Moneylender Fined for Providing False Information

Posted by admin
on September 21, 2016

The sole proprietor of AS Shalihin Enterprise was slapped with a $28,000 fine for providing false information about his borrowers’ income to the Registry of Moneylenders after being convicted last Friday, 16 September. Tan BN, a licensed moneylender, will be jailed for 56 days if he is unable to pay the fine. This is the latest breach of the regulations after a director of a moneylending business was convicted of 30 out of the 172 charges against him back in June 2016. It was reported by the Registry of Moneylenders that there had been 41 other licensed moneylending offences since 2011.

A fine up to a sum of $40,000 and a jail term of up to two years on each charge can be imposed to those who are convicted of breaches of the Moneylenders Act. Errant moneylenders can find their licences suspended or revoked, as well as their security deposits forfeited. Guidelines and protocols have been put in place by the Registry to ensure that licensed moneylenders do their due diligence in verifying borrowers’ income before loans are granted. They have to also keep documentary proof of the borrowers’ incomes, and such documents may be asked to verify by the authorities during random audits.

Borrowers are reminded to bring along their income documentary evidence, such as payslips, for an assessment of loans. Those who are unable to furnish sufficient income documents may be turned away. Quick Credit may also request for other documents to be submitted for loan assessment. Rest assure that there is confidentiality of information for every loan application. We adhere strictly to the Personal Data Protection Act. Quick Credit will not disclose or misuse any data for inappropriate purposes. For more information regarding what to bring along and what to expect during your loan application or assessment with us, please click on this link or you can also visit our FAQ page for other general questions and questions

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Latest Update on Housing Rules and Measures

Posted by admin
on September 9, 2016

The Monetary Authority of Singapore (MAS) announced on 1 September 2016 on the changes made to the current housing rules and measures. Due to the current Total Debt Servicing Ratio (TDSR) threshold of 60 percent, some borrowers have commented that they are unable to refinance their existing property loans. Accordingly, MAS has fine-tuned the refinancing rules under TDSR framework to allow borrowers more flexibility in managing their debt commitments. However, MAS has indicated that this is not an indication of a property market cooling measure and the TDSR framework and threshold will continue to apply to new property loan applications.

According to the MAS rules, the TDSR must not exceed 60 percent. So now, what exactly is TDSR, you ask? TDSR in a more straightforward term, is how much of your monthly gross income you use to service your debts. Such debts include car loan, renovation loan, credit card loans, loans from banks, licensed moneylenders, etc etc. It also covers loans made jointly with another borrower.

Investment Properties

With immediate effect, for all investment properties regardless of when it is purchased (whether it is before or after the TDSR is introduced), a borrower could refinance his property loan above the 60 percent threshold if he meets two conditions: (1) commits to a debt reduction plan with his financial institute to repay at least 3 percent of the outstanding balance over a period of not more than 3 years; and (2) fulfils his financial institution’s credit assessment. Prior to this broadened concession, a borrower with investment properties may only refinance above the 60 percent threshold provided he commits to a debt reduction plan.

Owner-occupied Properties

MAS has also fine-tuned a second rule. Exemptions for refinancing above the 60 percent TDSR threshold will apply to all owner-occupied residential properties. This applies to all owner-occupied residential properties bought before or after the introduction of TDSR. The TDSR will continue to apply to new property loans.

Quoting Mr. Ong Chong Tee, MAS Deputy Managing Director, “The TDSR is a structural measure to encourage prudent borrowing by households. The adjustments announced today will help borrowers to refinance their existing property loans at lower interest rates and better manage their debt obligations over time. They do not apply to loans for new property purchases and are not an easing of the property cooling measures.”

Readers can obtain this news update at the MAS website

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