Private Moneylender going online.

Surprise Surprise...now the pie has shrunk due to increasing competition.
It is not surprise that with the Internet and latest technology that these legal loanshark are promoting themselves bring their service closer to you from home. Their service are rather fast and some can even approve your loan application online.
Of course you will need to follow up by bring your relevant document to their office as well as signing the IOU before the loan is finalize.

I am rather impressed that some of them do take the effort to beautify their website and I am also glad that some of them do provide the detail on their website. This is in fact what I am looking for as upfront and honesty rather than hiding the facts and getting people to make their way down to their office and wasting their time and give in to their terms.

Talking about how most of them giving general statement and sweeping advertising slogan..lowest interest and flexible repayment. The catch is on the acceptance fee. This acceptance is really what goes into their pocket so they make the smart move to collect the interest and profit first and play around and market with the then interest rate. Despair some providing transparency, most of them still hide the ugly fact on the interest detail.

Browsing the site, I found few sites offering payday loan with interest of $2/day. You are to repay the loan fully on you payday or maximum 30 days. What is the catch? Look at the acceptance fee! 20%. No matter what you can't escape from high interest in total.

Going thru this business for some time, I realize that customer service will be grow if you are a genuine and serious customers. Most of the time you can negotiate for discount, better deal such as lower acceptance fee when you reloan and the fact you never give them any problem.

I discover that if you are a good customer and you can repay the loan early, go for those ah Beng people and ah Beng looking office. How to describe ah Beng office is hard to describe until you made a comparisation. But Why? You may ask...
These ah Beng money lender provide and will waive off a lot of fee and sometime waive off the rest of the interest if you made early repayment. But if you go to those 'high class' and formal looking office, they simply go by the book. Meaning that no discount will be given even if you made early repayment and seldom will they waive or lessen the acceptance fee. You also have to provide plenty of document to them.
But if you default, the treatment is likely to be reversed 360 degree and you can work out a solution with them providing that you honor it. They will respect customers who dare to step out and admit they are problem rather than go MIA. But again if you fail so again.. Most likely is the debt collectors' jobs now. You can expect what type of debt collectors you will see and most will visit your workplace first.

So think twice before you seek their 'help'..

Higher interest & higher acceptance fee..

With more private lenders offering no 1st payment, that means additional 1 week interest to be paid. However it's seem the weekly interest has gone up to 6.66% per week of the principle loan. This can easily chalk up to 40% for 1.5 months. I was inform that Illegal Loan shark also up their interest from 20% to 25%. However who is going with inflation of Singapore.

The acceptance fee has gone from 5% from the 1st time I start this blog to as high as 15% or even 20%. Add to the interest it can be as high as 60% interest just for 6 weeks. OMG!

The acceptance fee seem to be their assurance to loan less in case of defaulting and also their form of customer service by charging you less acceptance fee or waive your interest if you repay easy.

Few days back...I personally witness a borrower trying desperately to loan 5k. Haha! Yes I am back for some tour in Peninsula Plaza.. He claim he earn $4k a month and no debt with banks or any other lenders and even tell the counter girl to check. I was wondering why he did not approach the bank. He said he need it only once and that's it. Sadly the staff did not honestly tell him that for first timer it is just $1k loan even you are as rich as Bill Gates. It is still $1k. As their SOP, the staff ask the man to go for coffee and will call him if it is approved or SMS him if it it not. The result Is simple.

Amazing more people are approaching them and it seem this is really a money world, cash in hand with no considerisation it will be going towards the another people hand after that. The best thing is more and more of these companies are surfacing and some of these companies are under the same Boss or management... For some reasons, maybe if their license ger revoked..etc.
This remind me of the bubble tea era but look again... Bubble tea is back. And not forgetting it is one of the oldest trade which can be compete with the lifeline of cockroach. Lol!