7 April 2020

HSBC SG’s new relief measures in support of industry’s effort

The Monetary Authority of Singapore and the financial industry have collaborated on a package of measures to help individuals and SMEs facing temporary cashflow difficulties to ride through the storm. Announced on 31 March 2020, the package comprises three components:
  • To help individuals meet their loan and insurance commitments;
  • To support SMEs with continued access to bank credit and insurance cover; and
  • To ensure interbank funding markets remain liquid and well-functioning.

Tony Cripps, CEO, HSBC Singapore shared: “HSBC applauds the MAS’s move to develop a common set of relief programmes for the most impacted across Singapore, which we will be adopting. With Singapore’s international openness, we understand that the impact for our individual and business clients extends beyond these shores.”

“That is why for our retail clients, HSBC Singapore will extend the mortgage relief measures to those who own homes in Singapore or overseas. And for our business and corporate clients who have overseas business partners and supply chains, HSBC has in place relief measures across several key markets - including Malaysia, China, Hong Kong, and Australia - to support our business clients there.”

The additional measures that the bank will be implementing includes:


Special Financial Relief Measures

How it works



To ensure that individuals’ long-term protection needs remain unaffected during this challenging time, qualified policyholders will be able to defer their premium payments for up to 6 months, interest free

For more information: https://www.insurance.hsbc.com.sg/

  • Applicable to policyholders whose regular premium due date is between 01 April to 30 September 2020



From 6 Apr to 31 Dec 2020, we will be offering the following relief options to existing HSBC mortgage customers for both their Singapore & Australia properties:

  • Deferment of Principal Payment (i.e. Interest Servicing only) OR
  • Deferment of Principal and Interest Payment (Payment Holiday)

For more information: https://www.hsbc.com.sg/help/important-notices/coronavirus-relief-measures/

Once the relief programme is offered,

  • Interest will continue to accrue and all deferment options will end on 31 Dec 2020. Standard repayment terms (Principal and Interest) will resume from 1 Jan 2021 onwards
  • Customers can also choose to extend the loan tenor by the corresponding deferment period

Personal loan including credit card

Available from 6 Apr to 31 Dec 2020, we will be introducing a new term loan to all existing unsecured credit customers including credit cardholders.  Key features are:

  • Loan amount: outstanding balance of the unsecured credit facilities - Option to select the account / product to be converted into a term loan
  • Tenor: 1 – 5 years
  • Effective interest rate: 8% p.a. (no processing fee)
  • Early repayment fee: not applicable

For more information: https://www.hsbc.com.sg/help/important-notices/coronavirus-relief-measures/

Once the relief programme is offered,

  • Relevant fees and charges will apply (e.g. late fee, overdue interest, etc.)
  • All existing unsecured credit facilities with HSBC will be suspended till full repayment is made


Secured Term Loans

As part of our commitment to our clients, we are offering our SME clients an option to defer principal payments on their secured term loans up to 31 December 2020.

  • Applicable to SMEs*: 
  • sales turnover of up to $100m or
  • employment size of up to 200 workers
  • Opt-in basis for borrowers with loan repayments that are fully secured and no more than 90 days past due

*The deferral of principal payments is subject to HSBC’s credit and internal approvals.

  • Borrowers can choose to extend the loan tenure by up to the corresponding deferred principal payment period.


Other measures for SMEs
HSBC is a participating bank for the enhanced measures extended via the following Enterprise Singapore financing schemes, as announced by the Singapore Government in the Unity, Resilience and Solidarity Budgets. Below is a short summary of measures which may be of importance to SMEs:

  • The maximum loan quantum under the Enterprise Financing Scheme - SME Working Capital Loan – has been raised from SGD 600,000 to SGD 1 million.
  • The Temporary Bridging Loan Programme (TBLP) has been expanded to provide additional cash flow support for all business sectors. Under this programme, eligible enterprises can now borrow up to SGD 5 million, with the interest rate capped at 5% p.a. from HSBC.
  • The enhanced Enterprise Financing Scheme (EFS) – Trade Loan which will increase the maximum loan from SGD 5 million to SGD 10 million
  • Businesses eligible under the EFS – SME Working Capital Loan and TBLP may also apply for up to 1-year deferral of principal repayment to help manage their debt.

Additionally, the Government announced on 6th April that it will increase the risk share of loans from 80% to 90%, effective 8th April, applying to the Temporary Bridging Loan Programme, the Enterprise Financing Scheme – SME Working Capital Loan, and the Enterprise Financing Scheme – Trade Loan.

HSBC wider measures
Today’s announcement follows the introduction of a series of other relief measures by HSBC in support of individuals, businesses and communities in Singapore that have been impacted by COVID-19. These include:

More broadly, HSBC is working with individuals or businesses facing financial distress as a result of COVID-19 outbreak to review their current situation and identify appropriate arrangements.