CIMB Bank Debt Consolidation Plan Review
CIMB Bank Debt Consolidation Plan Review
ValueChampion Rating 
Pros
- Low advertised interest rates
- Alternative debt consolidation loans for individuals denied from other banks
Cons
- Not the best DCP promotions
- DCP loan tenure of only 5
CIMB a good backup option to other debt consolidation plans available in Singapore. With first year flat rates of 2.77% p.a. and effective interest rates of 7%, CIMB Bank's debt consolidation plan offers the lowest interest rate in Singapore. Despite these low advertised interest rates, the bank does not guarantee that all borrowers will receive these rates, specifically. Additionally, unlike many of its competitors, the bank is not currently offering a processing fee waiver or other promotion.
| Summary of CIMB's Debt Consolidation Loan |
|---|
| Lowest Advertised Interest Rates: 7% EIR p.a. |
| Loan tenure: 1 to 5 years |
| Processing Fee: 1% of loan amount |
Table of Contents
What Makes CIMB's Debt Consolidation Plans Stand Out to Borrowers
CIMB advertises the lowest debt consolidation plan interest rates in Singapore, with effective interest rates as low as 7%. This is a great rate for some borrowers that are actually able to secure it; however, it is impossible to determine who can actually get loans at this rate because of the ambiguous language on its website ("as low as"). Therefore, it is difficult to assess the total cost of CIMB's debt consolidation loan compared to a loan from another bank.
Additionally, because POSB, DBS and Maybank are offering cashback promotions and HSBC is offering S$100 cashback and waived processing fees, CIMB's lack of promotions and 1% processing fee make it a less appealing source for debt consolidation loans. It also offers loans with shorter durations (up to 5 years) than many other DCP lenders in Singapore.
Who Can Apply: Eligibility Criteria
- 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%
Singaporeans and Permanent Residents with annual incomes higher than S$30,000 and balance to income ratios of greater than 12 times their monthly incomes are eligible for CIMB Bank's Debt Consolidation Plan. Additionally, applicants must become CIMB Singapore Credit Cardholders prior to applying for the debt consolidation loan.
Other Charges and Fees
In addition to its 1% processing fee, CIMB Bank charges an early settlement fee of 3% of the outstanding principal or S$250, whichever is greater. It also charges a S$100 fee for late payments. For this reason, we recommend that borrowers always make on-time payments in order to minimize the total cost of their loan.
| Fee | Amount |
|---|---|
| Processing Fee | 1% of loan amount |
| Early Settlement Fee | 3% of outstanding principal or $250, whichever is higher |
| Late Fee | S$100 |
How to Apply: Application Process
To apply, applicants must complete and submit CIMB's application form. The form requires individuals to provide personal, employment and financial information, including details of their unsecured credit facilities. For income documentation, salaried applicants must provide their latest year's CPF contribution statement or latest computerised payslip. Self-employed applicants must provide their latest 2 years' income tax notice of assessment and bank statements for the most recent three months. Finally, commission-based and variable income earning applicants must provide their latest 2 years' income tax notice of assessment or latest year's CPF contribution statement.
- Photocopy NRIC (front & back)
- Proof of Balances
- Income documentation
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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.