New Moneylender Credit Bureau to be formed next year
Next year a new moneylender’s credit bureau will be formed in order to provide a central repository of information about all loans granted by licensed moneylenders. The aim of the new credit bureau is to help curb excessive borrowing.
Moneylenders will be legally obligated to provide information to the bureau about loans they have granted as well as their customers’ payment behavior. The Moneylenders Credit Bureau will be developed and managed by DP Information Group (DP Info).
The new bureau will allow moneylenders to view a complete listing of a debtor’s loans and provide the latest details about a borrower’s creditworthiness and total debt load.
The Moneylender Credit Bureau initiative is part of a set of stricter new rules on moneylending which include new lower interest rate caps.
Many licensed moneylenders view the establishment of the credit bureau as a positive move which will allow them to gain a clearer picture of a borrower’s entire credit profile. As a result, regulators expect to see a decline in the total number of defaults.