Revised Unsecured Credit Rules by MAS
Due to MAS regulations on Balance-To-Income (BTI) ratio, your unsecured credit facilities limit cannot exceed 12 times of your monthly income. Read on to find out more.
If your total interest-bearing outstanding on all credit cards and unsecured credit facilities with all Financial Institution (FI) in Singapore exceed the industry-wide borrowing limit for 3 consecutive months, your account will be suspended and you will not be able to:
- Charge new amounts to your existing credit card(s) and/or use other unsecured credit facilities with all financial institutions;
- Obtain credit limit increases on your existing credit card(s) and/or other unsecured credit facilities with all financial institutions;
- Apply new credit cards or other unsecured credit facilities from all financial institutions.
|Account Suspended||Account Not Suspended|
What are the documents required?
|For Singapore Citizens and Permanent Residents|
|Variable/ Commission-based Employees||
Employment Pass with at least 6 months validity; and
- 1 Your salary must be credited via GIRO, to your own DBS/POSB Account for the last 3 consecutive months and your current annual income meets our minimum income criteria. Salary credited into joint account will not be considered.
- 2 Please note that your CPF documents submitted online with SingPass is only available for up to 7 days from the date of your submission.
- 3 You can now download your Income Tax Income Notice of Assessment at myTax Portal with your Singpass or IRAS Pin. The service is free. Log on to https://mytax.iras.gov.sg for more details.
What is the Borrowing Limit?
The industry-wide borrowing limit took effect on 1 June 2015 and it is progressively lowered over 4 years.
- 24 times of your monthly income from 1 June 2015;
- 18 times of monthly income from 1 June 2017; and
- 12 times of monthly income from 1 June 2019.
- Your limit is computed by taking your aggregate interest-bearing unsecured outstanding balance across all FIs, divided by monthly income. To find out more on the computation, please refer to the below frequently asked questions.
Frequently Asked Questions
Was this article helpful?
We welcome your feedback
Thanks for your feedback!
We’ll continue to work towards serving you better.
Need more help?
Contact support and we'll try to resolve your issue quickly.Contact Customer Support