For Immediate Release
(Newswire.net — July 22, 2013) Sofia Road, Singapore — Personal loans. Easy Cash loans. Quick cash loans. Fast loan in Singapore. These are the popular taglines seen on the Internet whenever a money-related search is made on Google. Just a google and a whole list of licensed money lenders in Singapore will appear.
According to Insolvency and Public Trustee’s Office (IPTO) Singapore, the moneylenders in Singapore hit sky high in 2011, with the highest record of having 249 money lenders offering a wide range of personal loans. This highest record took a plunge down to the lowest record of having 209 personal loan lenders, accounting for a 16% drop in the total number of moneylenders in Singapore.
What caused the major fluctuations within just a year? To find out on the real reasons behind this decrease, one of the recognized money lender in Singapore, Max Credit, was interviewed. Mr Chong, a spokesperson from Max Credit said, “The Singapore economy in 2009 was gradually picking up and that was a good opportunity for green horns to enter the personal loan industry which explained the reason why the numbers of money lenders shot up to 249. With the strong competition between more than 200 money lenders in the personal loan industry, it is a challenge to be able to sustain the business.”
Mr Tay, another spokesperson from Max Credit added, “Furthermore, the Singapore government have tightened the regulations and placed large advertising restrictions on the personal loan industry. This could be the most possible reason why money lenders decided to opt for another career instead of struggling in the personal loan industry. Of course, we cannot be complacent just because of the reduction in money lenders as the competition remains intense and strong.”
Will these numbers continue to drop? An increase means more alternatives to stringent bank loans with the risk of more people turning to these personal loans and fall into debts if unwise. A decrease means vice versa. The drop – good or bad? That is the question.