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More protection for borrowers with revised Moneylenders Rules
AsiaOne
Thursday, May 31, 2012
SINGAPORE - The revised Moneylenders Rules will come into effect from June 1 with further protection for borrowers.
The amendments made in March by the Minister of Law requires moneylenders to standardise their interest rate practices with banks here.
The interest rate caps will also be extended to include those earning less than $30,000 a year, instead of an annual income cap of $20,000 previously.
Moneylenders will also not be allowed to charge their borrowers 'extra' fees such as fees for the acceptance of the loan application, acceptance or renewal of a revolving credit loan, and payment not made through electronic funds transfer, according to The Straits Times.
There will also not be exceptions to the caps on the amount of unsecured loan that a borrower can obtain, as these can be abused and lead to excessive debt by borrowers, said the report.
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