Best Debt Consolidation Plans 2020

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 regarding processing fees, interest rates and promotions.

Best Large, Long-Term Plans:
Best Debt Consolidation Loan Promotions:
Debt Consolidation Loans for Low Income
Honorable Mention:

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.

This graph compares the total cost of the best debt consolidation loan offer from each bank in Singapore
Best Large, Long-Term Plans:
Best Debt Consolidation Loan Promotions:
Best Debt Consolidation Loans for Low Income
Honorable Mention:

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.

Best Large & Long-Term Plans: HSBC Debt Consolidation Plan

  • Competitive Interest Rates: 3.8% p.a.
  • Flexible Loan Tenure: 1-10 Years
  • Promotions:
  • 5% cashback (refinancing only)
  • Free Credit Bureau Report
  • Read Our Full Review
HSBC Debt Consolidation LoanDetails
Processing FeeCurrently Waived
Flat Interest Rate 1-10 Yearsfrom 3.8% (7.5% EIR)
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 3.8% p.a.), while also waiving its processing fee. For instance, for loan tenures of 1-10 years, it only charges a flat rate of 3.8%, which is cheaper than the average rate.
  • Lowest Guaranteed Interest Rates: 4% EIR
  • Flexible Loan Tenure: 1-10 Years
  • Promotions:
  • 5% cashback (refinancing only)
  • Free Credit Bureau Report
  • Read Our Full Review
Details
Processing FeeCurrently Waived
Flat Interest Rate 1-10 Yearsfrom 3.8% (7% EIR)

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 3.8% p.a.), while also waiving its processing fee. For instance, for loan tenures of 1-10 years, it only charges a flat rate of 3.8%, 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)

  • 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 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 cashback promotion (S$388 upon approval) to new DCP customers. Therefore, if you prefer a cashback promotion, Maybank is a good choice.
  • 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 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 cashback promotion (S$388 upon approval) to new DCP customers. Therefore, if you prefer a cashback promotion, Maybank is a good choice.

Best Debt Consolidation Loan Refinancing Promotions

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Button\" data-eventlabel=\"POSB\/DBS Debt Consolidation Plan\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"POSB\/DBS Debt Consolidation Plan\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.sg%2Fredirect%3Flink%3Dhttps%253A%252F%252Fad.doubleclick.net%252Fddm%252Ftrackclk%252FN322602.2754007VALUEPENGUINSG%252FB23870207.268958202%253Bdc_trk_aid%253D463637071%253Bdc_trk_cid%253D129399279%253Bdc_lat%253D%253Bdc_rdid%253D%253Btag_for_child_directed_treatment%253D%253Btfua%253D\"\u003EApply Now \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003Cdiv class=\"AffiliateBannerDesktop--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate debt_consolidation_loans: POSB\/DBS Debt Consolidation Plan - Image\" data-eventlabel=\"POSB\/DBS Debt Consolidation Plan\" rel=\"nofollow noopener\" target=\"_blank\" title=\"POSB\/DBS Debt Consolidation Plan\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.sg%2Fredirect%3Flink%3Dhttps%253A%252F%252Fad.doubleclick.net%252Fddm%252Ftrackclk%252FN322602.2754007VALUEPENGUINSG%252FB23870207.268958202%253Bdc_trk_aid%253D463637071%253Bdc_trk_cid%253D129399279%253Bdc_lat%253D%253Bdc_rdid%253D%253Btag_for_child_directed_treatment%253D%253Btfua%253D\"\u003E\u003Cimg alt=\"POSB\/DBS Debt Consolidation Plan\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/posb-1\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/posb-1 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/posb-1 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate debt_consolidation_loans: POSB\/DBS Debt Consolidation Plan - Button\" data-eventlabel=\"POSB\/DBS Debt Consolidation Plan\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"POSB\/DBS Debt Consolidation Plan\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.sg%2Fredirect%3Flink%3Dhttps%253A%252F%252Fad.doubleclick.net%252Fddm%252Ftrackclk%252FN322602.2754007VALUEPENGUINSG%252FB23870207.268958202%253Bdc_trk_aid%253D463637071%253Bdc_trk_cid%253D129399279%253Bdc_lat%253D%253Bdc_rdid%253D%253Btag_for_child_directed_treatment%253D%253Btfua%253D\"\u003EApply Now \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E"],"offsetPercentage":20}

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.

HSBCStandard CharteredPOSB
Starting Rates3.80%3.98%4.58%
FeeN/AS$199S$99
Cashback Promotion5%5%3%

Best Moneylender Loans for Low-Income Borrowers: Lendela

  • Low Salary Requirement: S$1,600 monthly
  • Quick Loan Disbursement: within 1 day
  • Promotions:
  • No promotions currently offered
  • Read Our Full Review
Loan Details
Monthly Interest Ratesfrom 0.8% (lower rates for returning borrowers)
Lendela ApplicationFree
Processing FeesVary by lender
Loan SizeS$500 to S$100,000 (or 6x monthly income)
Loan DisbursementWithin 1 day

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$1,600 monthly. Finally, most Lendela applicants receive more than 1 same-day loan offer.

  • Low Salary Requirement: S$1,600 monthly
  • Quick Loan Disbursement: within 1 day
  • Promotions:
  • No promotions currently offered
  • Read Our Full Review
Loan Details
Monthly Interest Ratesfrom 0.8% (lower rates for returning borrowers)
Lendela ApplicationFree
Processing FeesVary by lender
Loan SizeS$500 to S$100,000 (or 6x monthly income)
Loan DisbursementWithin 1 day

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$1,600 monthly. Finally, most Lendela applicants receive more than 1 same-day loan offer.

CIMB Bank Debt Consolidation Plan

CIMB Debt Consolidation Plan
CIMB Debt Consolidation Plan
  • Lowest Advertised Flat Interest Rates: 2.77% p.a. (7% EIR)
  • Processing Fee: 1%
  • Read our full review
CIMB Debt Consolidation LoanDetails
Processing Fee1%
Flat RateAs low as 2.77%
Min EIR7%
Tenure1-8 Years
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.
CIMB Debt Consolidation Plan
CIMB Debt Consolidation Plan
  • Lowest Advertised Flat Interest Rates: 2.77% p.a. (7% EIR)
  • Processing Fee: 1%
  • Read our full review
CIMB Debt Consolidation LoanDetails
Processing Fee1%
Flat RateAs low as 2.77%
Min EIR7%
Tenure1-8 Years
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. These include banks like Bank of China, Citibank, DBS, POSB, OCBC 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.

UOBOCBCCiti
Processing FeeUnknownN/AN/A
Flat Ratesfrom 4.5%4.5%from 5.7%
Min EIRfrom 8.22%8.06%from 10.5%
Tenure1-8 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 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.

William Hofmann

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

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