let me try to share my friend’s story when he tried to borrow from licensed money lender….
My friend was unable to get a loan banks, and after seeing the attractive ads on papers, he tried to borrow from 2 licensed lender. He is drawing a monthly salary of about 3k, normal working man. Unable to get anymore loan from banks because he has bad debts before, but not a bankrupt.
This is what he told me… after he approach the licensed lender. I was shocked when I hear the offer and interest rates !!!
Licensed Money Lender #1 – offer him $1500 loan, weekly repayment scheme.
after all the interest and “admin fee” , he only able to take back $1080 on the spot, as he is has been approved.
but the repayment is shocking !!!
he has to pay 3X6 weekly of $300 !!!
any late payment, there will be $130 penalty !!
meaning, he take $1080, and got to return $1800 in 6 weeks !! Unbelieveable !!
Licensed Money Lender #2 offer him $2000 loan, monthly repayment scheme
after all the interest and “admin fee” , he only able to take back $1420 on the spot, as he is has been approved.
but one month later, he has to pay $2400, otherwise, he has to pay a monthly interest of $400 + late payment if $130 (meaning total $530). And next month, he still has to pay $2400 in order to clear the debts !!
Anyone has any experience with licensed Money Lender Singapore ?
Isnt it worst than Ah Long ??
And guess what when he was trying to negotiate for a lower interest rate. The Manager actually ask him…
“Do you buy 4D ?
“Do you buy 4D from govt or from Pte ?”
“Buying from govt is more expensive than buying from private? right ??”
What the manager is trying to say is… licensed Money Lender is more expensive than unlicensed AH LONG, because the govt tax them alot !!
Unbelievable !! I could not believe it !! Fortunately, my friend did not take up the loans….
That is why i share with you guys here…. any comments ??