Easing Cashflow

Defer and extend repayment, defer premium and flexible instalment plans.

Defer Repayment

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:

Residential Property Loans

Individuals with residential property loans may apply to their respective bank or finance company to defer either (i) principal repayment or (ii) both principal and interest repayments up to 31 December 2020. Interest will accrue on the outstanding loan principal. If interest payments are deferred, no additional interest will be charged on the deferred interest payments.

Lenders will approve the request for deferment as long as the individual is not in arrears for more than 90 days as at 6 April 2020. Individuals do not need to demonstrate any impact from COVID-19 to obtain the deferment.

Commercial and Industrial Property Loans

Individuals with commercial or industrial property loans may apply to their respective bank or finance company to defer principal repayment up to 31 December 2020. Interest will continue to be payable during the deferment period. Lenders will approve the request for deferment as long as the individual is not in arrears as at 1 February 2020. Individuals do not need to demonstrate any impact from COVID-19 to obtain the deferment.

Individuals who are landlords (“individual landlords”) and are current in their loan repayments as at 1 February 2020 may apply to defer both principal and interest repayment up to 31 December 2020, if they are required under the COVID-19 (Temporary Measures) (Amendment) Bill to provide their tenants rental waivers or payment rescheduling. Individual landlords who successfully apply for a reduction in rental waivers on the grounds of financial hardship are also eligible for this relief measure. Interest will accrue only on the principal amount deferred, and no interest will be charged on the deferred interest payments.

When applying to defer both principal and interest repayments, individual landlords should submit to their bank or finance company:
  • A copy of IRAS’ notice of cash grantAs part of the disbursement of Government relief under the COVID-19 (Temporary Measures) (Amendment) Bill, IRAS will issue a notice of cash grant to two groups of property owners: (i) those with SME tenants; and (ii) SME property owners who run a trade or business on their own property.
  • Relevant tenancy/lease agreements
  • A declaration of the relief to be provided to their tenants.

These documents can be submitted via email or other digital channels. Individual landlords may apply for the new relief measure once IRAS begins issuing the notice of cash grant in July 2020. Banks and finance companies will aim to process all applications promptly.

Mortgage Equity Withdrawal Loans

Individuals with mortgage equity withdrawal loans obtained after 6 April 2020, and are not able to qualify for the above Residential/Commercial/Industrial property loan deferment, may apply to their respective bank or finance company to defer repayments up to 31 December 2020. Options may vary between different banks and finance companies.

Individuals do not need to demonstrate any impact from COVID-19 to obtain the deferment.

Renovation Loans

Individuals with renovation loans may apply to their respective bank to defer repayments of both principal and interest up to 31 December 2020. Interest will continue accrue on the outstanding loan principal, but additional interest will not be charged on the deferred interest payments.

Lenders will approve the request for deferment as long as the individual is not in arrears for more than 90 days as at the point of application. Individuals do not need to demonstrate any impact from COVID-19 to obtain the deferment.

Education / Study / Student Loans

Individuals with education/study/student loans may apply to their respective bank to defer repayments of both principal and interest up to 31 December 2020. Interest will continue accrue on the outstanding loan principal, but additional interest will not be charged on the deferred interest payments.

Lenders will approve the request for deferment as long as the individual is not in arrears for more than 90 days as at the point of application. Individuals do not need to demonstrate any impact from COVID-19 to obtain the deferment.

Motor Vehicle Loans and Hire-Purchase Agreements

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, anytime from 18 May 2020 to 31 December 2020.

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.