IMPENDING CHANGES TO THE MONEYLENDERS RULES

Posted by admin
on March 18, 2012

With effect from 1st June 2012, licensed moneylenders (MLs) have to follow the new rules namely:
– Use of Effective Interest Rate (EIR)
– Extension of Interest rate caps to wider band of borrowers
– Abolishment of upfront feets
– Abolishment of all exceptions to unsecured credit rules

The authority new guidelines is to :
– Maintain balance between allowing MLs to serve the market and protection of vulnerable borrowers
– Strenghten protection and safeguards for borrowers
– Ensure sufficient space for MLs to operate, to allow reasonable access to credit

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