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FIs disallowed from granting 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 (“60 days past due rule”).

Why is MAS prohibiting the grant of further unsecured credit to a borrower whose debt with an FI is 60 days past due? Is this too strict?

This is to help prevent debt from spiralling upwards for a borrower who has problems repaying even the minimum payments on his existing debts.


MAS’ restriction applies only 60 days after the minimum payment due date. This provides a borrower time to make good on his minimum payments. If a borrower is unable to pay even the minimum payment within this time, it is a signal that his level of debt is unsustainable.


The restriction does not apply to unsecured loans for medical treatment, education and business.¹⁵

In addition, FIs are allowed to reinstate the suspended credit lines when the borrower repays the minimum payments due, and after conducting fresh income and credit bureau checks. The borrower does not have to repay all his outstanding debts fully before his credit lines can be reinstated.

¹⁵ Please see paragraph 7(1) of MAS Notice 635 on “Unsecured Credit Facilities to Individuals” dated 29 November 2013 or regulation 6(9) of the Banking (Credit Card and Charge Card) Regulations issued on 29 November 2013 for the full list of loans that such borrowers are allowed to take.

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