The Ministry of Law (MinLaw) made amendments to the Moneylenders Rules in March 2012 to further improve protection for borrowers, especially those in the lower-income group. These amendments will take effect on 1 June 2012.
The amendments are in four main areas:
i. Mandate the use of Effective Interest Rate;
ii. Extend coverage of caps on interest rate, to a larger group of borrowers;
iii. Remove certain fees from list of fees which moneylenders are allowed to charge borrowers; and
iv. Abolish all exceptions to the limits on the amount of unsecured loan that a borrower can obtain.