Singapore residents and everlasting residents with excellent unsecured debt – this refers to bank card loans and different non-credit strains – can get help beneath the brand new measures.
The Particular Monetary Reduction Programme (Unsecured) permits banks and card issuers to assist debtors who’ve suffered a brief loss or decline in earnings and are dealing with difficulties assembly repayments through the pandemic.
The programme – a collaboration between the Financial Authority of Singapore and the monetary business – offers them an choice to convert their high-interest unsecured bank card and revolving balances right into a lower-cost time period mortgage.
Eligible debtors can decide into the scheme by offering proof that their earnings has been diminished by no less than 25 per cent after Feb 1.
Their repayments must be between 30 and 90 days overdue on the level of software.
The brand new time period mortgage can have an efficient rate of interest capped at eight per cent for as much as 5 years. There might be no early compensation penalty and it’ll not be mirrored as a restructured mortgage within the borrower’s credit score bureau report.
FREQUENTLY ASKED QUESTIONS
Q Ought to I apply to transform my excellent unsecured debt into this time period mortgage?
A Earlier than taking over this time period mortgage, think about if there are different credit score merchandise provided by banks and different bank card issuers, equivalent to stability switch, month-to-month interest-free instalment plans or debt consolidation plans, that may aid you decrease your general curiosity and debt compensation.
No matter possibility that you simply select, you will need to guarantee that you’ll be able to meet the month-to-month funds in full to keep away from the buildup of debt.
Q What kinds of unsecured credit score services are coated beneath the initiative?
A It covers higher-cost bank cards and revolving credit score services. Non-revolving private loans, equivalent to renovation loans, and secured credit score services equivalent to automobile loans and mortgages, is not going to be included.
Q What if I’m unable to make repayments on my time period mortgage?
A You could incur late fee charges and curiosity fees if you don’t make repayments on time. Converse to your lenders to discover attainable choices and they can aid you restructure your repayments.
Q Can I convert my excellent unsecured revolving credit score balances into time period loans greater than as soon as?
A The conversion could be performed solely as soon as with any single lender.