Have you ever wondered how licensed money lenders in Singapore know whether or not you are eligible for a loan each time you attempt to get a loan from a legal lender? How exactly does licensed lenders get hold of this information? The straightforward answer to this is the Money Lenders Credit Bureau of Singapore (MLCB), or to be more specific, a MLCB credit report.
We don’t blame you if you have no clue about or haven’t heard of the Money Lenders Credit Bureau of Singapore.
In this article, we’ll shed light on the Money Lenders Credit Bureau, its key role and responsibility, the importance of MLCB reports, as well as how the MLCB report protects borrowers like you and I from overborrowing or overstretching our finances.
What is the Money Lenders Credit Bureau of Singapore?
Designated by the Ministry of Law, the Money Lenders Credit Bureau of Singapore is a centralised data repository of all applications and repayment records of loans with licensed lenders in Singapore.
All licensed lenders in Singapore have to comply with the rules and furnish the bureau with all loan-related data. Anyhow, only data related to borrowers’ interactions with licensed lenders are collected by the Money Lenders Credit Bureau.
The bureau does not collect nor track any form of data from traditional banks and financial institutions in Singapore, such as bank loans or credit card transactions. The bureau also doesn’t make any lending decisions on behalf of licensed lenders.
In case you were wondering, the Money Lenders Credit Bureau of Singapore is under the care of Credit Bureau Singapore.
What role does the Money Lenders Credit Bureau play?
The Money Lenders Credit Bureau’s main role is to collect, maintain and manage an orderly data system that efficiently furnishes licensed lenders with updated information about potential loan applicants’ creditworthiness.
To do this, the bureau needs all legal lenders to turn in information on their borrowers’ loans and repayments regularly.
What’s the Loan Information Report at the Money Lenders Credit Bureau all about?
A borrower’s data at the bureau should be up-to-date and accurate at all times. This allows the bureau to churn out a comprehensive MLCB credit report (i.e. Loan Information Report) almost instantly upon request by eligible parties who have the rights to access it.
Through the MLCB report, licensed lenders can carefully assess whether or not a loan applicant should be given a loan at the time of loan application.
It informs lenders of a borrower’s repayment history, active loans, outstanding balances, and more. It also informs lenders whether they’ve reached the maximum permissible unsecured loan limit in Singapore for loans from licensed lenders.
If it helps, think of the Loan Information Report as a rendition of a credit report. It contains a summary of all your active loans, as reported by licensed lenders in Singapore.
What information is inside the MLCB Report?
1. Personal information
This information includes your full name, NRIC, and Unique Entity Number (UEN) if you’re running a company. You can take a look at a sample report here.
2. Employment details
The MLCB credit report also includes your employment data such as your employment status, who your employer is, your monthly income and average monthly income, your annual income, etc.
3. Loan records
The loan section comprises all the active loans and outstanding balances you have with licensed lenders in Singapore.
It shows details such as type of loan, loan tenure, total payable amounts, total outstanding principal balances, payment status with money lenders, payment history, loan defaults (if any), and status of loan guarantor/ surety (if any).
4. Exclusion records
Did you know you can apply and put yourself on the self-exclusion list for a small fee? The Money Lenders Credit Bureau offers this service to folks who would like to exclude hence prevent themselves from obtaining unsecured personal loans from licensed lenders.
Your MLCB credit report will contain this record, if any. Singaporeans and PRs can choose from a 1- or 2-year minimum exclusion period while that for foreigners is 2 years.
5. Civil judgments-related information
In simple terms, these are final court decisions for loans that are overdue, and long due for payment from the said borrower. These judgments can greatly impact a lender’s decision on whether or not to extend a loan to the borrower.
6. Bankruptcy-related information
Bankruptcy is another component of the Money Lenders Credit Bureau Loan Information Report. Hard truth: it may stay on record for up to 10 long years and it naturally deters future lenders from offering loans to the individual.
How does my Money Lenders Credit Bureau report affect me as a borrower?
Your Money Lenders Credit Bureau Loan Information Report will be taken into serious consideration by a licensed lender when you apply for a loan with them. This is true no matter if you’re applying for a large or small loan amount, regardless of whether the loan is a long-term loan or short-term loan.
With detailed information on your loan history as illustrated in your MLCB report, a licensed lender will determine whether they can approve your loan application or not. In case you’re wondering, the licensed lender will use your Money Lenders Credit Bureau report in conjunction with your income documents when evaluating your loan application.
For instance, your MLCB report will show your total existing loan balances across all lenders (if any) — this helps the lender decide on the loan amount you’re eligible for based on your most recent income documents. The Money Lenders Credit Bureau report serves as a guide to keep your borrowing in check, within limits set under the Moneylenders Act.
On another note, if your MLCB credit report shows that you have an excellent, on-time repayment history for all the loans you’d taken so far, the lender will naturally be more at ease about extending a new loan to you. With this, you might receive quicker loan approval manifested as 1 hour loans, or even preferential interest rates and certain fee concessions.
How and when is my information submitted to the Money Lenders Credit Bureau of Singapore?
The information in your Money Lenders Credit Bureau report is usually up-to-date, and that’s because licensed lenders typically update their loan records directly in real-time, including the updating of loan repayments and their respective amounts. The onus is on lenders to diligently inform the bureau of these information changes!
Who can view my Money Lenders Credit Bureau report?
Only several parties have the rights to obtain and view your Money Lenders Credit Bureau report — (i) yourself, (ii) licensed lenders, (iii) the Ministry of Law, and (iv) the Registry of Moneylenders.
You can access your MLCB report any time you wish, for instance, to check for discrepancies, check on your available loan limits, or to get a better idea on how you can better manage your finances or improve on your budgeting efforts.
However, take note licensed lenders can only request and obtain your MLCB credit report if you apply for a loan from the said lender.
How do I get a copy of my MLCB credit report?
If you’re looking to take up a loan from a licensed lender, you do not need to obtain your own MLCB credit report because the loan company will do so on its own as part of their due diligence process.
However, if you just want to find out more about your credit standing in this area, you can buy your Loan Information Report directly from the Money Lenders Credit Bureau website. You can also get a copy of it in person at the Money Lenders Credit Bureau’s office, or at Credit Counselling Singapore’s office.
How much does a copy of my Money Lenders Credit Bureau report cost?
It costs just S$0.50 to buy your MLCB report, no matter where you’re purchasing it from. This amount is inclusive of GST as well. However, do note that there are no refunds for reports that have already been processed.
Is my data stored securely?
If you’ve got security concerns, rest easy because the Money Lenders Credit Bureau stores all borrowers’ personal information along with the data it receives on secured servers. There are also other safeguards in place to protect against hacks, unauthorised use, theft, and data loss.
How can I improve my credit standing?
To improve your credit standing over time, you’ll need to do your best to repay all monthly repayments on time and keep the number of loans you have to a minimum.
That being said, if you do have a poor credit standing but need to take up a loan right away, check out this article on bad credit loans that may be suited for your situation.
Get the best loan terms with a good Money Lenders Credit Bureau report
If you’re looking to get the best loan terms on a loan, one of your best bets is to have a Money Lenders Credit Bureau report that sits well with the licensed lender. This means a glowing MLCB credit report that’s full of prompt payment records that reflect well on you as a responsible borrower.
Looking for a reputable lender in Singapore? Consider Dio Credit. In the business of legal moneylending since 2013, we boast a loan approval rate as high as 99%, and offer a wide variety of loans for individuals and businesses.
Kickstart your loan application online and our experienced loan executives will get back to you as soon as possible. Otherwise, talk to us or visit us at our office — we are more than happy to answer all your queries.
