Taking on a business loan need not be stressful or unsettling if you opt for loan repayment insurance. Here’s a handy guide on everything you need to know about loan repayment insurance.
What is loan repayment insurance?
Loan repayment insurance is a form of insurance which protects policyholders from default when unexpected events occur. In the event that the policy holder meets with an accident resulting in permanent disability or death, loan repayment insurance provides financial support to help protect the insured from default.
What protection does it offer me?
DBS’ Business Loan with loan repayment insurance offers a S$100,000 benefit in the event of accidental permanent disability or death. If the insured is hospitalised for seven days or more, the policy also offers a skip loan benefit which allows the insured to skip up to three DBS Business Loan monthly instalments – including principal and interest – capped at S$3,000 per month.
How much does loan repayment insurance cost?
If you successfully apply for a DBS Business Loan, you will receive 12 months’ complimentary loan repayment insurance, for up to two insured individuals per company. Your loan repayment insurance policy will be automatically renewed after 12 months, and you’ll pay a monthly premium of xxx thereafter.
What happens if I terminate the loan or repay in full early?
In the event that you terminate your loan early or repay it in full ahead of schedule, the complimentary insurance premium will be clawed back by DBS in full. The insurance terms stipulate that DBS is entitled to deduct an amount equivalent to the insurance premium from any DBS account maintained by the loan applicant.
How do I apply for a DBS Business Loan with Loan Repayment Insurance?
Applying for a DBS Business Loan is quick and convenient. All you need to do is complete your loan application and submit it online, together with all your supporting documents. You will need to provide your personal income tax records, as well as the income tax information of your guarantor. When you submit your loan application, be sure to use the promotion code “SMEINS” to enjoy a year’s complimentary loan repayment insurance.
Apply online today for a DBS Business Loan with 12 months’ complimentary loan repayment insurance.
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