You can consider applying to make reduced payments under the Extended Support Scheme (ESS) if you meet the eligibility criteria. The application window for ESS has been extended to 30 September 2021. 

The ESS measures are as follows:

• A reduced 60% instalment payment plan for property loan borrowers, regardless of whether the borrower has previously taken up relief;
• Loan tenure extension of up to 3 years for renovation loan and student loan borrowers, regardless of whether the borrower has previously taken up relief;
• Extension of the SFRP (Unsecured) application window to 30 September 2021;
• Extension of the DCP loan tenure extension relief (of up to 5 years) application window to 30 September 2021;
• Car loan borrowers may reach out to their FIs to discuss suitable repayment plans on a case by case basis.

You should apply for the relief measures directly with your lender, via its official website, mobile application or phone hotline. Please do not visit your lender’s branches unless necessary, and maintain social distancing if you do. 

You may refer to  ABS’ website  for more information about the banks’ relief measures and their contact details.

Your lender will seek to process your application expeditiously. However, a high volume of applications could lead to some delays. We seek your patience in this regard, and your cooperation in furnishing banks with any needed information as quickly as possible.

If you have taken up payment deferments under SFRP, and intend to transit to making reduced payments under ESS, your loan will not be reported as restructured to the credit bureau.

Do note that you should make the reduced payments under ESS promptly so that your credit score will not be affected. Further, if you do not make repayments on time, you may incur late payment fees and interest charges.

If you require further assistance such as bilateral restructuring of loans, or placement on the debt management programme (DMP), your credit bureau record will reflect the restructured loan or DMP accordingly.

If you have not taken up any payment relief previously, and are applying for reduced payments under ESS, your loan will not be reported as restructured to the credit bureau.

Do note that you should make the reduced payments under ESS promptly so that your credit score will not be affected. Further, if you do not make repayments on time, you may incur late payment fees and interest charges.

If you require further assistance such as bilateral restructuring of loans, or placement on the DMP, your credit bureau record will reflect the restructured loan or DMP accordingly.

The 25% income impact is computed based on a borrower’s income before and after 1 Feb 2020. We understand that lenders will generally compare a borrower’s gross monthly average income, from a suitable period before and after 1 Feb 2020.

The specific practice may differ from bank to bank. You may wish to reach out to your lender to better understand the computations and documents required.

Banks and finance companies will never ask for your credit/debit card details, password, or OTP, nor request for a fund transfer to be made to another account. You should verify any unsolicited calls, messages, or emails directly with your bank or finance company through official channels.

If you need further assistance:

On mortgages – 

• If you are unable to service payments under the programme for mortgages or need relief beyond 31 December 2021, you should approach your lender early to discuss alternative repayment options. Depending on the financial situation, you can refinance your mortgages, take up reduced instalment plans to meet short-term cashflow needs or restructure their loans over the longer term. For borrowers who are considering right-sizing their properties, lenders can also assist you by making referrals to HDB for re-housing advice.

On unsecured credit facilities (e.g. personal unsecured credit, debt consolidation plans, renovation loans, student loans) –

• If you do not qualify for the ESS measures or need assistance beyond what the ESS measures offer, you should approach your lender as soon as possible to discuss available relief and restructuring options based on your specific circumstances.
• Alternatively, you may also reach out to Credit Counselling Singapore (CCS) (https://www.ccs.org.sg or 6225 5227) for assistance and to take up the Debt Management Programme (DMP) if considered suitable. CCS may assist you with your debt problems by providing general credit management information, counselling them on good credit habits, and helping to work out a debt repayment plan. In particular, the CCS coordinates the DMP, a debt repayment scheme to help indebted borrowers repay their debts owed to multiple FI lenders. CCS will be able to further advise you on the details and implications of the DMP, to enable you to make an informed decision if this may be suitable for your needs. 

If you continue to be financially affected due to the COVID-19 situation, please approach your lenders early to work out alternative repayment solutions.

