Legal Moneylender - prepare to pay them 50% more for what you borrow

Despite claim that they are finding hard to run this business, there are more companies showing up in advertisement in the Newpaper. It is obvious that some are under the same 'boss'. My recent finding really horrifying me...

With no deduction of first payment, prepare to pay additional 6% interest. On top of that the acceptance fee rocket from 5% to 15-20%. which is 3-4 times more. Adding the interest for 5-6 weeks. It is indeed more than 50% more to pay. As such they can offer low interest which is masked inside the acceptance fee. So these legal loansharks are growing fat... Maybe should call them a loan dinosaur. I believe the illegal moneylender do not charge that high interest.

With the recent GE rallying for vote, it is surprise that no one bring up this issue. It is more surprise that such business can be run in broad daylight.

So it is inflation and hope you find this information useful.

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'..

Invasion of Legal Loanshark

Surprise surprise!

Indeed this has become a very good business and it seems to cover 85% of the classified ads on
The Newpaper and these ad are even more than job recruitment ad.

With repetition of ads by the same moneylender and all the marketing gimmicks..
Free interest, monthly repayment and no admin fee.
I can tell you that they all work the same. The fact that more of these moneylender even operate
In the heartlands has conclude that there is no stopping them at the moment.

But the day will come.. Remember that last time there were a lot of ads on cpf investment where rouge
Financial consultant for cash of up to 200 buck for every $10k invested from cpf. Now it is gone when the government make some adjustment for cpf investment.
Recently all the 'dirty' spa ads are also getting less. No doubt that the police have done their job to raid these business.

Back the how these moneylenders charge. Despite the fact they are seeming trying to compete with each other.
They can't run away from the fact that they are shark.

Free 1st week interest? By not deduct the first payment mean you have to pay interest for another week. So it's the same. Smart huh?
No admin fee? 5% processing fee when your loan is approved. This will mean for every 1k, you are paying at least 50 and usually it will be 70 plus the whatever charge.

On top of that, it is 10-15% interest per month if you are going by monthly installment. It will be 100-150 dollar per month for 1k borrowed.
It may seem less but don't forget your principle loan. for 15% interest, you need to pay 317 per month for 6month. So how much interest is that.? 100% interest rate not forgetting your processing fee.

There is a list for directory of these sharks at sml999 website.
Take care!