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POSB Debt Consolidation Plan Review

Manage your debts with one hassle-free repayment plan.

The POSB Debt Consolidation Plan consists of a loan tenure of up to 8 years, with interest rates beginning from 3.58% p.a. It allows you to consolidate your outstanding payments across banks, enjoying seamless monthly auto-deductions instead of messy cross-provider repayments.

This review covers the features of POSB’s Debt Consolidation Plan, as well as its costs and the application process involved.

Pros and cons


  • Flexible loan terms. You can opt for a short-term plan (1 year) up to a longer-term plan (as long as 8 years).
  • Attached credit card. POSB Debt Consolidation Plans come with a Visa Platinum Credit Card for your daily expenses. The card limit depends on your monthly income, and there are no card-associated fees.
  • Low interest rate fees. POSB offers one of the cheapest base interest rate fees on debt consolidation plans (3.58% p.a, or 6.56% for effective interest rates).


  • High processing fee. $99.
  • Early termination fee. An early termination fee of 5% of your outstanding balance applies during card termination.
  • Low interest rates are not guaranteed. Although POSB offers a low base interest rate, the interest rate you’ll actually be charged fundamentally differs based on your income profile and borrowing situation. It could, therefore, be much higher than expected.

Main points to consider with a POSB Debt Consolidation Plan

POSB debt consolidation plans are best suited for individuals who prefer to clear their debt with fixed, monthly payments at lower interest rates. Its loan term of 1-8 years should be appealing to individuals looking for both short-term and long-term debt solutions.

Features of a debt consolidation from POSB

  • Save on interest charges with rates from as low as 3.58% p.a. (EIR 6.56%).
  • Fixed monthly instalments over a tenure of 1 to 8 years.
  • Easy repayments with automated monthly deductions.
  • Get a DBS VISA Platinum Credit Card with a credit limit of 1x your monthly income for your daily expenses.

How much does the plan cost?

Ultimately, the total cost of a POSB Debt Consolidation Plan depends on your borrowing amount and loan tenure. However, you should watch out for these common costs that may be incurred in the process:

  • Processing fee of $99.
  • Early termination fee which amounts to 5% on your balance outstanding at the point of termination.
  • A late fee of $90.

How to apply for a POSB Debt Consolidation Loan

You can apply for a POSB Debt Consolidation Loan by giving POSB a call, as per their website instructions. However, in general, you should always ensure that you’re eligible for a debt consolidation plan before requesting an application. The eligibility requirements for a POSB Debt Consolidation Plan are as follows:

  • Nationality: Singaporean/Permanent Resident.
  • Age: 21 – 65 years old.
  • Annual Income: At least $30k up to $120k.
  • Balance to Income Ratio (BTI): More than 12 times of monthly income.

Besides this, you should ensure that you have essential documentation that will later be used during the evaluation process. These may include:

    • Identification. A photocopy of your NRIC (front and back).
    • Credit history. Your latest Credit Bureau report. You may purchase a copy at $6.42 (inclusive of GST) at CBS office, any SingPost branches, or directly from CBS’s website with your SingPass.
    • Proof of income.
      • For salaried employees: Latest Notice of Assessment and latest 12-months CPF statements; OR Salary crediting into a DBS/POSB account; OR Latest computerised payslips.
      • For self-employed individuals: Latest Notice of Assessment.
    • Record of debt. You will need to provide a record of the debt you wish to consolidate, which may be any one of the following:
      • Latest bank statements; OR
      • Confirmation letter evidencing new balance transfers or loans
      • Other relevant documents evidencing account information or balances.

Guide: Debt consolidation loans

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