More moneylenders doing checks on loan applicants
from CNA
Posted: 14 June 2011 1425 hrs
Singapore dollar
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SINGAPORE: Licensed moneylenders are becoming more careful about who they lend money to. Over half of them have joined credit bureaus, giving them access to credit checks and the payment history of individuals applying for loans.
The DP SME Commercial Credit Bureau said moneylenders are the fastest growing group of new members, with more than 200 joining in the last 12 months.
One licensed moneylender, I-Credit, said the number of defaults across its portfolio of loans has dropped by more than half since joining the credit bureau.
It said the ability to do a credit check is also a benefit to the applicant.
The company said as a responsible business, it does not want to lend money to individuals who can't manage their debts.
- CNA/cc
The number of defaultors down by half and acceptance fee up by 2 times?
What is the rational?
Only I-credit's default figure down by half? or the rest of the licenced moneylenders loan blindly?
