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The Monetary Authority of Singapore (MAS) and financial industry on Thursday announced what is expected to be the "final extension" of relief measures to resume full loan repayments for individuals and businesses affected by the pandemic.
Taking into account the uneven impact of the pandemic, the latest extension is "targeted at those individuals and businesses who continue to experience cash-flow difficulties", the MAS said in a media statement.
The application windows to reduce instalment repayment plans for mortgages, convert outstanding balances to term loans at a reduced interest rate, as well as to extend loan tenures for debt consolidation plans, renovation and student loans, will now end on Sept 30, three months beyond the original deadline of June 30.
Existing relief measures allow for loan tenures for renovation and student loans to be extended up to three years; and that for debt consolidation plans to be extended up to five years.
Eligible small and medium-sized enterprises (SMEs) currently under the Extended Support Scheme - Standardised can continue to opt to defer up to 80 per cent of principal payments on secured loans, as well as loans granted under Enterprise Singapore's Enhanced Working Capital Loan Scheme and Temporary Bridging Loan Programme till Sept 30.
This applies to SMEs in the Tiers 1 and 2 sectors, which include aviation and aerospace, tourism, hospitality, conventions and exhibitions, built environment, licensed food shops and stalls, qualifying retail outlets, arts and entertainment, land transport, and marine and offshore.
SMEs in these tiers that are not currently participating in the scheme can apply to do so from July 1 to Sept 30.
SME borrowers with more than one lender will have until Dec 31, a six-month extension from the current June 30 deadline, to apply for the Extended Support Scheme - Customised, which facilitates the restructuring of a borrower's loans across multiple financial institutions.
This is expected to be the final extension of the industry-wide support measures, the MAS said.
Borrowers who are unable 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, it added.
"We must pivot away from industry-wide credit reliefs to more selective support measures tailored to individual borrowers' circumstances," said MAS managing director Ravi Menon.
"This final extension will provide support for remaining borrowers still affected by the restrictions. With continued economic recovery and transition to an endemic Covid-19 situation, loan repayments must start normalising so as to minimise debt accumulation," he said.
Source: https://www.businesstimes.com.sg/banking-finance/singapore-smes-individuals-given-final-extension-to-resume-full-loan-repayments