Frequently Asked Questions

Read the FAQs to get more information on the support for individuals, SMEs and corporates affected by the COVID-19 pandemic.

General Enquiries

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

If you are facing cash flow constraints during this difficult period and have difficulties repaying your residential/industrial/commercial property loans, student loans or renovation loans, you can consider applying to your bank or finance company for a payment deferment up to 31 December 2020. Depending on the relief measure you have taken up, during the deferment period, you will either not need to make any payments or pay interest only, and no late fees will be charged. Regular instalment payments will resume after the deferment period.

However, a payment deferment will result in higher total interest costs. You should therefore consider this option only if there is a need.

Depending on the loan for which you are seeking payment deferment, you may be able to defer either:
  • the principal portion of the monthly instalment, while continuing to pay the monthly interest; or
  • the full monthly instalment. Interest will continue to accrue on the principal amount deferred, but no interest-on-interest will be charged during this deferment period. After the deferment period, the loan amount and interest accrued on the deferred principal will be fully amortised over the remaining loan tenure.

You can also choose to extend the tenure of your loan by the duration of the deferment period, to lower the monthly instalment amount following resumption of regular payments.

However, you should keep in mind that deferring payments and extending your tenure mean that you will be paying more interest in total. Therefore, it is better not to defer repayments and/or extend the tenure if you do not need to.

Before applying for the deferment, we encourage you to discuss with your bank or finance company on your options and in the case of a deferment, how the payment schedule and increased interest cost will be like. Your bank should provide you with information such as the monthly repayment amount (if any) during the deferment period and the monthly repayment amount when you resume regular repayments, as well as the total interest you will pay over the entire loan tenure before and after opting for the repayment deferment and tenure extension (if applicable).

You may approach your bank or finance company to discuss the option of doing a partial deferment.
The application period for the new relief measures starts from 6 May 2020, except for the loan tenure extension for Debt Consolidation Plans (DCPs) which will be open for application from 18 May 2020.

You should apply for the relief measure directly with your bank or finance company, via its official website, mobile app or phone hotline. Please do not visit your bank’s or finance company’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 bank or finance company will seek to process your application promptly. However, it may be experiencing a high volume of applications, which could lead to some delays.
No, opting for the deferment will not result in your loan(s) being classified as restructured loan(s) for the purposes of credit bureau reporting. Hence, your credit record will not be affected. This is irrespective of the number of loans for which you choose to defer payments.

You should make your application directly to your bank or finance company through its official website, mobile app, or phone hotline.

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.

You should approach your bank or finance company early to discuss suitable repayment plans or debt restructuring before the end of the deferment period.
MAS and the financial industry are closely monitoring the situation. We will continue to assess if additional relief measures are required.

The banks and finance companies have collectively agreed to grant deferment for loan repayments up to 31 Dec 2020. This special relief is intended to alleviate cash flow difficulties faced by individuals during the COVID-19 period.

Nevertheless, as the loan remain outstanding and the banks and finance companies continue to bear the risk and cost of lending, interest would continue to accrue even as repayments are deferred.

Yes, there is no restriction on the number of relief measures you can apply for.

As your loan is still outstanding and banks continue to bear the risk of lending, interest will continue to accrue over the deferment period.

Nevertheless, should you expect significant difficulties in meeting the required repayment subsequently, you may wish to approach your bank to discuss your request for an interest waiver. Banks will generally assess such requests on a case-by-case basis and provide you with the available options.

Easing Cashflow

Defer Repayment for Residential Property Loans
You can choose to defer up to 31 Dec 2020, either:
  • the principal portion of the monthly instalment, while continuing to pay the monthly interest; or
  • the full monthly instalment. Interest will continue to accrue on the principal amount deferred, but no interest-on-interest will be charged during this deferment period. After the deferment period, the loan amount and interest accrued on the deferred principal will be fully amortised over the remaining loan tenure.

You can also choose to extend the tenure of your mortgage by the duration of the deferment period, to lower the monthly instalment amount following resumption of regular payments.

However, you should keep in mind that deferring payments and extending your tenure mean that you will be paying more interest in total. Therefore, it is better not to defer repayments if you do not need to.

Before applying for the deferment, we encourage you to discuss with your bank or finance company on your options and in the case of a deferment, how the payment schedule and increased interest cost will be like.

Illustrative Example
For a mortgage with $200,000 outstanding and a remaining tenure of 20 years, and assuming a 2% interest rate, the extra interest cost over the remaining tenure will be about -

  • $1,300 for a principal-only deferment period for 9 months, and $2,930 if the tenure is also extended by 9 months.
  • $1,920 for a principal and interest deferment period for 9 months, and $3,570 if the tenure is also extended by 9 months.

This is a special relief that banks and finance companies have collectively agreed to, and introduced, to help individuals who are facing cash flow difficulties with their mortgage repayments during this COVID-19 period.