Lenders will continue to offer relief and restructuring options for borrowers facing cashflow challenges based on their specific circumstances, even after the industry-wide support measures expire. Borrowers who are able to resume full loan repayments should do so to avoid unnecessary debt accumulation.  

You can apply if you are:

• impacted by COVID-19, with at least 25% loss of income or loss of employment after 1 Feb 2020. You should provide proof of income/employment impact for lenders to perform an eligibility assessment; and
• no more than 90 days past due on your property loan repayments at the point of application.

Your lender will peg the reduced instalment amount at 60% of your monthly instalment.

Your lender will check that the 60% monthly instalment can cover your full monthly interest, and also allow you to make partial principal payments.

In the event that your monthly interest is higher than the 60% monthly instalment, you should discuss with your lender on whether you can refinance your property loan to a lower interest rate or take up other more suitable repayment or debt restructuring plans.

Yes, you may apply for the new reduced instalment repayment plan if you meet the eligibility criteria, regardless of whether you have previously taken up relief.

While the reduced instalment repayment scheme can ease your monthly instalments, it comes with higher overall costs as you will pay down your principal more slowly. You should opt for it only if you really need to. You can also approach your lender to find out more about the costs of opting for the reduced instalment repayment scheme, compared to if you were to resume full property loan repayments.

Your lender will offer you the option of repaying your loan arrears and total interest accrued before you take up the reduced instalment repayment plan.

If you are unable to repay the loan arrears and total interest accrued, your lender will allow you to capitalise the outstanding amount into your loan principal. This means that the loan arrears and total interest accrued will be added to your loan principal.

While loan capitalisation can help ease your return to making monthly instalments, it comes with higher interest costs. You should repay as much arrears and accrued interest as you can, and only opt for loan capitalisation if you really need to. You can also approach your lender to find out more about the costs of opting for loan capitalisation.

You may take up a reduced instalment repayment plan for up to 9 months but not exceeding 31 Dec 2021, starting from the date that your application is approved.

You can discuss with your lender to extend your loan tenure by up to 3 years on a case-by-case basis, to ease your monthly instalments after the reduced instalment period ends. The 3 years would include any loan tenure extension granted under existing relief measures.

However, you should keep in mind that extending your tenure means that you will be paying more interest in total. You should opt for a loan tenure extension only if you really need to. You can also approach your lender to find out more about the costs of opting for loan tenure extension.

The 60% monthly instalment will cover interest payments, as well as partial principal payments. This will ease your cashflow, while allowing you to pay down your principal amount and better manage your debt.

If you wish to discuss alternative repayment options, your lender will have to assess this on a case by case basis.

If your reduced monthly instalment does not pay down your principal or if you take up payment deferments, you will be paying more interest in total. Therefore, you are encouraged to pay as much of your monthly instalment as possible.

If you have difficulty servicing payments under the reduced instalment repayment plan, you should approach your lender early to discuss alternative repayment options. For example, you can discuss taking up repayment plans with lower monthly instalments or payment deferments with your bank on an exceptional basis.

Lenders’ general approach is that the 60% instalment will go towards fully repaying the interest payment for the month, with the remainder being used to make partial principal repayments. This is to avoid a case where your interest payment is rolled over into the next month, increasing your debt. The rolled over interest may also attract additional interest/fees and charges.

Generally, a borrower will make higher interest payments at the start of the loan tenure, and lower interest payments as he pays down his principal amount over the loan tenure. As such, the amount of partial principal payments will differ for each borrower.

Nonetheless, given the current low interest rates, the 60% monthly instalment is expected to minimally cover your monthly interest, even if you are at the start of the loan tenure. You can also approach your lender to find out more about the costs of opting for the reduced instalment repayment scheme, compared to if you were to resume full property loan repayments.

If you are facing difficulties repaying your overseas property loan (including residential, commercial and industrial properties), you should approach your lender early to discuss suitable repayment or debt restructuring plans.

You should approach your lender early to discuss suitable repayment plans or debt restructuring.

Where debt restructuring is taken up, your loan may be reported to the credit bureau as a restructured loan.

No. You do not need to meet TDSR/MSR to be eligible for the reduced instalment repayment plan.

