Best Debt Consolidation Plans 2019

We've compared every debt consolidation plan available in Singapore to help borrowers find the most affordable way to control their debt. Our list of the best debt consolidation loans below highlights the most affordable and flexible plans available depending on your preferences on processing fee, interest expense and promotions.

Best Overall Debt Consolidation Plan:
Best Cashback Promotion: Best Promotional Interest Rates:
Honorable Mention - Lowest Advertised Rates:

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 be careful with some banks that advertise rates "as low as X%", because you may end up being offered higher rates than you expected.

This graph compares the effective interest rates of the best debt consolidation loan offer from each bank in Singapore
Best Overall Debt Consolidation Plan: Best Cashback Promotion: Best Promotional Interest Rates: Honorable Mention - Lowest Advertised Rates:

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 be careful with some banks that advertise rates "as low as X%", because you may end up being offered higher rates than you expected.

This graph compares the effective interest rates of the best debt consolidation loan offer from each bank in Singapore

Best Debt Consolidation Plan in Singapore: HSBC Debt Consolidation Plan

  • Lowest Guaranteed Interest Rates: 4%
  • Flexible Loan Tenure: 1-10 Years
  • Promotions:
  • Processing fee waiver (S$88 or 1% of loan amount)
  • Read Our Full Review
HSBC Debt Consolidation LoanDetails
Processing FeeWaived
Flat Interest Rate 1-7 Years4.0% (7.5% EIR)
Flat Interest Rate 8-10 Years5.7% (10.0% EIR)
In our view, HSBC's debt consolidation loan is the best offering in the market because it offers the lowest interest rate, while also waiving its processing fee. For instance, for loan tenures of 1 to 7 years, it only charges a flat rate of 4%, compared to 5-6% being charged by other banks.

For longer tenures of 8 to 10 years, its rates are still the cheapest at 5.7% vs +6% of competitors. Not only that, the bank is currently waiving its processing fee (normally S$88 or 1% of loan amount).

  • Lowest Guaranteed Interest Rates: 4% EIR
  • Flexible Loan Tenure: 1-10 Years
  • Promotions:
  • Processing fee waiver (S$88 or 1% of loan amount)
  • Read Our Full Review
Details
Processing FeeWaived
Flat Interest Rate 1-7 Years4.0% (7.5% EIR)
Flat Interest Rate 8-10 Years5.7% (10.0% EIR)
In our view, HSBC's debt consolidation loan is the best offering in the market because it offers the lowest interest rate, while also waiving its processing fee. For instance, for loan tenures of 1 to 7 years, it only charges a flat rate of 4%, compared to 5-6% being charged by other banks.

For longer tenures of 8 to 10 years, its rates are still the cheapest at 5.7% vs +6% of competitors. Not only that, the bank is currently waiving its processing fee (normally S$88 or 1% of loan amount).

Best Cashback Promotion: POSB & DBS Debt Consolidation Plan

  • Best Promotion
  • Competitive Advertised Rates: from 3.98%
  • Promotions:
  • 3% cashback on approved loan amount
  • Read Our Full Review
POSB/DBS Debt Consolidation LoanDetails
Processing FeeS$99
Flat Interest Rate 1-8 YearsAs low as 3.98% (7.23% EIR)
Promotion3% cashback based on approved loan amount
POSB & DBS's debt consolidation loans are among the best available in Singapore. The banks are providing 3% cashback to approved borrowers, which is the best cashback promotion available. Also, POSB and DBS are advertising rates "as low as 3.98%" for tenures up to 8 years. This can actually work out well for some who can manage to secure these rates. However, since the wording is "as low as" 3.98%, you could end up paying an interest that is much higher. Finally, POSB & DBS charge a processing fee of S$99, which can inflate your final cost, though comparatively much smaller than the cash rebate.
  • Best Promotion
  • Competitive Advertised Rates: from 3.98%
  • Promotions:
  • 3% cashback on approved loan amount
  • Read Our Full Review
Details
Processing FeeS$99
Flat Interest Rate 1-8 YearsAs low as 3.98% (7.23% EIR)
Promotion3% cashback based on approved loan amount
POSB & DBS's debt consolidation loans are among the best available in Singapore. The banks are providing 3% cashback to approved borrowers, which is the best cashback promotion available.

