Closure of the Repayment Assistance Scheme (RAS)

The Repayment Assistance Scheme (RAS) is a centralised repayment solution administered by Credit Counselling Singapore (CCS). The scheme offered a monthly instalment plan that helped borrowers affected by changes to credit card and unsecured credit rules, which took effect from 1 June 2015.

Borrowers with unsecured debt in excess of 12 times their monthly income could apply to pay down the excess amount in accordance with the terms and conditions of the scheme, subjected to approval from their creditor banks and financial institutions.

With the full implementation of the unsecured credit borrowing limit effective from 1 June 2019, and considering that borrowers have had sufficient time to manage their unsecured debts, the RAS will be brought to a close.

Frequently Asked Questions (FAQ) about the Repayment Assistance Scheme (RAS)

Will I be notified when I have completed my RAS repayments? What will happen when I fully settle my outstanding RAS loan? How can I close my RAS account after completing all my loan payments? What will my credit bureau records look like upon completing my RAS repayments?

Your RAS account(s) will be automatically closed once you have fully settled your repayments and fulfilled all terms and conditions.  This closure will be reflected in your credit report within two months, where the RAS facility will be removed from/ no longer be displayed in your credit report.

While it is not an industry standard for financial institutions to inform customers about the full repayment of their loans, some may choose to do so. If you wish to confirm the status of your RAS account(s) or request documentation for your records, you may reach out to the relevant financial institution(s) directly.

Additionally, you have the option to purchase a credit report from Credit Bureau Singapore (CBS) as proof of your discharge. Please keep in mind, however, that there will be a two-month delay between the settlement date and the updated status in your credit report.

Can I withdraw from the RAS at the end of the repayment periods / loan tenure of 8 years?

Exiting the RAS is possible once your interest-bearing unsecured debt is reduced to below 12 times your monthly income.

At the end of the 8-year repayment tenure, you may approach your RAS financial institution(s), which will conduct a credit assessment to determine if you meet the criteria to exit from the scheme. Alternatively, they may guide you through their regular collection/remedial process for withdrawal from the RAS.

Can I make a full one-time repayment / early repayments on my RAS loan?

Yes, please contact your respective RAS financial institution(s) for more guidance.

I have forgotten my outstanding RAS balance / which financial institution(s) I have an RAS loan with. Is there any way to retrieve this information?

To identify your RAS facilities, you can purchase a credit report from CBS, which provides a comprehensive overview of all your loans and credit facilities.

If you have questions about your outstanding balances, we recommend connecting with the relevant financial institution(s) for the latest and most accurate information.

Can my suspended credit facilities be reinstated if I still have RAS balances to clear? Can I apply for new credit facilities if I still have RAS balances to clear?

When your interest-bearing unsecured debt is reduced to below 12 times your monthly income, you may approach your RAS financial institution(s) at any time to request the reinstatement of your credit facilities.

Your financial institution(s) will first assess your financial standing and credit worthiness, taking into account your income and credit bureau records, before lifting the suspension(s).

It is important to note that all reinstatement requests will be subject to fresh credit assessment and/or updating of income documents as determined by your RAS financial institution. The relevant MAS unsecured credit rules will also apply. For instance, under the Credit Limit Management Measure (CLMM), if a borrower has accumulated outstanding unsecured debt exceeding 6 times their monthly income, a financial institution will not be allowed to grant them any increase in credit limit or any new unsecured credit facilities that will cause their total credit limit to exceed 12 times their monthly income.

Considering the above, your reinstatement request(s) may not be approved if you still have outstanding RAS balances contributing to your total outstanding unsecured debt which exceeds 6 times your monthly income.

Why was my application for a new credit card rejected even though I have already settled my RAS loan / my aggregate unsecured debt is already below the borrowing limit?

In assessing your application for a new credit card, your financial institution will need to comply with MAS’ unsecured credit rules. Moreover, each financial institution has its own set of underwriting criteria and conditions. While factors such as your payment track record and ability to manage monthly repayments on all products are generally considered, the approval of applications is subject to the financial institution’s internal credit assessment policies as well as compliance with MAS’ unsecured credit rules.

Is further assistance available if I need to defer my RAS repayments / if I still require debt management support at the end of my RAS loan tenure?

If you find yourself in need of further assistance, we recommend contacting your RAS financial institution(s) directly to enquire about available options for further advice.

You may also consider consulting Credit Counselling Singapore (CCS), a non-profit organisation offering debt management information and credit counselling services. If applicable, CCS may assist in drawing up a debt management plan with your financial institution(s). For more information, please contact CCS at 1800 6225 5227 or visit their website at www.ccs.org.sg.

It is important to note that eligibility for specific programmes may vary, so seeking personalised advice from your bank(s) and/or CCS can help you better understand the available options for your circumstances.

Who can I contact for assistance with RAS matters?

You may continue to contact your RAS financial institution(s), who will remain available to assist you.