Best Debt Consolidation Plans in Singapore 2024
Below is our comparison of the best debt consolidation plans right now in Singapore. Comparing terms such as flexibility, get the debt consolidation loan you need depending on your debt consolidation loan preferences.
- Debt Consolidation Loans for Low Income: Lendela Loan Consolidation: Compare Moneylender offers
- Best Large, Long-Term Plans: HSBC Debt Consolidation Plan: Up to 10 years, rates from 3.5% p.a. (6.5% EIR)
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Best Debt Consolidation Loan Promotions:
- Maybank Debt Consolidation Plan: S$1,500 cashback
- HSBC Debt Consolidation Plan: 5% cashback (refinancing only)
- Standard Chartered Debt Consolidation Refinancing: 5% cashback (refinancing only)
- POSB/DBS Debt Consolidation Plan: 3% cashback (refinancing only)
- Honorable Mention: CIMB Debt Consolidation Plan: Rates from 2.77% p.a. (7% EIR)
Compare the Best Debt Consolidation Plans in Singapore
By combining your high interest rate loans into one lower rate with a debt consolidation plan, you can manage and eliminate your debt over several years. Debt consolidation loans usually come with a one-time processing fee, a flat interest rate, and a tenure of 1 to 10 years. The key is to find a low interest rate and fee while keeping your monthly payment at a reasonable level. However, you should also be careful as some banks advertise rates "as low as X%", which suggests that you may end up being offered higher rates than you expected.
- Best Debt Consolidation Loans for Low Income: Lendela Loan Consolidation
- Best Large, Long-Term Plans: HSBC Debt Consolidation Plan
-
Best Debt Consolidation Loan Promotions:
- Maybank Debt Consolidation Plan: S$1,500 cashback
- HSBC Debt Consolidation Plan: 5% cashback (refinancing only)
- Standard Chartered Debt Consolidation Refinancing: 5% cashback (refinancing only)
- POSB/DBS Debt Consolidation Plan: 3% cashback (refinancing only)
- Honorable Mention: CIMB Debt Consolidation Plan
Compare the Best Debt Consolidation Plans in Singapore
By combining your high interest rate loans into one lower rate with a debt consolidation plan, you can manage and eliminate your debt over several years. Debt consolidation loans usually come with a one-time processing fee, a flat interest rate, and a tenure of 1 to 10 years. The key is to find a low interest rate and fee while keeping your monthly payment at a reasonable level. However, you should also be careful as some banks advertise rates "as low as X%", which suggests that you may end up being offered higher rates than you expected.
Best Moneylender Loans for Low-Income Borrowers: Lendela
- Eligibility
- S$1,200 per month
- Max. Loan Amount
- 6x monthly salary
- Min. Loan Amount
- S$1,000
- Processing Fee
- Varies
- Approval Time
- 1 day
Promotion:
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This is why Lendela is the best moneylender in Singapore for low-income borrowers to get debt consolidation loans.
If you aren't able to consolidate your loan with a bank, you may need to turn to another licensed moneylender. Lendela helps borrowers by allowing them to compare customised consolidation offers. It is also a good option for those with lower incomes, as it has a salary of just S$1,200 monthly. Finally, most Lendela applicants receive more than 1 same-day loan offer.
- Eligibility
- S$1,200 per month
- Max. Loan Amount
- 6x monthly salary
- Min. Loan Amount
- S$1,000
- Processing Fee
- Varies
- Approval Time
- 1 day
Promotion:
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This is why Lendela is the best moneylender in Singapore for low-income borrowers to get debt consolidation loans.
If you aren't able to consolidate your loan with a bank, you may need to turn to another licensed moneylender. Lendela helps borrowers by allowing them to compare customised consolidation offers. It is also a good option for those with lower incomes, as it has a salary of just S$1,200 monthly. Finally, most Lendela applicants receive more than 1 same-day loan offer.
