Citibank Debt Consolidation Plan
Citibank is among the leading banks in Singapore and also enjoys a strong presence on a global scale. The bank offers a range of banking products and solutions dealing with corporate banking, consumer banking, and even investment banking.
The Debt Consolidation Plan from Citibank is one such product that helps borrowers consolidate and repay their other lines of unsecured credit such as credit card balances, outstanding personal loans, and personal lines of credit from one or more banks.
Features and benefits of Citibank Debt Consolidation Plan
The features of the Citibank DCP are as follows:
- Borrowers will only have to make one fixed monthly payment at a lower rate of interest rather than make multiple payments with different banks at varying rates of interest.
- With only one instalment to pay, borrowers need not worry about different instalment due dates and can easily repay the loan.
- The plan offers a low interest rate making it easier to repay and lets the borrower save much more on interest payments.
- The plan has a tenure of up to 7 years giving borrowers flexibility in choosing a tenure that is easily repayable and affordable.
- The loan amount disbursed through the Citibank debt consolidation loan comes with an additional 5% allowance that is provided to cover for incidental charges a borrower might incur.
- The plan also comes with a revolving line of credit in the form of a Citibank credit card which has a credit limit equal to that of borrower’s monthly salary.
- The policy comes with a complimentary insurance policy with a cover of up to S$160,000.
How the Citibank debt consolidation loan works
Assume the borrower has outstanding credit card balances from 3 different banks with the minimum monthly payment amounting to S$3,000 in total with a current existing tenure of 5 years. If the borrower was to switch over to a debt consolidation loan from Citibank and transfer the entire loan amount and select the same tenure of 5 years, they would be saving close to S$2,355.18 on interest payments alone. This is almost 78.5% lesser than what they would have paid had hey not taken up the Citibank DCP.
Eligibility criteria for Citibank debt consolidation loan
- The borrower must be a Singaporean citizen or a Permanent Resident.
- The minimum annual income required to apply for the debt consolidation loan is S$30,000 and the annual income cannot be more than S$120,000.
- The total outstanding credit balance must be greater than 12 times the monthly income of the borrower.
Documents required for Citibank debt consolidation loan
The applicant must provide the following documents at the time of application:
- A copy of the applicant’s NRIC both front and back
- Completed application form
- A copy of the latest Credit Bureau Report
- Income documents such as latest computerised payslip, most recent Income Tax Bill, and the most recent CPF Contribution statement
- The applicant must submit his/her proof of outstanding balances such as latest credit card and personal loan statements and any other documents such as confirmation letters.
How to Apply for Citibank Debt Consolidation Loan
Borrowers can apply for the Citibank debt consolidation plan in the following ways:
Online: Borrowers can visit the Citibank website and begin the application process. They will have to fill out the form and submit it along with the required supporting documents.
Offline: Applicants can walk into their nearest Citibank branch and request for the DCP application. They are required to carry the supporting documents when submitting the application.
- What is the total amount that one can borrow under the Citibank debt consolidation plan?
The DCP amount offered will be equivalent of the total outstanding balance of the borrower along with an additional 5% allowance.
- Is the allowance provided on every debt consolidation plan acquired by the borrower?
No. The additional allowance is only given for the first DCP the borrower applies for.
- Can one choose not to opt for the free credit card?
No. The Citibank credit card is part of a bundle package with the debt consolidation loan account but if one wishes to not use it, they are free to do so.
- Can the credit limit of the card be increased?
No. Borrowers cannot request to increase the credit limit on the card and can only do so if their monthly salary increases.
- Can one consolidate a renovation loan or education loan using the Citibank debt consolidation plan?
No. The DCP loan amount can only be used for consolidating unsecured personal loans. Under the regulations of MAS, loans such as renovation loans, home loans, car loans, and educational loans which serve specific purposes cannot be consolidated under a debt consolidation loan.