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

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

Share the information

Bookmark

SINGAPORE: Low-income foreigners is only going to be permitted to have a loan that is maximum of500 from certified moneylenders, because the Ministry of Law on Monday (Jul 15) announced further restrictions from the quantity they could borrow.

Presently, foreigners making significantly less than S$10,000 yearly are allowed to borrow as much as S$1,500 from all certified moneylenders combined.

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

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

BROWSE: Loan caps for the people borrowing from moneylenders to just just just take impact end-November

BROWSE: Work pass holders who borrow from unlicensed moneylenders to face repatriation

The regulation that is new 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 standard from the loan.

To handle these issues, moneylenders will no be allowed to longer accept foreigners as guarantors.

Moneylenders will even never be allowed to show ads such as “Domestic helpers are welcome”, said MinLaw. “this may decrease the presence of simple credit to work that is vulnerable holders. Continue reading “Loans for low-income foreigners, maids, capped at S$500 under brand brand new moneylending that is licensed”