Repayment Scheme to reduce debt

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Not that it is much to cheer about if this piece of news is good news to you, because it means you are debt-ridden. But well, with news about the Repayment Scheme being rolled out by the Association of Banks in Singapore, you may be just slightly cheered, maybe even hopeful about finally clearing your debts completely. What does this scheme do and how can it help? Let us provide some insight.

The aim of the Repayment Scheme is to offer a much needed helping hand to borrowers, in a bid to help them reduce their debts over a period of time. This scheme is for unsecured debts only.

Who qualifies for the Repayment Assistance Scheme?
– It is for borrowers who have chalked up unsecured debt that is more than 12x of their monthly salaried income
– Eligible only if borrower has debts 12x their salary before June 2015
– Borrowers should draw an annual income of less than $120k
– Borrowers must not have assets of more than $2million

What is the Repayment Assistance Scheme?
– Successful applicants get a lower interest rate
– They can repay their debts within an 8-year period
– The scheme is rolled out together with new borrowing limits that makes new debts much more difficult

Which are the institutions that offer this scheme?
– DBS Bank
– OCBC Bank
– UOB Bank
– Citibank
– HSBC Bank
– If you are eligible, you will receive letters from the above financial institutions from mid April onwards

When is the cut-off date?
– 31 December 2015

Well, we certainly hope the above information will be of help to you. Of course, if it does not concern you at all, good on you too!

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