Moneylender Interest Rate
Singapore has a Moneylender's Association of Singapore.
Do you know what is the usual Singapore moneylender interest rate?
Under the Moneylenders Rules 2009 (Singapore), the maximum rate of interest a moneylender can charge is as follows:
Maximum Interest Rate
A) Loan granted to an individual whose annual income on the date of grant of loan is less than $20,000:
Secured loan up to $3,000 = 12% per annum
Unsecured loan up to $3,000 = 18% per annum
B) Secured or unsecured loan of up to $3,000 granted to an individual whose annual income on the date of grant of loan is $20,000 or more = To be agreed upon between moneylender and borrower
C) Secured or unsecured loan of more than $3,000 granted to an individual whose annual income on the date of grant of loan is $20,000 or more = To be agreed upon between moneylender and borrower
Reference from the Registry of Moneylenders (Singapore)
For what type of loans do we use simple interest, daily rest and monthly rest calculation methods?
- The act states that
11.—(1) Where the contract for a loan does not provide for the payment of equal instalments of principal and interest at equal intervals of time, the computation of the interest charged on the loan shall be based on the amount of principal remaining after deducting from the original principal the total payments” The loan contract should state whether the loan is payable by “Equal Monthly Instalments” or “Monthly/Daily rest”. For EMI - Simple Interest method is used to calculate the interest payable for the loan amount , for the period of loan. The sum total payable [Principal & Interest] is divided by the loan period to determine the EMI – that constitutes Principal and Inyerest. Monthly Rest - Simple Interest method is used to calculate the interest payable [on a daily or monthly basis] for the loan amount after deducting from the original principal the total payments received,for the period the loan has been outstanding ”
Details obtained from Moneylender's Association of Singapore.
Note: Sg-Loan-Rates editors do not support illegal moneylending, loan sharking or any other illegal money trade.
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