2/10/2011

More wanting to set up money lending business

I thought why the sudden interest in money lending and why Singaporeans are suddenly so enthused to want to set up businesses. Then I read in the net that there is this great idea being floated to help the poor Singaporeans to help themselves. It is about the poor oldies who have no money and needed to borrow money to survive. I was told that the scheme is to lend money to these oldies, who must first be over 65 years and be mean tested to be genuinely poor. Then they will be allowed to borrow from their own savings in their CPF accounts, and to pay interest of course. But one more interesting conditon. In order to be finally qualified to borrow from their own savings, they must first contribute 1% of their income, I supposed, to their savings first. Then only they can be allowed to borrow from themselves, or something like that. I also got confused as the logic was simply too brilliant that I am blinded. And why the long queue to set up money lending business? I think all those in the queue must be thinking that if the borrower has to put in money first, then they might as well be around to take the money upfront and talk later. And if the borrower got money to put into their savings accounts, they shouldn't be too risky. Am I right in thinking like that? Did I miss out something? This must be another one of those Uniquely Singapore schemes.

6 comments:

Anonymous said...

We must be the most scheming society on this earth to come out with all these schemes to help citizens.

But if borrowers must first have money to put in, why the hell do they need to borrow? Sounds rather fishy business. Or someone using small fishes to lure big catch?

Chua Chin Leng aka redbean said...

I think the scheme is supposed to work like this. During good time, pay 1% to the CPF and govt also pay 1%. I dunno if the 1% is additional 1% CPF contribution or from the existing contribution. Think must be additional or else where got money to pay for luxury HDB flats. Any way, pay first.

Then sway sway if kenna retrenched or lose job, can then borrow 3 months from own savings in CPF and must return when got reemployed again.

Not bad huh, clever scheme.

Chua Chin Leng aka redbean said...

I think still cannot beat the Medisave scheme where 30K is schemed up front to wait for the future when one may need to be hospitalised. Oops, I mean skimmed off to be put under lock and key, cannot touch till one is in hospital. And if neve go to hospital, pray got children to past down to.

Come to think of it, this may be a good reason to tell the citizen to make babies. No babies, left over of Medisave no one to inherit.

Anonymous said...

Ahhh

I suppose it is to work like a savings account where you put money in for a rainy day. This money will probably be kept apart from the normal CPF contributions.

If that is the mode of operation, nobody will want to put money in. Sway sway one very fine day they hijack this part of your money too and keep it in life imprisonment.

No thanks, I rather put it in the bank, with lower interest, but can withdraw anytime I want.

Anonymous said...

Putting money into CPF is the easy part.

Later, trying to borrow from them may be another story. You know them and their schemes well enough.

Probably will need means testing, checking your bank accounts and all that nonsense.

Express Loans said...

Money Lenders Singapore Association of Singapore was formed and duly registered with the Registrar of Societies on 15th December 2005.