Best Debt Consolidation Plans in Singapore 2021

Our analysts 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.

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

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 Moneylender Loans for Low-Income Borrowers: Lendela

Consider this if you are unable to consolidate debt from a bank
  • Eligibility
    • S$1,600 per month
    • Max. Loan Amount
      • 6x monthly salary
      • Min. Loan Amount
        • S$500
        • Processing Fee
          • Varies
          • Approval Time
            • 1 day
            Promotion:
            • No promotions currently offered

            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.

            Consider this if you are unable to consolidate debt from a bank
            • Eligibility
              • S$1,600 per month
              • Max. Loan Amount
                • 6x monthly salary
                • Min. Loan Amount
                  • S$500
                  • Processing Fee
                    • Varies
                    • Approval Time
                      • 1 day
                      Promotion:
                      • No promotions currently offered

                      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.

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

                      PROMO: Get 5% Cashback on refinancing
                      Consider this if you prefer a long-term plan with the competitive interest rates and no processing fees
                      • Balance to Income Ratio
                        • More than 12x monthly income
                        • Early Repayment Fee
                          • 5% of redemption amount
                          • Late Payment Fee
                            • S$75
                            • Processing Fee
                              • S$88 or 1%, waived for online applications
                              Promotion:
                              • 5% cashback (refinancing only)
                              • Free Credit Bureau Report
                              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 3.5% p.a.), while also waiving its processing fee. For instance, for loan tenures of 1-10 years, it only charges a flat rate of 3.5%, which is cheaper than the average rate.
                              PROMO: Get 5% Cashback on refinancing
                              Consider this if you prefer a long-term plan with the competitive interest rates and no processing fees
                              • Balance to Income Ratio
                                • More than 12x monthly income
                                • Early Repayment Fee
                                  • 5% of redemption amount
                                  • Late Payment Fee
                                    • S$75
                                    • Processing Fee
                                      • S$88 or 1%, waived for online applications
                                      Promotion:
                                      • 5% cashback (refinancing only)
                                      • Free Credit Bureau Report

                                      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 3.5% p.a.), while also waiving its processing fee. For instance, for loan tenures of 1-10 years, it only charges a flat rate of 3.5%, 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)

                                      PROMO: Rates as low as 3.88% p.a.
                                      Consider this if you are offered one of their lowest rates and are unable to secure financing elsewhere
                                      • Balance to Income Ratio
                                        • More than 12x monthly income
                                        • Early Repayment Fee
                                          • 4% of outstanding balance or S$300, whichever is greater
                                          • Late Payment Fee
                                            • 5% of the minimum monthly repayment or S$80, whichever is higher
                                            • Processing Fee
                                              • N/A
                                              Promotion:
                                              • Promotional interest rates as low as 3.88% p.a. (6.92% EIR)
                                              • S$388 cash rebate upon loan approval

                                              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$1,500 upon approval) to new DCP customers. Therefore, if you prefer a cashback promotion, Maybank is a good choice.

                                              PROMO: Rates as low as 3.88% p.a.
                                              Consider this if you are offered one of their lowest rates and are unable to secure financing elsewhere
                                              • Balance to Income Ratio
                                                • More than 12x monthly income
                                                • Early Repayment Fee
                                                  • 4% of outstanding balance or S$300, whichever is greater
                                                  • Late Payment Fee
                                                    • 5% of the minimum monthly repayment or S$80, whichever is higher
                                                    • Processing Fee
                                                      • N/A
                                                      Promotion:
                                                      • Promotional interest rates as low as 3.88% p.a. (6.92% EIR)
                                                      • S$388 cash rebate upon loan approval

                                                      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$1,500 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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Image\" data-eventlabel=\"POSB\/DBS Debt Consolidation Plan\" rel=\"nofollow noopener\" target=\"_blank\" title=\"POSB\/DBS Debt Consolidation Plan\" href=\"\/redirect\/debt_consolidation_loans\/8?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 lazyload\" style=\"width: 200px;\" data-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\" src=\"\/\/res.cloudinary.com\/valuechampion\/image\/upload\/e_blur:1000,q_1,f_auto\/referral_logos\/sg\/banking\/posb-1\" data-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 - 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                                                      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 Rates3.50%3.48%3.58%
                                                      FeeN/AS$199S$99
                                                      Cashback Promotion5%5%3%

                                                      CIMB Bank Debt Consolidation Plan

                                                      CIMB Debt Consolidation Plan
                                                      CIMB Debt Consolidation Plan
                                                      Consider this if you are unable to obtain another debt consolidation loan
                                                      • 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%
                                                              Promotion:

                                                              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
                                                              Consider this if you are unable to obtain another debt consolidation loan
                                                              • 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%
                                                                      Promotion:

                                                                      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.

                                                                      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

                                                                      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.

                                                                      Stephen Lee

                                                                      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.

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