What is a Moneylender Debt Management Programme?
Credit Counselling Singapore (CCS) facilitates repayment arrangements on behalf of suitable debt-distressed borrowers under the Moneylender Debt Management Programme to enable them to repay unsecured debts with licensed moneylenders in full.
The Moneylender Debt Management Programme (MDMP) is a formal debt restructuring agreement facilitated by CCS with licensed moneylenders (LML) represented by Credit Association of Singapore (CAS).
If you have unsecured debts owing to banks and financial institutions and have sufficient payment capacity, as assessed by the Financial Counsellor during credit counselling, you may wish to repay your LML creditors through a MDMP.
On your behalf, CCS will prepare a MDMP Proposal and Repayment Schedule, to fully repay each LML creditor in monthly instalments within a reasonable period.
The proposed monthly instalment amounts are within your payment capacity, after setting aside DMP payments to bank creditors, expenses for yourself and your family, and based on the budget that has been drawn up with the Financial Counsellor.
You commence payments to each creditor in accordance with the MDMP Repayment Schedule only after creditors have accepted and approve the MDMP Proposal. The approval of MDMPs as well as the specific terms and conditions of the agreement is at the sole discretion of individual LML creditors. CCS will inform you via email on the outcome of creditors decision.
Our Debt Servicing and Support (DSS) team will provide you with support, guidance, and talks / workshops on improving financial knowledge, maintaining mental and emotional wellbeing.
The Moneylenders Debt Management Programme (DMP) is meant to provide debt relief to overly indebted borrowers who are able to work out a repayment arrangement for their bank debts. The general criteria to be on a MDMP are as follows:
1. Must have sufficient payment capacity, as assessed by the Financial Counsellor during credit counselling, to work out a DMP for unsecured debts with bank creditors.
2. Have been assessed to have sufficient payment capacity to repay unsecured debts with LML creditors within a maximum period of two years.