DBS Cashline VS Moneylender

How DBS Cashline compares to a legal money lender in Singapore? Is it better or cheaper?

You’re strapped for cash and you need it urgently. Borrow from a licensed money lender? No thanks. Because you heard that lending from a credit line such as DBS Cash line is much better (or cheaper).

Actually, it’s not true – it depends a lot on your situation.

You will need to ask yourself 3 simple questions.

  • Do you need the money now?
  • Do you have a bad credit score?
  • Is it a one-time loan (frequency = once a year)?

If all your answers are “No”, a credit line is likely a better option for you.

If all your answers are “Yes”, taking a loan from a licensed money lender is not only faster but maybe even cheaper.

Let us illustrate it for you below.

But before we do that, let us run through the 2 options.

What is DBS Cashline?

A DBS Cashline account is a credit line facility that allows you to do the following:

  • Top-up your current/savings bank account
  • Transfer/withdraw money or pay bills with ATM, iBanking or cheque
  • Transact via AXS or NETS point-of-sale

It offers flexible repayment – only need to fulfil minimum repayment every month.

But you should be able to repay it within days to a few months to avoid paying excessive DBS cashline interest.

What is a Licensed Moneylender?

It is an unsecured loan provider like Platinum Credit, that offers you the following:

  • Fast approval and minimal paperwork
  • Instant cash upon approval
  • Less focus on credit score

You can opt for up to 3 months of the repayment period.

And you should be able to repay it within the agreed period to prevent overpayment in interest.

DBS Cash line vs Moneylender

Here’s a quick breakdown of what these 2 borrowing options entail:

 DBS CashlineLicensed Moneylender
Annual IncomeS$20,000 onwardsS$18,000 onwards
Advertised Interest Rate20.5% to 29.8% / Year3.92% / Month (By Law)
Effective Interest Rate (EIR)20.5% to 29.8% / Year15.56% / Month
Max Credit Limit4-10X monthly salaryS$300 to 6X monthly salary
Min Repayment2.5% of outstanding amount OR S$50 (whichever is higher)3.92% of the outstanding balance
Annual FeeS$120-
Processing Fee-10% of loan amount
Late FeeS$120 / MonthS$60 / Month
Credit Score (CBS/ DP Credit Bureau)Excellent to GoodFlexible - based on moneylender's discretion
Documents RequiredNRIC, & CPF Contribution Stm (Last 9 mths); NOA (Latest); or Computerised Payslip (Latest)NRIC, Proof of Income, & Bills or Bank Statements (to verify address)
Cash DisbursementPending account approval by bankInstant


Depending on your loan amount and frequency, a loan from the moneylender may be cheaper than the bank.

You can see from the following example. If you borrow S$1,000 once a year, DBS Cashline will become more expensive from the 2nd year onwards.

 DBS Cashline (Year 1)Licensed Moneylender (Year 1)DBS Cashline (Year 2)Licensed Moneylender (Year 2)
Loan AmountS$1,000S$1,000S$1,000S$1,000
Loan Period30 Days30 Days30 Days30 Days
Processing Fee-S$100-S$100
*Annual Fee (1st Year Waived)S$120 (Waived)-S$120-
Advertised Interest Rate29.8% / Year3.92% / Month29.8% / Year3.92% / Month
Amount You'll ReceiveS$1,000S$900S$1,000S$900
Interest AmountS$24.49S$39.2S$24.49S$39.2
Total Cost (Interest + Fees)S$24.49S$139.2S$144.49S$139.2

*With effect on 2 December 2019.

So if you are facing one of the following scenarios:

  • Do not borrow often and needed cash urgently
  • Do not have a fantastic credit score
  • Had your DBS Cashline application rejected

You can contact a reliable money lender like Platinum Credit today!



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