If you face difficulties repaying your BUC loan, you should approach your lender to discuss alternative repayment options on a case-by-case basis. This may include the option of making interest-only payments for a period of time to ease your cashflow burden.

Do note that your monthly instalments under a BUC loan may increase over time, depending on whether further progressive payments are made by your lender during the same period.

Lenders will assess if the combined monthly income of joint borrowers on a property loan has suffered a 25% loss in such cases.

You can refinance your property loan to take advantage of lower interest rates without being subject to the total debt servicing ratio (TDSR) or mortgage servicing ratio (MSR). This is available for both owner-occupied property loans, and investment property loans up to 30 September 2021. 

For property loans within the lock-in period, lenders may impose charges according to the terms of the loan. We encourage borrowers who are facing financial difficulties to reach out to their financial institutions to discuss possible fee waivers and to work out sustainable debt repayment options.

The TDSR/MSR waiver will apply for both refinancing and repricing of investment property loans (including residential, commercial and industrial property loans and mortgage equity withdrawal loans) taken up by individuals, individuals’ special purpose vehicles (SPVs) and sole proprietors.

Individuals with investment property loans can apply to refinance or reprice their loans, without being subject to the TDSR and MSR, up to 30 September 2021.

Consequently, individuals who do not meet TDSR and MSR will not need to commit to a debt repayment plan to repay 3% of their outstanding loan amount over 3 years.

You should note that banks may still conduct checks on your income and debt obligations for their own internal credit assessment, especially if you are refinancing your loan with a different bank.

You can avail yourself to the waiver when you refinance or reprice your investment property loans within or out of the lock-in period. For loans within the lock-in period, banks can charge penalties according to the terms of the loan. We encourage borrowers who are facing financial difficulties to reach out to their financial institutions to discuss possible fee waivers and to work out sustainable debt repayment options.

Your bank or finance company will assess your reduced instalment repayment plan application on a case-by-case basis.

In its assessment, the bank or finance company will take into account your financial situation and need for relief.

The SFRP (Unsecured) is part of the relief package that MAS, in collaboration with the financial industry, put forth to help individuals affected by the COVID-19 pandemic. This initiative was announced in March 2020 and the application window for SFRP (Unsecured) has been extended to 30 September 2021.

This initiative offered by banks and other card issuers aims to help borrowers who have suffered a temporary loss or decline in income and are facing difficulties meeting repayments under their existing unsecured credit facilities, by giving them an option to convert their high-interest unsecured credit card and revolving balances into a lower-cost term loan, thereby lowering their debt burden.

If you have taken up SFRP (Unsecured) with your lenders(s) and are facing difficulty making repayment on these term loan(s), please reach out to your lender(s) to discuss possible restructuring plans. Such restructuring plans typically come with longer tenures and hence have lower monthly instalments.

If you have existing outstanding credit card and unsecured revolving debt with other lenders that have not been converted to term loans under SFRP (Unsecured), you may consider applying to these other lender(s). The industry has agreed to further extend the application window for SFRP (Unsecured) to 30 September 2021. The existing eligibility criteria for SFRP (Unsecured) will continue to apply.

You can also reach out to CCS for advice on how to manage your debts and more information on the DMP.

Yes, the eligibility criteria for SFRP (Unsecured) remain the same.

• are a Singapore Citizen or Permanent Resident;
• have lost 25% or more of your income after 1 February 2020 (proof of impact on income required);
• are between 30 and 90 days past due on your existing unsecured debt with the bank or card issuer (as at application date); and
• are not on any existing debt repayment or restructuring programmes with the bank or card issuer.

You may wish to reach out to your bank or card issuer for more information on this option and the necessary documents to be submitted. ABS’ website  provides information on how consumers may apply to their lenders for the various forms of debt relief.

To determine the income impact, most banks will be requesting for documentation proof such as CPF statements, payslips, and bank statements.

For details, you may approach your bank. ABS’ website  provides information on how consumers may apply to their lenders for the various forms of debt relief.

