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    OCBC Debt Consolidation Plan

    OCBC is one of the leading banks in Singapore offering a range of financial products and solutions.The Debt Consolidation Plan from OCBC is an unsecured loan which aims to help borrowers consolidate and repay their other lines of unsecured credit.

    Features and Benefits

    • Your monthly repayment amount will be fixed. It will be calculated at a lower interest rate.
    • Tenure options range between 36 and 96 months.
    • The debt consolidation loan amount comes with an extra allowance of 5%.
    • The additional 5% is applicable only to your first approved OCBC Debt Consolidation Loan.
    • The plan also comes with a revolving line of credit in the form of an OCBC Platinum Credit Card.
    • The OCBC Platinum Credit Card offers you a credit limit of 1x your monthly salary.
    • You will not be charged an annual fee on this credit card.
    • You’ll get 1x OCBC$ for every S$1 you spend using this card.

    Interest Rate

    The OCBC debt consolidation plan comes with an Applied Interest Rate of 6% p.a. The Effective Interest Rate (EIR) which is inclusive of processing fees starts as low as 10.46% p.a.

    The plan offers tenures going up to 8 years. While the instalment amount of the debt consolidation loan remains fixed, the principal and interest component of the instalment varies.

    How the OCBC Debt Consolidation Plan Works

    Let’s say the borrower has 3 outstanding credit card balances from 3 different banks. Let us assume the total outstanding balance of all 3 cards come up to S$30,000. Assuming the interest charges of this is 26% p.a., the borrower would be paying a total interest of S$7,800 a year. If the tenure of these outstanding balances takes 8 years to clear, the borrower would have paid S$62,400 in interest alone.

    If the borrower went in for the OCBC Debt Consolidation Plan they’d be taking a loan of S$31,500 (inclusive of allowance). If the tenure chosen is 8 years, they’d be paying an interest of only 10.46% p.a., which amounts to S$3,276 per year or S$26,208 over 8 years. This would give them a significant amount of savings on interest.

    The above example has been simplified for illustration purposes and actual rates of interest, and monthly instalments will vary based on the loan amount taken, tenure chosen, and the rates offered.

    Eligibility Criteria

    • You need to either be a Singaporean citizen or a Permanent Resident.
    • You should have a minimum annual income of S$30,000 and your income should not exceed S$120,000.
    • Your balance-to-income (BTI) ratio should be a minimum of 12 times your monthly pay.

    Documents Required

    • An NRIC copy (both sides inclusive)
    • A copy of the most recent Credit Bureau Report
    • Latest electronic/computerised payslip and most recent Income Tax NOA OR Most recent 6 months’ CPF contribution history statement (if your monthly income is S$6,000 and below)
    • You need to submit your most recent credit card and unsecured credit loan statements and any other documents such as unbilled or billed transactions to show account information and balances.

    How to Apply

    You can apply for the OCBC DCP through the following ways:

    • You can leave your contact details via the bank’s official website and the bank professionals will get in touch with you within 3 business days.
    • You can call the bank’s hotline number between Monday and Friday (9:00 a.m. to 6:00 p.m.).
    • You can complete the online application form that is available on the bank’s website and mail back the completed form with the required supporting documents.

    FAQs

    1. Q. What is the annual fee of the OCBC Platinum Card?
    2. A. The OCBC Platinum Card offered with the debt consolidation plan charges no annual fee.

    3. Q. What is the fees and charges associated with this card?
    4. A. The card charges an interest rate of 25.9% p.a. on card transactions, 28.92% p.a. on cash withdrawals, a cash withdrawal fee which is the higher of S$15 or 6% of the amount withdrawn and a late payment fee of S$80.

    5. Q. Can one choose not to take the credit card?
    6. A. No. The card comes as a bundle package with the DCP account but one can choose not to use it.

    7. Q. Can the credit limit of the card be increased?
    8. A. No. The credit limit cannot be increased. Only if the monthly salary of the borrower increases can they request for a credit limit increase on their card.

    9. Q. Can one make a partial payment of their loan with the OCBC debt consolidation plan?
    10. A. No. The DCP loan amount is disbursed directly to the bank the borrower has a debt with. The DCP will aim to clear out all outstanding balances of the borrower directly with the corresponding bank and any amount that exceeds the DCP loan must be cleared out by the borrowers themselves.

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