Bugis Credit What You Can Do to Avoid Harassment

What Are the Illegal Debt Collection Practices in Singapore?

Debt collectors in Singapore comply with the Credit Collection Association of Singapore’s code of conduct, but it doesn’t stop some unscrupulous individuals and companies to use coercion. If you applied for a personal loan from a licensed moneylender, harassment should never happen when they try to collect unpaid balances.

Whether or not there are laws governing debt collection, the reality often bears a different outcome for each borrower. Arson is an example of what debt collectors can’t do when you are behind loan payments. Loan sharks have been reported to set fires on HDB flats of the delinquent borrowers. Read on to find out how you can protect yourself or your family from illegal debt collection practices.

Bugis Credit What Debt Collectors Can Do

What Debt Collectors Can Do

You should expect a visit to your office from the debt collector. While that’s embarrassing, it’s within the acceptable practices of collecting money if they don’t use foul language or brute force. They can also call your house and ask for your whereabouts, although they should be calling you within business hours during the day. It’s unethical for them to call you at midnight to collect money.

Debt collectors aren’t restricted from stalking your social media accounts, so you need to be careful about what you post online. If you have photos showing lavish trips and shopping purchases, then your debt collector will be compelled to get what you owe them. Make sure that your profiles don’t give them any reasons to suspect that you’re lying about your finances.

If you signed a written agreement with a licensed money lender in Singapore, you are only obliged to pay them within six years of the agreed-upon repayment date. That doesn’t mean, however, that debt collectors won’t try to chase you for unpaid amounts despite not having a written agreement or six years have already passed. This is common for people who lend money to family or friends.

Take note that Singapore allows individuals to lend money to family or friends even without a licensed. You and anyone else isn’t permitted to lend money to businesses. Debt collectors can also speak with your family or friends about your financial obligations, but they shouldn’t experience harassment during each encounter

What Debt Collectors Can’t Do

What Debt Collectors Can’t Do

You should feel safe at your home despite being bombarded with phone calls about your missed repayments. Arson has been a known problem that makes online or offline harassment seem like a better alternative for some borrowers. In 2016, Yishun North had the highest number of unlicensed moneylending harassment cases. The average number of cases reached 97 in Singapore during the same year.

These figures imply that there are still individuals who consider a personal loan with illegal lending companies. The good news is that loan shark harassment cases have steadily declined in recent years. There were more than 3,800 cases recorded in 2017 compared to 11,000 cases recorded in 2013.

If you’re currently dealing with harassment from anyone, you should know that they can’t form groups of more than five people to try and intimidate you. An example involves bringing 20 people to your home, place of work or business to disrupt your daily life. Call the police to have them arrested for illegal assembly.

The Protection from Harassment Act also ensures that individuals don’t feel distressed with verbal abuse from debt collectors. For instance, they broke the law when they threaten to expose you on social media. You shouldn’t be stalked going to and from your home or workplace as well.

Debt collectors aren’t allowed to pretend to be someone from a government agency or the police. Once you determine that they violated the law, you should report them to authorities and file a Protection Order. You must be able to prove that debt collectors are harassing you. It’s easier to do this if you owe money to companies than family or friends. Not all of us are willing to file a case against members of our inner circles.

Bugis Credit What You Can Do to Avoid Harassment

What You Can Do to Avoid Harassment

The best way to avoid harassment is not borrowing money from loan sharks and unlicensed moneylending companies. It’s easier said than done but doing so will provide you with peace of mind that you won’t be a victim of arson or other violent acts.

You can distinguish a licensed lender through their means of communication. Reputable companies will not contact you to offer a personal loan. All applicants should originate from the consumer. If you receive a text or online message about such offers, then it’s likely that they are unlicensed money lenders. Legitimate lending companies will only accept applications in person or online after submitting the necessary documents and paperwork.

Loan sharks and other illegal lenders typically require you to sign a written agreement. Sometimes, you don’t have to sign a document at all. Licensed lending companies don’t engage in this kind of practice, as they are required to follow the regulations by the Monetary Authority of Singapore. You should visit and review the Ministry of Law’s list of licensed money lenders each time you transact with a company, even if you’re sure that they are licensed. The list may change from time to time.