The SFRP (Unsecured) is an option that is available to help individuals reduce their overall cost of outstanding unsecured debt. It is specifically introduced by banks and other card issuers to help those who are affected by COVID-19 and face short-term cash constraints, and who are at risk of incurring substantial arrears.

Before taking up this term loan, you may wish to consider if there are other credit products offered by banks and other credit card issuers (e.g. balance transfer, monthly interest-free instalment plans, Debt Consolidation Plan (DCP) etc.) that can help you lower your overall interest and debt repayment. However, whichever option that you choose, it is important to make sure that you are able to meet the monthly payments in full so as to avoid the accumulation of debt.

If you require assistance, call your lender early to enquire. You can also reach out to Credit Counselling Singapore, who can advise you on how to manage your debts and provide you more information on the Debt Management Programme (DMP).

If you are facing difficulties repaying your monthly unsecured credit debts in full as your income is affected due to the COVID-19 pandemic, the SFRP (Unsecured) will help you avoid the snowballing of interest and accumulation of debt that results from the rolling over of your outstanding balances.

To illustrate, assuming you have a credit card bill of $12,000 and you are only able to make minimum repayment of 3% of outstanding every month, you will still have outstanding balances close to $7,000 after 5 years, having paid almost $12,000 as interest costs (amount equivalent to 100% of total outstanding credit card balances).

If you choose to take up the SFRP (Unsecured), you will be able to choose a loan tenor (up to 5 years) that best meets your needs. By taking up a 5-year term loan at 8% effective interest rate, you will be able to fully repay your debt by the end of the loan tenure and incur approximately 80% less interest cost, with similar repayments of $200 to $300 a month.

While the interest rate (capped at effective interest rate of 8%) is lower than what you would have ordinarily paid under your credit card or other personal credit lines, it is nonetheless still a loan. Therefore, you should pay down your unsecured credit outstanding balances as quickly as possible. The longer the tenor of the loan, the more interest you would need to pay.

As a general principle, you should pay off your debt as quickly as possible so that you can avoid unnecessary interest payments.

While the effective interest rate of the term loan under the SFRP (Unsecured) is capped at 8%, there is still interest cost involved. Hence, you should consider and assess which is the most suitable and/or most cost-effective option.

The application window for the SFRP (Unsecured) has been extended to 30 September 2021. You can apply at any time within the application period if you meet the eligibility criteria.

You may wish to get in touch with your bank or credit card issuer to find out more information on the application process.

You may wish to check with your bank via their websites or contact centres, as listed on the ABS website .

• American Express International, Inc.
• Bank of China Limited Singapore
• CIMB Bank Berhad
• Citibank Singapore Limited
• DBS Bank Ltd
• Diners Club Singapore Pte Ltd
• HL Bank
• HSBC Bank (Singapore) Limited
• Industrial and Commercial Bank of China Limited
• Standard Chartered Bank (Singapore) Limited
• Maybank Singapore Limited
• Overseas-Chinese Banking Corporation Limited
• RHB Bank Berhad
• United Overseas Bank Limited

The actual approval process will differ from financial institution to financial institution, depending on various factors including the volume of applications received. Nevertheless, financial institutions should generally approve your application expeditiously as long as you meet the eligibility criteria and provide the necessary documents.

If you take up the SFRP (Unsecured) with your bank or card issuer, you will no longer be able to draw down on your existing personal unsecured credit limit with, or take new unsecured credit from, the bank or card issuer. Your credit facilities with other lenders will not be affected.

Please note that prevailing rules for unsecured consumer credit, including the industry-wide borrowing limit of 12 times monthly income, will continue to apply.

You will be able to apply for new unsecured credit facilities from your bank or card issuer once you have fully repaid your term loan. Upon your application, your bank or card issuer will conduct income and credit bureau checks to reassess your creditworthiness per its usual process.

The converted term loan will not be reflected as a restructured loan product in your credit bureau report.

To prevent your credit score from being affected after taking on SFRP (Unsecured), please ensure that you repay the monthly instalment promptly.

