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?
Tuesday, June 14, 2011
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hi. what if the borrower left sg and reside in another country will the loan dinosaur harrass the next of kin?or any legal action they can take or sue bankruptcy?
ReplyDeleteThat is the risk of the unsecured personal loan. But for Migration, it can be checked but if you are talking about abandoning Singapor, quit your job, sell your house to hide oversea and come back every month. 1st it is not worth it cause the most you can loan from these loan dinosaur is 3k if you earn a lot but usually it is 1k. For that 1k, probably it is not worth it. As they are linked, the most u can borrow from different moneylender although is most 3k. Still not worth it. The debt collectors can go frequently house visit but they can't do much as the moneylender license is at stake and few thousand cannot be sued bankrupt. It will then be put as bad debt.
ReplyDeletehi,
ReplyDeleteits wrong that someone take a loan and he should go or migrate from that country to other without any investigate.cia or other intelligence branch can take the action any part of the world.