Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

HSBC Debt Consolidation Plan Review

Last updated:  

Bundle your debts into one manageable, monthly repayment with the HSBC Debt Consolidation Plan.

The HSBC Debt Consolidation Plan consists of a loan and a revolving credit facility. The loan tenor can range from 1 to 10 years and serves to bundle various debts into a single repayment. The revolving credit facility is a daily use credit card that serves to centralise your finances within the one institution.

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

Loan Tenure

Details

Special OfferEligible 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 From3.8% 

EIR: 7%

Maximum Loan AmountEquivalent to the total outstanding principal balance subject to additional 5% allowance on top of the total DCP amount.
Loan TenureUp to 10 years
Approval DurationUp to 2 weeks
Loan Account TypeN/A
Go to site
More Info

Pros and cons

Pros

  • Long loan tenors
  • Attached credit card

Cons

  • 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.

Ask Finder

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Privacy Policy.
Go to site