Moneylenders Credit Bureau: 7 Things Borrowers Should Know

Have you ever wondered why authorised money lenders in Singapore know of any existing loans that you have with other fellow licensed lenders or how they decide on the loan amount you are eligible to borrow? Well, that’s because licensed lenders in Singapore have access to your information via the Moneylenders Credit Bureau.

Intrigued? Read on to find out more about the Moneylenders Credit Bureau, what its functions are, who has access to your Loan Information Report, how you can obtain a copy of your Loan Information Report, and more.

1. What is the Moneylenders Credit Bureau?

The Moneylenders Credit Bureau (MLCB) is the central repository that houses all borrowers’ loans and repayment histories with private money lenders. It enables licensed lenders in Singapore to evaluate borrowers’ creditworthiness and assist them in advising loans that are suitably affordable to borrowers.

Curious about when the Moneylenders Credit Bureau was created? The Ministry of Law passed regulations in 2016 that allow the Registry of Moneylenders to monitor credit bureaus that gather customers’ credit information from all of Singapore’s licensed lenders.

This ensures the smooth operation of licensed credit bureaus and safeguards borrowers’ interests by preserving the confidentiality, security, and integrity of the data collected from them.

Under the amended Moneylenders Act, the Credit Bureau Singapore was designated by the Ministry of Law as the operator of the Moneylenders Credit Bureau.

2. Functions of the Moneylenders Credit Bureau

Every licensed lender in Singapore is an approved member of the Moneylenders Credit Bureau. As such, they are required to keep the Moneylenders Credit Bureau informed about borrowers’ loan details regularly. This enables the Loan Information Report to be generated on-demand, detailing all of the borrower’s existing loans with all licensed lenders in Singapore.

The Loan Information Report includes information on:

1. The loan the borrower has undertaken, the total outstanding principal amount, and the total amount of money owed.
2. The list of all current personal loans the borrower has with licensed lenders in Singapore, as well as the status of each loan’s repayment.
3. Default records (e.g. failing to pay your loans on time, or at all), if applicable.
4. Your personal information and employment details.
5. Exclusion records, bankruptcy history, etc.

No information from a borrower’s Loan Information Report can be shared with anybody else. If you were to obtain a personal loan from a licensed lender in Singapore, you will not be required to purchase the Loan Information Report as this will be done by your moneylender.

3. Why must money lenders retrieve your Moneylenders Credit Bureau Loan Information Report?

Licensed lenders in Singapore must ensure that they have all the relevant information needed to conduct a credit risk assessment before approving your loan application.

The information on your Loan Information Report is an indication of how well you can pay off your loans. If you haven’t been consistent in your loan repayment, money lenders will identify that you are a high-risk borrower and may reject your request during the initial application stage.
However, if you’re consistently making on-time payments, your report will reflect well on you. This means that your borrowing limit will increase, and money lenders may be more likely to offer you more money than your previous loan!

Additionally, there is a maximum loan quantum that you can take on across all licensed lenders in Singapore at any one time when it comes to unsecured loans. This is known as the loan cap and is dependent on your annual income and citizenship.

With the Loan Information Report from the Moneylenders Credit Bureau, licensed lenders can easily know if a particular borrower’s total outstanding loan is still within the limits of the borrowing cap set by the Ministry of Law.

For example, if you’re a Singaporean or Permanent Resident with an annual income of S$15,000, the maximum amount you can borrow across all licensed lenders is S$3,000. If you’ve exceeded the loan cap, licensed lenders will have the right to reject your loan application.

4. Who can access your Moneylenders Credit Bureau Loan Information Report?

To protect your credit information from misappropriation, only authorised parties may request and receive information from the Moneylenders Credit Bureau. The data on the credit reports obtained can only be accessed by the following four parties:

1. You, as a borrower
2. Licensed lenders in Singapore
3. Ministry of Law
4. The Registry of Moneylenders

When applying for loans with licensed lenders in Singapore, the credit report will be used to check for any active loans, your payment history, along with your default records. This will allow licensed lenders to offer you a loan plan that is best suited to your affordability, in line with regulations.

In case you’re curious, the Ministry of Law and the Registry of Moneylenders have access to the data provided by the Moneylenders Credit Bureau stored in their systems.

For a small fee, you can request a copy of your credit report at any time, even if you are not looking to apply for loans.

5. How to obtain your Moneylenders Credit Bureau Loan Information Report?

You can purchase a copy of your Loan Information Report from the Moneylenders Credit Bureau online or at any of the following two places:

Note: Loan Information Reports purchased by walk-ins at the Moneylenders Credit Bureau Office are only payable by cash. Each report costs S$0.50 (including GST).

6. What can you do to improve your creditworthiness?

Your ability to pay off your debts on time is one of the most important factors that could either make or break your creditworthiness. To do that, make a list of the personal loans, business loans, or any credit card payments that you have.

It’ll enable you to see who you owe and the total amount you owe. Setting up automatic payments (e.g. GIRO payments) for the full amount due each month can help you stay on top of your payments effortlessly.

By staying on top of your loan repayments, your creditworthiness is enhanced. This puts you in a better position when you’re applying for a new loan from a licensed lender or even traditional bank in the future.

Additionally, try not to apply for multiple loans at the same time or within a short span of time. If possible, do your best to boost your monthly income as this shows lenders that you have the financial capability to repay the loans you take on.

7. Which organisations does the Moneylenders Credit Bureau work with?

One aim of the Moneylenders Credit Bureau is to help borrowers achieve better financial health. It does this by granting borrowers assistance in understanding their loan information report. Additionally, the Moneylenders Credit Bureau works closely with the Credit Association of Singapore and Credit Counselling Singapore to educate the general public.

You might know the Credit Association of Singapore by its former name better, the Moneylenders’ Association of Singapore. This non-profit association officially represents member licensed lenders in Singapore and supports them. The organisation also raises awareness about regulated moneylending and educates the public about it.

Conclusion

While it’s extremely easy and fuss-free to borrow from a licensed lender, take note there are borrowing limits in place and lenders are obliged to do a thorough credit assessment before granting you any loan. An essential tool that licensed lenders turn to is the Loan Information Report from the Moneylenders Credit Bureau.

Planning to get a loan soonest? One reputable licensed loan company in Singapore you should know about is MM Credit, which has been operating since 2010. Applying for a loan with us is easy — simply fill out a simple contact form or apply via Singpass. Our experienced and friendly loan officers will reach out to you with a personalised loan quote in no time.

Have other questions? Chat with us or visit our office in Bedok. We’re more than happy to help.