DBS Interest Free Installment Payment Plan

DBS/POSB credit cardmembers can make use of the bank’s instalment plans when they make big-ticket purchases. It eases the burden that might have occurred if you have had to pay the entire transaction amount in one go. With the plans offered by DBS, pay smaller amounts every month at no interest for certain tenures.

Key Features and Benefits

There are three primary plans available for DBS credit cardholders. The key features of these plans are:

My Preferred Payment Plan (MP3)

  • Enjoy 0% rates of interest on your purchases at any outlet.
  • Choose tenures of 3, 6, 12, 18, or 24 months.
  • Enjoy a low processing fee for tenures of up to 24 months.
  • You could combine up to 10 transactions to split at a time. The transaction/s should be worth up to S$100 if you want to apply for the DBS MP3.

0% Instalment Payment Plan (IPP)

  • Enjoy 0% rate of interest at several participating merchants.
  • Request for the plan directly at the merchant outlet.
  • Choose between durations of 3, 6, 12, 18, or 24 months.

Income Tax Payment Plan

  • Enjoy a 0% rate of interest while you clear your taxes.
  • Choose to pay in a flexible manner over a duration of 12 months.
  • Enjoy a low processing fee.
  • Get DBS rewards points while you use the plan.
  • You can also use iBanking for payments.

How It Works

How the Instalments Are Split

When you make a purchase through an instalment plan, the total amount is split over the chosen duration. Say you bought a washing machine worth S$3,000 using the My Preferred Payment Plan, and chose a repayment tenure of 6 months. There’ll be a processing fee of 3%, which is equal to S$90. So the amount you’d have to pay every month would be: S$3,090 ÷ 6 = S$515. The amount repayable will be mentioned in your credit card bill.

With certain types of payments, such as the income tax payment, you could earn DBS Points even if you use an instalment plan. But generally, you don’t earn any points or cashback when you use these plans.

How the Instalments Have to Be Repaid

An instalment purchase depends on your credit availability. The entire sum of the transaction is deducted from your credit limit when a purchase is made. If there isn’t enough credit availability on your card, then the bank can reject the IPP application, or charge you an over-limit fee. As you make repayments every month, the credit limit is restored to the tune of the paid amount.

Going back to the previous example, if your credit availability is S$5,000 when you purchase the washing machine, S$3,000 will be deducted from the card, leaving you with S$2,000. Each month, when you pay back S$500, the limit of the card increases by that amount, so that after the first payment your limit will stand at S$2,500.

If you do not pay the instalment amount on a monthly basis, you will be charged the retail or penal interest rate as applicable. If you terminate the instalment plan or cancel your card, you will have to immediately pay back any outstanding sum.

Interest Rates

The interest rates and processing fees for various plans are illustrated in the tables below:

DBS My Preferred Payment Plan

Tenure Processing fee EIR
3 months 3% 18.18% p.a.
6 months 3% 10.43% p.a.
12 months 5% 9.50% p.a.
18 months 6% 7.86% p.a.
24 months 6% 5.98% p.a.

DBS Income Tax Payment Plan

Tenure Processing fee EIR
12 months 3% 5.63% p.a.

Fees and Charges

  • A processing fee of 3% to 6% will be charged for the Income Tax Payment Plan and the My Preferred Payment Plan.
  • An administrative fee of S$150 will be levied in case of early repayment or termination of card account.

How to Apply

The application process for different plans are listed below:

My Preferred Payment Plan:

  • Through your iBanking login.
  • Through the website using your card and PIN.
  • Via SMS by sending “MP3 NRIC” to 76060. The bank will get back to you within three business days and assist you with the process.
  • By sending the completed application form to 6878 9155 through fax or mail.

0% Instalment Payment Plan:

Directly by asking the merchant for the plan before you make a purchase.

Income Tax payment Plan:

  • Through SMS by sending “MP3G_NRIC” to 76060. The bank will contact you within three working days and help you with the application process.
  • By sending the completed application using mail or fax to 6878 9155.
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