Interest would accrue as the banks and finance companies continue to bear the risks of lending. However, if you choose to defer the full monthly instalment, interest-on-interest will be waived during the deferment period.

No. Repayment deferments are not automatic as individuals will incur higher total interest costs and not all individuals need it. If you need a mortgage repayment deferment, you would have to apply to your bank or finance company. It will process your application expeditiously upon receipt.

You are eligible if you have a residential mortgage, whether it is a housing loan or a mortgage equity withdrawal loan, and your monthly instalments are not more than 90 days past due as at 6 Apr 2020.

Repayments under your Debt Reduction Plan that is taken in connection with your residential mortgage can be similarly deferred.

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 plans or debt restructuring.
You should approach your lender early to discuss suitable repayment plans or debt restructuring.
The total interest cost of the mortgage will be higher if you take up the repayment deferment. To assist you in making a decision, your bank or finance company will provide you with an illustration of the instalments during and after the deferment period, and the estimated increase in total interest cost.
No. You do not need to meet TDSR/MSR to be eligible for the repayment deferment.
Defer Repayment for Commercial and Industrial Property Loans
If you are facing difficulties repaying your overseas industrial/commercial property loan, you should approach your bank or finance company early to discuss suitable repayment plans or debt restructuring.

This is a special relief that banks and finance companies have collectively agreed to, and introduced, to help individuals who are facing cash flow difficulties with their property loan repayments during this COVID-19 period.

If you face difficulties making interest payments as well, you should approach your bank or finance company early to discuss other suitable repayment plans or debt restructuring.

Yes, all individuals are eligible for this relief measure.
No. Repayment deferments are not automatic as individuals will incur higher total interest costs and not all individuals need it. If you need a repayment deferment, you would have to apply to your bank or finance company. It will process your application expeditiously upon receipt.
No. You do not need to meet TDSR/MSR to be eligible for the repayment deferment.
Defer Repayment for Mortgage Equity Withdrawal Loans
The relief announced as part of the second package of industry support measures extends the scope of the earlier relief to include new MWLs granted after 6 April 2020. This new relief will help individuals, including sole proprietors, facing temporary cash flow issues to monetise the equity in their existing properties to meet business expenses and family needs, with the flexibility to make repayments at a later date.

You should be aware that you will accumulate a significant amount of debt within a short period of time when you take up a payment deferment on your new MWL.

As such, your bank or finance company will discuss your financial situation, as well as the implications of taking up a payment deferment (e.g. there is a risk of losing your property if you are unable to repay) with you. Where it is more appropriate, your bank or finance company will work out an alternative repayment plan with you, instead of granting a payment deferment.

The type of deferment relief may differ depending on whether the MWL is secured on residential property or commercial/industrial property.

You should approach your bank or finance company early to discuss what options are available for you.

As property loans are substantial and long-term commitments, borrowers who face cash flow constraints should exercise prudence before undertaking a property purchase.

The Government will continue to monitor developments in the residential property market, and adjust our policies as necessary, to maintain a stable and sustainable property market.

No, you do not need to meet TDSR/MSR to be eligible for a payment deferment.

However, TDSR/MSR continues to apply when obtaining new MWLs.

Defer Repayment for Renovation Loans
You can apply to defer repayment of your renovation loan if you are no more than 90 days past due at the point of application.
The relief for renovation loans is standardised across the industry as a baseline offering. If you would like to defer your principal payments only, you may wish to approach your bank to discuss if it can provide you with this option.
Renovation loans, and other non-revolving personal term loans, are typically charged lower interest rates than revolving facilities such as credit cards. Hence, these non-revolving loans were not included as the main objective of SFRP (Unsecured) was to help reduce the overall cost of outstanding debt for borrowers.
Defer Repayment for Education / Study / Student Loans
You can apply to defer repayment of your student/study/education loan if you are no more than 90 days past due at the point of application.
Your student/study/education loan is a commercial product offered by your bank. Given that your loan is still outstanding and your bank continue to bear the risk of lending, interest will continue to accrue over the deferment period.
The relief for student/study/education loans is standardised across the industry as a baseline offering. If you would like to defer your principal payments only, you may wish to approach your bank to discuss if it can provide you with this option.
Defer Repayment for Motor Vehicle Loans and Hire-Purchase Agreements, Subject to Case-By-Case Assessment

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. Possible relief options could include, but are not limited to, payment deferments for a period of time.

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.

If a payment deferment is granted, you can also discuss with your bank or finance company on the option of extending the loan tenure by up to the deferment period. This will ease your monthly instalments when you resume regular repayments.

The payment relief or deferment will not cause the loan to be reflected as a restructured loan in your credit bureau report.

