HSBC Debt Consolidation Plan Review
Bundle your debts into one manageable, monthly repayment with the HSBC Debt Consolidation Plan.
3.8% EIR: 7%
Interest Rate From
Equivalent to the total outstanding principal balance subject to additional 5% allowance on top of the total DCP amount.
Maximum Loan Amount
Up to 10 years
|Special Offer||Eligible applicants will be offered a promotional interest rate from 3.8% p.a. (EIR 7% p.a.) to 5.2% p.a. (EIR 9% p.a.) with no processing fee. T&Cs apply. Ends 30 September 2020.|
|Interest Rate From||3.8% |
|Maximum Loan Amount||Equivalent to the total outstanding principal balance subject to additional 5% allowance on top of the total DCP amount.|
|Loan Tenure||Up to 10 years|
|Approval Duration||Up to 2 weeks|
|Loan Account Type||N/A|
|Go to site|
Pros and cons
- Long loan tenors
- Attached credit card
- Minimum S$88 processing fee
- Required to pay an early repayment fee of 5% of the repayment amount
Main points to consider with an HSBC Debt Consolidation Plan
Debt consolidation loans from HSBC can range from 1 to 10 years. Interest rates on these loans are fixed, ranging from 7% to 9.2%, and will be determined by the length and size of the loan. Debt consolidation loans are supported by a revolving credit facility (credit card).
Features of a debt consolidation loan from HSBC
- Promotional interest rate. Receive an interest rate from 3.8% p.a. (EIR 7% p.a.) to 5.2% p.a. (EIR 9% p.a.) with no processing fee. T&Cs apply. Valid till 30 September 2020.
- Processing fee waiver. Apply by 30 September 2020 and get your processing fee waived equivalent to 1% of approved loan amount (S$88 minimum). T&Cs apply.
- Loan size. Loan size maximums will be determined by HSBC through the application process. In most circumstances, your loan size will be the total of your debt plus 5% allowance on top of the DCP amount, applicable only to your first DCP loan. This will be contingent on your credit history and ability to make repayments.
- Revolving credit facility. The HSBC Debt Consolidation Plan is a part of the HSBC Debt Consolidation Plan. The plan also provides you with the HSBC Visa Platinum Credit Card, which serves as a revolving credit facility. You will receive the card with your loan, but you can opt not to use it.
- Application process. Typical application process times span around two weeks. This allows HSBC to assess your financial standing and the debts you have accrued.
- Flexible loan tenors. You can apply for a loan term of anywhere from 1 to 10 years. HSBC may not agree to your desired tenor length, but this will be discussed and settled during the application process.
- Repayment instalments. Repayments are made by the month, for the duration of your loan.
- Debt settlement. You will not receive the funds of your debt consolidation loan in your account. Rather HSBC will use the funds to settle the various debts you have accrued on your behalf.
How much does the loan cost?
The total cost of your loan will ultimately vary according to how much you borrow, the term of your loan and your repayment instalments.
The following fees may apply to your loan:
- Processing fee equal to 1% of approved loan amount (S$88 minimum).
- Early repayment fee of 5% of the repayment amount.
- S$75 late payment fee each month you miss a repayment date.
How to apply for an HSBC Debt Consolidation Plan
You can apply for the HSBC Debt Consolidation Plan by clicking the green “Go to site” button on this page. To be eligible you must, at a minimum:
- Be Singaporean or Singapore Permanent Resident (PR).
- Earn between S$30,000 and S$119,999 per year for salaried employees or between S$40,000 and S$119,999 per year for self employed and commission-based earners.
- Have a total interest bearing debt that exceeds 12 times your monthly income.
When applying for a loan you generally need to provide:
- Identification. You will need a photocopy of your NRIC (front and back).
- Proof of income. You will need to demonstrate your income by supplying a combination of payslips, your Notice of Assessment, Credit Bureau Report and CPF statements.
- Record of debt. You will need to provide a record of the debt you wish to consolidate.