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Personal loan from an unlicensed money lender
06 Apr 2022 (37 views)  

I received this loan offer on WhatsApp.

Take $10000 Pay $180x60Months
Take $20000 Pay $360x60months
Take $30,000 Pay $540x60months
$50K-$100K Above
Monthly Repayment Term Up To 60 Months

The terms looks attractive. The total repayment over 60 months is $10,800 for a $10,000 loan. the interest for 5 years is $800 or 8%. This works out to 1.6% per year. 

As loan is being repaid gradually over the term, the average borrowing is only $5,000, so the interest rate is 3.2% per year. 

This rate is still low. 

I suspect that these are not the true terms, and there are some administrative fee that is charged to the borrower. 

I may contact the lender to find out what are the charges. 

A more important issue is that this money lender is not licensed. It is better than their terms be submitted to a government agency who approves the terms, and ensures that the lender operates according to the terms, and that the borrower is not misled. 

Tan Kin Lian
 


Personal loan from an unlicensed money lender
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I received this loan offer on WhatsApp.

Take $10000 Pay $180x60Months
Take $20000 Pay $360x60months
Take $30,000 Pay $540x60months
$50K-$100K Above
Monthly Repayment Term Up To 60 Months

The terms looks attractive. The total repayment over 60 months is $10,800 for a $10,000 loan. the interest for 5 years is $800 or 8%. This works out to 1.6% per year. 

As loan is being repaid gradually over the term, the average borrowing is only $5,000, so the interest rate is 3.2% per year. 

This rate is still low. 

I suspect that these are not the true terms, and there are some administrative fee that is charged to the borrower. 

I may contact the lender to find out what are the charges. 

A more important issue is that this money lender is not licensed. It is better than their terms be submitted to a government agency who approves the terms, and ensures that the lender operates according to the terms, and that the borrower is not misled. 

Tan Kin Lian