You may convert outstanding balances from your credit cards and revolving credit facilities into a lower-cost term loan under SFRP (Unsecured).

Non-revolving personal loans, such as renovation loans, and secured credit facilities such as car loans and mortgages will not be included. These secured credit facilities are typically subject to lower interest rates.

Please note that you may incur late payment fees and interest charges if you do not make repayments of your term loan on time.

If you face further difficulty with your repayments under the term loan, you should speak to your lender(s) immediately to explore possible options, and they may be able to help you restructure your repayments.

You may wish to refer to MoneySense for more tips on managing your debt .

Under SFRP (Unsecured), banks and other credit card issuers can offer term loans of up to 5 years, to accord borrowers greater flexibility in accordance with their repayment ability. You may wish to reach out to your lender for further details.

If you are facing cash flow issues, you may wish to explore lower monthly instalments over a longer loan tenure. However, the total interest payable over a longer tenure loan will be more than that for a shorter tenure loan.

As illustrated in the example below, a customer who pays down his total outstanding unsecured revolving balances of S$30,000 over 5 years will incur $2,598 more in interest payable than one who chooses to repay in 3 years.

Yes, you may fully repay your term loan at any time before the end of the loan tenure. There is no early repayment penalty.

You should only contact your bank or card issuer through its official website, mobile app, and phone hotline.

Banks and card issuers will not ask for your account details, password, or OTP. You should verify any unsolicited calls, messages, or emails directly with them through the official channels.

Specific-purpose loans such as business, renovation, medical, and education loans, are excluded from the scope of suspension. In other words, you can continue to apply to your bank for these loans.

Further, while your unutilised credit limit with the bank or card issuer that granted you the SFRP (Unsecured) will be suspended till the term loan is repaid, your unsecured credit facilities with other banks/card issuers will not be affected and you can continue to draw down on these existing credit lines.

The new credit limit will be the total outstanding amount at the point of conversion into a term loan. Please be reminded that once you have opted for the conversion, you will not be able to draw down on any unutilised credit limit with, or obtain new unsecured credit facilities from, the bank or card issuer that is granting the SFRP (Unsecured). Your credit facilities with other banks and card issuers will not be affected.

You may wish to check in with your bank or card issuer for details as this will depend on its system setup for the granting of term loans in general. While some FIs have adopted a dynamic system where the credit limit will be adjusted with each payment, others may maintain a fixed limit throughout the loan-servicing tenure.

If your FI operates a fixed limit system throughout the loan servicing tenure and you would like to obtain fresh credit from other FIs, you should inform your FI whom you have taken the SRFP (Unsecured) with to adjust your credit limit to the appropriate level of the outstanding amount.

The application window for the DCP loan tenure extension relief has been extended to 30 September 2021. You can apply at any time within the application period if you meet the eligibility criteria.

You may wish to get in touch with your bank or credit card issuer to find out more information on the application process.

If you have already taken up the DCP relief but are still unable to make repayments, you should reach out to your bank early to discuss available restructuring options to help reduce the monthly instalment amount.

Alternatively, you may also reach out to CCS (https://www.ccs.org.sg  or 6225 5227) for assistance.

Yes, the eligibility criteria for DCP loan tenure extension remain the same.

The tenure extension will not cause your DCP loan to be reflected as a restructured loan product in your credit bureau report.

To prevent your credit score from being affected thereafter, please ensure that you repay the reduced monthly instalment promptly.

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.

The application window for the renovation or non-MOE student loan tenure extension relief has been extended to 30 September 2021. You can apply at any time within the application period if you meet the eligibility criteria. 

You may wish to get in touch with your bank or credit card issuer to find out more information on the application process.

The relief allows borrowers to extend their loan tenure by up to a total of 3 years. This would include any loan tenure extension granted under existing relief measures.

Your bank may also offer a shorter tenure extension depending on its assessment.

We encourage you to reach out to your lender to find out more.

If you had taken up relief to defer your renovation/student loan repayments and also extended your loan tenure, the bank will take this into account in granting any further loan tenure extensions when you take up relief in under the ESS.

