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Comprehensive Guide To Understanding Moneylenders Credit Bureau Report (MLCB)
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Introduction: What Is Moneylenders Credit Bureau Report?
The Moneylenders Credit Bureau Report (MLCB) is crucial. Why? Since July 1, 2021, for the moneylending businesses, the Ministry of Law (MinLaw) has designated CBS as the new operator of the Moneylenders Credit Bureau (MLCB) by providing comprehensive information about an individual's loan history, credit standing, and financial situation.
This report is a central repository of data that enables moneylenders to make informed lending decisions in real-time. This guide aims to provide a comprehensive understanding of the MLCB, highlighting its key components and how it impacts loan applicants.
Additionally, we will explore how the MLCB benefits both moneylenders and borrowers by promoting a hassle-free and fair loan assessment process while safeguarding against loan defaults and unethical loan sharks.
Why Is The MLCB Important?
One of the key reasons why the MLCB is important is that it provides a detailed (existing) loan payment history. Moneylenders can access information such as loan obligations, outstanding loans, overdue loans, and additional loans taken from licensed moneylenders in Singapore.
The MLCB also increases eligibility for loans by providing a clear overview of an individual's or company's loan-related activities. Moneylenders can gain insights into the borrower's loan application details, loan types, borrowing limits, and personal information. This helps them determine whether the borrower meets the necessary criteria for loan approval. We will take a deeper look into each component later in the article.
It also highlights any civil judgments and bankruptcy history, giving moneylenders a holistic view of the borrower's financial track record.
Overall, the MLCB is important because it enables moneylenders to make financial decisions for loans based on accurate and up-to-date information. It also empowers borrowers by providing them with a comprehensive view of their loan payment behavior, helping them manage and improve their credit standing in the long run.
Check out here for the list of licensed moneylenders in Singapore. It is important to note that the report is in real time, so any loans taken even a minute ago will be reported in your MLCB. This is different from CBS, which may take time to update.
Does MLCB Report Affect My Business Bank Loan Application?
Read also: Understanding Your Credit Report from Credit Bureau Singapore - Business Owner Edition 2023
Identifying Information On MLCB Report: Essential Components
Personal Details and Employment Information
Having accurate personal details is essential for moneylenders to verify an applicant's identity and ensure that they are eligible for loans. Identification number, such as NRIC, is used to authenticate individuals and prevent fraud in the moneylending industry. Employment particulars, such as the name of the employer and monthly income, help moneylenders evaluate an individual's financial situation and determine their ability to repay loans. You can find them in the very first section of the report as below.
Exclusion List
The Exclusion List is a crucial feature of the Moneylenders Credit Bureau Report (MLCB) that allows individuals to register and exclude themselves from applying for unsecured personal loans from licensed moneylenders. This gives individuals more control over their borrowing options, specifically excluding debt consolidation loans.
To self register for the Exclusion List, individuals need to follow a few simple steps. Find out more about the steps here.
How To Register For A Self-Exclusion Listing
Individuals who have Singpass can utilize the Moneylenders Credit Bureau website to apply for self-exclusion.
If you don't have Singpass but know someone who does, they can help register you with the Moneylenders Credit Bureau.
Make sure your documents are ready before allowing someone to submit them online for you. Here's how.
- To register or withdraw from the Self-Exclusion Listing, you are required to submit a signed authorisation form.
- Provide evidence to confirm your identity for the purpose of seeking exclusion.
The exclusion will be implemented only after the MLCB has reviewed and verified the submitted materials for third-party registrations.
After the implementation, you and the authorised individual should receive an email updating you on the registration’s progress.
Effective Period Of Self-Exclusion
Individuals whose names are on the Self-Exclusion Listing, but whose exclusion period has expired, are eligible to have their names removed. Singaporean citizens and permanent residents have the option to select an exclusion period of either one or two years when they register. Exclusion periods for non-citizens must be a minimum of two years.
Costs Of The Self-Exclusion Listing
To add or remove your information from the Self-Exclusion Listing, Singpass holders are required to pay a fee of $3. There is a $5 fee for a representative to register or withdraw on behalf of a foreign national without Singpass. The costs for both choices include GST.
