On Tuesday, a High Court hearing revealed that one man was charged a shocking 240 per cent annual interest on his loan by a licensed moneylender. Too high? Moneylenders and debt counsellors tell NG JUN SEN ([email protected]) that such rates were the norm before new rules kicked in last year
It is a mathematics problem that would scramble the minds of most financial experts.
If one borrows $8,000 at an interest rate of 20 per cent a month, and has paid monthly instalments totalling $76,800, how much longer will it take to clear the debt?
The answer is – possibly never.
This is the quandary one family here is facing after a moneylender here refused to renegotiate the terms of the loan.
The result is that even if they continue paying …
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