Best Debt Consolidation Plans (DCP): HSBC & More

SingSaver team

SingSaver team

Last updated 12 October, 2023

If you’re caught in a cycle of mounting interest charges from your existing unsecured credit facilities, and your total debt level keeps piling up, it’s time to consider a Debt Consolidation Plan (DCP)

A Debt Consolidation Plan is a government-approved scheme offered by banks that combines all your existing unsecured credit facilities (such as credit card balances and personal loans) under one account. 

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Why have a Debt Consolidation Plan (DCP)?

With only one consolidated debt to keep track of, it’s easier to manage repaying your loan. The interest rates for a DCP may also be lower than a regular personal loan, which helps you reduce the cost of borrowing.

DCPs also have longer tenures than anything else on the market, with repayment ranging from 1 to 10 years. This means you can lower your debt repayment amount every month while improving your cash flow.

Another benefit of a DCP is the flat interest rate applied, which means your monthly repayment amounts will be fixed, making them easier to manage. Note that DCPs also commonly come with processing fees, charged on a one-time basis. 

Best Debt Consolidation Plans in Singapore

Here is a summary list of the best debt consolidation plans in Singapore

Debt consolidation plan
Interest rate and processing fee
HSBC Debt Consolidation Plan
Interest: from 4.2% p.a. (EIR 7.5% p.a.) 
Processing fee: 1% of loan amount, minimum S$88
Lowest interest rate
Longest loan tenure
- Up to 10 years 
Up to 5% cashback when refinancing 
Standard Chartered Debt Consolidation Plan
Interest: from 3.48% p.a. (EIR 6.79% p.a.)
Processing fee: S$199
Up to 6% cashback when refinancing from another bank
DBS/POSB Debt Consolidation Plan
Interest: from 3.58% p.a. (EIR 8.65% p.a.)
Processing fee: S$99
Low processing fee and low interest
Citi Debt Consolidation Plan
Interest: from 3.99% p.a. (EIR 7.5% p.a.)
Processing fee: S$0
No processing fee
UOB Debt Consolidation Plan
Interest: from 4.5% p.a. (EIR 8.14% p.a.)
Processing fee: S$0
No processing fee
BOC Debt Consolidation Plan 
Interest: from 3.83% p.a. (EIR 7.48% p.a.)
Low interest rate
Longest loan tenure
- Up to 10 years

Best for lowest interest rate: HSBC Debt Consolidation Plan

At present, the DCP with the lowest interest rate is the HSBC Debt Consolidation Plan. 

You can enjoy low interest starting from 4.2% p.a. (EIR 7.5% p.a.), with a maximum loan tenure of 10 years. This combination will give you the lowest monthly repayment amount possible, but note that the actual interest rate offered to you will depend on your Credit Bureau report and other factors. 

Furthermore, you can enjoy up to 5% cashback when refinancing from a DCP from another bank. 

When you sign up, you will be granted a credit card for flexibility in cash flow. This is the HSBC Visa Platinum Card, which comes with a low credit limit of 1x your monthly salary to encourage careful use.

Like with all DCPs, only Singaporeans and Permanent Residents are eligible for this plan.

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Best for refinancing: Standard Chartered Debt Consolidation Plan  

If you’re looking to  refinance your DCP, you can take advantage of Standard Chartered’s DCP offering. 

Standard Chartered offers a monthly instalment plan starting from 3.48% interest rate p.a (EIR from 6.33% p.a). You’ll also receive up to  S$500 cashback when refinancing, which is the highest cashback on offer thus far.

You can choose a loan tenure ranging from 3 to 10 years for flexibility in repayment. Furthermore, the plan comes with a Standard Chartered Platinum Mastercard credit card with a credit limit of your one-month income - great for taking care of daily expenses.

Bear in mind that you will have to double-check the interest rate offered to you as it is based on the bank’s assessment of your credit profile as per your Credit Bureau report. It is not guaranteed that you will enjoy the headlining 3.48% interest rate.


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Plus, enjoy up to S$4,100 cashback when you apply for a min. loan of S$12,000 with a tenure of 3 to 5 years. Valid till 30 September 2024. T&Cs apply.

