POSB & DBS Debt Consolidation Plan Review
POSB & DBS Debt Consolidation Plan Review
ValueChampion Rating 
Pros
- Bundled with a credit card to cover daily expenses
Cons
- Currently no cashback promotions
POSB and DBS are currently advertising rates from 3.58%, which is comparable with the rates of other lenders. Furthermore, POSB and DBS has a lower processing fee compared to some other lenders at only S$99, which can help bring down the total cost of the debt consolidation plan.
| Summary of POSB/DBS's Debt Consolidation Loans |
|---|
| Loan tenure: 1 to 8 years |
| Processing Fee: S$99 |
| Promotions: - |
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. POSB and DBS's processing fee is S$99, which is lower than some other banks. 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.
However, POSB and DBS are not currently running any promotions for their debt consolidation loans. Many other lenders have promotions where borrowers can receive up to S$500 cashback when you sign up for a new debt consolidation loan or up to 6% if you refinance your existing debt consolidation loan with them. Hence, the POSB and DBS debt consolidation loan may still be more expensive in comparison, despite comparable interest rates.
Who Can Apply: Eligibility Criteria
- 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(upon loan maturity) 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.
| Fee | Amount |
|---|---|
| Processing Fee | S$99 |
| Early Termination Fee | 5% on outstanding loan amount at time of termination |
| Late Fee | S$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
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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.