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Unsecured Credit Rules to be Revised
Starting from 1st March 2009, there will be some changes to the rules for unsecured lending by financial institutions.
Presently, unsecured credit is only available to people earning an annual income of $30,000 or more. The changes will see the minimum requirement reduced to $20,000. The requirement for credit cards remain unchanged at $30,000.
For individuals with an annual income below $30,000, a maximum credit limit of two times the borrower’s monthly income will apply. Those earning $30,000 will see their maximum limit increased to four times the monthly income. The credit limit will be based on an aggregation of all unsecured credit and credit cards held with all affiliated entities of the financial institution.
More information can be found in this announcement by MAS:
MAS Implements Revised Unsecured Credit Rules for Financial Institutions