SINGAPORE'S moneylenders' credit bureau will begin operations next year, DP Information Group (DP Info) said on Thursday.
DP Info has been appointed to run the new credit bureau.
The Ministry of Law (MinLaw) will require all licensed moneylenders to provide information of their loans and the payment behaviour of their customers to the bureau. This information can then be accessed by other licensed moneylenders when evaluating a credit application.
This fixes a problem now, where an individual may approach different moneylenders to take out multiple loans and moneylenders have no access to information on whether the borrower is overstretched.
Information on borrowers will not be made available to other entities besides licensed moneylenders, unless MinLaw grants approval.
Said Lincoln Teo, chief operating officer of DP Info: "The information provided will help promote responsible borrowing. The transparency also means that individuals, when seeking to buy a credit product from a moneylender, will be more likely to take their personal and financial circumstances into account when making their decision. This initiative will eventually see a reduction in the number of defaults."
DP Info currently operates two other credit bureaus - the DP Credit Bureau and the DP SME Commercial Credit Bureau.