The maximum amount of unsecured credit that may be granted by an FI to each borrower is generally capped at:
(a) 4 months of his income, for a borrower with an annual income of at least S$30,000 but less than S$120,000; and
(b) 2 months of his income, for a borrower with an annual income of less than S$30,000.
However, to enable a borrower to refinance his debt at potentially more favourable interest rates and/or repayment terms, the per-FI regulatory credit limits can be exceeded if a borrower is refinancing his existing debt with another FI. FIs will also be allowed to lift any other suspension imposed on borrowers (as a result of the borrowing limit) when granting additional credit to refinance existing debt owed to other FIs.