Streamline Your Debt With a Consolidation Loan

Discover how a consolidation loan can simplify your finances and reduce monthly payments.

Struggling with multiple debts and high monthly payments? At OMY, we offer a smooth process and competitive rates to help you manage your finances better. Consolidate your debts into one manageable payment and take control of your financial future.

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Thank you for your interest! As much as we want to extend our help, the loan offers are NOT available for foreigners in Singapore for the time being.

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Terms and Conditions

Only 21 years old and above is eligible for loan application.

To preserve the confidentiality of all information you provide to us we maintain the following Privacy Principles.

By clicking "Submit" and providing your personal data, you consent to our loan providers contacting you via the telephone and email and permitting to do a search on the Credit Association Singapore (CAS) web portal for the loan application purpose.

We only collect personal information that we believe to be relevant and required to understand your financial needs.

We will only use any information collected as minimally as possible, mainly to assist us in customising and delivering loan packages that are of interest to our customers.

We will not make unsolicited requests for customer information through email or the telephone, unless customers initiate contact with us.

We have established strict confidentiality standards for safeguarding information on our customers.

Our loan providers will not use or disclose information collected from you other than for the purpose made known to you, authorised by you or required by the Law.

What is a Consolidation Loan?

A consolidation loan combines multiple unsecured credit facilities, such as credit card debts or personal loans, into one single loan. This simplifies monthly repayments by replacing several payments with one. The loan amount covers your outstanding balance, and you make fixed payments over a specified loan tenure. The interest rate is typically lower than revolving debt like credit cards, offering potential savings per annum.

A Debt Consolidation Plan (DCP), often mentioned alongside, is a structured form of debt consolidation that financial institutions offer. Like a debt refinancing program, a consolidation loan and a DCP aim to simplify debt management by merging unsecured credit facilities. They reduce the hassle of handling multiple debts by combining them into a single payment and offering lower interest rates for more manageable monthly instalments. Both options may be regulated by your latest credit bureau report to consolidate debt consolidation loans within your monthly income effectively.

What can you use a Consolidation Loan for?

A consolidation loan can help streamline your debt repayments by combining various types of debt. You can use a consolidation loan for several purposes, including:

Credit card debt

Combine debts from multiple credit cards into a single loan.

Education loan

Pay off any education loans more easily.

Medical loan

Manage outstanding medical loans with one payment.

Revolving credit facility

Consolidate debt from any revolving credit facility.

Outstanding balances from unsecured credit facilities

Merge your debts from multiple financial institutions.

Check out the latest Interest Rates for Personal Loans

Provider Interest Rate Effective Interest Rate Maximum Loan Tenure Processing Fee
HSBC 4.5% 8.0% 10 years S$0
Standard Chartered 3.48%  6.33% 10 years S$199
DBS 3.58% 6.56% 8 years S$99
POSB 3.58% 6.56% 8 years S$99
UOB 4.50% 8.22% 8 years S$0
Citibank 5.95% 10.5% 7 years S$0
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Why Get a Consolidation Loan with OMY?

OMY offers competitive interest rates and a smooth application process to help you regain financial freedom. With a debt consolidation plan through OMY, you can enjoy:

  • Lower interest rates compared to multiple financial institutions, which can significantly reduce the overall cost of repaying your debts

  • The application process is simple and efficient, with fast approval times, so you won’t have to wait long to start managing your debts.

  • Consolidate all outstanding debts into one convenient loan amount, simplifying your payments and making them more accessible to track and manage. Instead of dealing with multiple creditors and deadlines, you’ll have just one convenient payment.

  • Offers a flexible loan tenure, allowing you to choose a repayment period that suits your monthly income and overall financial situation.

  • Lower monthly instalments make budgeting easier and reduce the stress of managing multiple debts. This helps you avoid the risk of late payment fees and ensures you stay on top of your repayments, improving financial stability.

Pros and Cons of Getting a Consolidation Loan

Pros Cons
It simplifies payments with a single monthly repayment instead of multiple payments. It may come with processing fees and applicable fees.
Lower interest rates compared to credit cards and revolving credit facilities. Requires a good credit bureau report for approval.
Helps manage outstanding balances from various credit facilities. May extend the loan tenure, leading to more interest paid overall.
Fixed interest rate offers predictable monthly payments. This may require providing substantial income documents and the latest credit bureau report.
Improves credit score by reducing multiple unsecured credit facilities. If you apply for new unsecured credit facilities after consolidation, you risk accumulating more debt.

