Get the Best Debt Consolidation Plan Interest Rates for 2019 Now!

Updated 19 March 2019

Get the latest Debt Consolidation Plan interest rates for Singapore on MoneySmart.sg. See how Debt Consolidation Plan compares against other banks and apply instantly online.

Edit Loan Details

Loan Details

$
$
Processing Fee

4.50%

Interest Rate (EIR 8.64% p.a.)

S$199

Processing Fee

$946

Per Month

  • Get S$100 Bonus Cashback
Loan Details
Citizenship StatusSingaporean / PR
Minimum Annual Income$30,000
Maximum Loan Tenure10 years
Processing FeeS$199
Repayment Summary
Principal Loan Amount$30,000
Monthly Instalments$946
Interest Rate (per annum)4.50%
Loan Tenure3 years
Total Amount Payable$34,249
Total Interest Payable$4,050

5.67%

Interest Rate (EIR 10.50% p.a.)

Nil

Processing Fee

$975

Per Month

Loan Details
Citizenship StatusSingaporean / PR
Minimum Annual Income$30,000
Maximum Loan Tenure7 years
Processing FeeNil
Repayment Summary
Principal Loan Amount$30,000
Monthly Instalments$975
Interest Rate (per annum)5.67%
Loan Tenure3 years
Total Amount Payable$35,103
Total Interest Payable$5,103

6%

Interest Rate (EIR 11.08% p.a.)

Nil

Processing Fee

$983

Per Month

Loan Details
Citizenship StatusSingaporean / PR
Minimum Annual Income$30,000
Maximum Loan Tenure8 years
Processing FeeNil
Repayment Summary
Principal Loan Amount$30,000
Monthly Instalments$983
Interest Rate (per annum)6%
Loan Tenure3 years
Total Amount Payable$35,400
Total Interest Payable$5,400

MoneySmart lists Debt Consolidation Plan products that range between a minimum of 1 to a maximum of 10 years. The effective interest rate (EIR) of loan products on our site range from 8.54% p.a. to up to 11.08% p.a. The EIR of your loan will be dependent on the loan you apply for as well as your personal financial needs.

For example, you would need to pay S$315/month for a S$10,000 Debt Consolidation Plan with a loan tenure of 3 years at 4.50%pa Interest Rate (8.64% EIR). This would equate to a total payment of S$11,549 over 3 years. Please view each Debt Consolidation Plan product in detail for a full breakdown of the interest rate chargeable, minimum and maximum loan tenure as well as processing fees (if applicable).

Frequently Asked Questions

What is a debt consolidation plan?

A debt consolidation plan combines all your unsecured debts (such as multiple credit card bills) into one big loan with just one bank or financial institution. The bank clears your outstanding credit cards and accounts so that you can concentrate on repaying the DCP loan. Since DCP interest rates are typically much lower than that of credit cards, it is easier to repay.

Who can apply for a debt consolidation plan?

Only Singapore citizens and PRs are eligible for a debt consolidation plan. You need to earn between $20,000 and $120,000 per year, and your net personal assets (all your assets, minus any liabilities) should be valued at less than $2 million. On top of these, the bank offering the DCP loan may have further requirements while assessing your eligibility.

What kinds of debt can’t be consolidated under DCP?

Debt consolidation plans are for unsecured credit, so it excludes secured loans like car or housing loans. If you took out a loan for a specific purpose, such as a renovation, education, medical or business loan, it also cannot be consolidated under DCP. Your total debts need to be more than 12 times your monthly income in order for you to qualify for a DCP loan. (Although, if it’s less than that, you can still take out a personal loan to consolidate your debt.)

How much will you owe the bank under a debt consolidation plan?

On top of adding up your outstanding bills + interest, the bank will also add up to 5% on top of that for your first DCP loan. That’s because in the time it takes to pay off those credit card bills on your behalf, your old credit accounts might have accrued even more interest and/or fees. The 5% serves as a buffer for this purpose, and the excess will be refunded.

What else should you be aware of?

If your outstanding bills are very high, there’s a chance that your approved DCP loan amount is not enough to cover all your debts. In this case, you’ll have to settle the shortfall directly with the credit card issuer, otherwise, your debts will not be cleared. Also, it’s possible to refinance your debt consolidation plan if you find a better one out there. You need to notify your bank and obtain a settlement notice before you transfer.

What documents do you need to apply for a DCP?

When you apply for a debt consolidation plan, you should have the following documents ready: copy of NRIC (front and back), latest income documents, latest credit bureau report, latest credit card/unsecured credit loan statements, plus (for unsecured credit installment plans) a confirmation letter stating your unbilled balance.