MAS, ABS, FHAS extend loan support measures to 2021

Clients who cannot make full repayments can apply for lowered installments.

The Monetary Authority of Singapore (MAS), the Association of Banks in Singapore (ABS), and the Finance Houses Association of Singapore (FHAS) have extended support measures to help individuals and SMEs transition gradually to full loan repayments.

These measures will progressively expire over 2021.

Individuals with residential, commercial and industrial property loans and are unable to resume making full loan repayments may apply to their respective bank or finance company to make reduced instalment payments pegged at 60% of their monthly instalment, for a period of up to nine months.

This option is available to those who can present proof of income impact of at least 25%, with property loan payments that are not more than 90 days past due. Individuals who meet these criteria can apply for assistance from 9 November 2020 till 30 June 2021.

Those with renovation and student loans may apply to their respective bank to extend their loan tenures by up to three years, whilst those having a hard time repaying their unsecured revolving credit facilities may apply to their lender until 30 June 2021 to convert their outstanding balances to term loans at a reduced interest rate.

Individuals on debt consolidation plans (DCP) have until 30 June 2021 to extend the loan tenure of their DCPs for up to five years. Borrowers who took up the unsecured credit relief or the DCP relief but continue to have difficulty repaying can reach out to their lenders or to the Credit Counselling Singapore (CCS) to discuss restructuring plans.

On the other hand, SMEs are urged to first consider the Extended Support Scheme - Standardised (ESS-S) where Tier 1 and Tier 2 SMEs can opt to defer 80% of principal payments on their secured loans granted by banks or finance companies, as well as loans granted under Enterprise Singapore’s (ESG) Enhanced Working Capital Loan Scheme and Temporary Bridging Loan Programme untik 30 June 2021. SMEs in other sectors may opt to do the same up to 31 March 2021.

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