you use, leading to potential savings in the long term.
3. Fee Structure
What sets GXS FlexiLoan apart is its digital, fee-free approach. They claim to have no processing fees, no early termination fees, and no hidden charges. The only fee is a late interest charge of 18% per annum. This is lower than most credit cards’ late fees, but still a hefty amount if you miss a payment. If you do choose this loan, make sure you always repay on time.
4. Versatile FInancing Solution
GXS FlexiLoan provides a versatile and accessible solution, addressing diverse financial needs such as debt consolidation, funding major short-term expenses like emergency situations, home or car repair works, family vacations, and major life events like weddings or funerals. For longer term debt solutions, such as debt consolidation, home renovations, or business ventures, Personal Loans with fixed repayments across a longer tenure might be a better solution as your interest rates are spread out across a longer period of time monthly instead of daily.
Considerations for GXS FlexiLoan:
1. Advertised Interest Rates Versus Actual Interest Rates
While most banks and financial institutions feature a headline advertised rate (“up to…” or “as low as…”, this doesn’t mean anything as interest rates are dynamic based on your individual credit assessment. Individual creditworthiness determines the final interest rate, which may vary from bank to bank, and rarely matches the lowest advertised rate. GXS FlexiLoan’s advertised promotional rate of 2.99% is subjected to credit assessment, so don’t be surprised if your actual loan offer differs. It is important to always compare a few offers to make an informed decision, and do so through a trusted, free service like Lendela so it does not impact your credit score.
2. Consider Effective Interest Rate:
The two most important numbers to note when understanding the cost of a loan, such as GXS’ FlexiLoan, are the Annual Percentage Rate (APR) and the Effective Interest Rate (EIR). It is essential to understand the effective interest rate so that you have a more comprehensive understanding of the total borrowing cost.
3. Always Compare Your Best Loan Options
Like any big expense, you’ll want to always make sure you’re paying for value. The same goes with “shopping” for your personal loans. Having a comprehensive overview of your available loan options could save you hundreds to thousands of dollars on your personal loan. You can use a free service like Lendela that pulls pre-approved loan offers for you to choose from, entirely online so you can compare most competitive personal loan offers and make an informed decision on your best personal loan match.
Disclaimer: Lendela remains committed to neutrality and transparency in our reviews and loan products to aid in your decision-making process. This review is solely based on our research and evaluation. For more detailed inquiries or specific questions about GXS FlexiLoan, we encourage you to contact the credit provider directly.
Compare Loan Options and Find Your Loan Match on Lendela
At Lendela, we understand it’s not easy to compare and find your loan match. We have gathered over 40+ banks and MAS-regulated credit providers to feature your most competitive loan offers in Singapore for free. Still have questions regarding personal loans? Our friendly and experienced customer support staff is always here to guide you through the jargon and loan process from application to disbursement. Start your journey to favorable flexible loan options with Lendela today.
- GXS FlexiLoan stands out for its unmatched flexibility, allowing you to draw funds at your convenience, choose durations from 2 to 60 months
- GXS FlexiLoan ensures a transparent, fee-free experience by avoiding processing fees, early termination fees, and late fees
- GXS FlexiLoan advertised 2.99% rate is subject to credit assessment, and the final interest rate, based on individual creditworthiness, may vary from the lowest advertised rate.