Home > Debt Consolidation Loan
Managing multiple outstanding debts can be stressful and difficult to track. If you’re looking for a debt consolidation loan in Singapore, 118 Credit offers licensed moneylender debt consolidation solutions designed to help you combine eligible debts into a single, more manageable repayment plan.
Maximum loan amount:
Up to 6 times of monthly income*
Repayment period:
Up to 24 months*
Interest rate:
As low as 12% p.a.*
*Actual rate offered to you may differ. Subject to eligibility assessment.
All your existing unsecured debts, such as credit cards and personal loans, are combined into one loan. The borrowed amount is used to clear these accounts, ensuring you start afresh with a single repayment.
Once outstanding debts are settled, the old unsecured credit facilities are usually closed. This prevents further borrowing and helps you focus on repaying the consolidated loan responsibly.
Instead of juggling multiple due dates, you manage only one consolidated repayment each month. This simplifies budgeting and makes it easier to track your financial commitments.
With fewer bills to manage and a clear repayment plan, the pressure of multiple obligations is eased. This creates more breathing space for everyday living expenses.
By consolidating and staying current with payments, you reduce the risk of late fees, defaults, and negative entries in your credit report. This can protect and, over time, improve your credit standing.
Managing a single repayment each month helps reduce confusion and missed deadlines. Borrowers can better plan their cash flow, ensuring steady progress in clearing debts.
When compared to multiple high-interest credit cards, a consolidation loan may reduce your effective borrowing costs. This means more of your monthly payment goes towards reducing the principal.
Making consistent repayments on a structured plan can gradually rebuild your credit record. Over time, this helps restore access to financial products under better terms.
Beyond the numbers, having one clear repayment can ease the emotional strain of dealing with multiple debts. Borrowers often find it easier to stay motivated and disciplined when the process feels manageable.
Get An Instant In-Principle Approval And Collect Your Money On The Spot!
Individuals who are legally residing and earning an income in Singapore may apply for a Debt Consolidation Loan, subject to eligibility criteria under the Debt Consolidation Plan and standard lending requirements set by licensed moneylenders.
Debt Consolidation Loans are currently available only to Singapore Citizens and Permanent Residents. Foreigners and work pass holders are not eligible under the Debt Consolidation Plan.
Applicants must be at least 18 years old at the time of application.
Applicants must be employed and earning a stable income. The typical annual income requirement ranges from S$20,000 to S$120,000, subject to lender assessment and income verification.
Debt Consolidation Loans are intended for individuals with significant unsecured debt obligations. To qualify, your total unsecured debts, such as credit cards and other unsecured credit facilities, must amount to at least six times your monthly income.
Business loans, renovation loans, and secured loans are not eligible under this scheme.
Applying for a debt consolidation loan online is simple, fast, and structured to ensure borrowers fully understand their loan terms before acceptance.
Complete our online application form with your basic details. The process is quick and straightforward, allowing us to understand your loan requirements before proceeding.
Our loan consultant will contact you to explain the next steps, confirm eligibility requirements, and arrange an in-person appointment at our office.
Bring the required documents to your appointment, including:
- Copy of NRIC (front and back) OR a copy of Passport
- Valid work pass
- Latest 3 months’ payslips
- Proof of residential address
- Past 6 months’ bank statements or credit card statements
- Latest credit bureau report
- Copy of latest Income Tax Notice of Assessment (2 years for Self-employed); or
- Copy of latest 1 month computerised payslip from current employer; or
- Copy of latest 12 month CPF Contribution Statement
Any of the following documents:
- Latest Utility bills (electricity, water, refuse collection), rates or tax bills
- Latest Bank or Credit Card statements (including e-statement)
- Copy of Rental Agreements showing your address
- Letter from Employer stating current address
- Government-issued documents stating address (e.g. IRAS, CPF, ICA)
These documents help us assess your application responsibly and transparently.
During your visit, we will review your documents, clearly explain the loan terms, and discuss a repayment structure suited to your financial situation.
Once you are comfortable with the terms and the agreement is signed, loan disbursement will proceed in accordance with the agreed conditions.
Here are some of our Frequently Asked Questions that we get from most of our clients. Do take some time browsing through and we hope you may find the answers you are looking for!
Debt consolidation loans in Singapore help combine multiple unsecured debts into one monthly repayment, often with lower interest. They’re ideal for credit card bills, personal loans, and more.
Banks typically offer lower interest rates but have stricter eligibility requirements. Licensed money lenders like 118 Credit provide faster approvals, personalised repayment plans, and may accept applicants with bad credit or lower incomes.
Yes. Credit card balances are among the most common types of unsecured debt eligible for consolidation through our debt consolidation plan.
You can consolidate unsecured debts such as personal loans, credit cards, education loans, and medical bills. Secured loans like home or car loans are not eligible.
Yes. We consider your current repayment ability and may still be able to offer you a solution if you’re recovering from past defaults.
In most cases, additional financing after a Debt Consolidation Loan (DCL) is discouraged until repayment is well underway. However, you may speak with us to reassess your financial situation.
