MAS Finacial Support Measures for individuals : Details on Loan Deferments

Looking to ease your cash flow due to COVID-19?



For the past few months, there will be individuals who find themselves having their pay cut, put on no-pay leave or even loss of jobs. As a result of this, cash flow would become an issue during this period.



To ease the financial obligation of individuals, several schemes were introduced to ease cash flow issues. To date, there are 2 separate relief packages to lower the individual's short term repayment obligations introduced on 31 March and 30 April. Here are what you should know about the plans.


Ease Cashflow
Residential Property Loans
Defer Prinicpal Repayment up to 31st Dec
Defer both principal and interest repayments up to 31st Dec

How it works?

• Interest will accrue on the outstanding loan principal. If interest payments are deferred, no additional interest will be charged on the deferred interest payments.
• Lenders will approve the request for deferment as long as the individual is not in arrears for more than 90 days as at 6 Apr. 
• No need to demonstrate any impact from COVID-19 to obtain a deferment
• Individuals can opt to extend loan tenure by up to the corresponding deferment period to ease monthly instalments when they resume regular payments.

Commercial and Industrial Property Loans (NEW)
Defer principal repayment up to 31 Dec 2020. Interest will continue to be payable.

How it works?

• Individuals with the loans are to apply to respective banks
• Lenders will approve as long as the individual is not in arrears as at 1 Feb. 
• No need to demonstrate any impact from COVID19 to obtain a deferment

Mortgage Equity Withdrawal Loans (NEW)
Individuals with mortgage equity withdrawal loans obtained after 6 APr and not qualify for Residential/Commercial/Industrial loan deferment, may apply to respective bank or financial company to defer repayments up to 31 Dec 2020.

How it works?
Options vary from bank to bank

• No need to demonstrate any impact from COVID19 to obtain a deferment

Renovation Loans (NEW)
Principal and Interest can be deferred for individuals till 31 Dec 2020

How it works?

• Interest will accrue on the outstanding loan principal. No additional interest will be charged on the deferred interest payments.

Education/Study/Student Loans
Principal and Interest can be deferred for individuals till 31 Dec 2020


How it works?

• Interest will accrue on the outstanding loan principal. No additional interest will be charged on the deferred interest payments.
• Lenders will approve the request for deferment as long as the individual is not in arrears for more than 90 days as at 6 Apr. 

Motor Vehicle Loans and Hire Purchase Agreement (NEW)
On a case by case basis, individuals may approach banks to discuss suitable repayment plans

How it works
Lender will require individuals to demonstrate that their income have been affected by COVID-19. Lenders will approve the request for extension as long as the individual is in arrears for between 30 and 90 days at the point of application

Extend Repayment of Debt Consolidation Plans (NEW)
Extend DCP for up to 5 years from 18 May 2020 to 31 Dec 2020

How it works?
Lender will require individuals to demonstrate that their income have been affected by COVID-19. Lenders will approve the request for extension as long as the individual is in arrears for between 30 and 90 days at the point of application

Defer Premium Payments for Life and Health Insurance
Defer premiums for up to 6 months while maintaining insurance protection.

How it works?
This is available for all individual life and health insurance policies with a policy renewal or premium due date between 1 Apr and 30 Sep (both dates inclusive)

Flexible Instalment Plans for General Insurance
Apply to pay General Insurance Premiums ( eg Property and vehicles) in Instalments.

How it works?
Can pay premiums in smaller amounts and enjoy coverage for the paid-up period instead of paying a lump sum premium for the entire policy period at the start

Reducing Debt Obligations
Lower interest on Personal Unsecured Credit

How it works?

• Individuals may apply to convert outstanding balance from revolving credit facilities to term loans with effective interest rate capped at 8% ( compared to 26% in a typical credit card)
• Tenure can be up to 5 years. 
• Available to individuals who suffered a loss of 25% or more monthly income after 1 Feb 2020 and are between 30 and 90 days past due on removing unsecured debts.  
• Apply from 6 Apr to 31Dec

Easier Refinancing or Repricing of Investment Property Loans(NEW)
Individuals can apply to refinance or reprice investment property loans

How it works?

• This will not be subjected to Total Debt Servicing Ratio (TDSR) and Mortage Servicing Ration (MSR) under MAS property loan rules
• Up to 31 Dec 2020
• Lock in period contractual penalties apply

Waiver of Fall Below Bank Account Service fee and failed GIRO charges

• Fall below service fees can be waived till 31 Dec 2020 upon application by Individuals. 
• Individuals who have set up GRIO for any failed deductions can apply for bank fees to be waived. This does NOT affect any action that payee companies may take for failed payments, including late payment fees is applicable
• Individuals will have to demonstrate income have been affected by COVID-19

Points to note

• Measures are on  opt-in basis
• Deferment of payments and loan tenure extension will result in higher overall interest cost. There accumulated interest costs will have to be paid back in the future.
• Individual's credit scores will not be affected when they take up payment deferments.