Moneylenders Credit Bureau For Borrowers Credit Worth on Loan & Repayment

As part of the new measures to aid borrowers at large, the newly setup Moneylenders Credit Bureau (MLCB), will now house records of borrowers’ loans and repayment history with licensed moneylenders, operating from March 1 2016. This was announced by the Law Ministry (MinLaw) on Wednesday (Feb 24).

With the launch of the Moneylenders Credit Bureau, all licensed moneylenders will provide regular updates on borrowers’ loan information. This in part contributes to build a strong data bank on borrowers loan and repayment records. Furtherwich, allowing the generation of credit reports of all borrowers on all their active loans with all licensed moneylenders in Singapore.

The credit report will contain information pertaining to:

The credit report information will be made available to both borrowers and licensed moneylenders alike, and for the latter, licensed moneylenders like us at Empire Global to better access the credit risk potential of borrowers and make direct choices on providing loan options.

Plus with these new information, licensed moneylenders can now make faster decisions to deny loans to those borrowing beyond their means.

This helps us, licensed moneylenders fast as we can make direct and better business decisions by better potential borrowers assessments, evaluating the creditworthiness of borrowers.

In turn, lowering our loan defaulters rate thereby reducing our cost of business. Savings! Which we want to past on to our borrowers at times. As licensed lenders, our loan officers at many times have to create solutions for potential borrowers or reassess their repayments so that they can repay and at the same time not borrow beyond their means.

The setup of such a framework, fixes a major problem whereby borrowers may approach different licensed moneylenders to take out multiple loans and moneylenders have no understanding or access whether the borrower is capable of repayment.

Said Mr Billy Lee, founder and executive director of Blessed Grace Social Services: “The MLCB will encourage borrowers to practise greater financial prudence and borrow within their means, given that their loan information will be accessible by all licensed moneylenders.”

Borrowers themselves, can use their own credit report to better manage their finance and loans too.

The Bureau added that it will cost licensed moneylenders S$0.50 and borrowers S$1 to purchase a credit report, it added.

Licensed moneylenders in turn can use credit reports to keep track of their active loan contracts with their existing borrowers and whether the borrowers have taken up other new loans. This allow business decisions such as deciding whether borrowers are capable of keeping up their repayment plans.

To better monitor borrowing and licensed lending activities, the Law Ministry and Registry of Moneylenders will use the Bureau to assess such activities.

Said Mr Peter Tan, president of the Moneylender’s Association of Singapore: “In addition to protecting borrowers from overborrowing, the MLCB can help licensed moneylenders make better informed decisions and credit assessments. It is a positive step towards helping to mitigate the risk in our high risk industry.”