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
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