(a) ask borrowers what their preferred credit limits are; or
(b) obtain borrowers’ consent for the amounts of the credit limits to be granted.
Wouldn’t it be easier for the FI to assign a credit limit and for the borrower to subsequently request for a lower credit limit?
Some borrowers find it difficult or inconvenient to have to request subsequent reductions in their credit limits. Through the new measures, MAS aims to empower borrowers with greater control over their unsecured credit facilities at the point of application and to save them the inconvenience of having to request to lower their credit limits subsequently.