Annual Income S$30,000 to S$20,000.
It has been reported in the news that from next month, more people will be eligible for unsecured credit facilities. The Monetary Authority of Singapore (MAS) has lowered the minimum annual income requirement from S$30,000 to S$20,000.
Credit Cards at $30,000 and $15,000
However, this lower limit does not apply to credit cards and remains unchanged at S$30,000 for individuals at or below 55 years of age and S$15,000 for individuals above 55 years of age.
The move, which is still subject to a cap of two times one’s monthly income, has been welcomed by Credit Counselling Singapore. Kuo How Nam, president, Credit Counselling Singapore, said: “We’ve always believed banking should actually be inclusive and you shouldn’t exclude people just on the basis of income. “There is always a danger here of people getting into trouble, borrowing too much. But I believe this is still a good move because you cannot ignore the fact that there are people who may have a genuine need for unsecured credit."
4 times income
However, if the borrower has an annual income of at least S$30,000, he can obtain unsecured credit of up to four times his monthly income. MAS said the new rules state that borrowers with an annual income of less than $20,000 can only take a small unsecured personal loan not exceeding S$3,000, with the interest capped at 18 per cent per annum.
Excluded Person, high net worth.
The unsecured lending provisions will not apply to high net worth Singaporean or Permanent Residents earning at least S$120,000 per annum, and non—Singaporeans/Permanent residents. The unsecured lending provisions also provide for exclusions from their application for certain types of loans, for example, loans for purposes of medical treatment, study and renovation. As part of the new rules, banks will be required to be more stringent when it comes to lending.
Mas requirements
MAS is now making it a requirement for financial institutions to conduct comprehensive checks with Credit Bureau (Singapore) before approving each new credit card, charge card or unsecured credit facility. Financial institutions will also be barred from making unsolicited offers of unsecured credit facilities such as credit lines to customers unless these customers write in for them. This follows similar restrictions on unsolicited offers of credit cards already in place. Also, when it comes to explaining credit charges, late payments and other additional information, banks will now have to be much clearer than before. MAS said these changes follow extensive consultations it held with the Law Ministry, financial industry and the public.
Moneylenders Rules
These changes will be incorporated into the new Moneylenders Rules which will take effect from March 1. These will come under the new Moneylenders Act which also takes effect on the same date.It was passed by Parliament in November 2008 and replaces the existing Act. MAS said the new Act will allow for a more flexible and progressive approach to the regulation of moneylending in keeping with the modern credit economy. It also clarifies the moneylending activities to be licensed, modernises moneylending operations and tightens the regulatory framework.
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Thursday, February 26, 2009
Private schools close due to lack of students
The world financial crisis has taken a toll on the local private education scene.
Four schools closed
Four private schools have been forced to close since Jan 09 totaling 11 such closures,disclosed the Consumers Association of Singapore (CASE). Two language schools — Goro Global School and Britannia School of Education — have yet to repay their students fees amounting to some $33,000. CASE received 16 complaints from students, most of whom are from China and Vietnam.The process of recovering the fees paid are mainly from insurance,which all schools are supposed to enrolled, meaning the insurers will have to pay, while in some case if the school do not insure,have to go through the Small Claims Tribunal,which might take a while.Such situations mean that the CaseTrust mark will be revoked.The spokesman said that students need to ensure that the school are well covered by CaseTrust and fees are deposited with the Student Tuition Fee Account or Escrow scheme, Student Tuition Fee Insurance. Under the Escrow scheme, fees are left in the custody of a third party or CASE-endorsed banks for added protection of folding up.
Four schools closed
Four private schools have been forced to close since Jan 09 totaling 11 such closures,disclosed the Consumers Association of Singapore (CASE). Two language schools — Goro Global School and Britannia School of Education — have yet to repay their students fees amounting to some $33,000. CASE received 16 complaints from students, most of whom are from China and Vietnam.The process of recovering the fees paid are mainly from insurance,which all schools are supposed to enrolled, meaning the insurers will have to pay, while in some case if the school do not insure,have to go through the Small Claims Tribunal,which might take a while.Such situations mean that the CaseTrust mark will be revoked.The spokesman said that students need to ensure that the school are well covered by CaseTrust and fees are deposited with the Student Tuition Fee Account or Escrow scheme, Student Tuition Fee Insurance. Under the Escrow scheme, fees are left in the custody of a third party or CASE-endorsed banks for added protection of folding up.
