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All about Licensed Money Lender Singapore Interest Rate
When taking up a loan in Singapore, the most important factor that one will look into is the Interest Rate. This is often the most compare factors between Money Lender Singapore when choosing the right one to take up.
Should one go to a Bank or Licensed Money Lender Singapore?
Very often people would labelled Licensed Money Lender Singapore as the source that charge higher interest rate. This is true but one did not ask the question why did someone go with Licensed Money Lender Singapore when bank offer lower interest rate? The reason is very simple, it is either they have max out their credit limit with the banks or he/she is rejected by the bank as not eligible.
When one have max out their credit limit with the bank and turning to Money Lender Singapore. This usually means they are having difficulties servicing their bank loan which is actually rolling at 24% interest rate with their bank credit card spending.
Or there are these group of lower income bracket people who is turn away by the bank for not meeting the eligibility. These lower income earner are usually turn away by the bank as they may not have a stable job or if their income is too low. Therefore, both groups of high risk consumer would turn to illegal money lender in the past now has an option to turn to Licensed Money Lender Singapore. Therefore, the higher interest rate by Licensed Money Lender Singapore is to cover the higher risk of default.
4% Interest Rate Cap on Licensed Money Lender Singapore
However, to protect the consumers from super high interest rate charge by some errant Licensed Money Lender Singapore. The government has introduced many new measures to tackle these issues of overcharging interest rate and fees charge by errant Licensed Money Lender Singapore. In 2015, these measures and policies are introduced for a good reason to better protect consumer and business.
Take for example, on June 2015, the New Unsecured Credit Limit was phase in slowly to limit the unsecured debt lending to a maximum of 24 times the monthly income of borrower. This will subsequently reduce to 18 times and 12 times in June 2017 and 2019 respectively.
And the most important policy change and measure introduced in October 2015 is the interest rate cap. The government enforced a 4% interest rate cap on all loans by Licensed Money Lender Singapore is enforced. This is surely the most important change to protect the consumers from exceptional high interest rate which is unserviceable. In addition, MinLaw also simplified moneylending rules and passed the following recommendations such as a maximum fee of SGD$60 for late payment and 10% administrative charge on the loan granted is allow.
Competition among Licensed Money Lender Singapore driving lower Interest Rate of 2-3% seen
Since the introduction of the 4% interest rate cap in October 2015, and the competition among Licensed Money Lender Singapore. We have also seen interest rate drop below 4% among the competition. However, it is also not just about the saving of 1% on interest, the overall service quality and thetrustworthiness of the Licensed Money Lender Singapore should also be taken into consideration when one is shopping for a loan. But with the 4% interest rate cap, consumer can shop with confident without fear of exceptional high interest charges.
- See more at: Money Lender Singapore
When taking up a loan in Singapore, the most important factor that one will look into is the Interest Rate. This is often the most compare factors between Money Lender Singapore when choosing the right one to take up.
Should one go to a Bank or Licensed Money Lender Singapore?
Very often people would labelled Licensed Money Lender Singapore as the source that charge higher interest rate. This is true but one did not ask the question why did someone go with Licensed Money Lender Singapore when bank offer lower interest rate? The reason is very simple, it is either they have max out their credit limit with the banks or he/she is rejected by the bank as not eligible.
When one have max out their credit limit with the bank and turning to Money Lender Singapore. This usually means they are having difficulties servicing their bank loan which is actually rolling at 24% interest rate with their bank credit card spending.
Or there are these group of lower income bracket people who is turn away by the bank for not meeting the eligibility. These lower income earner are usually turn away by the bank as they may not have a stable job or if their income is too low. Therefore, both groups of high risk consumer would turn to illegal money lender in the past now has an option to turn to Licensed Money Lender Singapore. Therefore, the higher interest rate by Licensed Money Lender Singapore is to cover the higher risk of default.
4% Interest Rate Cap on Licensed Money Lender Singapore
However, to protect the consumers from super high interest rate charge by some errant Licensed Money Lender Singapore. The government has introduced many new measures to tackle these issues of overcharging interest rate and fees charge by errant Licensed Money Lender Singapore. In 2015, these measures and policies are introduced for a good reason to better protect consumer and business.
Take for example, on June 2015, the New Unsecured Credit Limit was phase in slowly to limit the unsecured debt lending to a maximum of 24 times the monthly income of borrower. This will subsequently reduce to 18 times and 12 times in June 2017 and 2019 respectively.
And the most important policy change and measure introduced in October 2015 is the interest rate cap. The government enforced a 4% interest rate cap on all loans by Licensed Money Lender Singapore is enforced. This is surely the most important change to protect the consumers from exceptional high interest rate which is unserviceable. In addition, MinLaw also simplified moneylending rules and passed the following recommendations such as a maximum fee of SGD$60 for late payment and 10% administrative charge on the loan granted is allow.
Competition among Licensed Money Lender Singapore driving lower Interest Rate of 2-3% seen
Since the introduction of the 4% interest rate cap in October 2015, and the competition among Licensed Money Lender Singapore. We have also seen interest rate drop below 4% among the competition. However, it is also not just about the saving of 1% on interest, the overall service quality and thetrustworthiness of the Licensed Money Lender Singapore should also be taken into consideration when one is shopping for a loan. But with the 4% interest rate cap, consumer can shop with confident without fear of exceptional high interest charges.
- See more at: Money Lender Singapore