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    Standard Chartered Debt Consolidation Plan

    Standard Chartered is a leading banking institution in Singapore with a history of operations dating back to 150 years. The bank has over 17 branches in Singapore and offers a range of banking products right from wealth management to deposits, overdrafts and unsecured lines of credit such as credit cards and personal loans.

    The Standard Chartered Debt Consolidation Plan (DCP) is one such unsecured loan but comes with a different objective. The sole purpose of this loan is to help consolidate other outstanding lines of unsecured credit of a borrower into one single loan at a lower rate of interest. The features and benefits of the Standard Chartered DCP are as follows:

    Features and benefits of Standard Chartered Debt Consolidation Plan

    • Borrowers can consolidate all of their outstanding balances into one loan with a fixed monthly instalment.
    • Borrowers do not have to juggle different payment dates and instalment amounts. The single instalment that they need to pay gives them better control of their finances.
    • The Standard Chartered DCP comes with lower interest rates which gives the borrowers more savings on interest and also makes it easier to repay their loans and get a better control on their finances.
    • The debt consolidation loan comes with a tenure of 10 years allowing borrowers to choose a tenure and instalment amount that would make it easier to repay their loans.
    • The debt consolidation plan also offers borrowers a revolving line of credit. The DCP gives borrowers a Platinum MasterCard credit card which has a credit limit equal to the monthly salary of the borrower.

    Interest rate

    The Standard Chartered debt consolidation loan offers the following interest rates:

    Tenure Applied rate of interest Effective rate of interest
    3 years 4.98% p.a. 9.55% p.a.
    4 years 5.68% p.a. 10.64% p.a.
    5 years 5.68% p.a. 10.48% p.a.
    6 years 5.68% p.a. 10.34% p.a.
    7 years 5.68% p.a. 10.20% p.a.
    8 years 6.00% p.a. 10.57% p.a.
    9 years 6.88% p.a. 11.77% p.a.
    10 years 6.88% p.a. 11.61% p.a.

    The minimum tenure of the plan is 3 years and the EIR is inclusive of the one-time joining fee of S$199.

    How the Standard Chartered DCP works

    Let’s say a borrower has 4 outstanding credit card balances from 4 different banks. Let us suppose the total outstanding balance of all 4 cards come up to S$45,000. Assuming the interest charges of this is 26% p.a. The borrower would be paying a total interest of S$11,700 a year. For a tenure of 8 years, the borrower would have paid S$93,600 in interest alone.

    If the borrower went in for the Standard Chartered Debt Consolidation Plan they’d be taking a loan of S$47,250 (inclusive of the 5% allowance given to cover for incidental charges) and if the tenure chosen is 8 years they’d be paying an interest of only 10.57% p.a. which amounts to S$4995 per year or S$39,955 over 8 years. It can be seen that the borrower would be paying less than half of what they are currently paying and not only would they be saving a significant amount, they’d also be paying a lower instalment amount.

    The above example has been simplified for illustration purposes and actual instalment amounts will vary based on what the loan amount is, the tenure chosen and the rate offered.

    Eligibility

    • Nationality: Borrowers can be either a Singaporean citizen or a Permanent Resident.
    • The minimum age of the borrower must be 21 years but cannot exceed 65 years of age.
    • The minimum annual income required to apply for the debt consolidation loan is above S$30,000 to S$120,000.
    • The outstanding unsecured balances of the borrower must be greater than 12 times the monthly income of the borrower.

    Documents required

    The applicant must provide the following documents at the time of application:

    • A front and back copy of the applicant’s NRIC
    • Most recent Credit Bureau Report
    • Corresponding income documents where salaried applicants must provide documents such as most recent computerised payslip, 12 months’ CPF contributions, 12 months’ Income Tax NOA. Self-employed applicants must provide 2 years Income Tax NOA.
    • The applicant must submit copy of the latest credit card and unsecured credit loan statements from all banks they have an unsecured line of credit with.

    How to apply for Standard Chartered Debt consolidation Loan

    Borrowers can apply for the Standard Chartered DCP through the following ways:

    • Online: Borrowers can visit the Standard Chartered website and begin the application process. Borrowers will have to click on the Contact me option and proceed with the steps to begin their application process. Applicants must submit the required supporting documents to successfully initiate the application process.
    • Offline: Borrowers can walk into their nearest Standard Chartered branch and request for the debt consolidation plan application.

    FAQs

    1. What should one do if the DCP loan amount cannot pay off all outstanding balances?
    2. If the debt consolidation loan amount is not enough to pay off all the loans, the outstanding loans should be paid off by the borrowers themselves.

    3. Can one hold any other form of credit on a DCP?
    4. No. When on a debt consolidation plan, all other forms of credit such as credit cards and personal loans cannot be applied for. Existing credit cards will be closed as well. Borrowers will however be given a revolving line of credit with the DCP account itself.

    5. Can people under an RAS scheme apply for a debt consolidation plan?
    6. Yes. Borrowers under an RAS scheme will have their outstanding balances transferred under the DCP upon approval.

    7. Can one apply for a debt consolidation loan from a bank they are not a customer of?
    8. Yes. Applying for a DCP s similar to applying for any other form of unsecured loan. Borrowers can approach any bank offering a DCP.

    9. What type of loans are covered under the debt consolidation plan?
    10. Only unsecured loans such as credit card balances, personal loans and personal lines of credit are covered under the debt consolidation loan.

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