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SINGAPORE: Low-income foreigners is only going to be allowed to have a maximum loan of s$500 from certified moneylenders, because the Ministry of Law on Monday (Jul 15) announced further restrictions in the amount they could borrow.
Presently, foreigners earning lower than S$10,000 annually are permitted to borrow as much as S$1,500 from all certified moneylenders combined.
From the loan cap will be lowered to S$500 tuesday.
This ensures that the maximum repayable amount (loan principal and all permitted interest and fees) is kept to a more manageable S$1,000 at any one point, ” said MinLaw in a media release“With the existing cap on borrowing cost at 100 per cent of the loan principal.
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The brand new legislation ended up being among a few measures established on Monday to stem the rise in situations of moneylenders focusing on work pass holders.
There has additionally been a rise in work pass holders acting as guarantors for one another in taking on loans, stated MinLaw. These guarantors then become responsible for your debt if borrowers default in the loan.
To handle these problems, moneylenders will no much longer be permitted to accept foreigners as guarantors.
Moneylenders will even never be permitted to show adverts such as “Domestic helpers are welcome”, said MinLaw. “this can decrease the visibility of simple credit to susceptible work pass holders.