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Rules governing moneylenders in Singapore are being tightened to further improve protection for borrowers especially for those in the lower income group now the changes include mandating the use of an effective interest rate instead of a nominal interest rate for loans borrowed thus better reflecting the actual cost of borrowing Ezra mesh with more 54-year-old limb King saying is a victim of gambling addiction he's borrowed from about 20 credit companies and says different my lenders have been charging him different interest rates and various fees some repayment schedule could be weekly yeah sank be monthly so the majority of them because of the Whitney repayment scheme they couldn't, they default the payment, so there's other interest rate comes in a better day just snowballs to the amount which is beyond young means my lenders will have to disclose the effective interest rate of your loan packages to borrowers like what banks do many new players have entered our industry and some of them are charges very high interest and upfront fees especially, so we know a little or no regret to a borrower's ability to pay borrowers always some are in a bad shape baroque from multiple lenders, and you know and this is insulin doesn't bode well for the money in Las free also removed three fees which my lender is currently charged they include fees for the acceptance or renewal of a revolving credit loan these bees make the cost of borrowing less transparent and make it harder for borrowers to compare loan packages these fees also increase borrowing costs the rules will affect nearly 243 by lenders in Singapore and take effect from the first of June this year
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