What Is The Money Lender Credit Bureau?

The Moneylenders Credit Bureau (MLCB) is a go-to solution for licensed money lenders before issuing loans. 

Borrowers often do not understand the relevance of the bureau and, as a result, come across many loan rejections.

Before taking a loan, money lenders will ask you several questions, such as the type of loan facility you want and your intention. This allows the lender to determine if you are the right fit. 

Once they confirm your identity, sanity of mind, and genuine intention, the licensed money lender checks your loan history with the Moneylenders Credit Bureau.

The MLCB contains a comprehensive loan history of a borrower, among other things. 

The borrower’s history includes details of how timely repayments are made, outstanding balances, and active loans. This history is essential to help money lenders steer clear of defaulters.

This article will tell you more about what is the Money Lender Credit Bureau and how it can benefit the money lender and the borrower.

What Is The Money Lender Credit Bureau? 

Formed in March 2016, the MLCB is a central (personal and credit data) information system for licensed money lenders in Singapore. 

The MLCB updates, stores, safeguards, and processes borrower’s details to promote ethics and accountability.

Money lenders can use the MLCB borrowers’ details to reveal several things about the borrower, such as bankruptcy and default judgments. 

Currently, every licensed money lender has embraced MLCB consulting as part of its lending procedure.

The MLCB was created to serve Singapore’s lending industry through an act of parliament. The Ministry of Law oversees the MLCB’s implementation through the DP Information Group.

 The DP Information Group (DP Info) designs, develops and maintains the repository for the Ministry.

How The MLCB Works

As mentioned above, the MLCB provides moneylender reports to other licensed money lenders. The licensed money lenders have a legal mandate to report to the MLCB on borrowers and loans offered. 

Once a money lender offers a loan facility or receives repayments, it records the transaction. The borrower’s information must then be uploaded to the MLCB so that the other money lenders can access it if necessary.

Money lenders can reliably use the data per the MLCB to calculate a borrower’s creditworthiness, given its extensive sources. 

This data is what gives birth to an instrument known as the credit report or Loan Information Report.

Loan Information Report

A Loan Information Report is the compiled borrower information on loans by licensed money lenders. 

It allows money lenders to establish a borrower’s credit position before creating a loan offer. 

And for the borrower, it prevents them from getting into more debt by restricting the number of loans one can take.

The MLCB report should include information on the most recent loan transaction to allow for clarity and accountability.

Borrowers can view their loan payments and request at any moment, at a minimal charge. They are also entitled to at least one credit report annually. 

What Is Included In A Loan Information Report?

A Loan Information Report is divided into the following sections:

Personal And Employment Data

Personal data captured in the MLCB report includes the borrower’s name, NRIC number, and Unique Entity Number. 

As for the employment data, there is the type of employment, income, and last updated date.

Self-Exclusion Listing

A self-exclusion listing lets clients register themselves for exclusion from unsecured personal loan applications (apart from debt consolidation loans).

Type Of Loan

The loan type section displays all existing or active borrower loans, unsecured or secured. The loan amounts are divided into total payable, total outstanding balance, and reverse sum.

The total payable amount is the owed balance amount, including fees. The total outstanding balance is the amount due (principal), and the reverse sum is the submitted request by a money lender.

Payment Status And Legend

This last section shows the borrower’s repayment record over 12 months.

Should a borrower skip payment for one month, the record is found here. For better loan standing and reputation, make your payments promptly.

The payment section is only for unsecured loans.

How Often Is The Loan Information Report Updated?

Most loans taken with money lenders, whether licensed or unlicensed, are for emergency purposes. 

Thus, there ought to be a credit reporting system that is accurate and up to date.

The licensed moneylending industry in Singapore allows for prompt loan information updating through the MLCB. 

As soon as a borrower makes a loan request or payment, the money lender makes a record which it then shares with the MLCB.

The MLCB processes, compiles, and updates the information over a brief period, usually not exceeding a day. 

The fast updates allow money lenders to make informed decisions while protecting their clients and business.

Who Can Access The Report?

Your loan information report is rigorously stored and managed. The only parties who have access to it are:

  • Borrowers 
  • Registry of Moneylenders
  • The Ministry of Law
  • Licensed money lenders

Borrowers access the report to check on their credit position before requesting for financing. 

Licensed money lenders usually access it when clients request a loan and report. No other unauthorised persons have access to the credit reports.

How Does The Report Affect You As A Borrower?

Sometimes, in the lending industry, the borrower’s word is not enough. There has to be proof of steadfastness.

A credit report has details of a borrower’s existing loans. 

Based on his or her income and existing loans, the money lenders can calculate the principal loan amount to give and the fees to charge – the more the existing loans, the lower the ensuing loan limits.

A borrower receives a high or low credit score, depending on the report. The credit score warns the lender so it is aware of borrowers who pay and those who default.

A credit report also bars borrowers from accessing several loans simultaneously. Lenders can access the list to check whether a borrower already has a similar loan with another money lender. 

This prevents a situation where the borrower has so many loans and cannot pay according to their income.

A good credit report is crucial as it increases your chances of getting a loan. Likewise, a good loan report increases the lender’s confidence in you, and results in higher loan approvals. 

Lender reporting and consultation have helped reduce the loan defaulting rate in Singapore.

Checking Your Loan Information Report

Checking a credit report in Singapore is straightforward, yet most borrowers only check it if they need a loan.

If in Singapore, follow the steps below to check your report:

  • Visit the Singpass site. 
  • For first-time users, create a new account. If you already have an account, proceed to log in. 
  • Fill in your details. 
  • Choose the credit report you want, following the system prompt. 
  • The system will direct you to the relevant agency’s site, depending on your choice. 
  • Fill in your details again. 
  • Confirm the information is correct. 
  • Submit to receive your report. 

Make sure to request a credit report at least once a year to prevent identity theft. Checking your credit report also helps one to plan for a future loan undertaking and gives you peace of mind.

Should you find any inconsistencies in your report, contact your licensed money lender for queries.

For fast processing with your Loan Information Report, you can also contact the MLCB or call +65 6565 6363 for assistance.

You can also get your credit report at their offices during business hours.

Improving Your Credit Score

To improve your credit score, plan before you borrow. A sound repayment plan should precede the intention to take the loan. 

You can also improve your credit score by making prompt payments. 

As mentioned above, your credit report has a timeline for your monthly repayments. Do not delay in making any payment or default on your loan. 

Defaulting lowers your credit score and your chances of ever getting another loan.

If you lack the means to follow through with your payments, contact the relevant agencies for debt consolidation arrangements.

The MLCB Helps Borrowers And Lenders 

The MLCB helps licensed money lenders manage borrowers’ information through reporting.

The MLCB also makes it easier to get a credit report. The credit report plays a significant role in the lending industry of Singapore. 

If you have poor credit history issues, visit the Horison Credit office at People’s Park Complex or call (65) 6844 2902.

Horison Credit is a reputable licensed money lender and loan advisor of choice in Singapore. We tailor our loans according to clients’ needs. 

Contact us now or apply for a loan with us today.

 

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