When card member decides to convert the balance, the transaction will appear in the current month statement and will not pass the payment due date. The minimum amount for balance conversion is RM1, 000 and it can be a combination of more than 1 transaction.
The interest rate offered for different tenures will be as follows:
|Tenure||Rate with conversion (in %)||Rate without conversion (in %)|
|12 months||14.43||15 - 18|
|24 months||14.66||15 - 18|
|36 months||14.53||15 - 18|
If the card member doesn’t opt for balance conversion, the amount will have to be paid in a lump sum on the payment due date. OCBC bank may solely approve or reject the application for Balance Conversion.
Approval of Balance Conversion
The amount that the card member wants to be converted will be reserved for Balance Conversion post the approval. The credit limit on the card will be reduced to the extent of the approved amount. The approved amount will have to be repaid in monthly instalments. The amount is billed through OCBC card monthly statements throughout the tenure of the balance conversion. The payment due date will be stated in the monthly statement.
The card member will have to agree to the 7.99% interest per annum that will be charged on the approved amount throughout the tenure. The computation is based on Rule of 78 repayment method and the effective interest rate is 14.66% per annum.
Balance Conversion is not applicable in the following cases:
- If the single transaction cost is RM2, 000 and the OCBC credit card holder wishes to convert a part of it. He will have to convert the whole amount and part conversion is not allowed.
- Cash advances cannot be converted.
- Call for cash, balance transfers, quasi cash, easy payment plan or any other schemes will not be converted.
- Annual fee or other fees cannot be converted.
- Last month’s balance cannot be converted.
Approved amount computation
The approved amount along with the interest is billed in equal monthly instalments. The formula to calculate the amount is as follows:
Approved amount multiplied by Balance Conversion interest rate multiplied by Balance conversion tenure which is then added to the Approved amount and the whole divided by number of monthly instalments.
For instance; Approved amount is RM10, 000, Balance Conversion tenure is 12 months and the Balance conversion rate is 7.99% per annum, effective interest rate is 14.66% per annum, the amount to be paid each month is:
(RM10, 000*7.99%*12 months)+ RM10, 000/ 12 months = RM899.92.
The total monthly instalments will come up to RM10, 799 (RM899.92 * 12) for 12 months. The total Balance Conversion Interest is RM799.
Late payment charge
Late payment charge is levied if:
- The outstanding balance in the card is unpaid when Balance Conversion is approved.
- The card member does not pay the full Statement Balance Due as shown in the monthly statements.
Early settlement is allowed, the card member will have to give a prior notice to the Bank and the card member will have to continue paying the Balance Conversion instalment amount until the bank notifies the card member that the amount can be fully settled.
The card member will have to immediately repay the due amount to the bank if:
- The card member defaults paying the minimum amount stated in the monthly statement for 3 consecutive months.
- If the card member’s accounts with OCBC bank are closed, terminated or cancelled.
- If the card member is suspected of or has committed any fraudulent activity.
The above activity will be collectively referred to as indebtedness.
OCBC Bank reserves the right to change, modify or alter the terms and conditions by giving a 21 days’ notice to the card holder. Disputes will be settled by OCBC Bank. The terms and conditions are in compliance with the Laws of Malaysia.