You should remember that a code of conduct or a set of governing laws won’t stop unlicensed money lenders, loan sharks or even your friends and family to go after you to collect overdue personal loan repayments. You should be capable of recognizing what constitutes an unfair debt collection practice.

The likelihood of harassment is higher when you borrow money from a loan shark, so it’s always best to seek financial assistance from a licensed personal loan provider. Call us today and find out more about services and interest rates.

Bugis Credit Loan Sharks Make You Believe That You Don’t Have Other Options

How Loan Sharks Trick You into Getting a Personal Loan With Them

Licensed moneylenders in Singapore have been a good alternative to banks for personal loans, but many still borrow money from loan sharks despite several horror stories about their illegal ways of collecting payment.

Some of the terrifying experiences recounted by victims include harassment on social media and even setting fire to the borrower’s home! Here are four other reasons why you should never think of borrowing money from loan sharks.

Bugis Credit You May Be Unable to Repay the Debt

1. You May Be Unable to Repay the Debt

Unlicensed moneylending involves sky-high interest rates. Licensed money lenders in Singapore will never offer personal loans with more than 4% in monthly interest rates. On the other hand, loan sharks can charge more than 10%.

A story involving a woman who needed to pay bills even had to pay $400 after missing the first week of payment. The unlicensed moneylender originally lent $250, which is more than a 50% interest rate in just seven days!

While the female victim had an agreement to pay $300 after one month, the loan still carried a 20% interest rate that’s higher than the 4% cap on loans from a licensed moneylender.

The scam usually happens through unsolicited phone calls, but fraudsters have become wise enough to avoid detection by using WhatsApp to victimize people.

Bugis Credit Loan Sharks Make You Believe That You Don’t Have Other Options

2. Loan Sharks Make You Believe That You Don’t Have Other Options

Those who borrow from illegal money lenders in Singapore usually don’t have the necessary paperwork needed by banks or licensed lenders, or they simply need to get the money as fast as possible. Loan sharks capitalize on this by promising clients with personal loans that don’t require documents and can be disbursed immediately.

However, you should be aware of financial assistance programs by the government before thinking about borrowing money from a loan shark. Some banks and legitimate money lenders can now process a loan application and release the approved amount within 24 hours. If you don’t have the documents, a licensed money lender will be your best alternative.

Borrowers with poor credit scores are also inclined to borrow from loan sharks, but licensed lending companies also cater to this group of people.

Bugis Credit Unlicensed Lenders Use All Sorts of Dirty Schemes

3. Unlicensed Lenders Use All Sorts of Dirty Schemes

The scheming process of loan sharks evolves constantly. Watch out for those who ask you to sign up for a phone line and handset plan before approving your loan. These companies engage in this trick to let telephone companies do the work of chasing after you, in case of failure to repay the monthly instalments.

How does this work? The loan shark will ask you to sign a two-year contract with M1, Singtel or another company. Once approved, the lender will give money in exchange for the phone. Let’s say the phone from the contract costs $1,500. The loan shark will give $1,000 and you won’t have to repay them. Your responsibility now involves paying the telephone company.

There are several red flags from this scenario, but the most prominent one is the exchange of money for the phone. Some phone companies provide discounted mobile devices for their plans or even give them to customers for free. In other words, you’re paying money for something that’s not in your hands because you “sold” it to a loan shark.

Unlicensed lenders do this because they don’t want to bother chasing after clients who defaulted on small loans, which usually cost from $1,000 and $3,000. By asking the customer to sign up for a phone plan, they pass on the chore of hunting defaulters to telephone companies.

If you need to borrow $3,000, then the loan shark will ask you to sign a phone deal with a handset that’s worth the same as your desired loan amount.

Another shady tactic involves loans with the promise of buying gift cards. Customers will need to agree to buy a certain number of cards within a specific period.

If you borrowed $1,000 from a loan shark, you will have to agree on buying a $100 gift card each week for two months. The cards can be either common gift cards such as AliPay or those from the loan sharks themselves.

