It has been long since I blog...
It seems these legal loansharks are getting more and more active. I also found 1 of them adding a comment in this blog. He said to put ourselves in the moneylenders' shoes for those who borrowed and did not return.
There is some logic but they simply expose the loophole in the new law on moneylender act. Thus they open their business only to those who earn $20k per annum so they won't be CAPPED at 18% per annum on interest. Therefore they can charge up to 15% per month. Thus more of these business come by as they do not have to avoid the law anymore.
SO why they do not open their business to those who earn less than 20K per annum? Simple LOANSHARK! add to the loan approval fee of 3% and they are worse than illegal loansharks.
They just paid couple of $k and they can start their business. The only thing i can think of that benefits the government and people of Singapore is they will be paying taxes and reduce the vandalism act and hostile threat to the borrow who default on their payment.
However on the other hand, I witness people who visited their firm which is usually a small office do simple have the look of losers. Apology for me saying that but it certain given me such an impression. Perhaps i do have sympathy on them which they are likely to have no way out.
My conclusion is unless it is matter of life and death, these moneylender should be your LAST solution to all your financial problem or else you are plunging deeper.
