As of 1st Oct 2015, the licensed moneylender’s interest rate has changed to 4% monthly with no income caps. The interest rate shared on this blog post is based before 30th Sep 2015. Do take note of the change, or you can contact us for more information. Read more on the latest interest rate for the licensed moneylenders.
If you are searching online to find out the licensed money lenders interest rate, we have the answer for you.
Here’s what you need to know regarding Licensed Moneylender’s interest rate according to Registry of Moneylenders:
– 13 percent Effective Interest Rate for secured loans, &
– 20 percent Effective Interest Rate for unsecured loans (personal type).
The above interest rate is capped if the annual income is less than $30,000. An ethical licensed money lender is to disclose to borrowers in writings what are the Effective Interest Rate of the loan amount. Do note that different license money lender companies may have slightly different interest rates for their clients and lend them the money.
The Effective Interest Rate takes into account the compounding effect of the frequency of
installments over a one-year period. This means that the Effective Interest Rate better reflects the actual cost of borrowing over a one-year period. Visit https://www.mlaw.gov.sg/content/rom/en.html to find out more about how the Effective Interest Rate is calculated from 1 June 2012.
If your annual income is $30,000 or more, the caps above are not applicable and the interest rate is to be agreed upon between the moneylender and the borrow.
In i-Credit, We give discounted interest to return customers with good records and credit ratings. we typically offer 3 different sets of interest rates for different clients.
Please note the 3 rates below are no longer available, due to the new 4% interest rate on 30th Sep 2015.
11% Interest Rate per month: usually rendered to borrowers with good credit history and/or on time installment repayment.
14% Interest Rate per month: for returning customers that have previous business relationships or records with us.
18% Interest Rate per month: for new customers that have no previous business relationship or record with us.
We have a more detailed calculation on example if you are not clear.
In the end, we want our clients to come back to us when they are in need. Do contact us if you have an inquiry regarding the interest rates or other related questions.