Accredited Moneylenders in Singapore prove as an advantage to the borrowers who are in need of money. Sometimes, borrowers fail to get their loans approved from banks and other registered financial institutions, which results in them to reach for help. Singapore has huge lists and various directories that give information about various moneylenders in Singapore and also offer various reviews about licensed moneylenders. These moneylenders target borrowers that fail to get the loan sanctioned from banks, as banks need a good credit rating with certain annual income coming in and a moderate credit history of the customer. Unable to fulfil these aspects, the borrower then turns to licensed moneylenders for assistance.
Licensed moneylenders in Singapore have to ethically follow regulations stated by the government. Any change in regulations by the government leads to definite changes in the business services of the moneylenders. Recently, the government has reduced interest rates from 20% for borrowers with a monthly income of $30,000 to 4% per month for all the borrowers. This applies to short-term loans only. Licensed moneylenders that operate online offer interest rate as low as 4% per month. Initially, interest was calculated on compound interest basis, but with the new law, moneylender will calculate 4% per month on the balance after repayment. The moneylender also cannot charge extra fees for early repayment of the loan, dishonoured cheques, unsuccessful deductions, etc. Moreover, on the late payment dues, the borrower only needs to pay 4% on the unsecured loan.
Change in law by reducing interest rates in Singapore from 20% per month to as low as 4% per month will reduce the overall cost of borrowing if the borrower opts for monthly contracts. Whereas, opting for weekly contracts may lead the borrower to pay double the amount, which definitely does not prove as an advantage to the reduced interest rate.