For example, if you had obtained a six-months tenure extension alongside the repayment deferment under the SFRP, your subsequent application to extend the tenure of your loan under the ESS will be limited to a maximum of an additional 30 months (i.e. three years less six months). This is nonetheless subject to the eventual tenure extension that your lender is prepared to offer to you.

The aim of the tenure extension is to lower your monthly instalment to ease your cashflow burden. Unlike a deferment, the revised repayment plan under the extended tenure allows borrowers to continue paying down the principal amount to avoid an accumulation of debt.

If you are unable to pay the reduced instalment amount notwithstanding the extended loan tenure, you should approach your bank to discuss other available repayment options. The banks will generally assess such requests on a case-by-case basis and assist you accordingly.

At the end of the deferment period under SFRP, your lender will offer you the option of repaying your loan arrears and total interest accrued, before you resume repayment for your renovation/student loan or before you take up a loan tenure extension under the ESS.

If you are unable to repay the loan arrears and total interest accrued, your lender will allow you to capitalise the outstanding amount into your loan principal. This means that the loan arrears and total interest accrued will be added to your loan principal.

While loan capitalisation can help ease your return to making monthly repayments, it comes with higher overall interest costs. You should repay as much arrears and accrued interest as you can, and only opt for loan capitalisation if you really need to. You can also approach your lender to find out more about the costs of opting for loan capitalisation.

This relief is applicable for student loans that are taken out for full-time and part-time programmes at local and foreign private tertiary institutions and are not part of the Government loan schemes (i.e. non-MOE student loans).

Student loans under the Government loan schemes are covered by the Government’s Student Loan Relief. As part of the Government’s Resilience Budget announced on 26 March 2020, MOE has earlier suspended the repayment and interest for Tuition Fee Loans, Study Loans and Overseas Student Programme Loans for all autonomous university and polytechnic graduates for 1 year, from 1 June 2020 to 31 May 2021. MOE has recently extended the suspension of repayments and interest accrual until 30 September 2021.

You can check in with your bank if you are unsure about the type of student loan that you have and/or the applicable student loan relief.

If you need payment relief for your motor vehicle loan or hire purchase agreement, you can approach your bank or finance company to work out a repayment solution on a case-by-case basis.

In its assessment, the bank or finance company will take into account factors such as your financial situation, need for the use of a motor vehicle, the current market value of the motor vehicle and its estimated market value after the deferment period (if applicable). Where there is a significant fall in market value of the car after the deferment period (e.g. due to COE expiry), your bank or finance company may not be able to grant you relief.

You may wish to refer to ABS’ website  for more information on how to reach out to your bank or finance company to discuss further.

Your lender will assess your application on a case-by-case basis.

Yes. For life insurance policies and health policies which do not have cash values (e.g. term insurance and integrated shield plans), they would lapse if premiums are not paid after the deferred/grace period.

Notwithstanding, policyholders on the deferred premium payment scheme who continue to face financial difficulties and remain unable to pay the deferred premiums in full at the end of their deferment period should approach their life insurers for assistance. This may include options such as extension of policyholder’s deferred premium payment scheme by three months or  a three-month instalment payment plan.

Alternatively, for life insurance policies with cash values (e.g. whole life and endowment policies), policyholders can make use of existing options such as automatic premium loan (with interest chargeable) and changing the policy to a paid up policy (reduced sum assured and no further premium payments) so that coverage can still continue.

The automatic premium loan involves your insurer providing you with a loan against your policy’s cash value to pay the outstanding premium due. The cash value of the policy will not be affected when you pay the loan and interest. If you make a claim or surrender the policy before paying the loan and interest, the loan and interest will be deducted from the claim amount or surrender value.

When changing the policy to a paid up policy, you will stop paying premiums and the sum assured of the policy will be reduced.

For deferred premium payments, you will still have to pay the premiums due but only after the end of the grace period, which is up to 6 months. The insurance benefits of your policy will also remain the same.

