Okay, I got a comment from an associate. He claim that the government charge 17% tax regardless of recovery.
I would like to say that this 17% tax is on the PROFIT NoT on the principle loan and this tax apply to all corporate business in Singapore.
if this tax is high... Then they have to make their profit 5 folds? So they need to charge more than 200 for 1k loan.. So they can pay $34 to tax, wow... Good excuse.
Anyway back to the topic.
So comments that some moneylender insist them to go to their office personally even though they know their loan will not be approved. Hence wasting their tine and transport $.
I can't say for all moneylenders, I know there were moneylenders who provide better service and orovide their info honestly. Those do not usually are those that want to end your call early as long as you earn $20k a year. They would just call you to go down personally with some required documents. They will give the interest rate and fee in general or range. These group of people are indeed sickening.
Here are the guidelines to prepare if you insist to visit them.
some moneylenders only do weekly loan even they advertise monthly loan is available. Probably this is less risky and they got more cash to roll.
Need loan more than $1k, if you are 1st time lender, well forget it. The most is 1k and subsequently than you will be given slight yes slightly higher loan cause they are rolling your money with you paid interest and fee.
Be prepare to pay 10%- up to 20% processing fee. Which means at least 10% of the money is gone even they don't deduct your 1st payment.
Do not be naive and fooled by flashy advertisement like no interest, free 3 months interest, these usually apply for short period like no interest for 1 week but 5-6% interest per week after that or no interest for 3month for 6mth to 1 year loan. In the end it's the same or you are paying higher. The interest rate is standard for weekly which is 5-6% per week.. It Per weekly of the principle loan.
For monthly is 10%-15%. But expect a higher processing fee for the lower interest given.
Hope for more feedback from these moneylenders customers.. Cheers.
