DBS gets a jump on Lunar New Year loans
By Kathryn Chiu, The China Post
December 12, 2013, 12:05 am TWN
TAIPEI, Taiwan -- Eyeing the demand for cash by individuals and small- to medium-sized businesses (SMBs) during the Lunar New Year, DBS Taiwan has recently commenced its annual “Red Envelope Loan” (紅包貸) service.
Head of Consumer Banking at DBS Taiwan Seraph Sun (孫可基) on Wednesday said this year's Red Envelope Loans are now ready for applications, with a deadline set for Jan. 30, 2014. Those who manage to complete application procedures and obtain loans by the end of January are exempt from the cost of opening an account, which amounts to NT$6,000, Sun added.
According to Sun, Red Envelope Loan service users enjoy a lower-than-average 1.68-percent fixed interest rate for first three months. However, starting from the fourth month, interest will accrue on a basis of 4.06 percent, floating upward between 2.68-17 basis points.
DBS Taiwan's time deposit interest rate index takes for reference those of Bank of Taiwan (台灣銀行), Land Bank (土地銀行), Taiwan Cooperative Bank (合作金庫), First Bank (第一銀行), Hua Nan Bank (華南銀行), Chang Hwa Bank (彰化銀行), coupled with DBS Taiwan's 1-year average fixed interest rate. The index is regularly fine-tuned on a seasonal basis.
DBS Taiwan indicated that Taiwanese nationals aged 20 to 60 who have been working with their current employers for over six months and garner an annual income of at least NT$300,000 are eligible for Red Envelope Loan services.