You are advised to check with your insurer(s) or financial advisory representative(s) to discuss your specific needs and the implications on your policy as a result of exercising any option mentioned above.

Your insurance coverage is maintained during this period and your insurer will respond to your claim accordingly.

If there is a claim during the grace period, the unpaid premiums will be deducted from claims payout amount.

As the application windows have closed on 31 March 2021, this relief will no longer be available. However, policyholders who are facing financial difficulties in paying premiums due to COVID-19 are encouraged to approach their insurers to explore options.

Policyholders facing financial difficulties are eligible for flexible premium instalment plans.

The individual insurers will have their own criteria and considerations to determine whether the policyholder is facing financial difficulties. You may wish to reach out to your insurer for more information.

Insurers will consider providing flexible instalment plans for all types of general insurance policies. The instalment plan allows you to pay your premiums in smaller amounts and enjoy coverage for the paid-up period, instead of paying a lump sum premium for the entire policy period at the start. This applies to both individual and SME/corporate policyholders. This is in addition to other options which your insurer may already have such as the option to reduce your insurance coverage and sum assured, in order to help reduce the size of payable premiums.

You are advised to check with your insurer for further details as it is best placed to advise you on this.

In general, you should apply for the ESS-S only if you are unable to resume paying loan instalments in full after the existing relief expires. However, you may still apply for the ESS-S if you need additional flexibility during the relief period.

Borrowers should take note that further postponement in loan repayments will increase the overall borrowing costs in the long run, so this decision should be considered carefully.

The extended relief up till 30 September 2021 is only available to SMEs in Tier 1 and 2 sectors, including sole proprietors and partnerships, with: i) annual sales turnover of up to S$100 million; or ii) employment size up to 200 workers, subject to the following eligibility criteria:

For JSS notices related to payouts before October 2020, you may determine your company’s Tier based on the level of wage support received by your company.

For JSS notices related to payouts from October 2020 onwards, the company’s Tier will be explicitly stated in the notice.

The table provides an illustration on how to determine your company’s Tier based on JSS notices across these two periods.

Sample notice 1:

Sample notice 2:

For SMEs that are not receiving wage support through JSS, their banks or finance companies will determine which sector they are operating in, and the consequent length of relief.

Yes, the bank may disqualify your application if you do not meet the eligibility criteria by the time the ESS-S relief is implemented for you.

You can either repay your arrears as soon as possible before applying for the ESS-S relief again, or speak to your lender directly to discuss other forms of assistance, including loan restructuring, to help ease your financial difficulties.

You may apply to your lenders from 24 June 2021 onwards.

You should apply for the relief measure directly with your lender.

If you do not have an assigned relationship manager, you may refer to ABS’ website for the contact details of each bank.

Please do not visit your lender’s branches unless necessary, and maintain social distancing if you do.

Your lender will seek to process your application expeditiously. However, there may be some delays depending on the volume of applications and the need to obtain additional information from you (e.g. JSS Notice from IRAS) to determine eligibility. We seek your patience in this regard.

Yes, you may apply for the ESS-S again even though you have exited the scheme, if you meet the eligibility criteria. However, the duration of the ESS-S 80% principal moratorium will start from the time that the relief is implemented for you, and end on 30 September 2021.

If the ESS-S does not address your new cashflow issues, please approach your lender to explore alternative arrangements, which will be subject to separate evaluation.

Yes, you may approach your bank or finance company directly if you encounter financial difficulties after opting into the ESS-S and need to consider other forms of assistance, including more comprehensive loan restructuring.

No, trade credit facilities and non-ESG unsecured loans are not covered under the ESS-S relief.

If required, please discuss the extension of relief to such other facilities with your lender for consideration outside the ESS-S.

The ESS-S does not provide for borrowers to extend the loan tenure corresponding to the duration of the principal moratorium.

If required, please discuss the extension of the loan tenure with your lender for consideration outside of the ESS-S.

You may only receive up to 1 month of ESS-S relief, subject to the bank’s determination of the effective implementation date of the ESS-S relief for you.

Please approach your lender early if you anticipate the need to apply for the ESS-S.