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 bank or finance company will assess your application on a case-by-case basis. There is no need to demonstrate impact from COVID-19 to make the application. Please refer to the above FAQ for more information on what your bank or finance company may consider when assessing your application.

We encourage you to reach out to your bank or finance company directly to discuss the possible relief options. You may refer to the above link to the ABS’ website for contact details of your bank.

These include banks that grant motor vehicle loans, as well as the three finance companies, namely Hong Leong Finance Ltd, Sing Investments & Finance Limited, as well as Singapura Finance Ltd.

The relief measure is offered by banks and finance companies. Therefore, it does not apply to motor vehicle loans that are extended by other lenders such as car dealers and leasing companies, which do not come under MAS’ regulatory purview.

That said, we encourage you to still reach out to your lender directly to discuss appropriate relief options. You can explain your situation and ask whether there are any relief options that can be made available to you during this difficult period, such as deferring payments on the loan.

If you have taken out hire purchase agreements for a commercial vehicle (including private hire cars and rental cars), you can also check if you qualify for temporary relief from making repayments for hire purchase agreements under the COVID-19 (Temporary Measures) Act. You can find out more about this Act at the Ministry of Law’s website .

You can submit your application from 6 May 2020.

You should apply for relief directly with your bank or finance company, via its official website, mobile app or phone hotline. Your bank or finance company will be able to advise you on whether you are required to visit the branch. If you do, please maintain social distancing at the branch.

You can refer to this page by ABS on how to contact your bank.

Your car loan relief application is assessed on a case-by-case basis by your bank or finance company. The actual approval process will vary between financial institutions, depending on various factors including the volume of applications received.

We seek your patience and understanding as your bank or finance company is likely experiencing a surge in customer enquiries and applications during this time, and there may be delays.

You can discuss the option of extending the loan tenure by up to the deferment period with your bank or finance company.

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 loan tenure extension. 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 grant you a loan tenure extension.

If you have obtained payment deferment or other forms of relief for your car loan and face further difficulty thereafter, you should speak to your bank or finance company immediately to explore possible options, which may include restructuring your repayments.

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

Extend Repayment of Debt Consolidation Plans
The option to extend the loan tenure of DCP is available for borrowers whose incomes are impacted by COVID-19 and whose repayments are between 30 and 90 days past due at the point of application.
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.
You may wish to approach your bank to discuss your request for payment deferment. Banks will generally assess such requests on a case-by-case basis and provide you with the available options.
You may apply for an extension of loan tenure for up to 5 years, depending on your preference. However, the final loan tenure extension period will be subject to your bank’s agreement.
You may wish to check with your bank on the supporting document(s) required.
You can still approach your bank to discuss options that they can offer to help reduce your cash flow burden. Banks will generally assess such requests on a case-by-case basis and provide you with available options.
Your revolving credit facility under the DCP will remain. If you need help with the repayment of this revolving credit facility, you can approach your bank to discuss the available options.
If you have a DMP, you can approach CCS to explore the option of restructuring your repayment plan for submission to your banks. CCS will assist with restructuring your debts on a case-by-case basis, taking into consideration your current debt servicing capacity.
Life Insurance Premium Relief for Individuals
All individual life and health insurance policies which have premium due date or policy renewal date falling on any date between 1 April and 30 September 2020 (both dates inclusive) will be eligible. This includes policies with premiums to be paid annually or more frequently (e.g. quarterly or monthly).

Policyholders facing financial difficulties, such as those facing temporary cashflow problems, are eligible for deferred premium payments.

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.

The policy coverage remains valid during the deferred/grace period. No interest will be charged during this period.

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.

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.

Yes. Nonetheless, policyholders who are facing financial difficulties should consider applying for the extended grace period for premium payments in order to maintain your insurance coverage and benefits during this period where you may be facing temporary cashflow problems due to the COVID-19 situation.

Near the end of the grace period, you should carefully reassess your financial situation and can engage your insurer on existing options such as automatic premium loan if necessary.

General Insurance Premium Relief for Individuals and Corporates

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.

Policyholders can maintain policy coverage for the paid-up period covered in the instalment. Insurers will respond to your claim if there is a valid claim during the instalment period.

Reducing Debt Obligations

Unsecured Debt Relief for Individuals

The SFRP (Unsecured) is part of the relief package that MAS, in collaboration with the financial industry, has put forth to help individuals affected by the COVID-19 pandemic.

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.

You can apply to your bank or card issuer to convert your existing unsecured credit balances to a lower-cost term loan if you:

  • 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 programmesThis refers to Debt Repayment Plan (DRP), Debt Management Programme (DMP), Debt Consolidation Plan (DCP) and Repayment Assistance Scheme (RAS). 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).

