How is the new Instalment Loan amount calculated after splitting my Balance Transfer Loan into an Instalment Loan?
The new Instalment Loan principal amount will be the remaining outstanding balance of your Balance Transfer Loan. Depending on the loan tenure you selected for your conversion, we will compute a new monthly instalment amount for you. Your prevailing GXS FlexiLoan interest rate will apply to the converted Instalment Loan.
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On 1 January 2024, a GXS FlexiLoan - Balance Transfer Loan of $10,000 was taken for a 6 month tenure at a minimum monthly due rate of 1%. Table 1 shows how your loan schedule may look like.
A month before your final repayment due date on 1 July 2024, you realise you may need more time to repay your outstanding balance of $9,500 - this outstanding amount of S$9,500 can then be converted into an Instalment Loan to split the repayment into more manageable monthly repayments. You have the choice of tenure for the Instalment Loan.
Once converted, your prevailing GXS FlexiLoan interest rate will apply to the Instalment Loan. Assuming you selected a 3 month tenure and your GXS FlexiLoan interest rate is APR 2.99% p.a. (EIR 4.50% p.a.). Table 2 shows how your new loan schedule may look like.
Split date: 1 June 2024
Monthly repayment date: 1st day of month
Split Instalment Loan principal: S$9,500
Loan tenure: 3 months
Interest amount payable: 2.99% p.a. for 3 months = S$71.60
Total loan payable: S$9,500 + S$71.60 = S$9,571.60
Equal Monthly Instalment payable: S$9,571.60 / 3 = S$3,190.53
