Regulations for Non-Bank but Licensed Money Lenders in Singapore
Quick Credit Pte Ltd
Loan, Property Rental, Personal Loan
Because of the different money lenders in Singapore, the government has come up with regulations for non-bank money lenders concerning the amount of loan release, the fees they charge and also unfair practices and biased contracts. These regulations are stipulated to protect lenders and have them maximize their loan amount.
There is a process to follow for fast approval of personal, payday, foreigner and business loans. Approvals are not a problem for permanent residents, Singaporeans and even foreigners. A personal loan is an unsecured loan which can be the answer to your money problems. In Singapore, there are money lenders who can approve and release loan amounts up to 4x your salary.
On loaned amount- How much amount could a person get for a personal loan? For unsecured loans such as this, the loanable amount should be up to $3,000 with an annual income of lenders who earn less than $20,000; up to 2 months salary if annual income is from $20,000 - $30,000; up to 4 months salary if annual income is from $30,000 - $120,000; and any amount for lenders who earn more than $120,000.
On Fees- There are different types of fees which a money lender can charge: 1) late principal repayment, 2) dishonored cheques, 3) GIRO deductions from the lender’s bank which are not successful leads to payment, 4) early termination fees for early loan redemption or contract termination, 5) legal costs fees for loan recoveries. Fees other than those mentioned above are not allowed to be collected by the money lender.
On Interest Rates- According to the regulation board, interest rates for secured loans are at 13% and interest rates for unsecured loans can be up to 20%. If the lender has an annual income of $30,000 or more, the interest rates can be agreed upon by the money lender and the borrower. This is very important because most of the time the lender does not know their right when it comes to getting a loan. Interest rates have a ceiling and the money lender cannot charge higher than the regulated interest rate.
On Unfair practices and Contracts- Complaints can be file for unjust practices or contracts of money lenders. Lenders can contact the National Registry of money lenders. The registry keeps complaints confidential and attends to the needs of the borrower. Their contact number is 6325-2585. They can also be reached via email: [email protected]
It is best to know your rights as a borrower so that you can maximize your amount loaned.
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