Bugis Credit Loans Build Relationships With Clients

4. Loans Build Relationships With Clients

The Hari-Hari type of lending is just another yet milder version of unscrupulous lending money. The term means “daily” in Malay, which refers to the frequency of collecting payments from borrowers. Loan sharks have become familiar with their clients through this scheme, as they see each other each day to collect the money.

People with low-income jobs are usually the clients of Hari-Hari lenders.

Both parties have a good-natured relationship because of the daily encounters, but loan sharks still won’t think twice of harassing their clients if they default on their loans. Most illegal money lenders who use the Hari-Hari system rarely fail to collect payments, possibly because the amount is small when divided into daily instalments.

The problem, however, lies in the accumulated interest payments that can last for several years. Some borrowers even pay 10 times the principal amount! The idea of being familiar on a personal level with their creditors becomes another problem, as they may feel embarrassed when they miss a single payment.

Imagine owing money to a close friend or family member and being unable to repay the loan. How would you feel about it?


A licensed money lender should be your first option for borrowing money instead of looking for a loan shark.

Singapore may have tough rules to deter unscrupulous lenders, but some companies and individuals still ignore these regulations since they know a lot of people need money urgently.

Don’t let your money problems become bigger by choosing a loan shark. Call us today and find out more about our services.

personal Loan When You Have a Bad Credit

How to Get a Personal Loan When You Have a Bad Credit

If the personal loan is not to be used for an emergency, the best thing to do is to improve your credit score for you to be avail of the loan without feeling burdened at all. Make sure that you pay on time all your debts. Bring down the balance of your card to at least 30 percent of the credit limit allowed for you. Also applying for a new credit can make your situation worse.

The three mentioned elements make up 75 percent of your credit score: paying on time, reducing the use of credit cards, and not applying for a new credit. Be realistic in your goals and their timeline. It may be quite difficult to raise your credit score by 100 points in only 3 to 6 months.

If you happen to have an emergency and your loan application has been turned down repeatedly because of no credit or your bad credit, you can request to be interviewed by a credit union loan officer for you to convince them that you are credit-worthy.

Once you get a schedule for an interview, make sure that you have all the necessary documents. Lending institutions seek for signs of stability on borrowers. It’s better for you to show them that you lived in the same house or in the same city and worked the same job for several years.

The following documents will prove your credit-worthiness to lenders:

  •       Tax returns and W-2s and 1099 forms from at least the last two years.
  •       List of all your assets such as a home, car, or any property and where you are in paying them all off.
  •       Information about your salary, employment history, and pay stubs
  •       Whether you receive alimony or child support
  •       Bank statements for checking, savings, and cash deposit.
  •       List of unsecured debts like credit card and medical bills.

Not all of these documents will be required by the lenders; but if you have bad credit, anything that will show that you have become more responsible with your money will help you get a loan. You will also be asked questions that may sound negative and offensive to you such as:

  •       Have you had any lawsuits?
  •       Have you ever declared bankruptcy or had a foreclosure judgment?
  •       Do you know your ethnic background?
  •       Do you have any judgment against the items in collection?

Remember that the in-person interview is to convince the lender that you are capable of repayment. Any document that will support this argument especially proof that you paid off loans on assets such as a car or a boat will be helpful to you.

personal loan with poor credit history

The following are some concrete steps to take for you to get a loan despite having bad credit:

1)      Understand that your credit score affects the interest rates.

In general a credit score is the most crucial factor that affects the decision of the lender on what interest rate to give you. Even if many lenders will offer personal loans to people particular those of fair credit, if you have bad credit, expect to pay higher interest rates. That’s why it’s important to check with multiple lenders for you to compare the interest rates and terms. Don’t think that when you are turned down by one lender you will not be able to get a loan. Just keep on searching until you receive a good offer.

2)      Know your most recent credit score.

It’s one thing to know that you have bad credit; it’s another to know how bad it is. FICO, the credit scoring company has five categories of credit scores. They are as follows:

poor: 300-579

fair: 580-669

good: 670-739

very good: 740-799

excellent: 800-850

It’s wise to check one’s credit score before you apply for any loan. You need not have an excellent credit score for you to get a loan, but you will notice the difference in the loan amount you can avail yourself of vis-à-vis your credit status.

