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NICOLAS CARY

NICOLAS CARY

Nicolas Cary, Co-Founder & President, Blockchain


Nicolas Cary is a serial entrepreneur and lifelong technologist. He attributes much of his insight to his personal journeys around the world.

KEVIN GOLDSMITH

KEVIN GOLDSMITH

MEETING MORE OF THEM AT BUSINESS ROCKS”
Kevin Goldsmith, CTO, Avvo, Inc

Kevin Goldsmith is the Chief Technical Officer at Avvo in Seattle, overseeing all Research and Development, Data Engineering, Dev Ops and IT teams.

DR. VIVIENNE MING

DR. VIVIENNE MING

Named one of 10 Women to Watch in Tech in 2013 by Inc. Magazine, Vivienne Ming is a theoretical neuroscientist, technologist and entrepreneur.

She co-founded Socos, where machine learning and cognitive neuroscience combine to maximize students’ life outcomes.

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Articles

The Effects of Lowering of Unsecured Loan Limit

Unsecured Loans are often the bread and butter of many individuals living in Singapore. It is a way for them to survive the high cost of living in Singapore.

The MAS has allowed individuals to obtain personal loans when they have the best need it. However, the recent guidelines have shown that they are going to reduce the loan limits further.

Historical Loan Limits

If you want to know the historical loan limits, they are the following:

  • The original loan limit is up to 24 times the monthly limit.
  • Since 2015, the unsecured loan limit has been reduced from 24 times the monthly limit to 18 times in 2017.
  • By 2018, the unsecured loan limit is reduced to up to 12 times the individual’s monthly income.

The main purpose of this requirement is to make sure that the individual would have the capacity to pay his loan and not be too unduly burdened by it.

The basis of the rule is simple. If there are only 12 months in a year, there is no sense in allowing the borrower to obtain up to 24 times his monthly income as that is an undue burden.

The Statistics

The Credit Bureau of Singapore has released the following information about the credit situation in Singapore.

  • There was a 6.65% increase in the total number of new credit applications in the second quarter of 2018 over the first quarter of 2018.
  • Personal loan applications also have the highest growth of 11.4% increase from last quarter.

Is there a limit to the limit? Yes. The rule on monthly limits does not apply if the unsecured loans are for the following situations:

  • When it is intended for business, and there is a requirement and business plan submitted;
  • When it is to be used for medical purposes;
  • When it is intended for educational purposes; and
  • Those borrowers who have an annual income of at least S$120,000 and borrowers with net personal assets exceeding S$2 million.

Math Logic

Let us discuss the mathematics in this new limit:

Before, if you have a monthly income of S$5,000, it means that your new limit is up to S$60,000. If you have at least three credit cards with different financial institutions, you should have only had an outstanding balance totaling S$65,000.

Today, if you have a problem with an outstanding balance that exceeds S$60,000 or at least 12 times your monthly income for the last three months, you will be suspended and cannot charge any new loans until you have paid off your loan up to less than your outstanding balance.

Is this the only limit that I must look out for?

No, the MAS has implemented the Credit Limit Management measure to cap the additional unsecured credit. This is done so that the institution may extend to a borrower only those whose outstanding unsecured debts exceed six times his monthly income at the start of the year. This tight threshold is to make sure that the individual would have the capacity to pay off his debts and not have too much of it.

Are the measures for unsecured loans effective?

The MAS would always study the system before they are required to the public. They are characterized by the following:

  • They are well-founded and have undergone an excessive system of study.
  • They target individuals with excessive debt, not to mainly prevent them from loans but to help them get out of debt.
  • They target individuals to restrain them from having to borrow more.
  • This is to prevent them from the risk of being in default and delinquency.
  • Finally, the measures are intended to prevent the borrowers from being declared in bankruptcy.

What is the end game?

In terms of the banks and the banking systems, the banks are aided from their high exposure to high-risk borrowers.

The end game is to make sure that there will be greater stability of the financial system in Singapore. The truth of the matter is that there are not a lot of people who support the new guidelines, but this is for the good of Singapore.

If you are affected by the above regulation, you can always get a loan from licensed moneylenders as they have their own loan limits which is different from banks. Visit Smart Loan financial directory for reviews on licensed money lenders to get the best loan rates possible.

Should You Take That Personal Loan?

When it comes to handling finances, everybody eventually needs help. In the last decade or so, personal loans have become very popular in Singapore.

However, even with all of the money saving tips and money handling tips that can get found online, personal loans are still very much active in financial handling.

What Is A Personal Loan?

A personal loan is an unsecured loan. It is the kind of loan you apply for when your main purpose is for use for one’s purposes like traveling, schooling, or shopping. The bank usually does not ask for any explanations of why the person would need a personal loan. If you have bad credit, you may want to approach a legal moneylender. Visit www.filife.com to apply for a loan with licensed money lender.

What Are The Characteristics Of A Personal Loan?

