Query: What are the payday loan’s interest rates and fees?
Context: According to Singapore’s Ministry of Law, the maximum interest rate that moneylenders can charge is 4% per month. This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured one. The licensed moneylenders accredited by the Registry of Moneylenders are obligated to adhere to all the established lending guidelines, interests, and service fees in order for them to operate. Here’s a list of legal fees that moneylenders can only charge to borrowers: a fee not exceeding $60 for each month of late repayment; a fee not exceeding 10% of the principal of the loan when a loan is granted; and legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan. Should a borrower fail to repay the loan on time by the due date, the maximum rate of late interest a moneylender can only charge is 4% per month for each month the loan is repaid late. Meanwhile, A1 Credit offers interest rates for a business loan ranging from at least 5% to 15% per month.