A. PROPERTY LOANS
  1. Who is eligible for the ESS?

    ESS is for borrower whose income is:

    • Impacted by COVID-19, with at least 25% loss of income or loss of employment after 1 Feb 2020.
      Proof of income/employment before and after 1 Feb 2020 are required for eligibility assessment.
    • And no more than 90 days past due on your property loan repayments at the point of your application.

  2. What will be the relief under ESS?

    Under ESS,

    • You may apply to pay a reduced monthly instalment pegged at not less than 60% of monthly instalment subject to full monthly interest being fully covered.
    • You may take up a reduced monthly instalment repayment plan for up to 9 months but not exceeding 31 Dec 2021, starting from the date that your application is approved.

    Take note that while the reduced monthly instalment repayment can ease your monthly cashflow burden, it comes with higher overall costs as you will pay down your outstanding principal more slowly.

  3. How is the reduced monthly instalment amount calculated?

    Monthly instalment amount x 60% subject to full monthly interest being fully covered.

    Example:
    Monthly Instalment Amount: S$2,071.74
    Monthly Interest Amount: S$764.38
    Reduced Monthly Instalment Amount: S$1,243.04

  4. I have already taken up the existing payment deferment relief under SFRP for my property loan. Am I still eligible to apply for the reduced monthly instalment repayment plan under the ESS?

    The payment deferments granted under the Special Financial Relief Programme ("SFRP") are due to expire on 31 Dec 2020.

    Yes, you may apply for the reduced monthly instalment repayment plan if you meet the above eligibility criteria, regardless of whether you have previously taken up any relief from us.

  5. I have existing loan arrears and accrued interest when I took up the payment deferment relief under SFRP for my property loan.
    Do I have to repay all my loan arrears and accrued interest before I apply for the reduced monthly instalment repayment plan?

    You have the option of repaying your loan arrears and total interest accrued before you take up the reduced monthly instalment repayment plan.

    If you are unable to repay the arrears, you are required to bring down your loan arrears to not more than 90 days past due as at date of your application and progressively till it is fully paid by the expiry of the ESS.

    If you are unable to repay the total interest accrued under SFRP, the reduced monthly instalment repayment will be applied firstly towards the accrued interest, secondly towards the monthly interest and thereafter towards reduction of the outstanding principal sum.

    Loan capitalisation by adding the loan arrears and total interest accrued under SFRP is not allowed as it comes with higher interest costs. You should repay as much arrears and accrued interest as you can, and only opt for loan capitalisation if you really need to. Application for loan capitalisation is subject to our credit assessment and approval, and it is not applicable to HDB Home Loan.

  6. I have taken up payment deferments under SFRP, and would like to apply to make reduced payments under the ESS. Will my credit score be affected?

    If you have taken up payment deferments under SFRP, and intend to transit to paying the reduced monthly instalment under ESS, your loan will not be reported as restructured loan to the credit bureau.

    Do note that you should pay the reduced monthly instalment under ESS promptly so that your credit score will not be affected. Further, if you do not pay promptly, you may incur late payment interest.

  7. My current property loan is a building under construction (BUC) loan. How will the ESS apply to me?

    You may apply for the reduced monthly instalment repayment plan if you meet the above eligibility criteria.

    Do note that the reduced monthly instalment repayment under BUC loan will increase over time depending on whether further progressive payments are made by us during ESS period.

  8. Do I need to meet TDSR/MSR in order to be eligible for the reduced monthly instalment repayment plan?

    No. You do not need to meet TDSR/MSR to be eligible for the reduced monthly instalment repayment plan.

  9. Is there a corresponding extension of loan tenure, if I opt into the ESS?

    The ESS does not provide for a corresponding extension to the loan tenure.

    Loan tenure extension of up to a cumulative of 3 years can be discussed on case-by-case basis after the expiry of ESS, and subject to our credit assessment and approval. A fee may be imposed for processing of your loan tenure extension application.

  10. When can I start applying for the ESS?

    The application period is from 9 Nov 2020 to 30 Jun 2021.

  11. How do I apply for ESS? Do I need to visit the branches to submit or sign documents?

    You are encourage to apply ESS through the following channel:

    (Please do not visit the branches unless necessary, and maintain social distancing if you do.)

  12. When will my application be approved?

    The approval period will depend on the volume of applications and the need to obtain additional information from you to determine eligibility. We seek your patience in this regard.

B. MOTOR VEHICLE LOANS
  1. What help can I get for my motor vehicle loan under the ESS that has just been announced?

    In its assessment, Hong Leong Finance will take into account factors such as your financial situation, need for the use of a motor vehicle, the current market value of the motor vehicle, the COE expiry date and its estimated market value after the deferment period (if applicable). Where there is a significant fall in market value of the car after the deferment period (e.g. due to COE expiry), Hong Leong Finance may not be able to grant you relief.

  2. What is the eligibility criteria to get relief on my motor vehicle loan? Is the ESS available for anyone who applies?

    The application for the ESS will be assessed on a case-by-case basis.

  3. I took up my motor vehicle loan with a car dealer/leasing company.
    Can I apply for the ESS?

    The ESS does not apply to motor vehicle loans that are extended by lenders such as car dealers and leasing companies.

  4. When can I start applying for the ESS?

    The application period is from 9 Nov 2020 to 30 Jun 2021.

  5. How do I apply for the ESS? Do I need to visit the branches to submit or sign documents?

    You should apply for the ESS through the following channel:

    (Please do not visit your branches unless necessary, and maintain social distancing if you do.)

  6. When will my application be approved?

    The approval period will depend on the volume of applications and the need to obtain additional information from you to determine eligibility. We seek your patience in this regard.