CIMB is a popular bank in Singapore that offers a wide range of banking products. The bank offers products catering to personal banking, corporate banking, and investment banking. Of the many loans that CIMB has to offer, the CIMB Debt Consolidation Plan is an unsecured loan with a very specific purpose. This plan aims to help borrowers consolidate their outstanding unsecured loan balances such as credit card dues or personal loans from one or more banks into one loan with a single instalment.
The CIMB DCP offers a maximum tenure of 8 years. The bank offers a flat rate of interest starting as low as 2.77% p.a. The effective rate of interest of the plan begins at 7% p.a. The plan has a one-time handling fee of 1% which is worked into the effective interest rate.
Assume a borrower has outstanding unsecured balances with 3 different banks. These could be credit card balances or personal loans or both. For sake of illustration, let us assume the borrower has only credit card balances to the tune of S$45,000. With an interest rate of 26% p.a., the borrower will be paying S$11,700 in interest alone. If the borrower takes 6 years to clear this, he/she would have pad S$70,200 in interest alone.
If the borrower chose a CIMB debt consolidation loan, he/she would receive a loan amount of S$47,250 (inclusive of a 5% allowance) and at a low interest rate of only 7%, he/she would be paying only S$3308 per year or S$19,845 for a tenure of 6 years.
We can see from the above illustration that there is a huge amount of interest that the borrower would save. Not to mention, the lower interest rate also means that the instalment amount the borrower needs to pay every month is also greatly reduced. The above example is for illustration purposes only and actual rates will vary.
The applicant must provide the following documents at the time of application:
Borrowers can apply for the CIMB DCP through the following ways:
No. The CIMB credit card offered with the debt consolidation plan does not charge the borrower an annual fee.
Every debt consolidation loan is provided with a 5% additional allowance. This allowance is to cover for incidental charges such as interest rates, late payment fees, prepayment penalties etc. between the time it takes for the DCP loan to be approved to the time the loan amount has been disbursed.
No. The loan amount is not disbursed to the borrower but is used to pay off the outstanding loan balances directly with the corresponding financial institute
No. one cannot increase or decrease the credit limit of the revolving line of credit. It is fixed to 1 time the monthly salary of the borrower. Only an increase can be done if the borrower has an increase in their monthly salary.
No. It comes bundled with the debt consolidation loan and cannot be cancelled.