Moneylenders Credit Bureau’s Guide To Your Loan Information Report

This is a guest contribution by Credit Bureau Singapore, as part of a partnership between CBS and AMTD PolicyPal Group (PolicyPal and ValueChampion), in line with our mission to empower people with financial knowledge and help them attain financial wellness.

Loans can come in helpful during times of emergency, particularly when there is an urgent need to settle significant bills. In addition to traditional lenders such as banks and major financial institutions, individuals in Singapore have the option to seek personal loans from Licensed Moneylenders (LMLs). These licensed entities in Singapore are governed by stringent regulations concerning interest rates, loan conditions, and borrower safeguards, all aimed at fostering equitable treatment for borrowers.

Introduction to Moneylenders Credit Bureau (MLCB)

Commencing 1 July 2021, Credit Bureau Singapore (CBS) has been designated by the Ministry of Law as the new operator of the Moneylenders Credit Bureau (MLCB).

MLCB serves as a centralised database housing information on borrowers’ loan histories and repayment records across all Licensed Moneylenders (LMLs) in Singapore. Through the provision of Loan Information Reports, MLCB facilitates LMLs in making well-informed decisions regarding loan applications from prospective borrowers. Simultaneously, it empowers borrowers to effectively manage their loans and financial circumstances. It’s important to note that MLCB does not gather data related to borrowers’ bank credit facilities or deposit information, nor does it engage in lending decisions on behalf of LMLs.

What is a Loan Information Report?

All licensed moneylenders in Singapore will provide regular updates to the MLCB on borrowers’ loan information. This will allow the generation of the loan information reports for each and every borrower, with information on all his active loans with all licensed moneylenders at any point in time. LMLs in Singapore are obligated to review a prospective borrower’s loan information to evaluate their creditworthiness before loan approval.

This practice not only aids LMLs in assessing the likelihood of borrower default on future payments but also contributes to minimising such risks. This report also helps borrowers to avoid borrowing beyond their means. A good loan repayment history or lower aggregate loan cap will make it less challenging for an individual to qualify for loans. A list of updated LMLs in Singapore can be found here.

A record of your active loans’ information as contributed by LMLs, includes the following information:

• Borrower’s personal data and employment information
• Exclusion list
• Details of active loans with the LMLs
• Loan type and loan tenure
• Total outstanding balance
• Status of guarantor or surety of loans
• Repayment history and payment status of each loan

Upon confirmation by an LML that a loan has been settled, the LML will proceed to inform MLCB for account closure. Closed accounts will promptly be removed from the report, while open accounts will remain visible. The Loan Information Report cost S$0.50 after GST and consumers can purchase the report from the MLCB website easily. By reviewing your report regularly, it allows you to be aware of any incorrect information that is found on your file.

Borrowing Guideline For Unsecured Loans

The guideline set by the Ministry of Law dictate how much a borrower can borrow from a licensed moneylender for unsecured loans.

A Singapore citizen can borrow up to S$3,000 if their annual income is less than S$20,000 and can borrow up to 6 times their monthly income if their annual income is S$20,000 and above.

For foreigners staying in Singapore, if their annual income is less than S$10,000, they can borrow up to S$500 only. For those with annual income between S$10,000 and S$20,000, they can borrow up to S$3,000 and if their annual income is at least S$20,000, they can borrow up to six times their monthly income

Borrow Responsibly

Overextending your borrowing can lead to financial strain and increased debt burden. It’s crucial to assess your current loan commitments and thoroughly understand your financial position before seeking additional loans. While licensed moneylenders provide an alternative source of financing for individuals who may not qualify for traditional bank loans, borrowers should still exercise caution and carefully review the terms and conditions of any loan agreement to ensure you understand your obligations and rights.

For more information, check out the MLCB website and follow the MLCB Facebook page @MLCBSG for more useful content and tips to maintain a good credit reputation.

A strong credit reputation makes it easier for you to apply for loans. If you’re ready to make that loan application, you may check out ValueChampion’s roundup of the best personal loans, home loans and more to find the best rate for you!

Read More:

4 Tips on Building Your Credit Score in Singapore

5 Foolproof Ways to Improve Your Credit Score

5 Ways to Increase Your Chances of Getting a Personal Loan in Singapore

Hacks to Get Great Rate When Applying for a Personal Loan

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