Sudbin
Sudbin

CREDIT POLICY

Last revised: August 2025

1. General Provisions

Sudbin provides private property owners in Singapore with access to a line of credit through a Visa card, secured by home equity.

We operate in compliance with Singaporean law, including:

  • The Moneylenders Act and the Registry of Moneylenders (MinLaw license).
  • Guidelines from the Monetary Authority of Singapore (MAS) on Loan-to-Value (LTV) and Total Debt Servicing Ratio (TDSR).
  • The Personal Data Protection Act (PDPA) for the protection of personal data.

2. Eligibility for Credit

The line of credit is available to individuals who:

  • Are owners of private residential property (condominium, landed property, strata title).
  • Have ownership registered with the Singapore Land Authority (SLA).
  • Are not using an HDB or Executive Condominium (EC) as collateral (HDB/EC owners are not currently served).
  • Meet the age requirements: from 21 to 65 years old at the time of application (the maximum loan term is limited to reaching the age of 75).

3. Credit Limit Determination

The credit limit is calculated based on:

  • Market Value of the Property: Determined through URA data or independent licensed appraisers.
  • Outstanding Mortgage Balances: Existing mortgages are factored into the calculation.
  • CPF Funds Used: Funds from the Central Provident Fund used for the purchase are considered when determining available equity.
  • Loan-to-Value (LTV):
    • Up to 75% for owners of a single property with no other mortgages.
    • Up to 45-55% for owners of a second or third property.
    • Adjustments are made if other active loans exist.
  • Total Debt Servicing Ratio (TDSR): The total debt (including the Sudbin credit line) must not exceed 55% of the client's gross income.

4. Interest Rates and Fees

  • Base Rate: Starting from X% per annum (determined upon approval, depends on client risk and LTV level).
  • Card Cashback: Up to 2% (subject to terms and limits described in the agreement).
  • Fees:
    • $0 for application and card issuance.
    • Late Payment Fee: S$100 for payments overdue by more than 30 days.
    • Default Interest: An additional 3% on top of the base rate for payments overdue by more than 60 days.
    • Collection and legal costs are charged additionally.

5. Repayment

  • Minimum Monthly Payment: 2.5% of the utilized limit or S$250, whichever is greater.
  • Clients can repay the outstanding balance partially or in full at any time without penalties.
  • Early repayment restores the available credit limit.

6. Risk Management and Default

If a payment is overdue by more than 90 days, Sudbin has the right to:

  • Suspend the card.
  • Initiate the sale of the collateral (in cooperation with creditors and the SLA).
  • Use standard collection procedures in accordance with MinLaw.

Prior to these actions, clients will be offered restructuring and installment plans.

7. Data Protection

  • All client data is processed via Singpass and protected in accordance with the PDPA.
  • Access is granted only to employees involved in the credit assessment process.
  • Data is not transferred to third parties without the client's consent, except as required by law.

8. Transparency and Auditing

  • Sudbin undergoes an annual external audit of its credit processes and reporting.
  • Key metrics (e.g., NPL rate, average portfolio LTV) may be published in an aggregated form.
  • All policy changes are published on the website and communicated to clients via email or the app.