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interest for licensed money lender capped at 4% monthly ?
- Thread starter alvin36
- Start date
Those LML will think of other loophole to profit....
They will go underground again but use their licensed biz as a front. Details of potential debtors will be passed on to unlicensed ah longs who have a JV with licensed ones.
JV with the biggest dai long in this country....the MIW's...greatest potential, 1001% returns, debtors cannot back out, they will be in debts from birth to death & be charged if they do not pay....the best JV you can get!
It is usually pegged SIBOR + ____% depending on the customer relationship + risk of default. The Licensed Money Lending Act/Hire Purchase Act, I think, have it's set of fixed rate, govern by M.A.S. right? or home affairs? or??? you never know, here in Singapore.
The risk of default all depends upon the profile of the clientele you're targeting.
Or they could simply front load all the interest and call it admin fee
Yah! done this before, but not as ah long or money lender...sometimes the clientele with a 'sovereign' backing, will even default on the payment of interests on date of....funds to build highways ( country, omitted), can even default...sometimes, risk of default is quite difficult to pinpoint...
Or follow the example from telcos: early termination fee.
Licensed ah neh moneylenders charge much lower interest rates but they only do biz with their own kind and very selectively. 5% usually.
4% x 12 months = 48% where to find such interest RATE?? Money Lender really make a KILLING!!
Worst than Bayi Chettiar!!
Bloody bank just provide 1.55%/year they can Talk BIG and advertise in Shitty Times!!
Before this, for monthly, 30-40% per mth was the norm. If 20% weekly, over 5 weeks.
Isn't 5% cheaper than standard bank OD and credit card rates ? Why do people still go to the bank ?
There's no 4% monthly interests with money lenders....dun be daft.
Typical money lenders aka leegalized loan sharks charge from 20% - 50% per month. You'll be hard pressed to find one that offer 20% monthly.....usually only for repeated customers or those with good background.
If loan a big sum with collateral then maybe special arrangement but also can't find 4cts per month.....typical between 5-10%
Typical money lenders aka leegalized loan sharks charge from 20% - 50% per month. You'll be hard pressed to find one that offer 20% monthly.....usually only for repeated customers or those with good background.
If loan a big sum with collateral then maybe special arrangement but also can't find 4cts per month.....typical between 5-10%
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