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.

Lowest Advertised Rates: Best Guaranteed Rate:
Best Promotional Interest Rates:
Best Debt Consolidation Loan Refinancing
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 effective interest rates of the best debt consolidation loan offer from each bank in Singapore
Lowest Advertised Rates: Best Guaranteed Rate: Best Promotional Interest Rates: Best Debt Consolidation Loan Refinancing 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.

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

Lowest Advertised Rates: POSB & DBS Debt Consolidation Plan

  • Lowest Advertised Rates: from 3.58%
  • Promotions:
  • 3% cashback on approved loan amount (refinancing only)
  • Read Our Full Review
POSB/DBS Debt Consolidation LoanDetails
Processing FeeS$99
Flat Interest Rate 1-8 YearsAs low as 3.58% (6.56% EIR)
Promotion3% cashback based on approved loan amount
POSB & DBS's debt consolidation loans are among the best available in Singapore. The banks advertise rates "as low as 3.58%" for tenures up to 8 years. This is the lowest advertised rate available in Singapore. POSB and DBS are providing 3% cashback to approved borrowers, which is one of the best cashback promotions available. Therefore, these are the cheapest debt consolidation loans if you qualify for POSB/DBS's best rates.
  • Lowest Advertised Rates: from 3.58%
  • Promotions:
  • 3% cashback on approved loan amount (refinancing only)
  • Read Our Full Review
Details
Processing FeeS$99
Flat Interest Rate 1-8 YearsAs low as 3.58% (6.56% EIR)
Promotion3% cashback based on approved loan amount

POSB & DBS's debt consolidation loans are among the best available in Singapore. The banks advertise rates "as low as 3.58%" for tenures up to 8 years. This is the lowest advertised rate available in Singapore. POSB and DBS are providing 3% cashback to approved borrowers, which is one of the best cashback promotions available. Therefore, these are the cheapest debt consolidation loans if you qualify for POSB/DBS's best rates.

Best Guaranteed Rate: 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 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).

Best Debt Consolidation Loan for Refinancing: Standard Chartered Debt Consolidation Plan

  • Best Refinancing Promotions
  • Competitive Advertised Rates: from 3.98%
  • Promotions:
  • 5% cashback (refinancing only)
  • Read Our Full Review
Standard Chartered Debt Consolidation LoanDetails
Processing FeeS$199
Flat Interest Rate 3-10 YearsAs low as 3.98% (7.70% EIR)
Promotion5% cashback (refinancing only)
If you currently have a debt consolidation loan with a high interest rate, it is worth considering refinancing with Standard Chartered. The bank charges interest rates from 3.98%, making it more affordable than many competitors. Furthermore, Standard Chartered is currently offering 5% cashback based on the approved loan amount. Please note that the rate of 3.98% p.a. is not guaranteed, and that your offer will depend on your credit profile.
  • Best Refinancing Promotions
  • Competitive Advertised Rates: from 3.98%
  • Promotions:
  • 5% cashback (refinancing only)
  • Read Our Full Review
Details
Processing FeeS$199
Flat Interest Rate 3-10 YearsAs low as 3.98% (7.70% EIR)
Promotion5% cashback (refinancing only) + S$200 for new customers

If you currently have a debt consolidation loan with a high interest rate, it is worth considering refinancing with Standard Chartered. The bank charges interest rates from 3.98%, making it more affordable than many competitors. Furthermore, Standard Chartered is currently offering 5% cashback based on the approved loan amount. Please note that the rate of 3.98% p.a. is not guaranteed, and that your offer will depend on your credit profile.

Honorable Mention: 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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