|Renovation & Student Loans||Option to extend the loan tenure up to a cumulative 3 years (inclusive of any deferred period under SFRP)|
|Personal Unsecured Credit||Extension of the SFRP (Unsecured) application window to 30 June 2021|
The Monetary Authority of Singapore (MAS), The Association of Banks in Singapore (ABS) and Finance Houses Association of Singapore (FHAS) announced an extension of support measures to help individuals and SMEs facing cashflow difficulties transition gradually to full loan repayments. These extended measures will progressively expire over 2021.
The payment deferrals (Special Financial Relief program (SFRP) for individuals and SMEs provided by banks and finance companies since April are set to expire by 31 December 2020. While MAS expects borrowers to resume paying their loan instalments in full from 1 January 2021 if they are able to do so, the extension will allow individuals and SMEs who continue to experience cashflow pressures more time to resume repayments.
Individuals with Singapore residential, commercial and industrial property loans who are unable to resume full loan repayments may apply to their respective lenders to make reduced instalment payments pegged at 60 percent of their monthly instalments, for a period of up to 9 months. Those with renovation and student (Education) loans may apply to extend their loan tenures by up to 3 years (inclusive of any loan deferment period already consumed under SFRP).
To be eligible, individuals should be able to provide proof of income impact (i.e. at least 25% loss of income or loss of employment after 1 Feb 2020) and must not be more than 90 days past due on their loan payments. Applications will be open from 9 November 2020 until 30 June 2021.
Individuals facing difficulties repaying unsecured revolving credit facilities i.e. Preferred Credit likewise have up until 30 June 2021 to convert their outstanding balances to term loans, capped at an 8 percent effective rate for a period of 5 years.
The ESS is also extended to:
Applications will be open from 9 November 2020 until 30 June 2021.
The application for the ESS is only open from 9 November 2020 onwards until 30 June 2021. However, if you would like to be part of the assisted program now, you may want to consider the Special Financial Relief Programme (SFRP) for the moment, and contact us again to apply for the ESS from 9 November 2020 onwards. All applications are subject to the bank’s approval.
The ESS is introduced to assist customers with cashflow difficulties regardless of whether they are already on the SFRP. To be eligible, individuals should be able to provide proof of income impact (i.e. at least 25% loss of income or loss of employment after 1 Feb 2020) and must not be more than 90 days past due on their loan payments.
The payment deferments granted under the Special Financial Relief Programme (SFRP) are due to expire on 31 December 2020.
If you have deferred repayments for your Singapore property, renovation and student loans under the SFRP, and need help with resuming loan repayments, you can consider applying to make reduced payments under the Extended Support Scheme (ESS) if you meet the eligibility criteria.
All applications are subject to the bank’s approval
The ESS measures are as follows:
For Mortgage loans
No. You do not need to meet TDSR/MSR to be eligible for the repayment deferment. However, the bank will review your credit conduct at the time of application and all applications are subjected to bank’s approval.
The 25% loss in income is computed based on your income before and after 1 Feb 2020. We could ask you for your payslip, letters from the employers, CPF statements or bank statements to compute this.
Ideally, you should repay the loan arrears and accrued interest on your loan prior to incepting the ESS as loan capitalisation comes with a higher interest cost. You should repay as much arrears and accrued interest as you can before opting to capitalize the outstanding amounts into your loan principal.
The application period is from 9 November 2020 onwards until 30 June 2021 and we do not expect you to visit the Branches. More details on the mechanics of the application by Nov 9, 2020 via our website www.rhbgroup.com.sg.
The actual approval process will differ from customer to customers as well as the volume of applications received. Nevertheless, we will approve your application expeditiously as long as you meet the eligibility criteria.
No, it will not affect your credit score as the deferment will not result in your loan being classified as a restructured loan 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. If you do not make repayments on time, you would incur late payment fees and interest charges.
You can discuss other types of suitable debt restructuring plans for your overseas properties.
You can discuss other types of suitable debt restructuring plans for your loan or approach the Credit Counselling of Singapore for help.
If you take up ESS for your unsecured loans, you will need to pay off your unsecured loans under ESS before you can take up new lines of credit from the bank. Note that prevailing rules for unsecured consumer credit including the industry-wide borrowing limit of 12 times monthly income will continue to apply.
MAS and the financial industry are monitoring the situation closely, and will assess if any additional measures are needed then.