Best Large & Long-Term Plans: HSBC Debt Consolidation Plan
- Balance to Income Ratio
- More than 12x monthly income
- Early Repayment Fee
- 5% of redemption amount
- Late Payment Fee
- S$75
- Processing Fee
- 1% of approved loan amount, subject to a minimum of S$88
| Promotion:
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This is why HSBC Debt Consolidation Plan is the best debt consolidation loan in Singapore for large and long-term plans.
HSBC's debt consolidation loan is the best offering in the market for borrowers seeking large or long-term debt consolidation plans. This is because HSBC charges a low interest rate (from 3.4% p.a.). For instance, for loan tenures of 1-10 years, it only charges a flat rate of 3.4%, which is cheaper than the average rate.
- Balance to Income Ratio
- More than 12x monthly income
- Early Repayment Fee
- 5% of redemption amount
- Late Payment Fee
- S$75
- Processing Fee
- 1% of approved loan amount, subject to a minimum of S$88
| Promotion:
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This is why HSBC Debt Consolidation Plan is the best debt consolidation loan in Singapore for large and long-term plans.
HSBC's debt consolidation loan is the best offering in the market for borrowers seeking large or long-term debt consolidation plans. This is because HSBC charges a low interest rate (from 3.4% p.a.), while also waiving its processing fee. For instance, for loan tenures of 1-10 years, it only charges a flat rate of 3.4%, which is cheaper than the average rate.
Best Debt Consolidation Loan Promotions
Those seeking the most affordable financial products are often on the lookout for promotional offers. In this section, we highlight the best promotions available to debt consolidation plan applicants.
Best Promotion for New Plans: Maybank Debt Consolidation Plan (DCP)
- Balance to Income Ratio
- More than 12x monthly income
- Early Repayment Fee
- 5% of outstanding balance or S$800, whichever is greater
- Late Payment Fee
- 5% of the minimum monthly repayment or S$80, whichever is higher
- Processing Fee
- N/A
Promotion:
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This is why Maybank's debt consolidation loan is the best debt consolidation loan promotions in Singapore.
Maybank's debt consolidation loan is worth considering due to its promotional interest rate and cashback promotion. The bank is currently offering promotional interest rates as low 3.88% p.a., Maybank is also offering a 5% cashback promotion for new DCP customers. Therefore, if you prefer a cashback promotion, Maybank is a good choice.
- Balance to Income Ratio
- More than 12x monthly income
- Early Repayment Fee
- 5% of outstanding balance or S$800, whichever is greater
- Late Payment Fee
- 5% of the minimum monthly repayment or S$80, whichever is higher
- Processing Fee
- N/A
Promotion:
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This is why Maybank's debt consolidation loan is the best debt consolidation loan promotions in Singapore.
Maybank's debt consolidation loan is worth considering due to its promotional interest rate and cashback promotion. The bank is currently offering promotional interest rates as low 3.88% p.a., Maybank is also offering a 5% cashback promotion for new DCP customers. Therefore, if you prefer a cashback promotion, Maybank is a good choice.
Best Debt Consolidation Loan Refinancing Promotions
If you are planning to refinance your existing debt consolidation loan, we recommend that you consider refinancing with a lender that offers a cashback promotion. Currently, these banks are offering competitive cashback rates to refinancing DCP borrowers. In the end, it is best to go with the lender that offers you the least expensive offer, in terms of total cost. For instance, banks will offer different interest rates depending on your credit history. You should also take into account the impact of fees.
| HSBC | Standard Chartered | |
|---|---|---|
| Starting Rates | 3.40% | 3.48% |
| Fee | N/A | S$199 |
| Cashback Promotion | 5% | 6% |
CIMB Bank Debt Consolidation Plan
- Balance to Income Ratio
- More than 12x monthly income
- Early Repayment Fee
- 3% of outstanding principal amount or $250, whichever is greater
- Late Payment Fee
- S$100
- Processing Fee
- 1%
CIMB's debt consolidation plan comes with the lowest advertised flat interest rate, of 2.77%. However, it charges a one time processing fee of 1%, which makes it slightly less competitive than other debt consolidation plans. Not only that, you should note that CIMB's rate is not guaranteed for all borrowers. CIMB's exact language is "interest rates are as low as 2.77%," and your approved interest rate can be materially higher than the published rate depending on your credit score.
