Many people are irregularly lending money to consumers who are in need or distress and need money immediately.
This business turns out to be quite effective and some have it as an extra income to their work; others as a unique business and, in the same way, there are also those who can form cooperatives among friends or family members to dedicate themselves to this activity.
Most lenders lend at 10% interest, or 0.10 of every dollar, so if a person wants a $20 loan, they will have to pay the borrower $22, which includes the principal and 10% of the biweekly interest. As long as people do not exceed a fortnight.
People who engage in this type of business do so at their own risk because the debtor may at some point decide not to pay them, because there is no law that requires them to do so, because the loan is being made illegally.
Despite being a profitable business, there is no law in the country that regulates this activity, since for loans there are the financial ones that are authorized for this type of business.
Law 69 of September 19, 1978, states that any person, natural or legal, that is dedicated to granting loans or financing as a financier, without complying with the provisions of the law, will be sanctioned by the General Directorate of Trade with fines of not less than 100 dollars nor more than 5 thousand dollars. Here is how to find out more about money lenders https://www.365credit.com.sg/
If the offence continues to be committed, persons engaged in this task shall be punished for the offence of usury in accordance with the Criminal Code.
The term usury is used to designate the charging of excessive or excessively high interest rates above the legally or morally accepted rate and establishes a penalty ranging from 50 to 360 days’ fine or one to six years’ imprisonment.
Mariela Grant, a cashier, said that generally when she has an outstanding balance that she can’t fix before the fortnight days she always borrows from a lender who goes to work.
He indicated that the most he has asked for is 200 dollars, for which he had to pay in less than a month 220 dollars and made them so that he would not have to accumulate more interest and could not pay it.
One lender, she added, has been in business for more than 10 years and has rules such as not lending more than $300, giving more than $150 to certain people, and generally only lending to work and family members.
He assured that his loans are at 10% and that in the years he has had no problems with anyone: all people always pay him off, some do it in periods of several months and others do it all at once.
Another lender, he said, said he’s been a lender for about 15 years and has even done so since before he retired, and that’s extra money for him.
He said he always tries to lend it to responsible people, so that when it comes time to collect their money they don’t come up with strange things and have some problem with that loan.