FIs are required to take only a borrower’s interest-bearing unsecured debt into account for the purpose of this rule. Interest-bearing unsecured debt includes amounts rolled over on credit cards (i.e. amounts that are not repaid in full by the due date) and outstanding amounts on unsecured loans that accrue interest.
Amounts charged to credit cards that are fully repaid by their due dates typically do not attract interest, and do not have to be taken into consideration for the purpose of this rule.
Likewise, amounts outstanding on interest-free instalment plans that do not attract interest do not have to be taken into consideration. However, if interest is imposed on a particular instalment, for example due to late payment, this instalment amount will have to be included in the borrower’s aggregate unsecured debt