What Is a Debt Consolidation Plan?
A Debt Consolidation Plan (DCP) is a MAS-regulated scheme that lets you combine all your unsecured credit facilities (credit cards, personal loans, credit lines) across different banks into a single loan with one participating bank.
🎯 The Core Benefit
Instead of juggling 3–5 payments at 26–28% p.a., you make one monthly payment at ~3.5–7% p.a. EIR over 1–10 years. Typical savings: 60–75% less interest.
What Debts Can Be Consolidated?
- ✅ Credit card balances (all banks)
- ✅ Personal loans (all banks)
- ✅ Credit lines / overdrafts
- ✅ Retail/store cards
What CANNOT Be Consolidated
- ❌ Secured loans (home, car, renovation)
- ❌ Education loans
- ❌ Medical loans
- ❌ Business loans
- ❌ Debts from licensed moneylenders
- ❌ Joint account debts (unless both parties apply)
Am I Eligible? (MAS Criteria)
Mandatory Requirements
| Criterion | Requirement | Notes |
|---|---|---|
| Citizenship | Singapore Citizen or PR | Foreigners not eligible |
| Income | $20,000–$120,000 p.a. | Below $20k: consider DCP alternatives |
| Net Personal Assets | < $2 million | Property, investments, CPF excluded |
| Total Unsecured Debt | > 12 × Monthly Income | Key threshold — must exceed this |
| Existing DCP | No active DCP | Can refinance after 3 months |
| Credit Bureau | No bankruptcy, DRS, or court orders | Current delinquencies may disqualify |
💡 Quick Eligibility Check
⚠️ Common Disqualifiers
- Debt < 12× monthly income (try balance transfer instead)
- Recent missed payments (last 3–6 months)
- Income > $120k (high earners: consider private banking consolidation)
- Self-employed with < 2 years' tax statements
2026 DCP Comparison: All 14 Participating Banks
Rates as of June 2026. EIR includes processing fee. Always confirm with bank before applying.
| Bank | EIR (p.a.) | Processing Fee | Max Tenure | Min Loan | Special Features |
|---|---|---|---|---|---|
| DBS/POSB | 3.58% | 1% (min $50) | 8 years | $5,000 | DigiBank instant approval |
| OCBC | 3.68% | 1% | 8 years | $5,000 | FRANK by OCBC for young adults |
| UOB | 3.78% | 1% | 7 years | $5,000 | UOB Mighty app tracking |
| Citibank | 3.98% | 1.5% | 7 years | $5,000 | Citi Ready Credit integration |
| Standard Chartered | 4.18% | 1.5% | 7 years | $5,000 | CashOne integration |
| HSBC | 4.28% | 1% | 7 years | $5,000 | Premier relationship pricing |
| Maybank | 4.38% | 1% | 7 years | $3,000 | Lowest minimum |
| RHB Bank | 4.48% | 1% | 7 years | $5,000 | Simple digital process |
| HL Bank | 4.58% | 1% | 7 years | $5,000 | HL Online application |
| Bank of China | 4.68% | 1% | 7 years | $5,000 | BOC SmartBanking |
| ICBC | 4.78% | 1% | 7 years | $5,000 | CNY dual-currency option |
| CIMB | 4.88% | 1.5% | 7 years | $5,000 | CIMB Clicks |
| Indian Overseas Bank | 4.98% | 1% | 7 years | $5,000 | Branch-focused service |
| Bank of India | 5.08% | 1% | 7 years | $5,000 | Corporate tie-ups |
🏆 Top 3 Picks for Most Borrowers
- DBS/POSB: Lowest EIR, fastest digital approval, largest branch network
- OCBC: Competitive rate, excellent app (FRANK), good for under 35s
- UOB: Strong customer service, flexible repayment options
Pros & Cons You Must Know
✅ Pros
- Massive interest savings: 26% → ~3.7% = ~85% reduction
- Single payment: One due date, one amount, no missed payments
- Fixed timeline: Know exactly when you'll be debt-free
- Credit score recovery: Consistent on-time payments rebuild score
- No collateral: Unsecured loan
- Regulated: MAS protects you from predatory terms
❌ Cons
- All credit cards closed: You cannot keep any unsecured facility open
- No new credit: Cannot apply for new cards/loans during DCP (except home/car/education)
- Processing fee: 1–1.5% upfront (deducted from disbursement)
- Early repayment penalty: Usually 1–3% if repaid within 2–3 years
- Strict eligibility: Many who need it most (high debt, low income) don't qualify
- One shot: If you default on DCP, options are very limited
⚠️ The "Credit Card Void" Trap
Once approved, the bank automatically closes all your credit cards (including cards from other banks). You'll have zero revolving credit. Plan for this: keep 1 month's expenses in cash/debit before applying.
Step-by-Step Application Process
Step 1: Calculate Your Total Debt
Gather latest statements from ALL credit cards and personal loans. Sum the outstanding balances (not minimum payments). This is your DCP loan amount.
Step 2: Check Eligibility & Pick 2–3 Banks
Use the table above. DBS/OCBC/UOB cover 80% of approvals. If self-employed, prioritize banks with flexible income docs (Maybank, RHB).
Step 3: Prepare Documents
- NRIC (front & back)
- Latest 3 months' payslips / CPF contribution history
- Latest 3 months' bank statements (salary crediting)
- Latest credit card statements (all banks)
- NOA (Notice of Assessment) — last 2 years if self-employed
Step 4: Apply (Online or Branch)
Most banks offer full digital application via their app/website. DBS digibank and OCBC FRANK can give in-principle approval in minutes.
Step 5: Bank Settles Your Debts
Upon acceptance, the bank directly pays off your other banks. You'll receive a settlement letter from each. Do not stop paying until you receive confirmation.
Step 6: Single Monthly Repayment
Set up GIRO for auto-deduction. Mark the due date. Your DCP journey begins.
Alternatives If You Don't Qualify for DCP
1. Balance Transfer (BT) — If Debt < 12× Income
- 0% interest for 3–12 months (admin fee 1.5–3%)
- Best for: $5k–$30k, can repay within promo period
- Risk: Reverts to 26%+ after promo ends
2. Personal Loan from Licensed Moneylender
- 3.5–4% per month (42–48% p.a.) — still better than 26% revolving
- No 12× income requirement
- Faster approval, smaller amounts ($500–$50k)
- Our partners: Alles Autos Credit (3.5% mo.), Credit 89 (3.8% mo.)
3. Debt Repayment Scheme (DRS) — If Facing Bankruptcy
- Court-supervised, 5-year repayment plan
- Interest frozen, creditors cannot sue
- Requires Official Assignee referral
4. Credit Counselling Singapore (CCS)
- Free financial counselling
- Can negotiate with creditors informally
- Hotline: 1800-225-5227
Frequently Asked Questions
Not eligible for DCP? Compare licensed moneylender personal loans — no 12× income requirement, same-day approval.
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