Also, POSB and DBS are advertising rates "as low as 3.98%" for tenures up to 8 years. This can actually work out well for some who can manage to secure these rates. However, since the wording is "as low as" 3.98%, you could end up paying an interest that is much higher. Finally, POSB & DBS charge a processing fee of S$99, which can inflate your final cost, though comparatively much smaller than the cash rebate.

Best Promotional Interest Rates: Maybank Debt Consolidation Plan (DCP)

  • Competitive Promotions:
  • Promotional interest rates as low as 3.88% p.a. (6.92% EIR)
  • S$388 cash rebate upon loan approval
  • No Processing Fee
  • Read Our Full Review
Maybank Debt Consolidation LoanDetails
Processing FeeN/A
Flat RateAs low as 3.88%
Min EIR6.92%
Tenure1-10 Years
Maybank's debt consolidation loan is also worth considering due to its promotional interest rate. The bank is currently offering promotional interest rates as low as 6.92% EIR (flat rate: 3.88% p.a.), which is the lowest advertised effective interest rate available in Singapore. Maybank is also offering a cashback promotion (S$388 upon approval).
  • Competitive Promotions:
  • Promotional interest rates as low as 3.88% p.a. (6.92% EIR)
  • S$388 cash rebate upon loan approval
  • No Processing Fee
  • Read Our Full Review
Details
Processing FeeN/A
Flat RateAs low as 3.88%
Min EIR6.92%
Tenure1-10 Years
Maybank's debt consolidation loan is also worth considering due to its promotional interest rate. The bank is currently offering promotional interest rates as low as 6.92% EIR (flat rate: 3.88% p.a.), which is the lowest advertised effective interest rate available in Singapore. Maybank is also offering a cashback promotion (S$388 upon approval).

Honorable Mention - Lowest Advertised Rates: CIMB Bank Debt Consolidation Plan

CIMB Debt Consolidation Plan
CIMB Debt Consolidation Plan
Details
Processing Fee1%
Flat RateAs low as 2.77%
Min EIR7%
Tenure1-8 Years
In terms of the lowest interest rate being advertised, CIMB's debt consolidation plan was the lowest at 2.77%, but unlike HSBC it charges a one time processing fee of 1%. Not only that, you should note that this rate is not guaranteed. 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.
CIMB Debt Consolidation Plan
CIMB Debt Consolidation Plan
CIMB Debt Consolidation LoanDetails
Processing Fee1%
Flat RateAs low as 2.77%
Min EIR7%
Tenure1-8 Years
In terms of the lowest interest rate being advertised, CIMB's debt consolidation plan was the lowest at 2.77%, but unlike HSBC it charges a one time processing fee of 1%. Not only that, you should note that this rate is not guaranteed. 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. These include banks like Bank of China, Citibank, DBS, POSB, OCBC, Standard Chartered and UOB. Most importantly, these banks charge higher effective interest rates than the lenders highlighted above. Furthermore, these banks have less flexible loan terms (OCBC - 3-8 years), higher processing fees and, in most cases, do not guarantee their rates, unlike HSBC.

Standard CharteredUOBOCBCCiti
Processing FeeS$199UnknownN/AN/A
Flat Ratesfrom 3.98%from 4.5%4.5%from 5.7%
Min EIRfrom 7.70%from 8.22%8.06%from 10.5%
Tenure1-10 Years1-8 years3-8 years1-7 years

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

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 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 records will include your DCP. 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 DCP is approved.

William Hofmann

William is a Senior Research Analyst at ValueChampion Singapore, focusing on banking and SMEs. He previously was an Economic Consultant at Industrial Economics Inc.

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