Singapore Moneylenders Credit Bureau

Launch in 2016

Its official! Things are set to change in the moneylending industry in Singapore.
Licensed moneylenders like us at Empire Global will face stricter rules from the
government. The Singapore Ministry of Law (MinLaw) has appointed DP Information
Group (DP Info) to run the Moneylenders Credit Bureau (MLCB).
The much talked about Moneylenders Credit Bureau will need all licensed moneylenders
to provide information on their loans and the borrowers repayment details. This was
announced after the 4% interest rate cap.
Individuals used to be able to take up multiple loans from different moneylenders,
without proper checks conducted on their repayment ability. Most of the time, it depends
on the loan officer assessment of the borrower. Now, with the implementation of the
Moneylenders Credit Bureau, licensed moneylenders will get the latest information of
the borrowers credit risk and their debt servicing ratio. This allows a better assessment of
the borrowers loan situation and ensure that borrowers do not borrow beyond their
repayment ability.
We do understand the government standing on this as it primarily educates the borrowers
on a larger scale. We have rejected borrowers before just by assessing their current
withstanding loans. We also support this movement as this provides a safety net for
businesses like us in the moneylending industry as this will prevent a percentage of
borrowers who could not repay their debts from over borrowing. Financial institutions
and licensed moneylenders would not want to overwrite bad debts as it leads to high
overheads.

Moneylenders avoid over borrowers from getting loans with Credit Bureau

Moneylenders Credit Bureau in Singapore

The main goal of the Moneylenders Credit Bureau is to protect borrowers. This was due
to many complaints from the public on errant companies making borrowers lending
money beyond their means. Errant companies also charge overly high interest rates
leading to borrowers being unable to repay.
Licensed moneylenders benefit from this new Act, as they can now tap onto the
information by the Moneylenders Credit Bureau to affirm their loan assessment.
This will curb excessive borrowing and help debtors to keep their loan commitments at a
more manageable level, DP Info said.
Well be able to know how much a borrower has borrowed from other moneylenders, so
that we wont over-extend the loan, said Mr Peter Tan, vice-president of the
Moneylenders Association of Singapore.
Statements from DP Info
Said Lincoln Teo, chief operating officer of DP Info: The information provided will help
promote responsible borrowing. The transparency also means that individuals, when
seeking to buy a credit product from a moneylender, will be more likely to take their
personal and financial circumstances into account when making their decision. This
initiative will eventually see a reduction in the number of defaults. The introduction of
the Moneylenders Credit Bureau brings us even closer to a holistic assessment of a
borrowers credit worthiness and repayment abilities.
Coupled with our other bureaux and through DP Infos sophisticated technology, we
hope to provide the licensed moneylending community with more data and information to
make better decisions. The information will help promote responsible borrowing.

This initiative will eventually see a reduction in the number of defaults.

DP Info currently operates two other credit bureaus the DP Credit Bureau and the DP
SME Commercial Credit Bureau. Read more on DP Info announcement on the new
ruling of the Moneylenders Credit Bureau.

Licensed Moneylending News

27 Nov 2015: With the Credit Bureau, has now benefited welfare organisations.Two
voluntary welfare organisations (VWOs)- Blessed Grace Social Services and Adullam
Life Counselling can now, with a borrowers consent, refer to a credit bureau to get a
clearer picture of his/her credit records. This is from a new memorandum of
understanding signed between VWOs and the Moneylenders Association of Singapore
(MLAS) and DP Information Network.
These VWOs, work as mediators between debtors and licensed moneylenders as they
work out structured repayment programmes agreeable to affected parties.
The DP SME Commercial Credit Bureau contains over 15million payment records of
Singaporeans and Singapore businesses. This information can be accessed by the VWOs,
and the information is gathered monthly from bureau members.
MLAS president Peter Tan said: We hope that by working together with the VWOs,
most debtors will be able to settle their debts in a restructured repayment scheme.

For more article, please visit https://applypersonalloans.sg/blog-personal-loans/

Tags: credit bureau, licensed moneylending, loan repayment