3)      Calculate your own debt-to-income ratio.

Some lenders will calculate the borrower’s debt-to-income ratio or the percentage of the monthly income that goes to debt. This will guide their decision whether to give you a loan or not and if ever granted the amount of loan suitable in your condition.

The formula is simple. Just divide all the monthly debt payments by your gross monthly income and you get a ratio or a percentage. Lenders prefer their borrowers to have 35 percent or lower debt-to-income ratio. This includes the loan you are applying for and those that are currently existing.

4)      Consider getting a loan from a credit union.

Credit unions are a huge help when you need a personal loan and you have bad credit. These institutions are more flexible, and their maximum interest rate is at 18 percent.

Credit unions according to the Experian, credit unions have the non-profit status which enables them to accept riskier borrowers that are not normally accepted by banks. They often offer lower fees and interest rates too.

5)      Consider getting a home equity loan.

If your home has equity, make use of the equity. It’s money that is always available and can be used without considering the low credit score. A home equity loan does not consider low credit score a factor. For as long as your home has equity, you can take advantage of the amount.

Home equity loans have fixed interest rates and repayment terms. It is possible for you to borrow money for up to 30 years. The interest can be deductible on your taxes when they are itemized. The money can be used to make important changes to your current home.

This kind of loan is not without drawbacks. First off, your home will be made collateral. That means if you fail to repay the loan, you can end up homeless. There are also some home equity loans that have fees and ones that require you to have a substantial home equity for you to qualify. That makes it highly important to research and compare multiple home equity loan lenders.

Personal Loan requirements bugis credit

What Do You Need to Apply for a Personal Loan?

You may need a personal loan to pay off your credit card debt, to spend on home improvement, to use for an emergency, or any other purposes. Is it your habit to look around and research or you focus more on getting the money right away?

According to a survey done by US News, 21 percent of borrowers don’t do comparison research before they file for a loan while 51 percent don’t use any preapprovals to compare the rates, requirements, and fees.

However, it is crucial to do comparison research when you are about to engage in a major financial commitment even if there are online lenders that make the entire process convenient and fast. The following are some of the aspects that you have to check before you get a loan:

Check your credit score and credit history.

These two factors are what lenders often consider reviewing loan applications. A good credit score will make it easier for you to get a loan and receive a more favourable interest rate from the lender. Credit history, on the other hand, can affect the lender’s decision whether to approve your loan application or not and the amount of interest you will be offered.
Some lenders also look into the applicant’s debt-to-income ratio. This is the total of debt payments divided by the gross monthly income. This will guide the lender in understanding how you will manage your repayment if your personal loan is approved.

Apply for a prequalification.

Prequalification is the process in which the lender will review the information you shared with them. This is for them to give you the loan you are qualified for. Once you become prequalified, the lender will conduct a soft credit inquiry which will not affect your credit scores.

Being pre-qualified does not mean your loan has been approved. It helps you to understand whether you are more likely to be approved and the specific loan terms that you qualified for. If you decide to accept the prequalified offer for a loan, you must submit a formal application directly to the lender. What follows is a hard credit inquiry which will affect your credit scores.

Compare loan offers.

Once you submit your information, you will be receiving numerous loan offers that you prequalify for. You have to compare the information listed on these offers such as the lender, loan amount you may qualify for, estimated monthly payment amount, estimated interest and fees, estimated annual percentage rate or APR, and loan term. Don’t forget to check on the prepayment penalties and origination fees.

Apply for the chosen loan.

Once you are done with the comparison research and have chosen a specific loan, you can proceed to the application process. The lender will tell you directly the requirements you need to submit. Some of the information you need to provide include income verification, ID verification, monthly housing cost, and Social Security number.
Wait for the approval from the lender.

Give time for the lender to review your application, decide if you will be approved for the loan, and send you the final documents once you are approved. The documents will contain the details of the loan which include the interest rate, length of the loan, the amount of the loan, and monthly payments.

After reviewing the details, you have to sign the documents and the funds will be deposited to your bank account.

