Cash woes? A personal loan to the rescue!

    Standard Chartered Debt Consolidation Plan Review: Enjoy Better Financial Planning

    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.

    Low Interest Rates, Greater Peace of Mind: Is This Loan Worth Considering?

    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:

    • Maximum loan amount: If you’re applying for this loan for the first time, you’ll be granted an amount equal to the total outstanding debt on your existing credit facilities along with an additional allowance of 5% for fees and interest charges that may apply during the time period between loan application and approval. If you subsequently refinance this loan, the additional allowance won’t be available.
    • Minimum loan amount: You’ll be eligible for this programme if your aggregate unsecured debt exceeds 12 times your monthly income. This means that the approved loan amount can’t be less than this.
    • Single account: Consolidate all your unsecured debts in Singapore under one credit facility. There will be no need to handle multiple statements and remember several due dates. Fewer transactions also mean better financial management.
    • Card for daily use: When you sign up for this loan, you’ll also get a Standard Chartered Platinum Mastercard Credit Card to help you manage your daily spends conveniently. To truly comprehend the importance of this feature, you should know that you won’t have access to your existing loan accounts once you’re approved for this loan. The limit on the card will be equal to your monthly income. Also, the annual fee of S$192.60 for this card, will be waived.
    • Low-cost loan: The applied interest rate for this loan starts from 4.98% p.a. Post consolidation, you may enjoy greater savings. This can help you become debt-free faster.
    • Flexible repayment period: Tenures from 3 years to 10 years are available. Choose a tenure that suits you.
    • Automatic suspension of existing accounts: Once your DCP loan application is approved, you won’t have to contact your creditors separately to inform them of the new arrangement or ask them to suspend the existing accounts. It will be done by SCB.
    • Manage Your Interest Burden Better With This Loan

      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.

      [Disclaimer 2: The numbers used here are purely for illustrative purposes and may bear no resemblance to actual results.]

      Fees and Charges That You Need to Know of

      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
      Late Fee S$80

      In addition, you may have to pay the following fees and charges on your card:

      • Finance charges
      • Cash advance interest and fees
      • Late payment charges
      • Administrative charges, if applicable

      To learn more about the fees applicable, click here.

      Consider Carefully: A Joining Fee Will Be Charged

      Before you send your application for processing, take some time to consider the following:

      • You’ll have to pay a joining fee.
      • Partial consolidation of debt won’t be allowed. That means, you can’t take multiple DCP loans from multiple lenders simultaneously. To ensure that, lenders can access the centralised DC Registry in which records of your DCP applications, transactions, and records are maintained.
      • Credit information, related to this loan, will stay on your credit bureau report for 3 years after the termination of this account.
      • If the loan amount approved isn’t enough to cover your complete outstanding debt, you’ll be personally liable for settling the difference with the respective bank/financial institution.
      • Until your DCP loan application is actually approved, you’ll also have to pay the minimum due at least on your existing loan accounts, if you wish to avoid “Past Due” on your credit bureau report.
      • If any of your existing loan accounts have instructions pertaining to automatic debit or GIRO, you’ll be personally responsible for setting up alternative payment arrangements with the concerned billing organisations.
      • You can’t apply for a temporary credit limit increase on your card even if you’re faced with an emergency.
      • You can’t cancel the revolving credit facility even if you don’t want to use it.
      • If you want to refinance your DCP loan with another lender, you’ll have to wait for at least 3 months from the time of account approval of your last DCP loan.

      Do You Satisfy the Conditions of Eligibility?

      Before you apply, make sure that you meet the following conditions:

      • You’re a Singaporean or PR.
      • You’re aged between 21 years and 65 years (both the limits are included).
      • You earn more than or equal to S$30,000 but less than or equal to S$120,000 in a year.
      • Your cumulative outstanding balances on your existing unsecured loan accounts exceed 12x your monthly income.

      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:

      • A copy of your NRIC.
      • A copy of your last updated credit report.
      • Copies of all the relevant income documents.
      • Copies of statements of your existing loan accounts, online invoices, confirmation letters, and other proofs of your unbilled balances, if any with Standard Chartered and other banks.

      Experience a Hassle-Free Application Process

      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.

      Learn More About This Product From the Frequently Asked Questions

      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.

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