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If you read The Straits Times and follow closely to moneylending news, you might have noticed that our very own Quick Credit Director, Ms. Carol Tan, was interviewed for her opinion on the launch of the Moneylenders Credit Bureau (MLCB) in the February 25 The Straits Times copy. Ms. Carol Tan believes that with the MLCB in place, licensed moneylenders are now in a better position to discourage borrowers from over borrowing. She also highlighted that there is a definite chance that the default rate among borrowers will reduce.
Generally, licensed moneylenders are in an unanimous agreement that the credit bureau will be a very helpful platform for them in the long run. With borrowers borrowing loans after loans for the purpose of covering their previous debts, this downward spiral for them might come to a halt. A closer and tighter watch by both the authorities and lenders alike will see borrowers practice better money management.
As part of the tightening controls on moneylending, the bureau was first announced in 2014 that included also the new rule on interest rate of four percent cap. A spokesperson from the Ministry told The Straits Times that it will “monitor the situation for some time” before implementing the mandatory use of the bureau for all loan applications. This gives all licensed moneylenders some leeway to familiarize themselves with the system before it becomes compulsory.