loan market concept

Singapore’s Loans Market Favours Both Moneylenders & Borrowers

Last year, the loans market in Southeast Asia trended towards the positive. While Singapore has had quite a consistent credit landscape for decades, loan transactions have been getting smarter and accommodating in recent years. As Mondaq highlights in a recent update on the outlook of the loans market in 2020, Singapore is on course to keep providing a steady deal flow. And, that covers both domestic and equity-backed cross-border transactions.

Mondaq is also keen to mention Singapore as remaining among the key players in the loans market in this region. This stems from Singaporeans being the most dependable borrowers in loan repayment. They are also well-versed with loans and acquisition regulations. Together, these two qualities of Singaporean borrowers encourage lending institutions to offer better credit facilities and support.

Talking of credit support

It is not enough to just have institutions with high lending capacities. Without the right structures in place, it is easy to lose sums to projects that lose money. It is for that reason that lending institutions also invest in understanding their borrowers’ needs. Only that way can the lending institutions create solutions that will not only meet these needs but will also streamline lending regulations. If financial institutions make every revision of lending and acquisition regulations with improving the living standards of their customers in mind, they will soon see their client’s lives getting better.

These moves will help increase the nation’s per capita income since they will encourage an increase in investments and a near-zero unemployment rate. Low interest stemming from a strong economy will encourage other countries to borrow from licensed moneylenders in Singapore and even invest here. Transparency in lending and loan processes serve as the best support to lenders and their customers.

But what is the place of the lender?

couple talking to a lenderCollectively, lenders have played a critical role in streamlining the loans and acquisition market in Southeast Asia, particularly in Singapore. They have championed moneylending practices that are more flexible, progressive and modern. As a result, this move has safeguarded the interests of the lenders and the borrowers, specifically, acting as the primary mechanism for consumer protection. Moneylenders channeled regulatory attention into creating policy parameters that will strengthen Singapore’s moneylending landscape.

However, it is only through the combined effort of market regulators, banks and private lenders that the loans market enjoys such an achievement. The consumer is currently at an advantage, now that there is regulated restriction on moneylending fees and capping of loan rates.

Conclusion: More good news to consumers

Borrowers in Singapore or from Singaporean lending institutions now have every reason not to stress too much over loans. Lenders are committed to having a formalised restructuring of debts to help borrowers repay their loans. Regulators also encourage lending institutions to observe the acceptable practices they have stipulated for debt collection. Moneylenders are now also open to educating borrowers on how late repayments affect their overall debt, before lending them more amounts. Better still, there are more and more licensed moneylenders in Singapore that are willing to offer second-chance loans.

Thanks to these efforts, Singaporean borrowers can truly use credit as a means to get ahead in life.

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