BOC Debt Consolidation Plan

    BOC is a China-based bank in Singapore which enjoys a strong presence in the region. The bank offers a wide range of financial products and services that cater to both personal and corporate banking.

    The Bank of China Debt Consolidation Plan (DCP) is an unsecured loan which serves the purpose of consolidating outstanding unsecured loan balances. Balances such as credit card dues or personal loans from one or more banks fall under the purview of the debt consolidation plan.

    Features and Benefits

    Let us examine the features and benefits of the BOC Debt Consolidation Plan in detail:

    • The BOC DCP allows borrowers to consolidate all their outstanding loan balances into one loan removing the need to keep up with multiple instalments and varying due dates.
    • With the debt consolidation loan, borrowers have greater control over their finances as they only have one instalment to pay. This instils financial discipline.
    • The BOC debt consolidation loan offers a lower rate of interest making it easier to pay off the loan.
    • The lowered rate of interest also means that borrowers will not only be paying a much lower repayment instalment, but will also be saving considerably on the total interest they pay over the duration of the loan.
    • The BOC debt consolidation plan comes with a maximum tenure of up to 10 years giving borrowers a high degree of flexibility in choosing a tenure that best suits their budget.
    • The debt consolidation loan also comes with a revolving line of credit. This is given in the form of a complimentary BOC credit card which has a credit limit equal to that of the borrower’s one month’s salary.

    How the Bank of China DCP works

    Assume a borrower has outstanding credit card balances with 4 different banks to the tune of S$30,000. With most credit cards charging an interest rate of 26% p.a. or more, the interest that the borrower pays just on their credit card balances can amount to S$7,800 annually. This will only increase with an increase in tenure.

    If the borrower was to go in for a debt consolidation loan, he/she would receive the loan amount for a much lower rate of interest. Even if the rate of interest is an EIR of 11% p.a., the borrower would only be paying S$3,300 in interest which is less than half the amount they would be currently paying. Not only does the borrower save on interest paid, they also get to clear their loans faster as the instalment amount to be paid every month would also be lower.

    The above example has been simplified for illustration purposes. Actual numbers may vary depending on the outstanding loan balance of the borrower, the debt consolidation loan amount, the tenure chosen and the rate given at the time of approval.

    Eligibility criteria

    • The borrower must be a Permanent Resident or a Singaporean citizen.
    • The minimum age of the borrower must be 25 years.
    • The minimum annual income of the borrower must be within S$30,000 to S$120,000.
    • The total unsecured debt or interest-bearing balance of the borrower must be greater than 12 times their monthly income.
    • The plan is open for salaried applicants and self-employed applicants.

    Documents Required

    The applicant must provide the following documents at the time of application:

    • Identity documents such as a front and back copy of the applicant’s NRIC
    • A copy of the applicant’s most recent Credit Bureau Report
    • Income documents such as computerised payslips, 12 months’ income tax notice of assessment and 12 months’ CPF contribution statement for salaried applicants
    • 2 years’ income tax Notice of Assessment for self-employed applicants
    • Any other documents such as credit card statements or bank statements showing outstanding debt of the applicant.

    How to Apply for BOC DC Loan?

    Borrowers can apply for the BOC DCP through the following ways:

    • Visit the BOC website and go to the Debt Consolidation Plan page. Here one will find the customer service hotline number. Applicants can call on the number or send an SMS to the mentioned mobile number to initiate the application process.
    • Alternatively, borrowers can walk into their nearest BOC branch and request for a DCP application.


    • Can an education loan or home loan be consolidated under the DCP?
    • No. As per the regulations put forth by MAS, only unsecured loans such as credit cards and personal loans can be consolidated under a debt consolidation loan.

    • Will the additional allowance be given every time a debt consolidation loan is taken?
    • No. The additional allowance is provided to cover for any incidental charges incurred and is only given for the first debt consolidation loan taken. Any subsequent refinancing of the DCP will not receive an additional allowance.

    • Can one choose not to take the additional allowance?
    • No. the additional allowance is given as a bundle package and cannot be opted out of. However, any unused portion of the allowance or any amount that has not been disbursed will be refunded.

    • Can one continue to use any existing unsecured credit facility after applying for a debt consolidation plan?
    • No. When the debt consolidation loan has been approved, all outstanding balances will be cleared and existing credit facilities such as credit cards will be deactivated. The borrower will however receive a complimentary BOC credit card with a credit limit equal to their monthly salary to manage any expenses.

    • Can one apply for multiple debt consolidation plans at the same time?
    • No. A borrower can only apply for one DCP at any given point of time regardless of which bank has given them a debt consolidation loan.

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