Citibank Debt Consolidation Plan

    A Debt Consolidation Plan (DCP) is a financial facility that allows you to consolidate all your existing unsecured debts (from credit cards and certain other unsecured loans) into a single loan with a single payment. The Citi Debt Consolidation Plan is a useful way of combining all the unsecured credit facilities and debts existing in your name into a single loan. Now you no longer have to keep track of multiple payments due to various financial institutions.

    Features and Benefits

    The following are the features and benefits of Citi Bank’s DCP:

    • Lower interest rates when compared to the standard 25% p.a. charged by most credit cards.
    • You can choose from tenures ranging from 3 to 7 years.
    • Citi gives you a credit card having a limit of one month’s income.
    • You also get protection insurance coverage (complementary) to the extent S$160,000. This applies to situations such as involuntary disruption of employment, permanent total disablement, and accidental death.
    • Make repayments to a single bank by paying off all your other unsecured credit debts as soon as Citi approves your DCP application.
    • No more multiple or varying rates of interest. Pay a much lower rate, thereby, reducing your monthly repayment obligation.
    • Get greater financial flexibility due to smaller monthly repayment amounts.
    • Settle your dues at a much faster rate and be free of debt.

    How the Citi Debt Consolidation Plan Works

    The monthly instalments that apply to your debt consolidation plan are calculated by taking into account the repayment period you choose, the total principal amount, and the total interest amount. The tenure and EIR applicable to your Citi DCP are mentioned in your approval letter.

    The bank expects you to make the monthly repayments on or before the due dates applicable to your DCP. The due dates are mentioned in your approval letter. Citibank charges a late fee if you don’t pay your instalments on time (subject to a minimum amount of S$5).

    Make all your monthly repayments in Singapore dollars. The bank converts any payments made in foreign currencies into Singapore dollars using prevailing exchange rates. If you wish to pay off your loan in full before the end of the tenure you chose, you have to pay the bank a prepayment fee it determines. If you make use of your revolving credit facility, make sure that you make the repayments on time as the bank directs you. All late payments made regarding the revolving credit facility are subject to late payment charges. Finance charges at the prevailing rates apply to outstanding balances related to this credit facility. Once you repay the loan in full, the bank will terminate the revolving credit facility. If either you or the bank chooses to terminate your debt consolidation facility for any reason, all outstanding balances become payable right away. You can find all rates and charges related to your early repayment, account termination, and late repayment in your approval letter.

    Check Your Eligibility

    To qualify for the Citi Debt Consolidation Plan you need to fulfil certain criteria:

    • You should be either a Permanent Resident or a Singapore Citizen.
    • Your minimum annual income must be at least S$30,000 but not more than S$119,999. If you are not an existing customer of Citi, your minimum annual income should be S$60,000 or more.
    • Your net assets (personal) must be less than S$2 million.
    • The total of all your unsecured credit debts must be at least 12 times your monthly income.

    Documents Required

    To apply for the Citi DCP, you should submit the following documents:

    • Your application form filled and signed by you.
    • Copies of the front and back of your NRIC.
    • Credit Bureau Report (most recent copy).
    • Any one of the following income documents (latest 3 months):
      • Latest payslip (computerised).
      • Income Tax Notice of Assessment (latest copy).
      • Latest 12 months' history statement of your CPF Contribution (this applies only to individuals who earn S$6,000 per month or less).
    • Documents such as confirmation letters & statements evidencing all the billed and unbilled balances on all your credit cards and unsecured credit debts.

    How to Apply for This Loan

    You can apply for the Citi Debt Consolidation Plan in 3 ways:

    • Via phone: Call on the bank’s dedicated customer care number.
    • Via SMS: Send an SMS to the bank in the required format.
    • Online form: Submit your details to the bank by filling up the online form. The bank will contact you soon after.

    Frequently Asked Questions

    Can I consolidate any kind of unsecured loan under DCP?

    No. unsecured loans such as education loans, renovation loans, business credit facilities, joint accounts, and medical loans cannot be consolidated under DCP.

    What if my bank statement does not show some transactions?

    Provide proof of these transactions when you apply for your DCP.

    Why am I given a credit facility of one month’s income?

    This facility is granted so that you have enough funds to pay for your daily essentials.

    Should I compulsorily use the revolving credit facility?

    No, you can choose not to use it if you don’t feel the need for it.

    Can I choose to not opt for the credit facility?

    No. The DCP and the revolving credit facility come as one package. You can choose not to use it if you don’t want it.

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