Debt Consolidation Loan in Singapore —
Every month is a calculation. Which account needs how much, by which date, and whether you remembered all three. Missing one payment costs SGD 60. Missing two starts a spiral. The mental load of managing multiple accounts is not a small thing — and it is not a situation that fixes itself. A debt consolidation loan from Swift Credit replaces all of it with one fixed monthly payment, one due date, and one point of contact.
This is the part most borrowers do not understand clearly before they sign.
A debt consolidation loan does one thing well. It reduces your monthly repayment obligation by stretching the same debt over a longer tenure. If you are currently paying SGD 2,000 across three separate loans every month and your salary cannot sustain that, debt consolidation restructures it into a single lower monthly payment. That monthly relief is real and significant.
What it does not do is reduce the total amount you owe. If your total debt across three lenders is SGD 9,000, you still owe SGD 9,000 after debt consolidation. The principal does not shrink. In fact, because you are extending the repayment timeline, the total interest you pay over the life of the debt consolidated loan is typically higher than running the original loans to their completion.
The reason consolidation makes sense despite the higher total interest is this. Three loans with three due dates create three opportunities to miss a payment. Each missed payment triggers a late fee. Each late fee adds to the principal equivalently. Borrowers who are struggling with multiple accounts often end up paying more in late fees than the interest differential between consolidation and early payoff. Consolidation eliminates that risk by design.
MinLaw sets the maximum unsecured loan amount across all licensed moneylenders combined. These limits apply to your total outstanding balance across every licensed lender, tracked via the MLCB.
For debt consolidation, the loan amount is based on your total outstanding balance across all licensed moneylenders. We check your MLCB record at application to confirm the exact figure and ensure the consolidated amount is within your MinLaw limit.
This table shows the exact trade-off between a lower monthly payment and a higher total interest cost.
Every month you add to the tenure saves you on the monthly payment but costs you more in total interest. The right tenure is the shortest one your monthly cash flow can sustain comfortably.
Every licensed moneylender in Singapore must follow these caps. No exceptions.
Interest is calculated on the remaining balance after each repayment. Every payment you make directly reduces what the next month’s interest is calculated on.
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A consolidation loan works best when your total debt is manageable on your current income but the multiple-account structure is creating missed payments and unnecessary fees. If restructuring into one loan makes the monthly repayment workable and eliminates the late fee risk, this is the right tool.
If your total debt has grown to a level where no single consolidation loan can bring the monthly repayment within what your income can support, Credit Counselling Singapore runs the Moneylender Debt Management and Consolidation Programme. CCS negotiates with multiple lenders simultaneously on your behalf and handles debts that are too large or too complex for a straightforward consolidation. The two serve different problem sizes.
If you are not sure which applies to your situation, call us at +65 6684 4129 before doing anything else. We will tell you honestly which option fits.
Singapore Citizens and Permanent Residents aged 21 and above
Valid NRIC (front and back)
Foreigners with valid EP, S-Pass, or Work Permit and at least 6 months pass validity
Self-employed applicants with IRAS Notice of Assessment or 3 months bank statements
Existing licensed moneylender loan accounts to consolidate
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Takes 2 minutes. No paperwork required at this stage. Your data will be automatically extracted from the Government database. Fill in the remaining information required and submit it to us.
Our team reviews your application and contacts you. We confirm what you qualify for before you visit. If you do not qualify, we tell you at this stage. You do not travel to us for an uncertain outcome.
MinLaw requires all loan agreements to be signed in person at our registered office. This protects you. We walk through the full contract before you sign. You know the interest rate, the monthly repayment, and the total cost before your pen touches the paper. You can walk away at any point at no cost. Funds are disbursed to you the same day after signing.
Start your application now using Singpass MyInfo, or contact us directly for assistance.
Swift Credit has been MinLaw-licensed since 2009. If consolidation is not the right tool for your situation.
You can use a Swift Credit loan to help clear credit card debt — the loan funds are disbursed to you and you decide how to allocate them. However, a licensed moneylender consolidation loan is specifically designed to combine existing licensed moneylender loans tracked in the MLCB system. Credit card debt is tracked separately through the CBS system under MAS regulation. If you want to consolidate bank credit card debt specifically, the Debt Consolidation Plan offered by banks and finance companies under MAS regulation may be a more appropriate route. We will discuss which option fits your situation at the assessment stage.
Yes, in terms of monthly payment. In the example above, monthly payment drops from SGD 2,395 to SGD 959. However, the total amount paid over the loan lifetime increases because the tenure is extended. We show you both numbers before you sign so you can make the decision with full information
The consolidation loan funds are used to pay off your outstanding balances at the other licensed moneylenders. Once those loans are repaid in full, your obligation to those lenders ends. You then repay only Swift Credit under the new consolidated schedule.
This depends on the structure agreed at signing. In most cases, the funds are disbursed to you and you repay the other lenders directly. We will walk through the process clearly at the office appointment.
Yes. You do not have to consolidate all outstanding loans. If it makes sense to consolidate two and let the third run to completion on its own, we can structure it that way. The assessment is based on your income and total MLCB position.
If your outstanding balance across all licensed moneylenders exceeds your MinLaw limit, a single consolidation loan cannot cover the full amount. In that situation, CCS and the Moneylender Debt Management and Consolidation Programme is the more appropriate route. Call us first and we will assess which option fits.
No. Licensed moneylender loans are recorded in the MLCB system, not the CBS. Consolidating your moneylender debts does not appear on your CBS report and does not affect your bank credit assessments or HDB eligibility
Once their loans are repaid in full, your obligation to those lenders ends. Licensed moneylenders cannot legally harass you regardless of your repayment status.
Contact us before the due date. Late fees are capped at SGD 60 per month. The total charges across the entire loan cannot exceed the original principal. Call us early and we have more options available than if we hear from you after the fact.
Yes, once the consolidated loan is in good standing and your MLCB balance is within your MinLaw limit. Consolidation does not permanently restrict future borrowing. It resets your loan structure into a single manageable account.
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