15 August 2022

All About Money Lenders In Singapore

Moneylending is a flourishing business in Singapore and there many licensed Moneylender’s catering to the populace residing there. The recent change in the rules and regulations for strengthening the money lending industry. The money lenders have to work on the borrowers past and also and update about his/her current borrowing history. This enables the lenders to have a knowhow about all the errant borrowers who have defaulted. Grab more know how about EasyCredit.com.sg

The huge database maintained by the money lenders credit bureau has helped the licensed moneylenders to crosscheck their potential clients before jumping the bandwagon. There can be proper loan assessment and curb excessive borrowing.  It is a good way to keep a tab on the borrowing of the person to a manageable level and not go beyond his/her boundaries of pay back.

When the moneylenders have the knowledge of how much a borrower has borrowed from others, it would be easier for the present moneylenders to decide the amount the time period of giveback and how long to extend the overtime for payback. The recruitment for such loan sharking done online and this lures youngsters who are drawn in by big money and less work.it should be noted that moneylending is mostly controlled by the government in Singapore but there are some unscrupulous moneylenders who operate unlicensed and there some who charge exorbitant interest on capital. But a new rule has tightened the noose on the maximum rates that be applied. Licensed Money Lenders Singapore will help you to transact.

The money lending benefits in Singapore

  • The new rule states only four percent per month and that too on reducing basis.
  • The limits extends to payments which are delayed.
  • The penalty fees for late payment will not exceed 60 Singapore dollars.
  • The total borrowing will be calculated on the original loan not allow the loans from escalating.
  • Early redemption of the loan charges or GIRO deductions are now exempted and need not be charged by the moneylenders.

This showed a significant change in both the borrowers and moneylenders way of functioning. The debts decreased, more people were able to repay the loan on time. The moneylenders because super careful as they would be losing money on defaulters and are wary of giving loans to new borrowers. The non licensed benefits from this as new borrowers move to these loan sharks. The main aim of the rule is to bring down the borrowing amount and ability so that it does not spiral out of control.