Category: Articles

New credit bureau known as MLCB to give singapore licensed moneylenders access to borrowers’ data

singapore licensed moneylendercredit bureau MLCB 2016

From March 1, licensed moneylenders will have access to a central data repository of borrowers’ loan and repayment records from the new Moneylenders Credit Bureau (MLCB).

This will allow licensed moneylenders to assess the creditworthiness of borrowers, and help borrowers avoid borrowing beyond their means, the Ministry of Law (MinLaw) said today (Feb 24) as it announced the launch of the MLCB.

All licensed moneylenders will have to provide regular updates on borrowers’ loan information to the bureau, so that it can generate individual credit reports on each borrower.

The reports will be available for purchase to both borrowers and licensed moneylenders at $1 and $0.50 per report respectively.

“Borrowers can use their own credit reports to keep track of and better manage their own loans. Licensed moneylenders can use a borrower’s credit report for better credit risk assessment before granting a new loan, and deny loans to those who are borrowing beyond their means,” MinLaw said.

“This in turn can help licensed moneylenders to lower the default rate and hence, their cost of doing business. Licensed moneylenders can also use the credit reports to keep track of borrowers with active loan contracts with them, including whether the borrowers have taken up other new loans.”

The idea of a credit bureau for licensed moneylenders came about in March 2014, as one of the measures announced by MinLaw to improve the balance between protecting borrowers and preserving their access to credit.

The ministry appointed credit reference agency DP Information Group in November last year to design and develop the MLCB, and to manage its operations thereafter.

“In addition to protecting borrowers from overborrowing, the MLCB can help licensed moneylenders make better informed decisions and credit assessments. It is a positive step towards helping to mitigate the risk in our high-risk industry,” president of the Moneylender’s Association of Singapore Peter Tan said.

How To Lodge a Complaint About Moneylender Phone Call Aand SMS Scams

Moneylender Scam

If you are being harassed via telephone, SMS or e-mail by legal or illegal moneylenders you can file a complaint to stop it. The police are in charge of investigating scams such as unlicensed moneylending, scam messages, online betting and other general crimes. You have three options to file a report:

  1. File a police report through the Electronic Police Centre
  2. The National Crime Prevention Council’s (NCPC) ‘X Ah Long’ Hotline at 1800-924-5664 (1800-X-AH-LONG)
  3. Singapore’s Crime Stopper Portal

For more information visit the Singapore Personal Data Protection Commission. If you need to file a complaint against a licensed moneylender, please see our handy guide on how to file a complaint against a licensed moneylender.

Notes: Power Credit as a licensed moneylender in singapore assured that we do not send any SMS or call to any person without authorization. We will never disclose your personal information, as we take your privacy very seriously.  By then our client is been safe and trusted with us that we can be named as a trusted licensed moneylender in Singapore.

How To Choose a Singapore Licensed Moneylender

HOW TO CHOOSE A SINGAPORE MONEYLENDER

If you intend to take up personal loan in Singapore, you might want to use the service of a reputed, trustworthy licensed moneylender. The lender must also offer different options and offers to the customer. It is necessary that you compare the offers from various firms. Some possible criterion on which to evaluate different lenders include:

What is the application process? The application process for a legal loan maybe easy or tough. A flexible company will have a simple application process. Nowadays, most lenders in Singapore have an online presence and some even allow you to apply online. Some lenders can even complete the process in as little as a few hours. An online application process is simple and requires personal information like proof of identity, evidence of employment etc. Most people can apply online for loans like personal loans, foreigner loan etc. Compare the application procedures of various lenders.

How safe are the transactions: Online transactions are risky but with proper encryption in place, customers need not fear online applications. Different levels of online security like browser encryption, fire walls, and online monitoring are required. Lenders also have to maintain confidentiality with regard to the financial data of customers. So you must choose a company with adequate security options.

What kind of interest rates are you shopping for? The most important criterion while shopping for personal loans is the interest rates offered by the lender. You have to take time to compare the various interest rates offered by various lenders. Choose the option which matches your budget and financial situation. Also make sure before signing up for a loan, to check for hidden clauses regarding repayment options or interest rates. Remember that small loans entail low interest rates and convenient payment options. There is a diversity of small personal loans available according to your need and requirement.

What is the quality of customer service: Make sure that the Singapore licensed money lender you have chosen is able to guide you properly through the loan process. Also make sure that you have access to an online or offline call center or hotline.

Moneylenders can charge fees only for following conditions according to Singapore laws:

With effect from 1 October 2015, all moneylenders are only permitted to impose the following charges and expenses:

  •  a fee not exceeding $60 for each month of late repayment;
  • a fee not exceeding 10% of the principal of the loan when a loan is granted; and
  • legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.

The total charges imposed by a moneylender on any loan, consisting of interest, late interest, upfront administrative and late fee also cannot exceed an amount equivalent to the principal of the loan. [To illustrate, if X takes a loan of $10,000, then the interest, late interest, 10% administrative fee and monthly $60 late fees cannot exceed $10,000.]

