facebookWith the US Fed adjusting interest rates to historic low level to 0-0.25% , would we see the same trend coming to Singapore, which means we can borrow at 0-0.25% interest? - Seedly

LionDen

21 Apr 2020

Property

With the US Fed adjusting interest rates to historic low level to 0-0.25% , would we see the same trend coming to Singapore, which means we can borrow at 0-0.25% interest?

Will this mean that we may see these same interest rates in Singapore? Will this be applicable to loans such as renovation loans?

Discussion (1)

What are your thoughts?

Learn how to style your text

Kenneth Lou

21 Apr 2020

Co-founder at Seedly

This is an interesting question! In fact there was a recent new SME Loans policy which just came out by MAS.

The TLDR here would mean a boost has been given to small and medium-sized enterprises (SMEs) who want to take out government-assisted loans at low interest rates as firms attempt to ride out the Covid-19 crisis.

SUMMARY: To keep business afloat and the economy up. However, not for retail consumers segment (YET)

The Monetary Authority of Singapore (MAS) will offer near-zero interest rate loans to eligible banks - just 0.1 per cent per annum for a two-year tenor - in a move to support SME lending under schemes from Enterprise Singapore (ESG).

The initiative will help lower the cost of loans for the Enhanced Enterprise Financing Scheme - SME Working Capital Loan and the Temporary Bridging Loan Programme, said an MAS and ESG statement on Monday (April 20).​​​

Write your thoughts