Remarks:
⁸ Borrowers are generally required to have an annual income of at least S$20,000 to qualify for an unsecured credit facility from an FI. This rule will not apply to education, business, medical and renovation loans.
⁹ The maximum credit limit that an FI can grant to a borrower is generally 4 months’ income for borrowers with annual incomes of at least S$30,000 but less than S$120,000, and 2 months’ income for borrowers with annual incomes of less than S$30,000. This will not apply to education, business, medical and renovation loans.
¹⁰ With effect from 1 June 2015, FIs will not be allowed to grant further unsecured credit to borrowers whose aggregate unsecured debt across all FIs exceeds 24 times their monthly incomes for 3 months or more. This will not apply to education, business, medical, and renovation loans. The industry-wide borrowing limit will be lowered to 18 times monthly income with effect from 1 June 2017 and 12 times monthly income with effect from 1 June 2019. Please see here for more information on the industry-wide borrowing limit.
¹¹ With effect from 1 June 2015, FIs will not be allowed to grant further unsecured credit to borrowers who are 60 days past due on any credit card or unsecured credit facility extended by the FI. Other FIs will also not be allowed to grant credit limit increases, or issue new credit cards or unsecured credit facilities to such borrowers. Please see here for more information on the 60 days past due rule.
