POSB Debt Consolidation Plan

    A Debt Consolidation Plan (DCP) is a debt refinancing tool, designed to allow you to combine your total existing, unsecured debts across financial institutions into one loan with a single financial institution. With POSB’s DCP, you can do exactly that. You can combine all your unsecured borrowings into a single loan with a lower rate of interest and with a tenure that suits your requirements and financial objectives.

    Features and Benefits

    • Combine all your outstanding balances across lenders into a single loan.
    • Ease of repaying with automated monthly deductions.
    • Reduced financial burden with interest rates starting from 4.58% p.a. (EIR: 8.22% p.a.).
    • Flexibility to choose the tenure from 1-8 years.
    • Get a ‘no annual fee’ credit card, with credit limit equal to your monthly income.

    Interest Rates

    The interest rates on POSB’s DCP start from 4.58% p.a. (EIR: 8.22% p.a.) and may vary depending on which tenure you opt for. You can get in touch with the bank to learn more about the interest rate that will be charged to your plan.

    How the POSB DCP Works

    Take a look at the illustration below to understand how DCP can help you lower your interest charges and combine your multiple payments into a single payment:

    Some Things You Must Consider Before Applying

    • In case you already have a debt consolidation plan in place with any participating financial institution, your POSB DCP loan amount can’t be more than the total value of all your outstanding balances. However, if you don’t have any DCP in place, your loan amount would be the total of your outstanding balances plus an additional allowance of 5%.
    • If your loan amount is not enough to pay the debt consolidation amount in full, you will be responsible to take care of the shortfall.
    • POSB will not be responsible for any costs or expenses you might incur while paying off your outstanding balances from the loan amount.
    • Payments must be made in Singapore dollars.
    • In case the facility is terminated for any reason, the outstanding amount on your facility will become immediately due.

    Check Your Eligibility

    • You must be a Singapore citizen or a Singaporean Permanent Resident, aged between 21 and 65 years.
    • Your yearly income must be a minimum of S$30,000, but not more than S$120,000.
    • Your total unsecured balances across financial institutions must be more than 12x your monthly income.

    Documents Required

    Salaried individuals

    • NRIC.
    • Recent Credit Bureau report.
    • Latest Income Tax NOA, last 12 months’ CPF contribution statement OR DBS/POSB salary crediting OR most recent computerised payslip.

    Commission/variable income earning individuals

    Self-employed individuals

    How to Apply for This Loan

    To apply for this facility, you can choose any one of the following ways:

    • Call the bank on their dedicated customer care number from 9:00 a.m. to 6:00 p.m., between Monday and Friday.
    • Fill out an online form with your contact details to have the bank reach out to you.
    • Visit any nearest POSB/DBS branch.

    Frequently Asked Questions

    Do I have the option of not taking the additional 5% allowance?

      If it’s your first DCP, it’s mandatory for you take this additional allowance of 5%. This allowance acts as a buffer for you to meet any unexpected charges that you may incur from the time between approval and disbursal of your DCP.

    Am I allowed to partially consolidate my balances?

    No, partial debt consolidation is not allowed. You must consolidate all your outstanding, unsecured balances.

    Is there any early settlement fee for POSB DCP?

    Yes. If you wish to settle your DCP before the tenure ends, you will have to pay a fee of 5% of the outstanding balance at the time of the loan settlement.

    Is there any late payment fee on POSB DCP?

    Yes, there is a late payment fee of S$90 on this loan.

    Can I get my DCP amount deposited in my savings/current account?

    No. The DCP amount will be directly transferred to the lenders with whom you have outstanding balances.

    Do I have the option to not to take the revolving credit facility that is offered with the POSB DCP?

    This revolving credit facility is part of the DCP loan package. However, it’s up to you to use it or not. Since there is no annual fee, you will not incur any charges if you don’t use the facility.

    What happens to my GIRO arrangements after the DCP is approved?

    Once it’s approved, it will be your responsibility to terminate any GIRO arrangements you may have on your existing credit facilities.

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