When debt becomes too big and unmanageable, the only way out is to bring in structure and order to your repayment plans. If you have unpaid balances on multiple unsecured credit facilities across multiple financial institutions, you may use the Maybank Debt Consolidation Plan to convert your debt into fixed monthly repayments.
With a single payment to focus on, managing your finances become easy. In addition, you may also enjoy greater interest savings since the bank offers competitive rates on this programme. Therefore, you may become debt-free faster than you would have otherwise.
In addition to increasing your convenience of managing your debts, one of the most important reasons to apply for a DCP is to lower your overall cost burden. So, will this Maybank debt programme fulfil this purpose? The following are the most important features and benefits of this product:
If you apply for this Maybank programme and it is approved successfully by 31 December 2018, you’ll receive a cash rebate worth S$388. To be eligible for this promotion, you’ll have to further make sure that you make monthly repayments by setting up a GIRO repayment arrangement. Under no circumstance can the loan arrangement be terminated or cancelled within 3 months of the expiry of the promotion period. If your DCP arrangement is cancelled during this period, you may lose your eligibility.
Note that the promotion will be available to the first 300 successful applicants only. Also, you’ll be eligible for one cash rebate only. This promotional offer can’t be used in conjunction with any other special offer or promotion unless mentioned explicitly by the bank.
Note that if your GIRO arrangement and credit card is active during the promotion period and at the time of crediting, the bank will, at its absolute discretion, credit the aforementioned cash rebate to your credit card by 28 February 2019 or such date as it may decide. Also note that the cash rebate credited to your card, has to be utilised on or before 31 March 2019. If the full rebate or any part thereof remains unused, the bank may forfeit the amount and reverse it.
Consolidate all your unsecured debt with this Maybank loan and enjoy nominal interest rates starting from 4.2% p.a. The effective interest rate (EIR) starts from 7.64% p.a. Compared to revolving credit facilities or personal loans, your savings are going to be far more! How? Let’s see.
Let us assume that you have taken a cash advance of S$15,000 on your card. You’ll be charged interest at the rate of 28% p.a. (in general). Additionally, you’ll also have to pay a cash advance fee of 6% p.a., subject to a minimum of S$15. Your cost of borrowing would be S$5,100.
Now, if you were to consolidate debt worth S$15,000 through this Maybank credit facility and an EIR of 7.64% p.a. were to apply, your interest charges would have been S$1,146. Therefore, your savings would have been S$3,954.
Before you apply for this loan, make sure that you have a proper understanding of the fees and charges that apply to it. Here is a list of the most important ones:
Check http://info.maybank2u.com.sg/pdf/loans/mb-debt-consolidation-plan-tnc.pdf for detailed information.
Before you request the bank to process your DCP application, take some time to consider the following points:
Before you apply for this debt management programme from Maybank, make sure that you meet the relevant eligibility criteria. They are as follows:
In addition to the above criteria, you’ll also have to provide some supporting documents for verification purposes. They are as follows:
Applying for this Maybank loan is extremely easy. Just send an SMS to the bank in the prescribed format. The bank will get in touch with you and offer complete guidance.
Q. When can I apply for additional credit facilities with my DCP institution (Maybank in this case)?
A. In order to apply for additional credit from Maybank, you’ll first have to ensure that the outstanding balances on your existing credit arrangements fall below 4 times your monthly earnings. Once that happens, you may approach the bank with supporting documents. The bank will review your debt situation and decide whether or not to grant you additional credit.
Q. When can I get into an agreement for fresh credit with another financial institution (non-DCP organisation)?
A. You may apply for a new credit facility with another lender once your balance-to-income ratio comes down to below 8 times your monthly income.
Q. How does the lender ensure that I have only one active DCP arrangement at any point in time?
A. The financial institutions participating in this debt programme, have access to a centralised DC Registry where records of your DC accounts are maintained by the ABS. As per the rules, you can have only one DCP account at any point of time. This registry helps prevent a situation where a borrower actively maintains multiple DCP accounts with multiple lenders.
Q. If I want to refinance my current DCP arrangement, can the cancellation or other administrative fees applicable, be consolidated with the outstanding debt under the the new programme?
A. No. A DCP programme is aimed at helping you manage and reduce your debts. Any additional charges that may arise from refinancing, will have to be borne by you.
Q. If I don’t have an existing relationship with Maybank, can I still apply for its DCP facility?
A. Yes, you can. You don’t need to have an existing relationship with Maybank to be eligible for this programme.