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.
Subscribe to:
Post Comments (Atom)
You are talking too much.
ReplyDeleteI suggest you get a license get an office and some staffs then you start the business doing lowest interest of all lenders.
you guys think too simple. Overheads are costs also. Office rental, phone bills, advert bills all $$$. Not forgetting the bank can use deposits fro the public to do investments and they can still make money wheras in moneylending we cant, our only lifeline is loan interest.
For the 17% what you know is corporate tax, this is moneylender taxes that moneylenders have to pay.
Sure make profit??? Think again...
At this kinda rate we cant guarantee profit let alone lower interest. How to???
On the whole you are just saying that moneylenders are crooks isn't it. Overcharging and hence asking ppl not to borrow from moneylenders and borrow from bank instead?
When you don't pay the bank the bank can sue the shit outta you and nothing happens to them, when borrowers owe moneylenders money and when we take legal actions against them our license may be at stake cause they see it as unsavoury recovery methods. No justice for us. Bank can engage debt collector to debtors office and if in the event they lose their job no report on it, but when mooneylenders send debt collectors to the debtors office, its again called harrasement.... where is the justice?
Seriously you should get a license to operate this business and maybe you will get a taste of it..
Overheads cost? Office rental? Bills? ad bill?
ReplyDeleteThis business is hard?
Oh? Then why MORE and MORE such companies started and covering north south east west of Singapore? Are they too free or too much money to lose?
Or is it for money laundering?haha. look at the ads everyday on TNP. The whole fast ad are covered 90% of such ads. Thankfully you all can advertise.
Can see you guy is not even desperate for business and out of 10 moneylender I SMS only 2 reply. Out of 10 call I made, only 1 follow up when I Did not turn up for the appointment.
Haha! Thank for telling me that you have a weak spot for payment defaulters. I know there is no way to recover the loan legally because of the high interest charged.
They same methods used is causing the default embarrassment. Such as calling the company, engaging their own or 3rd party debt collectors to do the job. Justice? Why not I charge you 300% interest a week, make you sign a black and white document with a present of a lawyer and late fee of 60%. If you do not pay, do you think I can file a claim on you? The law will judge according the lender should not loan when the loaner is deemed not to have the ability to repay at such interest.
Of course, loanshark is the one of oldest trade so there are ways and means to collect debts which I am not that experienced. The illegal has their means, the legal also have their means.
Why not try pawn shop?
ReplyDeleteMost likely, the borrower already unable to go for this option as their valuable are most likely to be pawned or sold.
ReplyDelete