The SFRP (Unsecured) is part of the Special Financial Relief Package (SFRP) that the financial industry, in collaboration with MAS, 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.
RHB customers may apply to convert existing unsecured outstanding balances in Preferred Credit facility to a lower-cost term loan if customers:
Please call us at 1800 323 0100 for more information on this option and the necessary documents to be submitted.
The SFRP (Unsecured) is an option that is available to help individuals reduce their overall cost of outstanding unsecured debt. It is specifically introduced 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 (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, please call us at 1800 323 0100 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.
|5 years illustration on minimum monthly repayment of 3%|
|Total outstanding unsecured balances||$30,000||Total interest payable||$14,301|
|EIR||15.88%||Total Principal + Interest||$33,441|
|Number of years||5||Monthly repayment|| $900 to $300 |
as outstanding balance reduces
|5 years illustration on Term Loan at 8% effective interest rate|
|Total outstanding unsecured balances||$30,000||Total interest payable||$6,498|
|EIR||8%||Total Principal + Interest||$36,498|
|Number of years||5||Monthly repayment||$608 fixed|
While the interest rate (capped at effective interest rate of 8%) is lower than what you would have ordinarily paid under your existing loan, 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 contact us at 1800 323 0100 to find out more on the application process.
This is only applicable for Preferred Credit (Overdraft). If you are facing difficulties repaying your Renovation/ Furnishing/ Education/ Study Loan, please contact us at 1800 323 0100 to discuss suitable repayment plans or debt restructuring.
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), you will no longer be able to draw down on your existing Preferred Credit’s available credit limit. However, 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 once you have fully repaid your term loan. Upon your application, we will conduct income and credit bureau checks to reassess your creditworthiness per its usual process. Please note that the Credit Limit Management Measure will apply.
The converted term loan will not be reflected as a restructured loan product in your credit bureau report.
If you face further difficulty with your repayments under the term loan, you should call us at 1800 323 0100 immediately to explore possible options.
Under SFRP (Unsecured), you may be offered term loans of up to 5 years, to accord you greater flexibility in accordance with your repayment ability. You may wish to call us at 1800 323 0100 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.
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 call us at 1800 323 0100 to request to vary terms of the term loan. We 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 Preferred Credit facility balances that are outstanding as at the date of application.
You can call us at 1800 323 0100 for more details and on the necessary documents to be submitted.
You may wish to call us at 1800 323 0100 to discuss your application for the SFRP (Unsecured) and other products that could meet your credit needs.
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 call us at 1800 323 0100 to find out about the options available to them.
You should only contact us at 1800 323 0100. We will not ask for your account details, password, or OTP. You should verify any unsolicited calls, messages, or emails directly with us through the official channels.