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.
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.
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.
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:
- With 12-months extension
- With 12-months extension
Fees (Debt Consolidation Loan Account)
Monthly instalment amount plus 3% of outstanding late repayment charges or S$50, whichever is higher (if applicable)
Late repayment charges
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
Common questionsMore questions and answers
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.
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.
After extension: 45 months left
Remaining tenure of 33 months + 12 months extension
|Estimated interest payable from Feb to May||S$637.30|
|Estimated interest payable post extension||S$6231.33|
|Estimated Interest payable||S$6,868.63|
Interest payable post extension is calculated on a longer tenure, resulting in higher interest payable on the same loan amount