Maybank Debt Consolidation Plan Review

Maybank Debt Consolidation Plan Review

Debt consolidation plan with competitive advertised interest rates.

Good for

  • Borrowers that are unable to obtain a debt consolidation loan from other lenders
  • Those that receive Maybank's lowest advertised interest rates

Bad for

  • Borrowers seeking a debt consolidation loan with guaranteed interest rates
  • Individuals seeking the best DCP promotion

Editor's Rating

3.5/5.0

Maybank advertises interest rates "as low as 4.20%", which are competitive with the rates of other debt consolidation lenders in Singapore. That being said, these rates are not guaranteed to borrowers, making it difficult to estimate the total cost of borrowing from Maybank. While borrowers that are offered the bank's lowest interest rates may find this to be a suitable debt consolidation loan, there are other lenders that advertise or guarantee even lower rates.

Summary of Maybank's Debt Consolidation Loans
Low Advertised Interest Rates: From 4.20%
Tenures of 1 to 10 years
Promotion: S$388 cashback

Table of Contents

What Makes Maybank's Debt Consolidation Plan Stand Out to Borrowers

Maybank advertises some of the lowest available interest rates for debt consolidation loans in Singapore (4.2%; EIR 7.64%); however, they use somewhat vague language ("interest rate as low as"), making unclear if borrowers will actually receive this exact rate.

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

Borrowers that are offered Maybank's lowest rates may find these loans affordable. However, HSBC offers lower rates that are guaranteed, while CIMB and POSB/DBS advertise lower rates than Maybank. Additionally, Maybank's cashback promotion (S$388 upon approval) is less generous than POSB/DBS's, which offers up to S$1,200. Therefore, borrowers should view Maybank's debt consolidation loan as an alternative to other lenders if they are unable to access DCP funding elsewhere.

Who Can Apply: Eligibility Criteria

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 Unknown

Singaporean Citizens and Permanent Residents of at least 21 years of age are eligible for Maybank's debt consolidation loan. Applicants must have annual incomes of at least S$30,000 and less than S$120,000, and balance to income ratios of at least 12 times their monthly income. Additionally, individuals participating in the RAS scheme are eligible for Maybank's debt consolidation plan.

Other Charges and Fees

Maybank charges an early settlement fee of 4% of the outstanding balance or S$300, whichever is greater. It also charges a late fee and a fee to increase the size of an existing debt consolidation loan. It is unclear whether Maybank charges a processing fee, though most lenders in Singapore do charge this type of fee.

FeeAmount
Processing FeeUnknown
Early Settlement Fee4% of outstanding balance or S$300, whichever is higher
Late Fee5% of the minimum monthly repayment or S$80, whichever is higher
Loan Increase Fee4% of additional loan amount

How to Apply: Application Process

To apply, individuals can simply send an SMS message to Maybank. SMS: < LCP_VP > < NRIC > < Name > to 79898. Applicants will be required to fill out an application form and submit documents proving identity, debt, and income. For proof of income documents, salaried individuals must provide their latest year's CPF contribution history statement or latest computerised payslip. Commission-based individuals must provide their latest year's CPF contribution history statement or latest 3 months' computerised payslip. Self-employed individuals must provide their latest 2 years' income tax notice of assessment.

  • Photocopy of NRIC (front & back)
  • Latest Credit Bureau Report
  • Proof of balances for all unsecured credit facilities
  • Latest income documents

Comments and Questions

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