DBS Debt Consolidation Plan

    A Debt Consolidation Plan (DCP) is a refinancing option that allows you to combine all your existing unsecured debts such as credit card payments and unsecured loans (with the exception of a few like education loans, renovation loans, and joint accounts) into a single loan.The DCP offered by DBS Bank gives you a way to refinance your debt through lower interest rates and flexible tenures. The DBS Debt Consolidation Plan offers you a number of benefits.

    Features and Benefits

    • Low interest rates from 4.58% p.a. with an EIR of 8.22% p.a.
    • Choose from flexible repayment periods of up to 8 years.
    • Get a DBS Visa Platinum Credit Card with a credit limit of up to one month’s income to help pay for your daily expenses. This is a revolving credit facility.
    • A low one-time processing fee of S$99.
    • Consolidate all your debts into a single payment per month. You don’t have to keep track of multiple payments anymore.         
    • Make substantial savings on your interest payments when compared to your existing interest rates.    
    • Monthly repayments become more affordable due to lower rates of interest.  
    • Experience more financial freedom and pay off your debts faster.

    How the DBS Debt Consolidation Plan Works

    Your monthly instalments are split after taking into account your total principal amount, the tenure of your choice, and the total interest amount (calculated based on the effective interest rate that applies on the tenure you choose). The manner of payment is specified in your approval letter. You should pay the monthly instalments on or before the last dates on which they are due, till you settle all your dues with the bank.

    Pay all monthly instalments in Singapore dollars. Payments made in any other currency are converted by the bank into Singapore dollars at the rates prevailing at that moment. You must maintain an account with DBS. The bank deducts your monthly repayments from this account. Ensure that this account has the necessary funds before the due date of payment. If funds are insufficient, the bank reserves the right to deduct the amount from any of your other DBS accounts. The bank may alternatively (in case of insufficient amounts), debit your monthly repayment account and charge you the prevailing interest rates for overdrawing.

    The interest rates that apply to your DCP are mentioned in your approval letter. DBS Bank charges a late fee of S$90 for any repayment amounts that you pay after the due date. If you want to settle your dues before the end of the tenure or want to cancel your debt consolidation facility, you have to pay a fee amounting to 5% of the remaining loan amount at the time of termination. If you draw funds from your credit facility, you have to make sure that you repay the amounts by the due dates. The prevailing rate of interest on debit balances of the revolving credit facility is 25.9% p.a. The annual fee on this facility is currently waived.

    Check Your Eligibility

    DBS expects you to fulfil a few criteria for DCP approval:

    • You must either be a Singaporean or a Permanent Resident.
    • Age requirement – 21 to 65 years old.
    • Your minimum annual income must be at least S$30,000 and maximum annual income should be less than S$120,000.
    • Your total unsecured debt should be at least 12 times your monthly income.

    Documents Required

    • NRIC (copies of both the front and back).
    • Report from the Credit Bureau (latest report).
    • Any one of the following income documents:
      • Latest notice of assessment from the Income Tax Department (1 year for salaried employees & 2 years for self-employed/commission-based individuals).
      • Latest 12-month history statement of your CPF contribution (For salaried employees and commission-based earners).
      • POSB/DBS account with salary credit details.
      • Computerised payslip (latest).
    • Any one of the following documents to prove your existing unsecured debts:
      • Latest bank records.
      • Evidence letters of your loans or balance transfers.
      • Any other document of evidence.

    DBS Debt Consolidation Plan Promotion

    The current promotional offers from DBS (valid till 30 June 2018 & subject to specific T&C) are as follows:

    For existing POSB/DBS customers:

    • Cashback of S$300 if the approved loan amount is S$75,000 or less.  
    • Cashback of S$800 if the approved loan amount is more than S$75,000.

    For new DBS/POSB customers - Cashback of S$1,200 for any approved loan amount.

    Promotion for Refinancing Your Existing DCP to DBS

    • Cashback of S$2,000 if the approved loan amount is S$75,000 or less.  
    • Cashback of S$3,000 if the approved loan amount is more than S$75,000.

    How to Apply for This Loan

    You can apply in 2 ways:

    • Via phone: You can call the bank and apply from Mondays to Fridays, except on public holidays, between 9:00 a.m. to 6:00 p.m.
    • Request call back: Fill the online form and submit it. The bank will get back to you.

    Frequently Asked Questions

    What will happen to my existing unsecured credit facilities after my DCP application gets approved?

    Once your debt consolidation facility is approved, all your other unsecured credit facilities are terminated.

    Can I ask DBS to deposit the approved DCP amount into my current or savings account?

    No. The bank disburses your approved amount directly to the financial institutions with which you have unpaid unsecured debts.

    Is it mandatory that I should use my revolving credit facility?

    . No, you don’t have to use the facility if you don’t feel the need for it.

    When can I ask for an increase on the credit limit of my revolving credit facility?

    You can ask for such an increase only if your income increases and if you submit fresh documents proving the same.

    What happens if I pay my revolving credit repayments late?

    The bank charges a late fee of S$100 for late repayments on this facility.

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