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HSBC Debt Consolidation Plan Review

The lowest guaranteed debt consolidation loan rates available to borrowers in Singapore.
PROMO: Get 5% Cashback on refinancing

HSBC Debt Consolidation Plan Review

The lowest guaranteed debt consolidation loan rates available to borrowers in Singapore.

4.5/5.0

ValueChampion Rating ValueChampion Icon

Pros

  • Large debt consolidation loan to manage personal debt

Cons

  • Not the lowest advertised interest rate
PROMO: Get 5% Cashback on refinancing

Singaporean's with high levels of personal debt may find it helpful to use a debt consolidation loan to manage their debt. HSBC offers one of the best debt consolidation plans (DCP) in Singapore. The plan offers the longest loan duration (up to 10 years) and competitive rates (from 3.8% p.a.), making it the most affordable option for borrowers seeking a long-term debt consolidation loan.

Summary of HSBC's Debt Consolidation Loan
Lowest Guaranteed Interest Rates: from 3.4% p.a. (6.5% EIR)
Loan tenure: 1 to 10 years
Promotion: Processing fee waived for online applications

Table of Contents

What Makes HSBC's Debt Consolidation Plans Stand Out to Borrowers

HSBC charges competitive interest rates for its debt consolidation loans and offers tenures up to 10 years. This makes it one of the best lenders in Singapore for your large or long-term debt consolidation needs. Additionally, it is currently waiving its application fee for online applicants, which is normally S$88 or 1% of the loan amount. In contrast, its competitors often charge S$100-S$200.

HSBC Debt Consolidation Plan Details
Loan Duration (Years)1-10
Annualised Flat Ratefrom 3.4% p.a. (6.5% p.a.)
FeeCurrently Waived (1% or S$88)
Annualised Effective Rate6.5%

While a few lenders advertise lower rates than HSBC, they tend use vague language (e.g. "as low as") that indicates that borrowers may actually be offered substantially higher rates. For this reason, HSBC stands out as one of a few lenders that provides details regarding its interest rates.

Who Can Apply: Eligibility Criteria

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

          Singaporean citizens and permanent residents with incomes of between S$30,000 and S$120,000 are eligible for HSBC's debt consolidation loan. Applicants must also have a balance to income (BTI) ratio of at least 12 times their monthly income. Additionally, individuals participating in the RAS scheme are eligible for HSBC's debt consolidation plan.

          Other Charges and Fees

          In addition to the 1% processing fee, which is waived for online applicants, HSBC charges an early settlement fee of 5% of the redemption amount. It also charges a late fee of S$75 and charges an overdue interest fee of 2.5% plus the prevailing interest on the overdue amount. The S$75 late fee is the lowest charged by DCP lenders. That being said, we strongly advise borrowers to make timely repayments in order to minimise the total cost of their loans.

          FeeAmount
          Processing Fee1% of approved loan amount (min. S$88), waived for online applications
          Early Settlement Fee5% of redemption amount
          Late FeeS$75
          Overdue Interest Fee2.5% plus prevailing interest on overdue amount

          How to Apply: Application Process

          Applicants can apply online by filling out and submitting an application form. The form requires personal, employment, salary and financial information. Additionally, prospective borrowers must provide proof of identification, income, current debt and credit history. Applicants may also call HSBC or visit HSBC branches for assistance with the application.

          For proof of income documents, salaried individuals must provide their most recent 3 months of computerised payslips, latest notice of assessment and latest month's computerised payslip or latest 6 months' CPF statements with latest month's computerised payslip/notice of assessment. Self-employed and commission-based employees must provide most recent 2 years' Notice of Assessment.

          • Photocopy NRIC (front & back)
          • Income documentation
          • Credit Bureau Report
          • Latest statements of applicant's existing unsecured credit facilities
          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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