How OMY Works

Apply

Submit your loan amount and income documents.

Review

OMY reviews your credit bureau report and latest income documents.

Consolidate

Upon approval, your loan is disbursed, consolidating your existing credit facilities.

How OMY Helps You Get a Consolidation Loan

OMY offers competitive interest rates and a smooth application process to help you regain financial freedom. Our efficient application process ensures you can consolidate multiple unsecured credit facilities into one manageable loan. With flexible loan tenure and lower monthly instalments, OMY helps reduce financial stress while providing a clear path to repaying your debts.

  • Submit your loan amount and income documents online

  • OMY reviews your credit bureau report and latest income documents

  • Receive fast approval with competitive interest rates

  • Consolidate all your outstanding debts into one manageable loan

  • Choose flexible loan tenure and lower monthly instalments tailored to your needs

Are you eligible for a Consolidation Loan?

To be eligible for a Consolidation Loan in Singapore, you must meet the following criteria:

  • Must be a Singapore Citizen or Permanent Resident.

  • Aged between 21 and 60 years old.

  • Annual income between S$20,000 and S$120,000

  • Total unsecured debt must exceed 12 times your monthly income on all credit cards and unsecured credit.

You are allowed to have only one consolidation plan at a time. However, if you choose to refinance your existing plan, certain banks in Singapore may provide a cashback offer as part of the refinancing arrangement.

Required Documents:

For Singapore Citizens / Permanent Residents:

  • Proof of identity: NRIC, passport

  • Proof of income: CPF, bank statements

For Foreigners:

  • Work Permit / S Pass / E Pass

  • Proof of residence: Utility bills, phone bills, tenancy agreement

  • Payslips/bank statements

Consolidation Loan FAQs

A debt consolidation loan can simplify your finances by combining unsecured credit facilities like credit cards, renovation loans, and education loans into a single loan. However, it doesn’t eliminate your debt. The loan allows you to manage existing unsecured credit facilities with a fixed monthly repayment, often at a lower interest rate. It’s crucial to maintain a disciplined approach to repayments and avoid accumulating new unsecured loans.

It is designed to reduce your monthly repayment burden. Still, you must regularly monitor your credit bureau report and ensure you keep up with payments across multiple financial institutions to improve your personal credit profile.

A debt consolidation loan can improve your credit bureau report by helping you manage outstanding unsecured credit facilities more effectively. When you consolidate outstanding balances from credit cards, personal loans, and other unsecured loans into one account, your monthly repayments become streamlined, making it easier to avoid missed payments or late payment fees.

However, to improve your credit score, you must maintain regular payments on the debt consolidation loan account and avoid taking on new unsecured credit facilities. A good repayment history will positively impact your credit limit and overall credit profile.

A debt consolidation loan combines unsecured credit facilities from multiple financial institutions into a single loan, allowing you to pay off existing unsecured credit facilities. Applying for a debt consolidation plan (DCP) can cover outstanding debts from credit cards, medical loans, or an education loan, even if they are from different providers.

By consolidating loans, you make a single monthly payment instead of juggling various monthly repayments. This simplifies your outstanding balances across multiple financial institutions, reducing confusion and the risk of missed payments or late payment fees.

While paying off loans individually may seem more manageable, a debt consolidation plan offers several advantages. With a debt consolidation loan, you combine existing credit facilities such as credit cards, personal loans, and medical loans into a single loan. This streamlines your monthly repayments and reduces the chance of missing payments across multiple banks.

Furthermore, a debt consolidation approach often comes with a lower annual interest rate than revolving credit facilities like credit cards. This can make your overall repayment more manageable over the repayment period, allowing for better control of your outstanding balance.

Promises of becoming debt-free through a debt consolidation plan in just a few months should be viewed with caution. The actual time depends on your loan amount, interest rate, and monthly income. Most financial institutions offer realistic timelines, often stretching over a longer loan tenure to manage monthly repayments effectively.

While consolidating unsecured credit facilities such as a credit card or personal loan can simplify payments, it doesn’t magically clear all your debts. Always review the repayment period, prevailing interest rate, and details in the debt consolidation plan application to set accurate expectations.