Document background
A Balance Transfer Letter is commonly used when a customer wishes to transfer their outstanding credit card or loan balance from one financial institution to another, typically to take advantage of lower interest rates or better terms. This document, governed by Singapore's banking regulations, includes essential details such as the transfer amount, applicable interest rates, repayment terms, and any associated fees. It serves as a formal record of the agreement between the parties and ensures compliance with regulatory requirements, including those set by the Monetary Authority of Singapore (MAS). The Balance Transfer Letter is particularly relevant in debt consolidation scenarios and forms part of the formal documentation required for inter-bank balance transfers in Singapore.
