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UOB Debt Consolidation Plan Review

Debt consolidation loan with higher than average interest rates.
PROMO: Get S$200 Cashback

UOB Debt Consolidation Plan Review

Debt consolidation loan with higher than average interest rates.

3.5/5.0

ValueChampion Rating ValueChampion Icon

Pros

  • Alternative debt consolidation loans for new UOB customers denied from other banks

Cons

  • Loan tenor of only up to 6 years
  • Not the most competitive interest rates
PROMO: Get S$200 Cashback

UOB's debt consolidation plan is best viewed as an expensive alternative to other plans because the bank advertises interest rates that are higher than those of its competitors. Borrowers that have not previously used UOB's services are eligible for slightly better rates; but it is unclear what rates these borrowers will receive in reality, due to vague wording on UOB's website.

Summary of UOB's Debt Consolidation Loan
Higher than Average Interest Rates: 8.22% - 10.41%
Loan tenures: 1 - 8 years
Promotion: Cash rebate of S$200 (limited to first 300 customers)

Table of Contents

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

UOB's debt consolidation loan is not among options available in Singapore. The bank charges higher than average interest rates (EIR: 8.22% - 10.41%), making it a less affordable option. Additionally, while the bank does offer a cashback promotion of S$200, this amount is less generous than its competitors and the promotion is limited to the first 300 applicants. For these reasons, UOB's debt consolidation plan is best viewed as a backup to other, more affordable loans.

TenureFlat Interest RateEffective Interest Rate
1 – 6 years4.50%8.22%
7 – 8 years5.50%9.67%
TenureYearFlat RateEffective Rate
6 yearsYear 12.28%9.04%
Years 2-66.28%
7 yearsYear 12.99%10.35%
Years 2-76.99%
8 yearsYear 12.99%10.41%
Years 2-76.99%

Who Can Apply: Eligibility Criteria

PROMO: Get S$200 Cashback
Consider this if if you are unable to obtain another debt consolidation loan
  • Balance to Income Ratio
    • More than 12x monthly income
    • Early Repayment Fee
      • 5% on outstanding amount or S$200, whichever is higher
      • Late Payment Fee
        • S$90
        • Processing Fee
          • Unknown

          Singaporeans and permanent residents with incomes of at least S$30,000 and less than S$120,000 are eligible for UOB's debt consolidation plan. Applicants must also have balance to income (BTI) ratios of at least 12 times their monthly income.

          Other Charges and Fees

          UOB does not clearly state on its website whether it charges service or annual fees. That being said, it does charge an early settlement fee of 5% or S$200, whichever is greater. UOB also charges a S$90 fee for late repayments. This is similar to fees charged by other banks. We recommend that borrowers make on-time payments to minimise the total cost of their loan.

          FeeAmount
          Processing FeeUnknown
          Early Settlement Fee5% on outstanding amount or S$200, whichever is higher
          Late FeeS$90

          How to Apply: Application Process

          Applicants must complete an online application and provide contact, employment and personal debt information. Salaried applicants must provide their latest computerised payslip and self-employed applicants must provide their latest income tax notice assessment. Applicants must also provide confirmation letters showing unbilled balances for any unsecured credit instalment plans.

          • Photocopy NRIC (front & back)
          • Latest credit bureau report
          • Income documentation
          • Latest credit card & credit line statements with outstanding balances
          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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