interest for licensed money lender capped at 4% monthly ?

[alvin36]

interest for licensed money lender capped at 4% monthly ?

saw this news last week.
is it true ?

 

[hokkien]

Those LML will think of other loophole to profit....

 

[xpo2015]

Dai Yi Long should be charged 2000% tax.

To make their business non viable.

 

[GoldenDragon]

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.

 

[halsey02]

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!

 

[virus]

how about the ah neh run shitty bang. shitty bang charges goes like some 15%.

 

[Leongsam]

The interest rate should be left to market forces.

Ultimately the interest rate charged should reflect the risk of default.

 

[halsey02]

The interest rate should be left to market forces.

Ultimately the interest rate charged should reflect the risk of default.

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.

 

[Leongsam]

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.

 

[Cerebral]

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.

Or they could simply front load all the interest and call it admin fee

 

[halsey02]

The risk of default all depends upon the profile of the clientele you're targeting.

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...

 

[laksaboy]

Or they could simply front load all the interest and call it admin fee

Or follow the example from telcos: early termination fee.

 

[GoldenDragon]

how about the ah neh run shitty bang. shitty bang charges goes like some 15%.

Licensed ah neh moneylenders charge much lower interest rates but they only do biz with their own kind and very selectively. 5% usually.

 

[Kuailan]

interest for licensed money lender capped at 4% monthly ?

saw this news last week.
is it true ?

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!!

 

[GoldenDragon]

Before this, for monthly, 30-40% per mth was the norm. If 20% weekly, over 5 weeks.

 

[NanoSpeed]

Licensed ah neh moneylenders charge much lower interest rates but they only do biz with their own kind and very selectively. 5% usually.

Isn't 5% cheaper than standard bank OD and credit card rates ? Why do people still go to the bank ?

 

[Narong Wongwan]

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%

 

[Narong Wongwan]

interest for licensed money lender capped at 4% monthly ?

saw this news last week.
is it true ?[/QUOTE

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!!

Big killing? Usual is 10X that and add in admin fees derive charge and late fees.....it's even more.