Based on the new Moneylending Pilot Programme by the Ministry of Law, borrowers who repay their loans on time will be granted better interest rates and terms. This is good news for those with good credit reports looking to borrow.
In 2012, a moratarium was imposed on new licenses for moneylenders.
After 6 years, MinLaw is finally issuing new moneylending licenses. A total of 6 firms will be given the moneylending license to pilot the new business models for moneylending.
- Credit 21 Pte Ltd (to be run by Lending Bee Pte Ltd) with 4 outlets
- Quick Credit Pte Ltd with 4 outlets
- IFS Capital Limited with 1 outlet
- Xingang Investment with 1 outlet
- Minterest Holdings Pte Ltd with 1 outlet
All of the 6 selected firms have a paid-up capital of at least $1 million with a good track record of money lending with the Ministry of Law. This includes providing consumer credit and any other forms of licensed money lending.
MinLaw’s goal of introducing this new Moneylending Pilot Scheme is to better protect borrowers. Firms will make use of new technology to assess a borrower’s creditworthiness, thereby determining their financial health and decide on the best loan rate.
From Mlaw’s new Pilot Programme, Lending Bee, Credit 21’s sister company was introduced. With 4 outlets across Singapore, Lending Bee will be able to provide greater accessibility to credit for all.
In an interview with Lending Bee’s manager, the company is using the latest technology to increase their approval speed and provide lower interest rates to those with good track records. Mobile applications are available to aid convenience to consumers. They can simply check on their account anywhere, at any time.
The loan process will be made simpler and at the same time, only those who are in good financial health or are managing their loans well can enjoy better rates.
“We need to catch on with times. Customers can check on their loan account at their convenience and make payment through the app. They don’t always have to come down. Time is precious and we understand that. Rather than being stereotyped as a last resort, we want to be a good alternative to borrowing for all,” said Hazel, manager of Lending Bee.
With this new update, there are currently 157 licensed moneylenders in Singapore. Under the new business model, all licensees under the Moneylending Pilot Scheme will be running their businesses for 2 years from 2019 until MinLaw evaluates the moneylending environment and refine their regulations again.