Wednesday, February 25, 2009
Financial crisis could lose 99,000 jobs in Singapore
A local Bank predicts that 99,000 jobs will be lost by 2010, or 5 percent in unemployment rate.
It further predicts that the contraction range from to 4.8 per cent in 2009, from 3.3 percent.
The economist from DBS Group Research, said: "In the most recent January numbers, Singapore's non-oil domestic exports to China have fallen by as much as 51.6 per cent as compared to 50 per cent to the US. And that contributed to the sharp 34.8 per cent drop in non-oil domestic exports in January, which is the sharpest ever in history."
Meanwhile another financial institute Credit Suisse predicted that some 300,000 jobs from 2009 to 2010, a sobering figures which will cause pains in the local economy.
However at the local NUS`s Economics Department ,they estimated this 2009 losses be at 130,000 if local economy drops by five per cent.
While different Banks and Department have different number all added up to a sobering figures, some derived from various estimations from bottom up or forcast. Though not an exact science, the numbers is bigger than what the policy maker were given.
It is estimated that manufacturing will shed 58,000 job from the closure of mandated downsizing from foreign company.
Some of the least affected are business services and infocomm, which caters to the support industries of any company taking in more duties after retrenching the other.
The analyst are said the construction sector will also continue to generate significant number of jobs due to its healthy pipeline of projects ,the bulk of foreign construction workers mainly taking menial jobs the local dislike.
The healthcare, education and public services - will see an increase in employment partly because of the government's SPUR and Retraining schemes targeting the laid off workers in the 40s.
It also noted that the Jobs Credit Scheme and other measures from the S$20.5 billion Resilience Package will only assist the multidirections contractions brought on by the recession but as a strong wall to prevent it.
The worse is yet to come and the corner has not been reach yet, it warns. More overseas bad news of the market cycle and higher unemployment and more job losses will be inevitable will inevitable reach the local shore.
It further predicts that the contraction range from to 4.8 per cent in 2009, from 3.3 percent.
The economist from DBS Group Research, said: "In the most recent January numbers, Singapore's non-oil domestic exports to China have fallen by as much as 51.6 per cent as compared to 50 per cent to the US. And that contributed to the sharp 34.8 per cent drop in non-oil domestic exports in January, which is the sharpest ever in history."
Meanwhile another financial institute Credit Suisse predicted that some 300,000 jobs from 2009 to 2010, a sobering figures which will cause pains in the local economy.
However at the local NUS`s Economics Department ,they estimated this 2009 losses be at 130,000 if local economy drops by five per cent.
While different Banks and Department have different number all added up to a sobering figures, some derived from various estimations from bottom up or forcast. Though not an exact science, the numbers is bigger than what the policy maker were given.
It is estimated that manufacturing will shed 58,000 job from the closure of mandated downsizing from foreign company.
Some of the least affected are business services and infocomm, which caters to the support industries of any company taking in more duties after retrenching the other.
The analyst are said the construction sector will also continue to generate significant number of jobs due to its healthy pipeline of projects ,the bulk of foreign construction workers mainly taking menial jobs the local dislike.
The healthcare, education and public services - will see an increase in employment partly because of the government's SPUR and Retraining schemes targeting the laid off workers in the 40s.
It also noted that the Jobs Credit Scheme and other measures from the S$20.5 billion Resilience Package will only assist the multidirections contractions brought on by the recession but as a strong wall to prevent it.
The worse is yet to come and the corner has not been reach yet, it warns. More overseas bad news of the market cycle and higher unemployment and more job losses will be inevitable will inevitable reach the local shore.
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