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Security & Fraud

FIs allowed to exceed the per-FI regulatory credit limit of 2 months’ income or 4 months’ income to help refinance debt owed to another FI.

What does this rule mean?

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.

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