Archive for February 2022

How Does Money Lending Work in Singapore?

The Singapore government has always recognized the need to protect borrowers and lenders. The rights and security of these groups and individuals are summarized in a document called the Moneylenders Act.

This document explains how a lending company should operate. It also describes the various ways in which lenders can collect, use and publish loan information and data. It is important for Money Lenders and borrowers in Singapore to be aware of these documents so that they are not exposed to fraud and other contracts that could cost money.

If you are searching for a licensed moneylender for a loan then you must check out SKM Credit Pte Ltd. They are good at money lending in toa payoh central.

Way to know that Moneylender is licensed or not

An easy way to identify legal or licensed moneylenders in Singapore is to look at a list of good lenders listed in the Republic of Singapore published by the Ministry of Justice. The Ministry of Justice publishes a list that is updated regularly to guide borrowers. You can see the list uploaded by MinLaw.

How much can you borrow?

The amount you can borrow from a lender will depend on a number of factors. For secured loans, you can get any loan amount.

For unsecured loans, lenders may fall into several categories. First, if you are a permanent resident or citizen of Singapore and have an annual income of less than $ 20,000, you can only borrow up to $ 3,000 from each lender combined. But for those earning more than $ 20,000 a year, you can borrow up to six times your monthly income from each lender combined.

If you are a foreigner in Singapore. Borrowers under $10,000 a year can only borrow $1,500. Those earning $10,000-$20,000 a year can borrow up to $30,000. And those earning more than $20,000 a year can borrow up to six times their monthly income.

What is the Interest Rate

As per law, the maximum interest rate on a loan is 4% per month. This limit applies to all lenders, regardless of their monthly income, or whether they have secured or unsecured loans.

What if you can’t pay the money?

If you think you can’t repay a loan you borrowed from a moneylender, you can discuss the terms of the loan on a regular basis. Authorized lenders can find a legitimate way to help you repay your loan. Contract prices may vary.

Remember that if the loan is secured by the assets, the lender has the legal right to take over the assets of the borrower or borrowers can dispose of their value and assets.