  • For loans contracted between 1 June 2012 and 30 September 2015, moneylenders are required to compute and disclose to you the Effective Interest Rate of the loan, before the loan is granted. If your annual income is less than $30,000, the interest rate which moneylenders can charge, for both secured and unsecured loans, is capped at:
    • 13 per cent Effective Interest Rate for secured loans; and
    • 20 per cent Effective Interest Rate for unsecured loans.

    The Effective Interest Rate takes into account the compounding effect of the frequency of instalments over a one-year period. This means that Effective Interest Rate better reflects the actual cost of borrowing over a one-year period. Visit https://www.mlaw.gov.sg/content/rom to find out more about how the Effective Interest Rate is calculated from 1 June 2012. If your annual income is $30,000 or more, the caps above are not applicable and interest rate is to be agreed upon between the moneylender and the borrower.

    With effect from 1 October 2015, the maximum interest rate moneylenders can charge is 4% per month. This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured one. If a borrower fails to repay the loan on time, the maximum rate of late interest a moneylender can charge is 4% per month for each month the loan is repaid late.

    The computation of interest charged on the loan must be based on the amount of principal remaining after deducting from the original principal the total payments made by or on behalf of the borrower which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid $4,000, only the remaining $6,000 can be taken into account for the computation of interest.]

    The late interest can only be charged on an amount that is repaid late. The moneylender cannot charge on amounts that are outstanding but not yet due to be repaid. [To illustrate, if X takes a loan of $10,000, and fails to pay for the first instalment of $2,000, the moneylender may charge the late interest on $2,000 but not on the remaining $8,000 as it is not due yet.]

Licensed Money Lender Is Your Safe Bet

Money Lenders

Borrowing cash from a licensed money lender in Singapore is considered to be a commonplace. Years before, people are not that open when it comes to debt. But, as the economy starts to shrink, they started to feel that they are more involved in it.

This became one of the most common transactions in the modern-day era.

In fact, numerous businesses related to this field were established because of the great demand and opportunity they provide. Transactions were formulated with the ability to pay, interest rates and payback time. Financial backing needs are processed on every scale, usually in small and large amount household loans. Everyone needs money to support their daily needs and future wants.

People Qualified for the Loan are:

People who have money have better chances of getting a personal loan. Why? Simple, they have the ability to pay the loan without any delay or hassle.  Borrowers were also expected to have reliable income and good repayment history.

When it comes to the application process, it is quite simple. This is because there are numerous applications which are available online. A lot of websites offer clients the directions and they are evaluated if they are qualified. As compared to banks, the loan process is even made easier, too.

LICENSED MONEY LENDERS PROVIDE EASY PAYBACK OPTIONS AND BETTER RATES.

If certain client desires to place multiple payments into “1 consolidated loan”, this can be negotiated and arranged. These lenders provide practical financial tool that suits your lifestyle. This comes with versatile payment options.

Licensed Money Lender Singapore –The Benefits

Peace of Mind: This is the most common and important benefit that a licensed money lender provides. Knowing that you’re borrowing from reputable, proven and licensed money lender provides great ease and peace of mind. It is common to feel stressed out and frustrated. But, this company has the ability to make you feel comfortable. You are not given with the opportunity of having all the assistance that you need.

Rights are highly valued and protected: When you borrow money, one of the most essential factors you need consider is the ability of providing 100 percent protection and security. They guarantee that your rights as a borrower are protected all throughout the process. Furthermore, these also ensure that all of the information you provided and received was all accurate, protected and trusted.

Proof of Stability: Anyone you choose to trust your personal information and financial future with must be stable enough. To obtain proper licensing, they need to fill-out all government required documents. They must also demonstrate financial stability and good character. In addition, they also need to have a clear criminal record. Their license is your only guarantee that they have met all of the types of requirements required by the law.

Make sure to check their legibility before signing any dotted line. You can ask them to provide you with a copy of their license. You can simply check out on the Money Lender Registry since this provides the latest list of licensed lenders in your area.

New moneylending rules to kick in on Thursday in Singapore

moneylending

NEW controls on borrowing from licensed moneylenders will come into effect on Thursday, Singapore’s Ministry of Law said on Wednesday.

From Oct 1, 2015, loans from moneylenders will be subject to the following caps: an upfront administrative fee of not more than 10 per cent of the loan principal; interest of not more than 4 per cent per month; late interest of not more than 4 per cent per month; late fee of not more than S$60 per month; and total borrowing cost of not more than 100 per cent of the loan principal.

These caps will not apply to loans granted to businesses which have been registered for at least two years before the grant of the loan.

These new controls follow recommendations made in May by a 15-member advisory committee on moneylending.

“The controls on borrowing costs will offer borrowers more protection by ensuring that they are not subject to exorbitant interest rates and fees, while preserving their access to credit by allowing the industry to remain commercially viable,” said Manu Bhaskaran, chairman of the committee, in a press statement.