Before You Apply
As payment deferments and loan tenure extensions will result in higher overall interest costs, individuals should carefully consider the accumulated interest costs they will eventually have to bear, and balance this against their need for temporary cashflow relief.
Individuals’ credit scores will not be affected when they take up payment deferments. Individuals can also opt to extend the loan tenure by up to the corresponding deferment period to ease monthly instalments when they resume regular repayments.
How To Apply
The relief measures for individuals will be provided by financial institutions on an opt-in basis, as each individual’s financial situation is different. Individuals may apply to their respective bank or finance company for the following:
The industry-wide application window for individuals to defer their property loan repayments has closed on 31 December 2020. Individuals who continue facing financial difficulties can consider applying for reduced instalment plans for property loans, and are encouraged to approach their lenders early for assistance.
The industry-wide application window for individuals to defer their renovation loan or student loan repayments has closed on 31 December 2020. Individuals who continue facing financial difficulties can consider applying for loan tenure extensions, and are encouraged to approach their lenders early for assistance.
Individuals with motor vehicle loans and hire-purchase agreements may approach their respective bank or finance company to discuss suitable repayment plans.
Lenders will take into account factors such as the borrowers’ financial condition, need for the use of a motor vehicle, current market value of the motor vehicle and its estimated market value after the deferment period (if applicable).
Extend Repayment of Debt Consolidation Plans
Individuals who are on Debt Consolidation Plans (DCP) can apply to extend the loan tenure of their existing DCP for up to 5 years. Application window is till 30 September 2021.
Lenders will require individuals to demonstrate that their incomes have been affected by COVID-19. Lenders will approve the request for extension as long as the individual is arrears for between 30 and 90 days as at the point of application.
Defer Premium Payments (DPP) for Life and Health Insurance
The industry-wide DPP application window, which allows individuals to apply to their insurer to defer premiums for up to six months for
individual life and health insurance policies, has closed on 31 March 2021. Nonetheless, policyholders currently on DPP will continue to be on the DPP scheme until their applicable end date.
Policyholders on DPP 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, which may include options such as extension of policyholder’s DPP by three months or a three-month instalment payment plan.
Other policyholders facing financial difficulties in paying premiums due to COVID-19 are also encouraged to approach their insurers to explore options.
Flexible Instalment Plans for General Insurance
Individuals may apply to their insurer to pay their general insurance premiums (e.g. for property and vehicles) in instalments. Policyholders can pay their 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. Policyholders have up to 31 December 2021 to apply for flexible instalment plans.