If the ESS-S does not address your cashflow issues, please approach your lender to explore alternative arrangements, which will be subject to separate evaluation.

If the ESS-S does not address your SME’s cashflow issues, please approach your lender to explore alternative arrangements, which will be subject to separate evaluation.

SMEs with more than one lender can consider tapping into available multi-lender restructuring schemes, such as the Extended Support Scheme – Customised (ESS-C) offered by banks and finance companies. The ESS-C will bring your lenders together to facilitate better restructuring outcomes. It complements other restructuring assistance schemes under Ministry of Law’s (MinLaw) proposed Simplified Insolvency Programme for micro and small companies and CCS’ Sole Proprietors and Partnerships Scheme (“SPP Scheme”).

SMEs should approach any one of their lenders to assess if they would benefit from a multi-lender restructuring under the ESS-C.

You should be an SME with more than one lender and have attempted to work out bilateral arrangements with your respective lenders. In addition, you have assessed that CCS’ SPP Scheme and MinLaw’s Simplified Insolvency Programme are not suitable for you, if these schemes are operational. Please refer to the infographic (585.9 KB) for the eligibility criteria for CCS’ and MinLaw’s restructuring schemes.

You should then approach any one of your lenders to recommend your SME to the ESS-C.

You may apply to any one of your lenders from 2 November 2020. Application period ends on 31 December 2021.

A recommendation from one of your lenders is necessary, for entry into ESS-C.

You may approach any of your lenders and submit an application for the ESS-C together with supporting documents (Refer to Q22).

The approached lender will assess if the ESS-C is expected to facilitate a better outcome for your SME, as compared to you engaging each lender individually. If so, the lender will recommend you for entry into the programme.

You are required to submit an application for ESS-C to one of your lenders, accompanied by supporting documents, which include but are not limited to:

• Declaration of all the SME’s banking facilities;
• Latest financial statements;
• Financial projections; and
• Business plans.

There is no application fee. However, as part of the restructuring process, you will need to incur the cost of appointing a restructuring adviser (“ESS Assessor”) if you have more than 2 lenders, or your outstanding credit amount is S$10 million or more. You may also incur the cost of executing new legal documentation.

You may be disqualified from the ESS-C if you do not cooperate with the lenders’ requests such that they are unable to formulate a credible restructuring plan.

No, the ESS-C is available for SMEs with more than one lender and for whom CCS’ SPP Scheme and MinLaw’s Simplified Insolvency Programme are not suitable.

You may approach your lender directly and discuss your restructuring options.

If you are a qualifying micro or small company MSCs with an annual revenue of less than $1 million and $10 million respectively, subject to other further eligibility criteria as prescribed in the legislation. with liabilities up to S$2 million, you can also consider MinLaw’s Simplified Insolvency Programme for restructuring options.

No, the ESS-C Scheme is an industry-coordinated scheme and all FIs who have granted credit facilities to the SME will have to be involved in the ESS-C. SMEs will not be able to choose a subset of FIs’ credit facilities to undergo the ESS-C.

The Business Viability Test is an assessment of the SME’s cash flows and capacity to meet its operating expenses and debt obligations. The assessment will be made based on information submitted by the SME, such as past financial statements, financial projections, and business plans, as well as interviews with the SME.

SMEs that do not pass the Business Viability Test will not be able to proceed further with the ESS-C restructuring, and may wish to consider other options such as winding up.

The restructuring process is expected to take up to 90 days. However, lenders may extend the process where necessary to formulate a credible restructuring plan.

Yes, there is a possibility that new legal documentation will need to be executed, depending on the final restructuring proposal. Applicants should note that such legal costs will be borne by them.

No. However, your SME will need to bear any costs incurred thus far during the restructuring process (e.g. the cost of appointing an ESS Assessor, legal documentation costs, etc.).

ESS-C is intended to cover all credit facilities granted by FIs, including secured and unsecured credit facilities, as well as credit facilities granted under ESG support schemes.

No, the ESS-C Scheme only covers credit facilities granted by FIs.