This debt consolidation programme offered by Standard Chartered Bank (SCB) allows you to exert greater control on your financial transactions. Consolidate all your unsecured debts with this single loan and lower your interest charges. In addition, get a credit card to meet your daily expenses effectively. Check out the benefits offered by the product in the following section and decide for yourself whether to opt in or not.
While it’s true that you may never be 100% sure if you have found the right product for a need unless you start using it, gathering information about it, is usually a good way to start. Check out the features of this loan here to understand how effective the loan can be for your needs:
The applied interest rates range from 4.98% p.a. to 6.88% p.a. and the effective interest rates range from 9.55% p.a. to 11.77% p.a.
For example, if you borrow an amount of S$50,000 and choose a loan tenure of 4 years, you’ll be charged an applied interest rate of 5.68% p.a. and an effective interest rate of 10.64% p.a. If you were to choose a tenure of 8 years, however, you’ll be charged an applied interest rate of 6% p.a. and an effective interest rate of 10.57% p.a., provided the loan amount remains unchanged.
[Disclaimer 1: The rates have been calculated on the basis of an average loan amount of S$50,000 and a joining fee of S$199. Be warned that the rates could be different when you actually apply as the bank can fix these rates at its discretion. Moreover, the rates offered to you could be different from the published rates.]
Let us now consider an example. Considering that you pay an interest of 25.4% p.a. on your credit card, if you have an outstanding balance of S$7,500 on your card, your interest charges would be S$1,905 (=25.4/100 x 7,500). If you have chosen the 3-year tenure for your DCP loan, your interest charges, on a similar loan amount, would be S$716.25 (=9.55/100 x 7,500). This means, you’re saving an amount of S$1,188.75 or 62.4% approximately.
[Disclaimer 2: The numbers used here are purely for illustrative purposes and may bear no resemblance to actual results.]
You can’t really form an accurate idea of your cost burden unless you take the fees/charges that apply on your loan along with the interest charges. Here are some of the most important ones that apply:
|One-time joining fee||S$199|
|Early Repayment Fee||3% of the outstanding balance, subject to a minimum of S$250|
|Default interest||EIR: 25.9% p.a. (under normal circumstances) For late payments, a finance charge at the rate of 0.071% per day will apply|
In addition, you may have to pay the following fees and charges on your card:
To learn more about the fees applicable, click here.
Before you send your application for processing, take some time to consider the following:
Before you apply, make sure that you meet the following conditions:
If you want to learn about the general eligibility criteria for other SCB personal loans, click here.
You’ll also have to submit the following documents for your application to be processed:
If you’re interested in this product, you may leave your contact details with the bank. To do that, you’ll have to complete an online form available on the bank’s website. The bank will get in touch with you.
Q. How much can I borrow if I want to refinance my existing DCP loan?
A. You’ll first have to provide a copy of the settlement notice from your current lender to the lender who plan to apply with (SCB in this case). You may be lent an amount equal to the outstanding balance as indicated on the settlement notice.
Q. My income has just increased. Can I request the bank to review and increase the credit limit of my card?
A. Yes, you may. However, you’ll have to submit income documents and any other relevant documents that support your claim of income increment.
Q. How long after my DCP loan approval can I start applying for new unsecured loans?
A. If you want to apply for an unsecured loan with your DCP financier (SCB in this scenario), you’ll have to wait until the value of your BTI (total outstanding debt+interest/your monthly income) goes down below 4 times your monthly income. If you want to apply for a loan with any other lender, you’ll be able to do so when your BTI touches or goes below 8 times your monthly earnings.
Q. I am not an existing customer of this bank. Am I eligible for its debt consolidation programme?
A. You don’t need an existing relationship with SCB to be eligible for this debt arrangement. 13 financial institutions, including Standard Chartered, offers this loan in Singapore and you’re free to approach any one of them.
Q. Can I choose not to take the 5% additional allowance offered with my first DCP loan?
A. No, you can’t. This allowance is mandatory for the first loan and won’t be available for subsequent refinanced loans.