As of October 1, 2015, there are new regulations that will be in effect for licensed non-bank moneylenders in Singapore regarding fees, interest rates, unfair lending practices and unfair contracts. The new rules are expected to reduce total borrowing costs as well as the number defaults.
|Old Controls on Borrowing||New Controls on Borrowing|
|No upfront administrative fee||10% maximum upfront administrative fee|
|20% maximum effective interest rate (EIR) per year for borrowers earning less than $30,000 per year. No interest rate cap for borrowers earning $30,000 per year or more||4% maximum nominal interest rate (NIR) per month|
|Late interest tagged to interest rate per month||4% maximum late interest rate per month|
|No cap on late fees||Late fees capped at $60 per month|
|Additional fees allowed in some situations||No additional fees allowed|
|No cap on total borrowing costs||100%* cap on total borrowing costs|