POSB and DBS are currently offering the best debt consolidation loan promotions in Singapore. Borrowers that have never used credit cards or unsecured loans from the bank are eligible for S$1,200 cashback upon loan approval. Borrowers seeking to refinance their loans are eligible for up to S$3,000 cashback. Additionally, the banks advertise very competitive interest rates of as low as 3.98%.
|Summary of POSB/DBS's Debt Consolidation Loans|
|Best DCP promotion: S$1,200 cashback for new customers|
|Competitive advertised interest rates: 7.23% p.a. EIR|
|Loan tenure: 1 to 8 years|
|Processing Fee: S$99|
|Promotion: Up to S$1,200 of cash back for new customers (existing customers: S$300 for loan of under S$75,000, S$800 for loan of over S$75,000)|
Table of Contents
What Makes POSB/DBS Debt Consolidation Plans Stand Out to Borrowers
POSB and DBS are offering the most significant promotional deal for debt consolidation loans. Individuals that have not previously used POSB/DBS credit cards or taken loans are eligible for S$1,200 in cashback. Existing customers are offered less; S$800 for loans larger than S$75,000 and S$300 for loans of S$75,000 or less. Unfortunately for borrowers, these promotions are only available for the first 500 applicants and loans of at least 72 months. Similarly, the banks are offering a very generous cashback promotion to borrowers seeking to refinance their debt consolidation loan. Borrowers with loans of more than S$75,000 and borrowers with loans of S$75,000 or less will receive S$2,000. While the banks charge a S$99 processing fee, it is rather insignificant for applicants that receive the cashback promotion.
|New to DBS/POSB||S$1,200|
|Existing, loan greater than S$75,000||S$800|
|Existing, loan of S$75,000 or less||S$300|
|Refinancing, loan greater than S$75,000||S$3,000|
|Refinancing, loan of S$75,000 or less||S$2,000|
POSB and DBS advertise flat interest rates as low as 3.98% (7.23% EIR). These rates are among the lowest available in our review of debt consolidation plans in Singapore; however, these rates are not guaranteed. This makes it unclear what rates borrowers will actually receive from these lenders.
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
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.
|Early Settlement Fee||5% on outstanding loan amount at time of settlement|
How to Apply: Application Process
Applicants can apply submitting their information online and scheduling a call over the phone 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