Best for low interest and low processing fee: DBS/POSB Debt Consolidation Plan

There are two things to like about DBS/POSB DCP. Firstly, the plan has one of the lowest interest rates among its peers, starting from 3.58% p.a. (EIR 6.56% p.a.). 

Secondly, you will also enjoy a lower cost of borrowing with a one-time processing fee of just S$99. 

Successful applicants will get a DBS Visa Platinum credit card with a credit limit equivalent to 1x monthly salary, so you can have some leeway with everyday expenses. 

Read also: DBS/POSB Credit Cards: Which Card Should You Add To Your Wallet? 

Best for no processing fee: UOB Debt Consolidation Plan

If you’re sensitive towards extra costs and fees, consider UOB’s Debt Consolidation Loan.

UOB offers a 4.5% p.a flat interest rate (EIR 8.22% p.a.) for loan tenures of six years, allowing for relatively affordable monthly repayments. The shorter maximum loan tenure here, compared to other bank’s debt consolidation plans, may be a welcome feature for those who are wary towards long drawn out loans which increase total interest paid.

The plan also comes with a complimentary Visa Platinum credit card with a credit limit of your one-month income to cover daily expenses. Note that whether or not you get offered the highlighted interest rate here depends on your Credit Bureau report.

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Best for longest loan tenure: BOC Debt Consolidation Plan and HSBC Debt Consolidation Plan

If you are looking for a loan tenure that has a longer repayment period, the BOC Debt Consolidation Plan offers up to 10 years loan tenure.

Another highlight of this DCP is its competitive interest rate, starting from 3.83% p.a. (EIR 7.48% p.a.). Additionally, you will also receive a BOC Family credit card upon approval, with annual fees permanently waived. 

Having said that, do note that HSBC DCP also has a maximum tenure of 10 years, so you may want to take a look over there as well. 

Only Singaporeans and Permanent Residents with annual incomes between S$30,000 and S$120,000 are eligible for this plan.


Welcome Gift: Get rewarded with S$300 cashback upon loan approval. Valid till 30 June 2023. T&Cs apply.

Enjoy low-interest rates starting from 3.4% p.a. (EIR 6.5% p.a.). Valid till 30 June 2023. T&Cs apply.

For existing debt consolidation plan holders, receive 5% cashback upon approval of your Debt Consolidation Plan with HSBC. Valid till 30 June 2023. T&Cs apply.

How to apply for a Debt Consolidation Plan 

Eligibility criteria for DCPs

DCPs are only available to those with existing unsecured credit facilities that exceed 12 months of their monthly income. This is the total sum owed across credit cards, credit lines, personal loans and other unsecured credit facilities. 

Also, as mentioned earlier, DCPs are available only to Singaporeans and Permanent Residents. Some banks may also require fulfilling annual income criteria.

Steps to follow when applying for a DCP

  • Step 1: Determine your eligibility and select a DCP 
  • Step 2: Gather the necessary documents. These typically include:
    • NRIC (Front & back)
    • Income documents (latest 3 months' computerised payslips; latest Notice of Assessment; latest 6 months' CPF statements, etc)
    • Latest Credit Bureau Report (consumer's version)
    • Latest statements of all existing unsecured credit facilities
  • Step 3: Apply online at SingSaver’s DCP comparison webpage by clicking the “Apply Now” button. Alternatively, apply online at the respective bank’s website.
  • Step 4: Wait for approval of your DCP. Your bank will contact you with relevant updates when appropriate, including interest rate and loan tenure. 

Note that you should not apply for several DCPs simultaneously, as that could affect your Credit Bureau report and impede your application. Instead, exercise patience and apply for one DCP at a time.

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Conclusion: DCPs can tame unmanageable debt 

When used correctly, a debt consolidation plan can help you overcome unmanageable debt load by lowering your interest payments, and improving your cash flow. You will also be supplied with a credit card for more flexibility in your everyday expenses. 

While the long loan tenures of up to 10 years may be intimidating, it’s a much better option than struggling under heavy debt or worse – bankruptcy. Hence, don’t be afraid to apply for a DCP if you need one.


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