Loans can be incredibly useful, especially in times of emergencies when you're faced with the urgent need to settle significant bills. Beyond the conventional lenders like banks and major financial institutions, you also have the option to apply for personal loans from Licensed Moneylenders (LMLs) in Singapore.
Introduction to Moneylenders Credit Bureau (MLCB)
Starting from July 1, 2021, the Ministry of Law (MinLaw) has designated CBS as the new operator of the Moneylenders Credit Bureau (MLCB).
MLCB serves as a centralized repository of data concerning borrowers' loan histories and repayment records with LMLs. It plays a crucial role in assisting lenders in making well-informed decisions when evaluating loan applications from potential borrowers. Additionally, it helps borrowers in managing their loans and overall financial situations more effectively. It's important to note that the MLCB does not collect data related to borrowers' bank credit facilities or bank deposit information, nor does it make lending decisions on behalf of LMLs.
What is a MLCB Report?
Your MLCB report serves as a comprehensive record of your loan payment history, compiled from various LMLs. As part of their assessment process, LMLs are required to review your loan credit report to gauge your creditworthiness before approving a loan. A positive loan repayment history or a lower aggregate loan cap can increase your eligibility for loans. You can find a list of LMLs in Singapore here. It is important to note that the report is in real time and therefore loan taken even a minute ago will be reported in your MLCB. This is unlike CBS which might take time to update.
Components of a Loan Information Report
1. Personal Data and Employment Information
The initial section of the report includes your essential personal details, such as your full name and identification number, followed by your employment particulars and monthly income.
2. Exclusion List
The Self-Exclusion Listing option enables individuals to register for exclusion from applying for unsecured personal loans from licensed moneylenders, excluding debt consolidation loans.
3. Loan Type
This section provides an overview of all your existing loans with other LMLs in Singapore. Reports are usually updated in real-time or on a "live" basis.
4. Payment Status
The final section showcases the 12-month repayment status for all your existing Unsecured Loans with LMLs in Singapore. Consistently making timely repayments can enhance your chances of loan approval by LMLs.
5. Legend
Frequently Asked Questions
How can I improve my credit standing?
Enhance your credit standing by borrowing only the amount you can confidently commit to and ensuring timely repayment of all loans. Any missed or overdue payments will be reflected in your loan information report.
How much can I borrow from LMLs in Singapore?
There is no borrowing limit for Secured Loans. For Unsecured Loans, Singapore Citizens and Permanent Residents can borrow up to S$3,000 if their annual income is below S$20,000 or up to 6 times their monthly income if their annual income is S$20,000 or more.
Will my bank or credit card loans be included in the report?
No, only loans contributed by the list of LMLs in Singapore will be reflected in your loan information report.
Borrow Responsibly
Borrowing beyond your means can lead to financial difficulties and increased debt. Consider your existing loans and understand your financial position before applying for additional loans. Avoid borrowing solely to repay existing debts, as it can lead to multiple, larger debts that become increasingly challenging to repay. Conduct thorough research and clarify any doubts with LMLs before agreeing to new loans.
Where can I obtain a copy of my Loan Information Report?
You can purchase a copy of your Loan Information Report from Moneylenders Credit Bureau (MLCB) by clicking here.
