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Comprehensive Guide to Understanding Moneylenders Credit Bureau (MLCB) Loan Information Report
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This article was published in 2023 and was recently updated with contribution by Credit Bureau Singapore.
Introduction: Who Is Moneylenders Credit Bureau?
Since July 1, 2021, the Ministry of Law (MinLaw) has designated Credit Bureau Singapore (CBS) as the new operator of the Moneylenders Credit Bureau (MLCB).
MLCB serves as a centralized database housing information on individual borrowers’ loan histories and repayment records across all Licensed Moneylenders (LMLs) in Singapore. 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. A list of the latest LMLs in Singapore can be found here: https://rom.mlaw.gov.sg/information-for-borrowers/list-of-licensed-moneylenders-in-singapore/.
Such information is presented in the loan information report, enabling LMLs in Singapore to make well informed lending decisions in real-time before loan disbursement to the individuals. This article aims to provide a comprehensive understanding of MLCB, highlighting its key components and how it impacts loan applicants.
Additionally, we will explore how the MLCB benefits both licensed moneylenders and borrowers by promoting a hassle-free and fair loan assessment process while safeguarding against loan defaults and unethical loan sharks.
Why Is The MLCB Important?
One of the key reasons why the MLCB is important is that it provides regular updates to a borrower’s active loan repayment records. Moneylenders can access the loan information report displaying the following
- 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
The MLCB aids LMLs in assessing the likelihood of borrowers defaulting on future payments by providing a clear overview of an individual's loan-related activities. We will take a deeper look into each component later in the article.
The loan information 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.
Read also: Understanding Your Credit Report from Credit Bureau Singapore - Business Owner Edition 2023
Identifying Information On MLCB Report: Essential Components
Personal Details and Employment Information
Having accurate personal details are essential for moneylenders to verify an applicant's identity and ensure that they are eligible for loans. Identification number, such as NRIC, is used to authenticate individuals and prevent fraud in the moneylending industry. Employment particulars, such as the name of the employer and monthly income, help moneylenders evaluate an individual's financial situation and determine their maximum loan capacity. You can find them in the very first section of the report as shown below.
Exclusion List
The Exclusion List allows individuals to register and exclude themselves from applying for unsecured personal loans from licensed moneylenders (except debt consolidation loans).
To self-register for the Exclusion List, individuals need to follow a few simple steps. Find out more about the steps here.
Loan Type
The loan information report includes existing loans borrowed from other LMLs in Singapore.
This section presents an overview of your current loans with other licensed moneylenders in Singapore. Reports are typically updated in real-time or on a "live" basis.
Payment Status and Legend
The last section will reflect the 12 months repayment status for all existing Unsecured Loans that an individual has with the LMLs in Singapore.
The Legend section of the loan information report contains various components that provide important information about the individual's loan repayment history. Understanding the meanings and representations of these components is crucial in comprehending the report's contents.
You can view the "Legend" section as follows.
Insights Into the Moneylending Industry as A Whole and Benefits of MLCB
To maintain consumer protection and uphold fair lending practices, the licensed moneylending industry in Singapore is closely regulated by the government. The Ministry of Law imposes strict regulations on interest rates, loan application procedures, and debt collection practices. These measures ensure that borrowers are not exploited by loan sharks or subjected to unfair lending terms.
For borrowers, it means having access to legitimate and licensed lenders who prioritize transparency and fair loan assessment.
For moneylenders, understanding the industry ensures compliance with regulations and ethical lending practices. It allows them to assess borrowers' creditworthiness accurately, and prevent overborrowing or potential loan defaults.
For the government, understanding the moneylending industry helps in monitoring and regulating the sector effectively. It allows the government to identify potential risks, implement necessary measures, and protect consumers from illegal moneylenders or exploitative lending practices.
In conclusion, the MLCB is important because it enables moneylenders to make financial decisions for loans based on accurate and up-to-date information. It also empowers borrowers by providing them with a comprehensive view of their loan payment behavior, helping them manage and improve their financial standing in the long run.
Additional Frequently Asked Questions
1. How To Register for A Self-Exclusion Listing
Individuals who have Singpass can visit the Moneylenders Credit Bureau website to apply for self-exclusion online.
Individuals without Singpass will also be able to apply by visiting the Moneylenders Credit Bureau office in-person.
Alternatively, you may also assign a third party to assist with the application. Here's how.
To register or withdraw from the Self-Exclusion Listing, you are required to submit a signed authorisation form.
Provide evidence to confirm your identity for the purpose of seeking exclusion.
The exclusion will be implemented only after the MLCB has reviewed and verified the submitted materials from the third-party.
2. The Minimum Effective Period Of Self-Exclusion
Individuals whose names are on the Self-Exclusion Listing, but whose exclusion period has expired, are eligible to apply for withdrawal. Singaporean citizens and permanent residents have the option to select a minimum exclusion period of either one or two years whereas minimum exclusion period for foreigners is two years.
3. Costs Of the Self-Exclusion Listing
Individuals with SingPass must pay SGD1.53 to register for or withdraw themselves from the Self-Exclusion Listing online.
The fee will be SGD2.62 for an authorised person registering or withdrawing on behalf of a foreigner who does not have a SingPass.
GST is included in both fees.
4. What steps can be taken to improve my credit standing?
Improve your credit score by borrowing only what you can comfortably repay and making timely payments on all loans. Any late or missed payments will be noted in your loan history.
5. What is the borrowing limit from Licensed Moneylenders in Singapore?
For Unsecured Loans, Singapore Citizens and Permanent Residents can borrow up to S$3,000 if their annual income is below S$20,000 or up to 6 times their monthly income if their annual income is S$20,000 or more.
For foreigners staying in Singapore, if their annual income is less than $10,000, they can borrow up to $500 only. For those with annual income between $10,000 and $20,000, they can borrow up to $3,000 and if their annual income is at least $20,000, they can borrow up to 6 times their monthly income.
6. Are my bank or credit card loans included in the report?
Only loans from the list of Licensed Moneylenders in Singapore will be included in your loan information report.
7. Where can I obtain a copy of my Loan Information Report?
To obtain a copy of your Loan Information Report from Moneylenders Credit Bureau (MLCB), visit here.
8. Does MLCB affect my business loan application?
While Moneylender Credit Bureau only collects data information on individual levels only, it is important to note that banks in Singapore might still conduct such checks especially for sole proprietors and single director companies. Therefore, it is also crucial that sole proprietors and small business owners make prompt payments to licensed moneylenders to avoid late marks on their loan profile, which could negatively impact their loan approvals.
Need help with applying business or personal loans in Singapore that moneylenders offer? Discover the most competitive rates and ideal matches just for you. Reach us for details today!
Read also: Understanding Your Credit Report from Credit Bureau Singapore - Business Owner Edition 2023
Read also: Business Characteristics: Solopreneur, Entrepreneur And Small Business Owner
Read also: Comprehensive Guide To Benefits and Drawbacks of Early Mortgage Payoff In Singapore
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