Singapore extends deadlines for loan repayments

Singapore has extended its deadline for individuals and businesses to resume full loan repayments, which it describes as the “final extension” of industry-wide measures aimed at helping those affected by the pandemic. 

“Borrowers who are unlikely to be able to resume full loan instalment repayments by the end of the relief periods should approach their lenders early to work out longer term repayment solutions,” said The Monetary Authority of Singapore (MAS), the Association of Banks in Singapore, and the Finance Houses Association of Singapore in a statement. 

The window to reduce instalment repayment plans for mortgages, convert outstanding balances to term loans at a lower interest rate, and extend loan tenures for debt consolidation plans, renovation and student loans has been extended to Sept 30, three months beyond the original deadline of June 30. 

“After the industry-wide support measures expire, lenders will continue to offer relief and restructuring options for borrowers facing cash flow challenges based on their specific circumstances. Borrowers who are able to resume full loan repayments should do so to avoid unnecessary debt accumulation,” it read.

READ: Singapore employers to get S$2 billion in wage subsidies

“With continued economic recovery and transition to an endemic COVID-19 situation, loan repayments must start normalising so as to minimise debt accumulation.  We must pivot away from industry-wide credit reliefs to more selective support measures tailored to individual borrowers’ circumstances,” said Ravi Menon, Managing Director of MAS.