A Debt Consolidation Loan, or Debt Consolidation Plan (DCP) is a means of restructuring all your outstanding debts. It is usually the option to consider if your credit score is so bad that you are unlikely to get any loans from any bank.
Through a DCP, your preferred bank will pay off all outstanding debts with other banks and consolidate them into one loan for you. You’ll be charged a lower personal loan interest rate than usual. The DCP needs to be repaid in fixed monthly instalments over a period of up to 10 years. THe minimum amount that can be consolidated under the DCP is 12 times your monthly salary.