Tougher rules for credit cards and unsecured loans
Tighter rules will be in place for credit cards and personal loans as the government moves to lessen the likelihood of people becoming heavily indebted.
The Monetary Authority of Singapore (MAS) unveiled on Wednesday a slew of measures to restrict people from overborrowing on unsecured loans, such as credit cards.
From June 2015, borrowers whose unsecured debts are more than 60 days past due will no longer be allowed to obtain further unsecured credit until all their overdue debts are paid. They will also not be allowed to obtain new credit cards or unsecured loans, or higher credit limits, from other financial institutions.
But if the borrower makes the minimum payment each month, The Straits Times understands they can still get access to new credit.