Debt Consolidation Loan Singapore

What is a Debt Consolidation Loan?

Debt consolidation loan in Singapore are plans to help you save money and achieve a lower total monthly repayment across all your loans. This helps to ease your monthly financial commitments towards your debts.

They were introduced in 2017 to help Singaporeans and permanent residents who are struggling with multiple unsecured loans.

As with other financial obligations, you will need to pay your monthly repayments on time otherwise you will face penalties and fees. Legal action may also be imposed upon you, which may dampen your chances of applying for a debt consolidation loan with money lenders again.

118 Credit can plan and provide you with a debt consolidation loan for you to be savvier with your spending and help you manage your finances better.

The standard of living in Singapore is way too demanding!

It’s not uncommon to find yourself stuck with a maxed-out credit limit, unpaid home loans, a personal loan looming overhead and maybe even an education loan.

To make things worse, some of these have ridiculously high interest rates, leaving you tearing your hair out trying to track all the interest charges.

Best Debt Consolidation Loan Features and Benefits in Singapore

All of your monthly repayments rolled into one

Now, you only have one bill focus on. No more lying in stacks of repayment notices and credit card bills.

Lower your effective interest rate

High interest rate loans can wipe out your monthly income. The right DCP loan option will significantly reduce the interest rates you're subject to, giving you more room to breathe.

Pay off your loans faster

Since you're paying a lower interest rate, each payment you make clears more of your actual credit commitments. As a result, you can pay off your dues within a few years or less, instead of the decades it would often take.

Avoid damaging your credit profile

By consolidating all your bills, you stay ahead of it. As a result, you avoid the potential credit score damage that can come with late or missed credit card payments and defaulted accounts

Apply for a Debt Consolidation Loan with 118 Credit

Get An Instant In-Principle Approval And Collect Your Money On The Spot!

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Am I Eligible for a Debt Consolidation Loans in Singapore

According to the rules of the Debt Consolidation Plan, there are some criteria you will have to meet. You must be:

For example, if your loans are from credit cards, other unsecured credit facilities and reach at least 6x your monthly income, you are eligible for a DCP. If your loans are business or renovation loans, you are not eligible for the DCP.

If you meet all the criteria, you are eligible to apply for a DCP! It will definitely help you manage your finances better and make your life a lot easier.

How does Debt Consolidation Plan (DCP) work?

Here’s how it works. If you have multiple loans to repay, like high-interest credit cards, medical bills or loans, a DCP loan can combine them into one fixed monthly repayment.

A debt consolidation plan also provide a better effective interest rate (EIR) and longer loan tenures so that individuals can comfortably repay their loans, hence taking them out of the vicious cycle of financial burden.

It’s important to remember that your total outstanding balance remains the same, just your per annum effective interest rate (p.a eir).

Requirements for a Debt Consolidation Loan Application

There are several mandatory documents all financial institutions and lenders have to adhere to before a debt consolidation plan can be approved.

Identification Documents

  • Singapore Citizen / Permanent Resident
  • Copy of NRIC (front and back) OR a copy of Passport
  • 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)

Income Documents

  • 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

Quick and Simple Application

We have an online application form on our website that takes just a couple of minutes to fill in. You can find it here.

Flexible Packages and Repayment Schedules

Our Debt Consolidation Loan package can be customized for your needs. Our loan assistant will advise you and help determine a comfortable repayment method for you. Our aim is to help you pay off the debts with less stress.

Low-Interest Rates

We keep the interest rates low for our consolidation plans because we understand that you are already saddled with so many repayments. We do not want to make your life harder with our loan.

Longer Loan Tenure Periods

We offer loan tenure periods that allow you to make comfortable repayments to avoid incurring even more fines.

Apply for a Debt Consolidation Loan with 118 Credit

Get An Instant In-Principle Approval And Collect Your Money On The Spot!


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!

Money Loans Offered in Singapore

We offer a range of different loan types based on your needs. It doesn’t matter if you have a bad credit history, or low-income, the best money lender for you is 118 Credit!

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