DBS Debt Consolidation Plan
DBS is one of the leading banks in Singapore offering a range of financial products and solutions right from wealth management and to offering personal loans and credit cards. The Debt Consolidation Plan from DBS is one of their unsecured loan products which aims to help borrowers consolidate and repay their other lines of unsecured credit such as credit card balances, personal loans, and personal lines of credit from one or multiple banks.
Features and Benefits
The features of the DBS DCP are as follows:
- The debt consolidation loan allows borrowers to consolidate their outstanding balances allowing them to clear off their debt faster.
- The borrower will have to pay only one instalment and not have to juggle payments with multiple banks.
- The borrower can pay off their debt faster with the lower interest rates offered by the DBS debt consolidation plan.
- The borrower can choose from tenures of up to 8 years allowing for easier management of finances.
DBS DCP Interest Rates
The DBS Debt Conolidation Plan offers the following interest rates starting from as low as 4.58% p.a. This is the flat rate of interest. The effective rate of Interest or EIR which is inclusive of processing fees starts as low as 8.22% p.a. The plan offers tenures going up to 8 years. The plan offers fixed instalments and while the instalment amount remains fixed, the principal and interest component varies.
How DBS DCP Works in Singapore?
Assume the borrower has 3 lines of outstanding unsecured debt from 3 different banks each being S$10,000. Assuming the interest charges of this is 26% p.a. the borrower would be paying an interest of S$7,800 a year. If the tenure of these outstanding balances takes longer to clear, the borrower will be paying that much more in interest, not to mention that they would be struggling with the monthly instalments as well. If the borrower went in for the DBS Debt Consolidation Plan and chose a tenure of 6 years, they would be paying only one instalment at an EIR of 8.22% p.a. giving them a substantial savings on interest paid.
The above example has been simplified for illustration purposes. Actual rates and numbers will vary based on the EIR the bank offers at the time of getting the DCP, the loan amount taken and the outstanding balance of the borrower.
- Borrowers can be either a Singaporean citizen or a Permanent Resident.
- The minimum annual income required to apply for the DCP is above S$30,000 but below S$120,000 in order to qualify for the debt consolidation loan.
- The outstanding balance to income ratio must exceed 12 times the monthly income of the borrower.
The applicant must provide the following documents at the time of application:
- A copy of the NRIC both front and back
- A copy of the most recent Credit Bureau Report
- Salaried employees must provide a copy of the computerised payslip (most recent), most recent 12 months’ CPF contributions and Income Tax Notice of Assessment.
- Variable or commission based applicants must provide most recent 12 months’ CPF contributions and 2 years Income Tax Notice of Assessment.
- The applicant must submit his/her most recent credit card and unsecured credit loan statements and any other documents required to show account information and balances.
DBS DCP Cashback Promotion
Register for DBS Debt Consolidation Plan and stand a chance to win cashback of up to S$1,200
With this promotion, you will be eligible for:
- An interest rate that is as low as 4.58% p.a. (Effective Interest Rate will be 8.22% p.a.)
- Also, upon approval, you can earn up to S$1,200 as your cashback amount.
- With this plan, you will receive a DBS Visa Platinum Credit Card so that it is convenient for you to manage your daily transactions. You can use this card as your mode of payment.
- With this card, you can get a maximum of 1x your monthly pay as your credit limit.
- There is no annual fee on this card.
|Cashback amount you can earn
||Your minimum loan amount
||Your relationship with the bank
||Up to S$75,000
||An existing customer holding a DBS or POSB credit card or an unsecured loan
||More than S$75,000
||An existing customer holding a DBS/POSB credit card or an unsecured loan
||New to DBS or POSB credit card or an unsecured loan
Note: Your Effective Interest Rate will also include your processing fee. The rate of interest for your Debt Consolidation Plan will depend on how your credit profile is and can vary from what rate is published on the bank’s website and the interest rate applicable to other borrowers.
You can apply for this promotion by calling the DBS hotline number (6878 6887) from Monday to Friday between 9:00 a.m. and 6:00 p.m. (apart from public holidays). You can also leave your contact number on the bank’s official website and request for a callback.
Terms and conditions
- The promotion period is between 1 January 2018 and 31 March 2018.
- In order to be eligible for this promotion, you must:
Your cashback amount will be credited to your loan servicing account as mentioned on your application form. You will receive this amount in less than 3 months from the date on which your loan got approved.
You will lose your cashback amount in case your DBS Debt Consolidation Plan account is terminated before your loan’s actual tenure ends.
DBS holds the rights to vary, suspend, or terminate the terms and conditions pertaining to the promotion at any given point in time without any prior notice.
- Sign up for a DBS Debt Consolidation Plan with a loan tenure of at least 72 months which is 6 years. Also, you need to apply for this plan only during the promotion period.
- You need to submit the mandatory documents required and get your approval from DBS within 15 April 2018.
- Submit your loan application through non-sales aided platform; unless specified otherwise.
- This promotion is applicable only to the initial 500 applicants whose loan applications have been approved.
For detailed terms and conditions, please visit the bank’s official website.
How to Apply for DBS Debt Consolidation Loan in Singapore
Borrowers can apply for the DBS DCP through the following ways:
- Online: Borrowers can visit the DBS website, go to the Debt Consolidation Plan page and click on the ‘Apply Now’ option. Borrowers will have to fill out the form and submit it along with the required supporting documents to begin the application process.
- Offline: Borrowers can walk into their nearest DBS branch and request for the debt consolidation loan application. Borrowers must carry with them the supporting documents to successfully submit the application.
- Are borrowers under the RAS scheme eligible for debt consolidation loan?
Yes. Borrowers will have to transfer their outstanding amounts under the RAS scheme to the DCP.
- Can one apply for a DCP from a bank they are not a customer of?
Yes. Taking a debt consolidation loan is like acquiring any other unsecured loan and borrowers can approach any participating bank to apply for a DCP.
- When can one increase the credit limit of the revolving line of credit?
The credit limit can be only be increased if there is an increase in the monthly salary.
- Can renovation loans be put under a Debt Consolidation Plans?
No. Only unsecured loans such as personal loans, credit card balances and personal lines of credit can be consolidated under a DCP.
- What is the purpose of the additional allowance?
The additional allowance is provided to cover for any incidental charges that can be incurred from the time of approval till the time of disbursal of the loan amount.