- Balance to Income Ratio
- More than 12x monthly income
- Early Repayment Fee
- 3% of outstanding principal amount or $250, whichever is greater
- Late Payment Fee
- S$100
- Processing Fee
- 1%
CIMB's debt consolidation plan comes with the lowest advertised flat interest rate, of 2.77%. However, it charges a one time processing fee of 1%, which makes it slightly less competitive than other debt consolidation plans. Not only that, you should note that CIMB's rate is not guaranteed for all borrowers. CIMB's exact language is "interest rates are as low as 2.77%," and your approved interest rate can be materially higher than the published rate depending on your credit score.
Other Debt Consolidation Plans That We Considered
Besides the options that we mentioned above, we've considered all the debt consolidation plans offered by all major banks in Singapore. In total, we've reviewed Bank of China, Citibank, Maybank, HSBC, Standard Chartered, CIMB, POSB & DBS, OCBC and UOB. The banks that did not win the accolades above charge higher effective interest rates, have less flexible loan terms, higher processing fees, and, in most cases, do not guarantee their rates.
How to Compare Debt Consolidation Loans
Comparing debt consolidation loans should be a relatively straightforward process. First, borrowers will need to decide how long it will take to repay their debt. Debt consolidation loans tend to range from 1 to 10 years, though not all lenders offer loans of 8 to 10 years. Next, borrowers must consider the total cost of their debt consolidation plan. This includes interest rates, processing fees and any promotions. Not all lenders guarantee their advertised rates, so it is important to carefully review the terms and conditions of each loan.
Am I Eligible for a Debt Consolidation Plan?
In order to be eligible for a Debt Consolidation Plan (DCP), borrowers must be Singapore Citizens or Permanent Residents, with annual incomes between S$20,000 and S$120,000. With this said, all of the banks in our review require applicants to earn at least S$30,000 annually. Additionally, eligible DCP borrowers may not have net assets exceeding S$2 million. Eligible applicants must have interest-bearing non-secured debt on credit cards and unsecured credit facilities exceeding 12 times their monthly income. Examples of debt that cannot be consolidated with a DCP include joint accounts and renovation, medical, business and education loans. Finally, those with existing debt consolidation plans may refinance 3 months after the approval of their existing DCP.
DCP Eligibility Requirements
- Singapore Citizen or Permanent Resident
- Annual Income between S$20,000 and S$120,000
- Net Personal Assets less than S$2 million
- Total interest-bearing debt of more than 12 times monthly income
What If You Don’t Qualify for a Debt Consolidation Plan?
Debt consolidation plans are specialized loans that help combine multiple debts under one scheduled payment plan, usually under more favorable interest rates. That being said, it is still in essence a personal loan. So if you do not qualify due to citizenship or other underwriting requirements, you can still apply for traditional personal loans offered by banks in Singapore.
First, compare different personal loans and apply for one that best suits your needs among the best personal loans in Singapore. Once your personal loan is disbursed, immediately pay off your outstanding debt (i.e. credit card debt) and refrain from spending it on other expenses. You have effectively transferred your debt under a different loan under a different rate plan. Be sure to make on-time payments and avoid taking on more debt.
Frequently Asked Questions
Yes. In this way, debt consolidation plans are not unlike other personal finance products such as credit cards or loans.
No. Debt consolidation plans cannot be used to repay outstanding balances of education loans, renovation loans, medical loans, business financing, or outstanding debts under joint accounts. Due to these limitations, DCPs are not restricted by the same borrowing limits as other financial products.
Yes. Debt consolidation plans do not allow for partial consolidations or for multiple DCPs with different banks.
Like any credit facility, your Credit Bureau report will include your debt consolidation loan. However, if you make on-time payments for DCP and all of your other debts your credit score will remain unaffected. We also recommend that you make at least the minimum monthly payments on your other accounts until your debt consolidation plan is approved.
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.