Personal Credit

Calculating unsecured debt for a customer

According to MAS (Explainers)

Aggregate outstanding debt refers to a borrower’s total debt across all financial institutions. When determining the borrowing limits for unsecured credit, only interest-bearing unsecured debt needs to be calculated. This includes:

  • Outstanding amounts rolled over on credit cards (i.e. amounts charged to cards that are not repaid in full by the due date).
  • Outstanding amounts on unsecured loans that accrue interest.
  • Interest imposed on any other debt, e.g. on a late payment of an otherwise interest-free instalment plan.