Lendela Review: A Detailed Look at Trust Bank Instant Loan

Trust Bank in Singapore, supported by Standard Chartered and FairPrice Group, is another pioneer in Singapore's digital banking landscape. It offers personal loans with a focus on digital banking, which means no physical branches but full banking functions and licenses. Similar to our previous review on GXS FlexiLoan, Trust Bank’s loan products are competitive with those from other banks in Singapore. Its latest loan offering, Trust Bank Instant Loan, ensures customers quick access to funds. If you are considering taking a loan from Trust Bank, here’s all you need to know about Trust Bank Instant Loan’s key terms and how it works relative to  other loan products available in the market.

How does Trust Bank Instant Loan work?

Trust Bank Instant Loan operates through your Trust credit card's credit limit, effectively converting a portion of your credit balance into cash. To apply for  a loan, you will need to choose the loan amount and tenure, all of which is done through the Trust app. You will then be informed of the approval status through the Trust app. Upon approval, the cash gets credited into your Trust Bank Savings account.

For Existing Customers:

To qualify for the Instant Loan as an existing customer, you must have held a Trust credit card for a minimum of 6 months, and your credit card should have a sufficient available credit limit.

For New Customers:

Singaporean Citizens, Permanent Residents, and Foreigners, are eligible for the Instant Loan. To apply for a credit facility, you should be between 21 and 65 years old. Additionally, the annual income requirement is S$30,000 for Singaporean citizens or permanent residents and S$60,000 for foreigners with a valid work pass. Trust Bank will do its credit checks to determine if you are eligible for a loan.

Key Features of Trust Bank Instant Loan

1. Loan Amount and Tenure:

The minimum loan amount and tenure for each application are set at a minimum of S$500, with repayment period ranging from 3 to 60 months. Monthly installment amounts are calculated based on the approved loan amount and total interest over the loan tenure. Starting from 3.40% p.a. (EIR from 6.24% p.a.*).

2. Fast Application Process

You can apply digitally through the Trust Bank app, where you have the option to select and view the finalized loan amount, tenure, installment details, and the loan installment date. As you would already have had a credit facility with Trust Bank on the credit card, in most cases, approved loans will be deposited into your Trust savings account within 60 seconds. As a digital bank, the process is also completely online, minimising friction from long queues and wait times.

3. Early Repayment Option

For those considering settling their loan ahead of schedule, Trust Bank provides an Early Repayment Option before the scheduled tenure. Early repayment requires settling any accrued unpaid interest and charges. One thing to note here is that early repayments need to be done in full, and no partial early repayment is allowed.

Considerations for Trust Bank Instant Loan:

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 much given that 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. Trust Bank Instant Loan’s advertised promotional rate of 3.40% (as of January 2024) 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 Trust Bank Instant Loan, 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 inquiries about Trust Bank Instant Loan, 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.