Bugis Financial Loan

Personal Loan Requirements

The usual IDs that are acceptable when applying for a personal loan are the following: driver’s license, passport, state ID, birth certificate, certificate of citizenship, utility bill(s), and military ID. Lenders usually require at least two government-issued IDs.

Almost all lenders require their applicants to meet the minimum income requirement. When you fill out the application form, it is necessary for you to provide some basic information and other details to verify your income. These are the documents that are often required: tax returns, bank statements, and pay stubs.

Lenders also ask applicants for information about their assets, debts, and liabilities. It means it will be more convenient for you when you bring other documents such as current credit card and loan statements, proven additional/alternate sources of income, an estimation of your current expenses, and a current rent or mortgage statement.

The lender will also verify your current employment. That’s why they often ask for your current employer’s name and the contact details in your full loan application. If necessary, the lender may call your employer to verify your employment and income information. However, this is more common when applying for mortgages and not for personal loans.

Common Terms Used

There are some common terms you have to be familiar with when you apply for a personal loan. The following are some of them:

Principal-This refers to the amount you borrow. The lender calculates the interest they will charge you for the loan based on the principal. As you keep on repaying the loan every month, the amount of the principal decreases.

APR-This stands for Annual Percentage Rate. APR is the consolidated amount from your interest rate and the lender’s fees that will provide you a clearer picture of your actual loan cost. It’s useful to compare APRs for you to determine the loan’s affordability and personal loan value.

Unsecured Loan-Personal loans are often unsecured loans. It means you don’t need to provide a collateral for the loan. In a home or auto loan, the property itself serves as the borrower’s collateral to the lender. A personal loan if usually supported by the borrower’s good credit standing or a cosigner. However, some lenders require collateral for personal loans for them to be able to offer better rates than the unsecured personal loan.

Monthly Payment-Every month within the loan term, you will have to pay a monthly payment to the lender. This payment will include the amount you have to pay for the principal amount you owe the lender. It also includes the interest of the loan within the loan term.

Term– This refers to the number of months you are required to pay the loan.

how much can i borrow from a moneylender

How Much Can I Borrow From A Licensed Moneylender?

Licensed moneylenders are part of the financial institutions that have the authority to grant loans to people, which are repaid over a stipulated period of time. On short notice, moneylenders can come in handy, and they offer several types of loans, including personal loans and payday loans.
You have to be sure that the moneylender you want to sign up with is licensed and following the rules and regulations that are in place to protect both them and we the customers.

Unlicensed moneylenders in Singapore are basically loan sharks who have no qualms about cheating you out of house and home, and may even commit identity theft, ruining you in the process.


Why Should I Borrow from Moneylenders?

Moneylenders have a more flexible loan approval process, allowing you to access your loan in the fastest time possible, at least faster than if you were getting a loan from the bank.

Most moneylenders keep the background checks to a minimum, requesting just a few documents on your part. With strict interest rate charges set by regulatory bodies, borrowing from moneylenders can make repayment easier for you than borrowing from other lending institutions.


How Much Can I Borrow?

For Singapore Citizens and Permanent Residents, if

(a) your annual income is less than $20,000, you may loan up to $3,000;

(b) your annual income is above $20,000, you may loan between 1 to 6 times of your monthly income.

For Foreigners residing in Singapore, if

(a) your annual income is less than $10,000, you may loan up to $500;

(b) your annual income is at least $10,000 and less than $20,000, you may loan up to $3,000;

(c) your annual income is above $20,000, you may loan up to 1 to 6 times of your monthly income.


What Are The Interest Rates?

As of October 2015, moneylenders charge an interest rate at the maximum of 4%, regardless of amount borrowed. This 4% interest is also charged for nothing secured and unsecured loans.
If you miss a repayment in any month, the interest on that late payment is still 4%, and it is charged to the delayed payments.


What Are The Fees?

Moneylenders are permitted to place the following fees, and only these fees, on the loans they grant:

  • When you have been granted a loan, you are charged a fee of no more than 10% of the principal of that loan
  • For each month’s repayment that you miss, you are charged a fee of not more than S$60
  • For any successful claim filed by the moneylender for the recovery of a loan, you are to pay the legal costs that have been ordered by the court