By excluding debt consolidation loans, individuals can prioritize their financial responsibilities and make more informed loan decisions.
Loan Type
The MLCB includes various loan types that provide a comprehensive view of an individual's borrowing history.
This section presents an overview of your current loans with other licensed moneylenders in Singapore. Reports are typically updated in real-time or on a "live" basis.
Legend
The Legend section of the Moneylenders Credit Bureau Report contains various components that provide important information about the individual's credit history. Understanding the meanings and representations of these components is crucial in comprehending the report's contents.
You can view the "Legend" section as follows.
Benefits of Using The MLCB Report
For borrowers, the MLCB provides transparency and accountability, enabling them to understand their own credit standing and take necessary actions to improve it if needed.
The MLCB report includes details about loan application, loan type, loan payment history, outstanding loans, and overdue loans. It also provides information on loan payment behavior, such as whether payments were made on time or if there were instances of default. These insights into a borrower's credit history and financial behavior enable money lenders to assess the creditworthiness of loan applicants and calculate their chances of loan approval.
In addition, the MLCB report plays a vital role in determining the borrowing limits of individuals and companies. The report includes information on loan obligations, loan terms, and aggregate loan amounts. Money lenders can use this information to determine the appropriate loan amount that an individual or company can handle based on their current financial situation.
Maintaining a good credit standing and managing loan responsibilities effectively are crucial for individuals and companies alike.
Insight Into The Moneylending Industry As A Whole
To maintain consumer protection and uphold fair lending practices, the moneylending industry in Singapore is closely regulated by the government. The Ministry of Law imposes strict regulations on interest rates, loan application procedures, and debt collection practices. These measures ensure that borrowers are not exploited by loan sharks or subjected to unfair lending terms.
For borrowers, it means having access to legitimate and licensed lenders who prioritize transparency and fair loan assessment.
For moneylenders, understanding the industry ensures compliance with regulations and ethical lending practices. It allows them to assess borrowers' creditworthiness accurately, and prevent overborrowing or potential loan defaults.
For the government, understanding the moneylending industry helps in monitoring and regulating the sector effectively. It allows the government to identify potential risks, implement necessary measures, and protect consumers from illegal moneylenders or exploitative lending practices.
How to Obtain a Credit Report from the MLCB
Let's explore the steps involved in obtaining a credit report from the MLCB and the benefits it offers to both borrowers and moneylenders.
Step-by-Step Guide
- Visit the MLCB's website and fill out the request form.
- Verify your identity with your NRIC number.
- Get your credit report by email after verifying and paying the fees.
Conclusion: Understanding MLCB Numbers and Terms
Here is a helpful guide for you about the MLCB's important numbers and terms.
Credit Score: The four-digit numbers that are used to assess your creditworthiness.
Credit History: Documentation of your previous borrowing and repayment patterns.
Loan Default: A chronology of unpaid loans.
Outstanding Debt: The overall amount you currently owe.
Remember that knowing your credit score is the first step to financial empowerment. It helps you make better decisions and ensures long-term financial health.
Frequently Asked Questions
What steps can be taken to improve my credit standing?
Improve your credit score by borrowing only what you can comfortably repay and making timely payments on all loans. Any late or missed payments will be noted in your loan history.
What is the borrowing limit from Licensed Moneylenders in Singapore?
There is no borrowing limit for Secured Loans. For Unsecured Loans, Singapore Citizens and Permanent Residents can borrow up to S$3,000 if their annual income is below S$20,000 or up to 6 times their monthly income if their annual income is S$20,000 or more.
Are my bank or credit card loans included in the report?
Only loans from the list of Licensed Moneylenders in Singapore will be included in your loan information report.
Where can I obtain a copy of my Loan Information Report?
To obtain a copy of your Loan Information Report from Moneylenders Credit Bureau (MLCB), visit here.
Does MLCB affect my business loan application?
To obtain a copy of your Loan Information Report from Moneylenders Credit Bureau (MLCB), visit here.
Need help with applying business or personal loans in Singapore that moneylenders offer? Discover the most competitive rates and ideal matches just for you. Reach us for details today!
Read also: Understanding Your Credit Report from Credit Bureau Singapore - Business Owner Edition 2023
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