FAQ
Frequently Asked Questions
You may find information in relation to Licensed MoneyLender and Moneylending. We have outlined some common questions under each subject of interests for your easy reference.
Moneylending Information
A Licensed moneylender is a company or organisation that is registered with Accounting and Corporate Regulatory Authority (ACRA) and licensed by the Registry of Moneylenders. As a licensed moneylender, we are bound by the rules and policies established by the Registry that regulates various aspects of the business to protect both the borrower and the moneylender.
With respect to loans, in general, a bank requires customers to have a reasonable credit history or collaterals to apply for a loan. In contrast, a moneylender is usually prepared to assume more credit risk and accept customers with reasonably weaker credit profile in return for a higher rate of interests. Moreover, a moneylender usually takes a shorter time to process a loan and is always a suitable avenue to access emergency funding.
3 Reasons Why You Should Never Borrow From A Loan Shark:
- They might harass you.
- You might not be able to clear your debt.
- You might put your family or people you love at risks of becoming a subject of threat.
Do not borrow from unlicensed moneylenders. Verify that a moneylender is licensed by checking the list of licensed moneylenders. Click here to access the list of licensed moneylenders.
To find out more about unlicensed moneylenders, you may click on this link: Unlicensed Moneylending
Applying loan
Consider these questions before taking out a loan
1. Do you really need a loan?
When you take out a loan, you not only have to pay back the money you borrow, but also the interest. That is the money that you can put towards savings or to spend on other things. In many cases, borrowing money is rarely the best option. There are other ways to pay for the things that you really want with proper planning. For instance, if you are intending to go on holiday, start saving in advance. Set aside some money every month until you have enough to cover the cost.
2. Can you repay the loan?
Before you take out a loan, prepare a budget and list your monthly expenses, savings and debt in detail. Work out to see if you can afford to repay each month. If you don’t have spare money, you will find it hard to make the repayments.
Even if you have the ability to repay the loan, do not borrow more than your actual needs. Choose a payment term that best suits your circumstances. Repay the loan as soon as possible – the longer you take to pay it back, the more interest you will pay.
Are you an entrepreneur, taxi driver or is simply paid based on commission? Do not worry. Credit Xtra offers loans to you as well. All we need is your last two income tax returns so that we can calculate an average monthly earning amount which will help us determine the loan amount you qualify for.
Interests & Fees
With effect from 1 October 2015, the maximum interest rate moneylenders can charge is 4% per month. This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured one. If a borrower fails to repay the loan on time, the maximum rate of late interest a moneylender can charge is 4% per month for each month the loan is repaid late.
The computation of interest charged on the loan must be based on the amount of principal remaining after deducting from the original principal the total payments made by or on behalf of the borrower which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid $4,000, only the remaining $6,000 can be taken into account for the computation of interest.]
The late interest can only be charged on an amount that is repaid late. The moneylender cannot charge on amounts that are outstanding but not yet due to be repaid. [To illustrate, if X takes a loan of $10,000, and fails to pay for the first instalment of $2,000, the moneylender may charge the late interest on $2,000 but not on the remaining $8,000 as it is not due yet.]
- a fee not exceeding $60 for each month of late repayment;
- a fee not exceeding 10% of the principal of the loan when a loan is granted; and
- legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.
Repaying loan
You may repay loan by bank transfer, drop cheque or ATM cash deposit to our Bank Account below:
Bank: DBS Bank
Account Name: Credit Xtra Pte Ltd
Current Account No: 054 902 9920
Alternatively, pay using PayNow by entering UEN 200923548G. Do indicate your loan reference or NRIC in the reference text box.
Remember, SMS Loan Reference, NRIC and Amount to 9682 8299 upon payment being made!
If you fail to repay your loan on due date, you will incur both late interest and late penalty fee. We strongly urge you repay on time to avoid these late charges.
Yes, you can repay your loan before it becomes due. There is no early repayment penalty. Similarly, there is no discount for early repayment.
Yes. However, in such cases, Credit Xtra will analyse your financial situation further, including your repayment abilities. And even if you are eligible for another loan, you may really want to consider carefully if you should take it up as the more loans you have, the heavier your repayment burdens become.
Would you like to start a loan with us?
You never know unless and until you try.