Minimum monthly repayment of 3% for 5 years 
Total outstanding  
$12,000 
Monthly repayment 
From $360 to $211 as outstanding balance reduces
Total principal paid
$5,027 
Total interest paid  
$11,737 
Outstanding balance 
$6,983 

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 5year 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.

5-year term loan at 8% effective interest rate
Total outstanding  
$12,000 
Monthly repayment 
$243.30
Total principal paid
$12,000
Total interest paid  
$2,598
Outstanding balance 
$0

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 (see question 3).

The application period is from 6 April 2020 to 31 December 2020. You can apply at any time within the application period if you meet the eligibility criteria (see question 1).

You may wish to get in touch with your bank or credit card issuer from 6 April 2020, 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.

The SFRP (Unsecured) is offered by the following banks and card issuers:

  • 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.

You may convert outstanding balances from your higher-cost 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.

5 years illustration
Total outstanding unsecured balances $ 30,000 Total interest payable $ 6,495
EIR 8% Total Principal + Interest
$ 36,495
Number of years 5 Monthly instalment $ 609

3 years illustration
Total outstanding unsecured balances $ 30,000 Total interest payable $ 3,897
EIR 8% Total Principal + Interest
$ 33,897
Number of years 3 Monthly instalment $ 942

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 may wish to approach your bank or card issuer to discuss requests to vary terms of the term loan. The banks will generally assess such requests on a case-by-case basis and provide you with the available options.

Upon conversion of your outstanding unsecured revolving credit balances into term loan, you will not be able to draw down on your existing unsecured credit limit or obtain new unsecured credit facilities from the lender that has granted you the term loan. It therefore follows that the conversion can only be done once with any single lender.

Yes, you may convert all your credit card and other revolving facility balances (including any interest and late fees incurred) that are outstanding as at the date of application.
You may wish to reach out to your bank or card issuer to obtain further details 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.
You may wish to approach your lender(s) to discuss your application for the SFRP (Unsecured) and other products that could meet your credit needs, such as balance transfers and instalment loans.
The SFRP (Unsecured) is a special relief that banks and card issuers have introduced to help Singapore citizens and permanent residents who are facing cash flow difficulties due to the COVID-19 fall out. Non-citizens and non-residents may approach their respective bank or card issuer to find out about the options available to them.

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 Term Loan Conversion will be suspended till the term loan is repaid, your unsecured credit facilities with other banks/cards 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.

The SFRP (Unsecured) is a special relief that banks and card issuers have introduced to help Singapore citizens and permanent residents who are facing cash flow difficulties due to the COVID-19 fall out. Interest rate under the SFRP (Unsecured) is much lower compared to the prevailing interest rate of revolving credit facilities. As banks and card issuers bear the cost of granting of the relief, they will not be able to offer the relief to the same borrower multiple times. Further, being 30 days past due would generally indicate early signs of financial stress. Given so, it is important that you do not continue to incur further high-cost unsecured debts, which could pose financial difficulties for you down the road.

Please also refer to FAQ25 above.

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.

Easier Refinancing or Repricing of Investment Property Loans

The TDSR/MSR waiver will apply for both refinancing and repricing of investment property loans (including residential, commercial and industrial property loans and MWLs) 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 total debt servicing ratio (TDSR) and mortgage servicing ratio (MSR), up to 31 Dec 2020.

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.

You can choose to refinance your loan with your current bank or another bank.

At the point of refinancing, while the loan size and other terms may remain the same, the borrower’s income level and debt obligations may have changed from the start of the loan. Applying TDSR at this point therefore serves to ensure that the borrower’s property loan remains right-sized based on the borrower’s updated debt and income levels.

However, you will not be subject to TDSR, MSR and loan-to-value (LTV) limits when you refinance your owner-occupied housing loan.

For the period up to 31 Dec 2020, you can also apply to refinance your investment property loan and MWL without being subject to the TDSR and MSR. This means that even if you do not meet TDSR and MSR, there is no need to commit to a debt repayment plan to repay 3% of their outstanding loan amount over 3 years when you refinance your loan.

Your bank or finance company will assess your payment deferment 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 payment relief.

Ensuring Access to Basic Banking Services

Waiver of Fall-Below Bank Account Service Fees and Failed GIRO Charges
The fee waivers are available to retail bank account holders whose income are impacted by COVID-19.
Banks may impose nominal fees for accounts that fall below a certain level, as they incur costs to maintain accounts. Nevertheless, some banks do waive the account balance fall-below service fee for children, the elderly, full-time National Servicemen and recipients of public assistance. As a support measure, banks are extending the waiver to retail customers who are affected by the COVID-19 pandemic.

Your bill will remain unpaid if the GIRO deduction fails, even if the failed deduction charge is waived.

You should approach your billing organisation to make payment or discuss the options available to you.

MAS is unable to intervene in your commercial arrangements. You should approach your billing organisation directly to discuss how they can help you.