As the deadly Covid-19 virus global outbreak is expected to shrink the Singapore’s economy this year, The Monetary Authority of Singapore (MAS) have ordered the banks and finance companies to allow deferment of principal repayments of qualifying mortgages and secured corporate loans until the end of the year. We bring you the key points from the guidelines released by the MAS on deferment of secured loans and mortgage payments:
- SMEs who qualify for the deferment can apply to pause the principal payment on their secured term loans to be deferred till 31st Dec 2020. Application date starts from 6th April 2020.
- SMEs having payments due for less than 90 days as at 6th April can also apply to extend their loan tenure till the corresponding deferment period.
- Banks and finance companies, through a new Singapore-dollar facility, can apply to low cost funding for loans provided under Enterprise Singapore.
- Property owners can apply for deferment on principal and interest payments for a period of approx. 9 months till 31st Dec 2020 starting from 6th April 2020
- Consumers with credit card balances suffering income loss of at least 25% from 1st Feb 2020, can apply to convert balances to loans for a period of 5 years at 8% rate of interest far less than the standard 26% rate of interest.
- Life insurance and health insurance policy holders having policy renewal or premium due dates between 1st April 2020 to 30th Sep 2020, can apply for deferment of premium payments for a period of 6 months without having any effect on their insurance coverage.