{"buttonLabel":"Apply Now","productCollection":"debt_consolidation_loans","productId":"8","productLink":"https:\/\/sg.lendela.com\/application?utm_source=valuechampion_sg&utm_medium=referral&utm_campaign=vc_personal_loan","productName":"POSB\/DBS Debt Consolidation Plan"}
{"buttonLabel":"Apply Now","productCollection":"debt_consolidation_loans","productId":"8","productImage":"referral_logos\/sg\/banking\/posb-1","productLink":"https:\/\/sg.lendela.com\/application?utm_source=valuechampion_sg&utm_medium=referral&utm_campaign=vc_personal_loan","productName":"POSB\/DBS Debt Consolidation Plan"}

POSB & DBS Debt Consolidation Plan Review

The banks' competitive interest rates and cashback promotion makes their debt consolidation plans an attractive offer for consumers in Singapore
PROMO: Get 5% Cashback for refinance plans

POSB & DBS Debt Consolidation Plan Review

The banks' competitive interest rates and cashback promotion makes their debt consolidation plans an attractive offer for consumers in Singapore


ValueChampion Rating ValueChampion Icon

Interest Rates
Processing Fee


  • Good for borrowers seeking to refinance their debt consolidation plan
  • Bundled with a credit card to cover daily expenses


  • No guaranteed interest rates
PROMO: Get 5% Cashback for refinance plans

POSB and DBS are currently advertising rates from 3.58%, which is materially more expensive than the rates of other lenders. However, both POSB and DBS are offering a cashback promotion of 5% of the approved debt consolidation loan amount for debt consolidation loan refinancing with a minimum tenure period of 72 months. Therefore, if you seek to refinance your existing DCP and are unable to obtain a better rate from another bank, POSB and DBS would be worth considering. Additionally, there's also a 1% cashback promotion for new debt consolidation plan customers.

Summary of POSB/DBS's Debt Consolidation Loans
Loan tenure: 1 to 8 years
Processing Fee: S$99
  • 5% cashback (refinancing only) and Visa Credit Card
  • 1% cashback for new-to-DCP customers

Table of Contents

What Makes POSB/DBS Debt Consolidation Plans Stand Out to Borrowers

POSB and DBS interest rates start from as low as 3.58% p.a. (6.56% EIR), which is low compared to other debt consolidation plans in Singapore. Therefore, this might be a good option for those who want to benefit from lower costs.

Moreover, it is worth noting that POSB and DBS are offering competitive debt consolidation loan promotions. This promotion provides cashback of 5% of the approved loan amount to refinancing applicants, and 1% of the approved loan amount to new applicants. Both cahsback promotions are only applicable to applicants with a minimum loan tenure of 72 months. This can result in material savings, especially for those with a significant amount of debt. This promotion makes POSB and DBS decent options for those that want to refinance their DCP but are unable to obtain a better rate elsewhere. Other features of the POSB and DBS debt consolidation plans include a single account for all existing loans, loan tenures of 1 - 8 years and a credit card for daily expenses. These are all very similar to other lenders' features.

Who Can Apply: Eligibility Criteria

PROMO: Get 5% Cashback for refinance plans
Consider this if you are able to secure their lowest rates and prefer cash back promotions
  • Balance to Income Ratio
    • More than 12x monthly income
    • Early Repayment Fee
      • 5% on outstanding loan amount
      • Late Payment Fee
        • S$90
        • Processing Fee
          • S$99

          Singaporeans and permanent residents ages 21 to 65 are eligible for debt consolidation plans from POSB and DBS. Eligible applicants must have annual incomes of at least S$30,000 and less than S$120,000. Lastly, borrowers must have balance to income (BTI) ratios of at least 12 times monthly income.

          Other Charges and Fees

          In addition to the S$99 processing fee, POSB and DBS charge late fees of S$90. With that said, we strongly recommend that you make on-time payments to avoid inflating the total cost of your debt consolidation plan.

          Processing FeeS$99
          Early Termination Fee5% on outstanding loan amount at time of termination
          Late FeeS$90

          How to Apply: Application Process

          Applicants can apply submitting their information online or by applying in person by visiting their nearest DBS or POSB branch. Prospective borrowers must provide personal identification, credit and income documents.

          For required income documents, salaried individuals must provide latest income tax notice assessment for the past 12 months, their last 12 months CPF contribution history statement latest computerised payslip or have salary crediting into a DBS or POSB account. Commission based individuals must provide 2 last years of Income Tax Notice Assessments or last 12 months CPF contribution History Statement. Finally, borrowers that are self employed must provide last 2 years of Income Tax Notice Assessments.

          • Photocopy of NRIC (front and back)
          • Latest Credit Bureau report
          • Income documents
          • Proof of Outstanding Secured Facilities document

          Read Also:

          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.

          {"endpoint":"\/newsletter\/subscribe","style":"blue","title":"Keep up with our news and analysis.","version":"sidebar"}