- Business Guide: Key Employment Terms (KETs) for Employee Contracts in Singapore
- The Ultimate Guide To Interning In Singapore: How To Find The Best Internships, Get Fair Pay, And Maximize Your Learning Journey
- Unlock the Potential of Your Unpaid Invoices with OCBC Short-Term Invoice Financing
- Comprehensive Guide: How to Obtain a Garnishee Order and Protect Your Rights
- Complete Guide To WhatsApp In-App Payments For Singapore-Based Users
- What You Need To Know Before Applying For A Business Term Loan
- Make Sure Your Voice is Heard - How to Create a Valid Will in Singapore
- Complete Guide For Foreigner Opening Bank Account In Singapore
- Guide to Start-Up Business Loans in Singapore 2023 Edition
- SME Guide To Employer Of Record Services In Singapore
COVID-19: Banks to Allow Temporary Halt in Payments for Education, Renovation, and Motor Vehicle Loans
Cash flow concerns arising from the Covid-19 situation have been the top of the list for most individuals. Especially during the “Circuit Breaker” period, where non essential businesses were first asked to stop operation, then followed by a tightening of measures to close more workplaces until 1st June 2020. And especially if you are a Self-employed Person.
However, life goes on, and bills and expenses continue to pile up. The house that you bought last July and the renovation loan you have gotten, these instalment payments are not going to go away just because your income or your job is affected.
Earlier in March 2020, the Monetary Authority of Singapore (MAS) implemented a set of measures to allow individuals to defer home loan and insurance premium payments. On 30th April 2020, MAS rolled out new measures to further support individuals facing financial difficulties due to the Covid-19 pandemic.
This second package allows individuals to choose to temporarily halt payments for education, renovation and motor vehicle loans until 31st December 2020. Those with commercial or industrial property loans, as well as mortgage equity withdrawal loans, can also apply to their banks to defer payments until the end of this year, subject to requirements. Banks’ service fee for maintaining minimum average monthly balance in the bank account can also be waived, and including bank fees charged for failed Giro transactions set up for insurance premiums, electricity bills, phone bills etc.
Individuals do not need to show that he has been affected by the Covid-19 pandemic to apply for the above relief. Most importantly, one’s credit score will not be affected by the deferments as well.
MAS, together with the Association of Banks in Singapore and the Finance Houses Association of Singapore, has also announced other relief measures to allow individuals to extend the loan tenure for debt consolidation plans and to refinance investment property loans without being subject to the total debt servicing ratio and mortgage servicing ratio.
Applications for all the relief measures will start next Wednesday, 6th May 2020.
And applications for loan tenure extensions for debt consolidation plans will start on 18th May 2020.
However, before deciding to take on the option to defer payments or to extend your loan, please note that this could result in higher overall costs. Does this temporary cash flow relief outweigh the accumulated interest costs that you have to bear eventually?
Not sure whether your company can be qualified for bank loans or alternative lending? Try our A.I assisted loan, and Smart Towkay team will send you a lending report within 24 hours' time. With the lending report, we aggregate and recommend the highest chance of approval be it with BANKS / FINANCIAL INSTITUTIONS or Alternative lenders like Peer to Peer Lenders or even B2B lender!
Got a Question?
WhatsApp Us, Our Friendly Team will get back to you asap :)
Share with us your thoughts by leaving a comment below!
Stay updated with the latest business news and help one another become Smarter Towkays. Subscribe to our Newsletter now!