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.
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:
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:
Step 2
Wait for approval
The processing time for the application will take up to 7 working days, upon receipt of your completed application.
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
Payment due date
Your Debt Consolidation Plan statement will be generated at the end of the calendar month.
The due date for Debt Consolidation Plan payment is 28 calendar days after the statement is generated (the “Payment Due Date”). If the Payment Due Date falls on a weekend or public holiday, the actual payment due date will fall on the previous business day.
| Current due date | New due date |
| Payment Due Date falls on a Saturday or a Sunday | Friday before the original Payment Due Date (assuming it is a business day) |
|---|---|
| Payment Due Date falls on a Monday and is a public holiday | Friday before the original Payment Due Date (assuming it is a business day) |
FAQs
Common questions
More questions and answersWhat is this relief measure for Debt Consolidation Plan (DCP) and how does it work?
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 30 September 2021.
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.
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