Cash woes? A personal loan to the rescue!

    Maybank Debt Consolidation Plan Review: Enjoy One of the Longest Tenures Available

    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.

    High Interest Savings, Flexible Tenure: Can This Loan Fit Into Your Financial Recovery Plan?

    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:

    • Long repayment period: The loan can be repaid over a period of 10 years or less.
    • Low interest rate: The flat rate starts from 4.2% p.a. on this loan.
    • Revolving credit: Get a credit card with this debt programme that has a credit limit equal to your monthly income. Managing your cash flow and expenses can become easier with this card, especially since you’ll no longer have access to your existing credit facilities. Even after the settlement of your DCP, you may still continue to use this Maybank card unless stated otherwise by the bank.
    • Easy monthly repayments: Since you’ll have to make just one, fixed payment per month, managing your finances can become much easier, especially if you had multiple creditors.

    Get Assured Cash Rebate With Approval of Your DCP Application

    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.

    Enjoy Low Interest Rates With This Maybank Facility

    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.

    What Are the Fees and Charges That Apply?

    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:

    • Early repayment charge: If you settle the outstanding balance on your DCP account before the expiry of the full tenure, you’ll have to pay a prepayment fee. Currently, the fee is 4% of the outstanding balance, subject to a minimum of S$300.
    • Default interest and late fee: If an instalment payment is not made on time, the bank may impose the prevailing rate of interest on the outstanding due. It may also decide to impose a default rate of interest on the overdue amount. This overdue interest will continue to apply from the time of first default until the date of actual payment. In addition, a late fee would also be charged. Currently, the late fee stands at 5% of the outstanding dues, subject to a minimum of S$80.
    • Loan amount increase: If you want to increase your loan amount, you can make a request to the bank. However, the bank reserves the right to impose an administrative fee of 4% on the additional loan amount that you have requested for.
    • Administrative charges: The bank may also impose administrative charges for its services, handling, and maintenance of this facility.
    • Charges on the revolving credit facility: If you use your card, you may be charged the following fees in accordance with the cardmember’s agreement:
      • Annual fees, if applicable
      • Late fees, if applicable
      • Cash advance charges, if applicable
      • Foreign currency charges, if applicable
      • Dynamic currency charges, if applicable
      • Finance charges

    Check for detailed information.

    Bear in Mind: Partial Debt Consolidation Isn’t Possible

    Before you request the bank to process your DCP application, take some time to consider the following points:

    • There is no provision for partial consolidation of debt on your existing credit facilities.
    • Balances on renovation loans, medical loans, education loans, and business loans, can’t be consolidated under this programme.
    • You won’t be able to apply for this programme unless the aggregate debt on your unsecured credit facilities across all financial institutions exceeds 12 times your monthly income.
    • The approved DCP amount won’t be credited to a savings or current account owned by you. It will, in fact, be directly transferred to creditors whom you owe money. The money will be used to pay down outstanding balances on such unsecured credit facilities.
    • GIRO arrangements, if any in relation to the designated credit accounts, have to be terminated by you. If you had previously set up standing instructions for direct debit of your account for payment of certain bills, you’ll have to make sure that the respective billing organisations are intimated and alternative payment arrangements are made.
    • Your DCP records will be visible on your credit bureau report for 3 years from the time you settle your last DCP.
    • Regardless of the net value of your personal assets and your annual income, you won’t be granted additional unsecured credit till the time you have outstanding balance on your DCP.
    • If you become insolvent or bankrupt, the bank may terminate your DCP account.
    • You won’t earn TREATS Points for transactions made in relation to this loan account.
    • The 5% additional limit that you’ll receive with your DCP loan, won’t apply to unsecured credit facilities you hold with Maybank. This allowance will only apply to debts held with other banks.
    • The interest rate approved by the bank may be different from the published rates.

    Do You Satisfy the Loan Eligibility Requirements? Find Your Answer in This Section

    Before you apply for this debt management programme from Maybank, make sure that you meet the relevant eligibility criteria. They are as follows:

    • You’re a Singaporean or a permanent resident of Singapore.
    • You’re are aged 21 years or above.
    • You annual income isn’t less than S$30,000 and isn’t more than S$120,000
    • Your net value of your personal assets is less than S$2 million.
    • Your balance-to-income ratio is at least 12 times your earnings per month.

    In addition to the above criteria, you’ll also have to provide some supporting documents for verification purposes. They are as follows:

    • A copy of your NRIC document.
    • Statements evidencing your billed and unbilled credit balances. Confirmation letters of new loans and/or balance transfers may also be needed.
    • A copy of your latest credit report.
    • To check the complete list of income documents, please click here.

    Enjoy a Convenient Application Process for This Credit Programme

    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.

    Do You Still Have Unanswered Questions? Check the Frequently Asked Questions Below

    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.

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