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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:
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.
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.
The applicant must provide the following documents at the time of application:
Borrowers can apply for the Standard Chartered DCP through the following ways:
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.
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.
Yes. Borrowers under an RAS scheme will have their outstanding balances transferred under the DCP upon approval.
Yes. Applying for a DCP s similar to applying for any other form of unsecured loan. Borrowers can approach any bank offering a DCP.
Only unsecured loans such as credit card balances, personal loans and personal lines of credit are covered under the debt consolidation loan.