Loan Tenure Extension for existing Debt Consolidation Plan customer

Supporting individuals through COVID-19

If you are facing cash flow constraints during this challenging period and have difficulties repaying your Debt Consolidation Plan, extending the loan tenure can help reduce your monthly repayment amount. The option to extend the loan tenure of Debt Consolidation Plan is available for borrowers whose incomes are impacted by COVID-19 and whose repayments are between 30 and 90 days past due at the point of application.

WHO CAN APPLY

You can apply to extend the loan tenure of your Debt Consolidation Plan if:

  • You have an existing Debt Consolidation Plan with OCBC
  • Your income is affected by COVID-19
  • Your repayment is between 30 and 90 days past due at the point of application

Please note that by extending the loan tenure, your outstanding principal of your Debt Consolidation Plan loan will remain the same but the total interest payable over your entire plan will increase. Hence, you should consider this only if you need some relief on your monthly debt obligations.

HOW IT WORKS
For illustration purposes only.

Customer A’s Debt Consolidation Plan with OCBC was approved in February 2020 and is currently paying S$1,343 as his monthly instalment. He is looking to better manage his monthly repayments due to an income loss.

Customer A can service no more than S$1,000 per month, so he opt for a 12 months extension in May 2020 (3 months after the start of his Debt Consolidation Plan). Opting into the extension plan will result in higher interest payable on the loan.

This is how extension of loan tenure will help:
HOW TO APPLY
Loan application process for Extension of Debt Consolidation Plan:

Fill out form

Step 1

Fill out form

  • Fill up online form here
  • Complete all fields

Wait for approval

Step 2

Wait for approval

The processing time for the application will take up to 7 working days, upon receipt of your completed application.

Receive notification

Step 3

Receive notification

If your application is successful, you will receive an approval letter with more information, including details of your monthly repayment amount and the tenure of your Debt Consolidation Plan.

Fees and charges

Fees (Debt Consolidation Loan Account)

Minimum payment

Monthly instalment amount plus 3% of outstanding late repayment charges or S$50, whichever is higher (if applicable)

Late repayment charges

S$200

Termination fee

5% outstanding loan amount

Over the counter payment/deposit

S$25 per transaction


Fees (Debt Consolidation Card)

Effective interest rate

26.88% per annum, subjected to compounding if the monthly charges are not received by us in full

Minimum monthly payment

3% of the total balance or S$50, whichever is higher, plus any overdue amount and excess in credit limit

Late payment charges

S$100 if the minimum payment is not received by payment due date for OCBC Credit Cards

Cash Advance fee

S$15 or 8% of amount withdrawn, whichever is greater

Interest on Cash Advance

28.92% per annum if full payment is not received by OCBC Bank by payment due date

Minimum charge is S$2.50 per month and is calculated from the transaction date until the date that full payment is received by OCBC Bank



FAQs
What is this relief measure for Debt Consolidation Plan (DCP) and how does it work?

The option to extend the loan tenure of DCP is available for borrowers whose incomes are impacted by COVID-19 and whose repayments are between 30 and 90 days past due at the point of application.

What are the key features of this relief measure and when can I start to apply?

Borrowers who are on DCP can apply to extend the loan tenure of their existing DCP for up to 5 years, anytime from 18 May 2020 to 31 Dec 2020.

How will this help me with my debt burden?

If you are facing cash flow constraints during this difficult period and have difficulties repaying your DCP, extending the loan tenure can help reduce your monthly payments. However, an extension of loan tenure will increase the total interest payable over your entire DCP. Hence, you should consider this only if you need some relief on your monthly debt obligations.

More questions and answers