More moneylenders moving into heartland

[Jman888]

More moneylenders moving into heartland

Just in Toa Payoh town centre, 16 credit firms have set up shop

Published on Jan 06, 2014

By Melody Zaccheus And Janice Tai

A cluster of credit firms has replaced apparel shops and hair salons in Toa Payoh Central. There were just two in the entire estate in 2009. -- ST PHOTO: DESMOND FOO

LICENSED moneylenders are increasingly targeting heartland areas such as Toa Payoh, Ang Mo Kio and Tampines, raising concerns among some about the availability of easy credit.

In Toa Payoh, for instance, 16 credit companies have set up shop in the town centre, replacing apparel shops and hair salons, among others. There was just two such licensed moneylenders in the entire estate in 2009.

Five have set up in Tampines and nine in Ang Mo Kio since 2009, spreading out from areas like Chinatown and Beach Road which used to be their main focus.

"Heartland areas have high human traffic," said Mr John Lim, 36, the manager of moneylending company Symbolic at Block 183, Toa Payoh Central. "Eighty per cent of our borrowers are living in HDB flats and are not based in places like Tanjong Pagar."

Easy credit - with limits

CREDIT firms in Toa Payoh operate behind frosted glass fronts covered with large banners to give customers privacy. The banners pledge easy credit in a jiffy and last Thursday, they were still serving customers past their 8pm closing time.

Although moneylenders can legally offer unsecured loans of four times a borrower's monthly income - if they earn $30,000 to $120,000 a year - most offered conservative sums.

When reporters cited a monthly pay of $3,000, five loan officers offered to lend half that sum, saying low- income earners are a bigger credit risk. But loans could be approved right away.

Documents such as an identity card and SingPass log-in details are needed to retrieve income statements online.

For borrowers earning under $30,000, the rate lenders can charge is legally capped at an effective interest rate of 13 per cent for secured loans and 20 per cent for unsecured loans.

But borrowers need to be careful of other charges, cautioned Mr Lim Cheng Boon of Credit Counselling Singapore. "Debt can escalate in a short period due to late payment charges."

For example, if a borrower opts for weekly repayment instalments and defaults on payment for one month, he will face four late payment charges.

JANICE TAI & MELODY ZACCHEUS

 

 

I was just telling my wife 2 months ago that clementi also suddenly see more moneylenders pop out with their shop opening big and small (small just convert a 50 sq ft ex-handphone shop into a office).

 

They even have lion dance for the open ceremony and the staff looks like ah long runner

 

Really an eyesore in the neighborhood area.

 

 

 

 

 

[SonOfPonzi]

legalized ah long, just like the banks. these ah long getting smart already, rather work with gahment to earn monies now. somemore cctv all over the hdb now, cannot splash paint liao.

 

http://www.straitstimes.com/breaking-news/singapore/story/fall-loan-shark-other-criminal-activities-hdb-estates-cctvs-installed-

[Karu]

Why?? Blame it on the casinos!! People are borrowing to gamble... & with the credit controls from financial inst, some will go to these legalized ah long to borrow money to buy property & cars?

[Jman888]

with all the funny names created in different neighborhood, won't be surprise they are all under 1 boss, just like in SLS

[Ender]

Why?? Blame it on the casinos!! People are borrowing to gamble... & with the credit controls from financial inst, some will go to these legalized ah long to borrow money to buy property & cars?

And wedding dinner, can borrow up to $110K.

[Kar_lover]

Why?? Blame it on the casinos!! People are borrowing to gamble... & with the credit controls from financial inst, some will go to these legalized ah long to borrow money to buy property & cars?

 

Don't blame others....everyone is responsible for their own actions....

[Evillusion]

see the interest rates i scared liao!

[Zxcvb]

Coincidentally, these pawn shops and moneylenders started to grow after the casinos were opened.

[GLZT]

 

Don't blame others....everyone is responsible for their own actions....

No, I think should blame gov. Let the bashing begins!

[Mcf777]

AMK Heartland (beside Macdonlad), so many Ah Long shop.

They are willing to pay TOP Rent to have their premises there.

 

Open Pawn shop better. At least customer wont run road.

Unlike Ah Long shop, many will borrow from Ah Long A to pay Ah Long B.

Edited January 6, 2014 by Mcf777

[Myxilplix]

I love those cctvs, they're plastered all over my block. All lift lobbies and every staircase access on 1st floor. Recently upgraded to add somemore at staircase landings between 1st and 2nd floor.

 

Funny thing is I have not seen any sign of ah long activity since I've moved in, but nehmind lah the more the merrier.

[Watwheels]

Ah loong long time ago already exist in the heartlands. They are known as banks.

 

These are just smaller players.

Edited January 6, 2014 by Watwheels

[Picnic06-Biante15]

Why?? Blame it on the casinos!! People are borrowing to gamble... & with the credit controls from financial inst, some will go to these legalized ah long to borrow money to buy property & cars?

 

One couple borrowed for $110k wedding ...

Edited January 6, 2014 by Picnic06

[Mustank]

 

 

I was just telling my wife 2 months ago that clementi also suddenly see more moneylenders pop out with their shop opening big and small (small just convert a 50 sq ft ex-handphone shop into a office).

 

They even have lion dance for the open ceremony and the staff looks like ah long runner

 

Really an eyesore in the neighborhood area.

 

 

 

 

 

 

 

 

still prefer the good old days when the Govt will clamp down on such things

now these jokers mushroom all over the place

just like the little india liqour licence

if they dont control, sooner or later jit bah boom

[Hydrocarbon]

No, I think should blame gov. Let the bashing begins!

 

Don't know whether you trolling or not but I junk you one.. We have to be responsible for own actions.

 

still prefer the good old days when the Govt will clamp down on such things

now these jokers mushroom all over the place

just like the little india liqour licence

if they dont control, sooner or later jit bah boom

 

They clamp down on illegal ones ah, all these are legal. If want to whack, should whack those car dealers still offering above 50/60% loans for the cars. Anyway, all these shops thrive on demand. If no demand, they also go pok gai what no?

[StefanK]

 

 

still prefer the good old days when the Govt will clamp down on such things

now these jokers mushroom all over the place

just like the little india liqour licence

if they dont control, sooner or later jit bah boom

 

all these credit loan shops are legalised.

 

the owners have to go for licensing one... and when I last checked, the slots to get the licensing are all full for this year at least...

but yes, these shops are legalised ah longs. It's government's way of directing the sheeps to the butcher instead of letting them getting slaughtered by the wolves.

[Jman888]

 

all these credit loan shops are legalised.

 

the owners have to go for licensing one... and when I last checked, the slots to get the licensing are all full for this year at least...

but yes, these shops are legalised ah longs. It's government's way of directing the sheeps to the butcher instead of letting them getting slaughtered by the wolves.

 

 

what is the different ?

[StefanK]

 

 

what is the different ?

 

Difference is lesser carcasses lying around.

 

It is their way of hitting the illegal trade of loan sharks, i.e. providing a legal, governed money lending avenue for people who aren't able to borrow from banks to approach and to minimise or kill the harm that loansharks pose to the public.

 

It's the same way Colorado in USA legalise marijuana for recreational consumption. They kill off the black market and make things easier to govern (control).