The borrowing limit is phased in over 4 years. This is to provide borrowers more time to adjust to the limit.
In addition, FIs will have the flexibility not to suspend credit for a borrower whose interestbearing unsecured debt already exceeds 12 times his monthly income before 1 June 2015. This flexibility is for a transition period up to end-May 2019. FIs may do so to these borrowers on an exceptional and case-by-case basis, subject to their own credit assessment.
If, on 1 June 2019, the borrower’s aggregate unsecured debt still exceeds 12 times his monthly income for 3 months or more, FIs must then suspend his unsecured credit cards and unsecured credit facilities.