MAS, financial industry extend support measures for individuals, SMEs

Loan tenures will be extended between 3-5 years.

Industry-wide support measures for individuals and small and medium enterprises (SMEs) will be extended amidst the continuing impact of the pandemic, the Monetary Authority of Singapore announced.

This will cover those within the Tier 1 and Tier 2 sectors, which covers hard hit industries such as aviation and aerospace, tourism, hospitality, conventions and exhibitions, built environment, licensed food shops and food stalls and retail outlets amongst others.

“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,” MAS Managing Director Ravi Menon said in a statement.

“We must pivot away from industry-wide credit reliefs to more selective support measures tailored to individual borrowers’ circumstances.”

The extension was also agreed upon by the Association of Banks in Singapore, and the Finance House Association of Singapore.

Under the extension, individuals may apply for property loans, unsecured revolving credit facilities, debt consolidation plans and renovation and student loans until 30 September 2021. This was extended from 30 June 2021.

MAS and the financial industry also extended the loan tenure for property loan and renovation and student loans up to 3 years, and up to 5 years for debt consolidation plans.

SMEs, likewise, will be allowed to file their loan applications for the Extended Support Scheme -Standardized (ESS-S) until 30 September.

SMEs currently availing the ESS-S may also defer 80% of principal payments on loans secured from banks and from Enterprise Singapore until 30 September.

Meanwhile, application for ESS – Customised will be extended until 31 December.