What Are The Requirements To Consolidate Debt?

A debt Consolidation Plan is a type of loan that allows individuals to accumulate unsecured credit facilities in one in Singapore across different financial institutions. How do you qualify for a loan consolidation? If anyone wishes to qualify for loan consolidation, they have to meet a few requirements.

  • Individuals need to be permanent residents of a citizen of Singapore.
  • They have to earn in the range of S$30,000 and S$120,000 every year and must have Net Personal Assets, which should be at least $2 million.
  • The interest-bearing unsecured debt on every unsecured credit and credit card must not exceed 12 times the income they receive every month.

Individuals applying for a DCP must know that a few categories are excluded from this scheme. They are education loans, joint accounts, medical loans, renovation loans, and credit facilities sanctioned for different business purposes.

How Should One Apply For A DCP?

After finding out about a Debt Consolidation Plan, borrowers might be interested to learn about the ways to apply for it. 14 participating financial institutions are operating that offer a DCP. But they should look for a suitable and licensed money lender online operating in Singapore to get a DCP.

About RAS Scheme

Many ask if they are under the RAS scheme and whether they are eligible for a Debt Consolidation Plan. Well, they are eligible for a DCP but follow the terms and conditions of the new interest rates.

Is It Required To Get In Touch With All Financial Institutions To Get A DCP Or Only One?

To get a DCP, you should speak to a licensed financial institution and not all. First, find all the details about how they operate, the rate of interest they charge, how much time they will take to sanction the loan, etc. Depending on all these aspects, borrowers can decide whom to hire.

The List Of Documents Needed To Apply For A DCP 

The list of documents needed to apply for a DCP is the Latest Credit Bureau Report, Copy of NRIC (Front and Back), latest unsecured credit loan statements, unbilled principal amount, settlement notice, etc.

What Can I Do If Any Of My Transactions Do Not Reflect?

If any of your transaction does not reflect, you need to submit all the documents for the DCP application.

More About Debt Consolidation Plan 

By opting for a Debt Consolidation Plan from a licensed moneylender, you can combine several payments into one. In that way, it becomes easier to manage repayments. It is one type of personal loan that can help people in many ways. The interest rate can vary from 3.12% to 12% annually, and the maximum loan amount can vary from 12x to 18x of the monthly salary. The tenuity of the personal loan without income proof Singapore can be from one to ten years.

A few financial institutions are there that can charge a higher rate of interest. Well, you should look for a licensed moneylender who can offer loans at reasonable rates. The benefit of opting for a DCP is the interest rates are comparatively lower than credit cards. In Singapore, credit cards are available at a higher interest rate making it difficult for some to make payments. In this instance, it is better to choose a DCP.

Things To Keep In Mind While Applying For A DCP

Before opting for a DCP, a few things are available that borrowers need to pay attention to. They are:

A More 5% Attached In Your Plan. 

After getting your loan approved, the final amount calculated under this plan will include the outstanding interest, total outstanding debts, and an extra 5% of the total. Therefore, people must not get shocked after looking at the 5%.

The Approved Amount Under DCP May Not Be The Entire Debt Value

The moneylenders who approve the debt consolidation loan application will assist you in clearing the doubts that you have. Also, they can provide all necessary details about the outstanding debts and how much loan to take depending on the situation and income. In several situations, the value of the DCP might not be able to cover the entire amount. It means that borrowers have to clear the remaining amount by themselves.

Get Approval Of DCP, And All Other Unsecured Credit Card Facilities Get Suspended

After the approval of your DCP, all other unsecured credit card facilities will get suspended. It will clarify the debts, and the moneylenders will offer a DCP with a revolving credit facility.

In The End 

To make the maximum use of debt consolidation loans, you should start looking for moneylenders offering them. By opting for it, you can avoid stress and conflict in the coming time. These schemes are available with custom monthly minimum repayments, lower interest rates, a hassle-free application process, and quick approvals.