MAS expands consumer debt management toolkit
New measure caps “unsecured credit” banks can offer indebted borrowers
The Monetary Authority of Singapore (MAS) has introduced a new credit limit for consumers in an attempt to help borrowers avoid accumulating “excessive unsecured debt”.
Effective from January 1, 2018, the Credit Limit Management Measure will cap any additional unsecured credit a financial institution may lend to a borrower whose arrears already exceed six times their monthly income.
“The measure announced today is pre-emptive in nature – it will help borrowers manage their unsecured debts
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