**What should I consider before taking up a loan?**

With effect from 1 October 2015, the maximum interest rate moneylenders can charge is 4% per month.
This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured
one. If a borrower fails to repay the loan on time, the maximum rate of late interest a moneylender
can charge is 4% per month for each month the loan is repaid late.

The computation of interest charged on the loan must be based on the amount of principal remaining
after deducting from the original principal the total payments made by or on behalf of the borrower
which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid
$4,000, only the remaining $6,000 can be taken into account for the computation of interest.

**How much can I borrow?**

With effect from 1 October 2015, the maximum interest rate moneylenders can charge is 4% per month.
This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured
one. If a borrower fails to repay the loan on time, the maximum rate of late interest a moneylender
can charge is 4% per month for each month the loan is repaid late.

The computation of interest charged on the loan must be based on the amount of principal remaining
after deducting from the original principal the total payments made by or on behalf of the borrower
which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid
$4,000, only the remaining $6,000 can be taken into account for the computation of interest.

**What are the interest rates moneylenders can charge?**

With effect from 1 October 2015, the maximum interest rate moneylenders can charge is 4% per month.
This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured
one. If a borrower fails to repay the loan on time, the maximum rate of late interest a moneylender
can charge is 4% per month for each month the loan is repaid late.

The computation of interest charged on the loan must be based on the amount of principal remaining
after deducting from the original principal the total payments made by or on behalf of the borrower
which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid
$4,000, only the remaining $6,000 can be taken into account for the computation of interest.

**What are the fees that moneylenders can charge?**

The computation of interest charged on the loan must be based on the amount of principal remaining
after deducting from the original principal the total payments made by or on behalf of the borrower
which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid
$4,000, only the remaining $6,000 can be taken into account for the computation of interest.

**How do I know whether a moneylender is licensed or not?**

The computation of interest charged on the loan must be based on the amount of principal remaining
after deducting from the original principal the total payments made by or on behalf of the borrower
which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid
$4,000, only the remaining $6,000 can be taken into account for the computation of interest.

**How can I tell whether an advertisement is from a licensed moneylender or an unlicensed moneylender?**

The computation of interest charged on the loan must be based on the amount of principal remaining
after deducting from the original principal the total payments made by or on behalf of the borrower
which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid
$4,000, only the remaining $6,000 can be taken into account for the computation of interest.

**Can I rely on the content of an advertisement to take up a loan from a moneylender?**

The computation of interest charged on the loan must be based on the amount of principal remaining
after deducting from the original principal the total payments made by or on behalf of the borrower
which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid
$4,000, only the remaining $6,000 can be taken into account for the computation of interest.

**In the event that I am standing as a surety for a loan, what should I look out for?**

The computation of interest charged on the loan must be based on the amount of principal remaining
after deducting from the original principal the total payments made by or on behalf of the borrower
which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid
$4,000, only the remaining $6,000 can be taken into account for the computation of interest.