BOC Debt Consolidation Plan Review: Regain Your Financial Stability With Low Interest Charges
Are you planning to consolidate your debt? If yes, a debt consolidation plan from BOC can help you in this respect. Thanks to lower interest rates, you can shrink the size of your debt burden faster and in a convenient manner since you’ll have to deal with one entity instead of many. Flexible repayment tenures mean that you can probably repay the debt as per your convenience and without massively impacting your regular monthly cash flow.
Low Interest Rates, One-Stop Solution to Debt Consolidation: Should You Opt for This Loan?
The basic purpose of a debt consolidation programme is to contain the size of your debt and manage it better so that you can become debt-free without letting your daily life get hampered or altered in a major way. Can this loan deliver on this front? A look at the following features and benefits of this product may give you an idea:
Maximum borrowing limit: If you’re applying for this class of personal loan for the very first time, you’ll get a loan amount which will cover the outstanding balances on your existing unsecured credit facilities and also provide you with an additional allowance of 5% to cover for fee/interest rate changes which may occur between the submission of your loan application and its approval.
Minimum borrowing limit: In order to be eligible for this debt management programme, one of the criteria is that the unpaid balances on your unsecured credit lines should exceed 12x your monthly income. This means that the approved amount can’t be less than this value.
Loan tenure: You can choose to repay your loan over a period of up to 10 years.
Competitive interest rate: The flat rate on this loan starts from 7.8% p.a.
One account and one payment: Once you sign up for this loan, all your existing loan accounts will be suspended. This means that you’ll have to manage just one credit account and make one fixed payment every month. Isn’t that more convenient?
Complimentary credit card: Get a BOC Family Card that comes with no annual fee for the entire duration of the DCP loan. You’ll be granted a credit limit on your card which is equal to your monthly income. Since you’ll have no other revolving credit account to fall back on for emergency or daily expenses, this card can certainly offer you great assistance in steadying your cash flow and helping you manage your expenses.
No need to be an existing customer: You may apply for this loan even if you don’t have an existing relationship with the bank. You can also refinance your existing DCP. This means that you may find exit as convenient as entry into the programme.
Lower Your Cost Burden With Moderate Interest Rates
Enrolling in a DCP would be meaningless if it doesn’t help you lower your loan interest burden and expenses. This BOC loan is an option that you may want to consider, given that the applied interest starts from 7.8% p.a. and the effective interest rate starts from 8.63% p.a.
Fees and Charges That May Apply to Your Borrowing
A loan becomes low-cost when affordable interest rates get coupled with low fees and charges. When you sign up for this loan, you may have to pay the following fees:
You may be charged a prepayment fee if you choose to repay the loan before maturity. You may find the rate mentioned on your letter of approval.
If you want to change the tenure of the loan after your application has been approved, you’ll be charged a restructuring fee of S$200.
A non-refundable processing fee shall apply to your loan at the rate mentioned on your letter of approval.
A cancellation fee will be charged if you want to cancel your loan prematurely.
You’ll have to pay an additional late fee if you fail to settle the monthly instalment on time.
You’ll be charged default interest rates for failure to repay your monthly instalments on time. Such rates will continue to apply until full settlement of the dues are made.
You may also have to pay the following fees on your credit card:
No annual fee will be charged on your card during the tenure of the DCP loan. However, thereafter, the bank may impose one based on its discretion.
Finance charges will apply on your card transactions. If you fail to make the minimum monthly payment on time, a higher finance charge may apply until the due is paid.
If the minimum monthly bill amount is not paid, a late fee may also apply.
Keep in Mind: Partial Consolidation of Unsecured Debt Is Not Possible
Taking into consideration the following points along with the features of this loan product might give you a complete picture and help you understand how and whether you can benefit from the product:
Partial consolidation of your debt won’t be allowed by the bank.
Temporary credit limit increase on your card or a new unsecured credit facility won’t be extended to you till the time you have outstanding balance on your DCP loan.
You can apply for a new unsecured loan from BOC only if the balance-to-income (BTI) ratio on your unsecured loan goes down to below 4 times your monthly income. BTI is the interest-bearing outstanding balance/monthly income.
Outstanding balances on your existing education loans, medical loans, renovation loans, business loans, and joint accounts can’t be consolidated under this programme.
If the loan amount approved doesn’t pay for your outstanding balances fully, you’ll be responsible for paying such dues down.
Credit information related to your DCP account will stay on your credit report for 3 years from the time of account closure.
If you don’t want “Accounts past due” records on your credit report, continue to service the existing loan accounts till your DCP loan is approved and also settle any outstanding due that isn’t covered by the loan.
Do You Satisfy the Eligibility Requisites for This Loan? Find Out Here
To be eligible for this DCP loan, you’ll have to satisfy the following:
Be a citizen or permanent resident of Singapore.
Have a minimum annual income of S$30,000.
Have a maximum annual income of S$120,000.
Be aged 25 years or above.
The value of your aggregate existing unsecured debt should be greater than 12 times your monthly income.
You may even check the general eligibility criteria for personal loans from the bank here.
You’ll also have to provide the following documents for verification/validation:
Copies of online and paper statements in relation to your existing credit accounts.
Confirmation letters providing proof of unbilled balances on your existing credit facilities or purchase plans.
Want to Apply? A Hassle-Free Experience Awaits You
You can apply for this loan through any one of the following channels:
Send an SMS to the bank.
Call the bank’s designated hotline.
Want to Learn More About the Product? The Following FAQs Might Help in That Respect
Q. What is the process of loan cancellation or early settlement?
A. If you wish to cancel or prepay your loan before the end of the loan tenure, you’ll have to inform the bank in writing. The bank will initiate the process after that. In case you fail to correspond in writing, the bank will continue to charge you monthly instalments in accordance to the loan agreement.
Q. What will happen to the Family Card that I have been issued after I fully settle the DCP loan?
A. The card may either be closed or converted into a regular unsecured credit facility by the bank. Existing balance, if any, will be transferred to a new or existing unsecured revolving credit account.
Q. What is a DC Registry and why is it important?
A. By rule, you’re not supposed to have multiple DCP accounts simultaneously. How do banks ensure that? They just need to find all your DCP-loan-related information in this centralised registry. That is why this registry is important to FIs (financial institutions).
Q. Once I apply for BOC DCP, do I have to inform the current creditors?
A. No. BOC will inform the existing lenders and also send money directly to them for settlement of account dues.
Q. When can I apply for a new unsecured loan from a bank other than BOC?
A. You may apply for a new unsecured loan from a bank other than BOC when the value of your combined interest-bearing outstanding unsecured debt touches or falls below 8 times your monthly income.