Banks to allow temporary halt in payments for some loans

Measures aimed at easing cash flow concerns to include education, vehicle and renovation loans

Individuals can choose to temporarily halt payments for education, renovation and motor vehicle loans, in a move by the Monetary Authority of Singapore (MAS) and the finance sector to ease cash flow concerns amid the coronavirus pandemic.

Those with commercial or industrial property loans, as well as mortgage equity withdrawal loans, can also apply to their banks to defer payments until the end of this year, subject to certain requirements.

Service fees that are typically charged for failing to maintain the minimum average daily or monthly balances in one's retail bank account can also be waived till Dec 31.

The same goes for bank fees for failed Giro transactions set up to pay for insurance premiums and electricity bills, among others.

Applicants do not need to show that they have been affected by the Covid-19 crisis to obtain the relief, said the MAS. Their credit score will also not be affected.

The latest measures aim to support individuals facing financial difficulties due to the Covid-19 pandemic, said the MAS. It had previously rolled out a set of measures in March.

"This second package will extend the scope of relief for individuals to other types of loan commitments, and allow them to continue to have access to affordable basic banking services," added the authority.

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