Loans for low-income foreigners, maids, capped at S$500 under new licensed moneylending guidelines

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SINGAPORE: Low-income foreigners is only going to be permitted to just take a maximum loan of s$500 from certified moneylenders, since the Ministry of Law on Monday (Jul 15) announced further restrictions from the quantity they could borrow.

Presently, foreigners making not as much as S$10,000 yearly are permitted to borrow as much as S$1,500 from all certified moneylenders combined.

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From the loan cap will be lowered to S$500 tuesday.

“With the current limit on borrowing price at 100 associated with the loan principal, this means that the utmost repayable amount (loan principal and all sorts of permitted interest and costs) is held to a far more workable S$1,000 at any one point, ” said MinLaw in a news launch.

STUDY: Loan caps for people borrowing from moneylenders to just simply just take impact end-November

BROWSE: Work pass holders whom borrow from unlicensed moneylenders to manage repatriation

The brand new legislation had been among a few measures announced on Monday to stem the rise in instances of moneylenders focusing on work pass holders.

There has additionally been a rise in work pass holders acting as guarantors for starters another in trying out loans, stated MinLaw. These guarantors then become responsible for your debt if borrowers default regarding the loan.

To deal with these problems, moneylenders will no be allowed to longer accept foreigners as guarantors. Read more ›

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