The following characterizes a personal loan:
● It is unsecured, which means that the bank does not ask for any property upfront to act as collateral of the borrower.
● The interest rates of personal loans are usually higher than those on secured loans since the banks are taking more risks with it.
● Interest rates are short term. They typically become due and demandable between 1 to 5 years.

How Does One Qualify For A Personal Loan?

To qualify for a personal loan, a bank only need to determine the limitation of the individual’s personal credit. This means that the person’s monthly income gets multiplied to a certain number, which is usually the number five. If your monthly income is S$1,000, you are eligible to borrow up to S$5,000.

What Are The Disadvantages of Taking Personal Loan?

Taking a personal loan has the following disadvantages:
● Banks usually charge an annual fee during the duration of the loan. This amount can be as low as S$50 a year.
● Personal loans have an interest rate between 9% to 18%, so borrowers usually pay so much more for their travels or for that piece of dress that they bought for the personal loan.

When Should You Consider Taking a Personal Loan?

Since personal loans have less stringent requirements, and every person with an income can easily get five times his monthly salary, it is tempting to apply for it. However, not everybody should ask for it.

If you are looking for some good scenarios where taking a personal loan would not be a bad thing, the following should provide answers.

● When choosing a personal loan could help you out with debt consolidation. Debt consolidation is just the process of merging outstanding loans and making them payable in one secure installment scheme. This usually comes at a lower interest rate and gives more advantage to the borrower.
● Credit card debt payment is another good reason. If you have a significant credit card debt, you can cover it and get rid of those high-interest rates through a personal loan.
● When you are planning on venturing in a new small business, a personal loan could help add to your capital.

If you can control yourself with your personal loan and make use of it for your advantage rather than merely purchasing items that depreciate in time, then a personal loan is right for you. Make sure that you contact Singapore banks or money lender directory to compare and contrast their loan rates!

Innov8 award 2017

Business Rocks is empowering the future of technology and our INNOV8 Award & new INNOV8 Coaching Programme for 2017 is here to empower start-ups founders and help them leave our festival with the key skills, advice and possibly investment to take their start-up to the next level.

We have listened to the start-up community and the problems they have with other competitions and have re-designed our INNOV8 Award judging criteria so start-ups can be judged on “what you’re doing now” and “what you plan to do next”. This is your time to shine in our Business Rocks Spotlight.

Those who founders who know their stuff and pitch well to our industry experts, investors & tech leaders will go far, it doesn’t matter if you have only be founded for 5 weeks or 5 years everyone is in for a chance to win the INNOV8 Award 2017.

The INNOV8 Award is for unique, diverse & creative technology start-ups who will go up against each other in a fierce competition to win £100,000 investment* & prizes from Business Rocks & our Innov8 Partners.

The INNOV8 Award is split into 4 rounds and our new INNOV8 Coaching Programme for our start-up community at #BR2017.

HOW TO ENTER THE INNOV8 AWARD 2017?

All Start-ups wishing to enter the INNOV8 Award will need to exhibit within the Start-up Village at #BR2017.
Start-up Pods are only £500 with several #BR2017 Start-up Exhibitor benefits including:

• Access to Investor Connect Zone & Programme which includes meetings rooms, investor lounge, speed networking and investor Q&A circles across 3rd & 4th May
• Access to pre-booked meetings with our community of global VC’s & investors
• Hustlers Connect – Networking session with all our exhibiting start-ups, investors & mentors on 3rd May.
• Support from #BR2017 Team – Tell us your news, PR stunts, social campaigns as we like to support our community and help you gain more exposure at the festival.
• Access to INNOV8 Coaching Programme on 4th May
• Entry to the INNOV8 Award 2017**

PRE-FESTIVAL PITCH DECK ROUND

Three weeks prior to #BR2017, start-ups wishing to enter the INNOV8 Award will submit their pitch packs to the INNOV8 team to be vetted against our new judging criteria.

An outline of the judging criteria will be sent directly to each Start-up Founder from February 2017.
The week prior to the Festival, start-ups who have made it into the live Pitch Rounds will be contacted directly by the INNOV8 team.

The INNOV8 Competition will be only taking 40 start-ups into the live Pitch Rounds – Start-ups wishing to enter should submit your pitch deck on time and read the judging criteria.

Those start-ups exhibiting who do not make it through this round will be enrolled into our INNOV8 Start-up Coaching Programme on 4th May 2017 and will still be able to access the Investor Connect Zone.

HUSTLERS CONNECT

Our exclusive start-up & investor networking session for our #BR2017 start-up community. Held in our INNOV8 Stage as our community relaxes post a busy day of pitching, meetings & unforgettable experience at #BR2017.

The Hustlers Connect session will be a community of global investors, advisors, mentors and all our start-ups as we allow you to connect and chill with beers and live music.

Our Head Innov8 Judge & Advisor will announce the best 10 start-ups semi-finalists of the INNOV8 Award 2017 plus some other awards for our #BR2017 start-up community with our INNOV8 Start-up Awards from “Gift of the Gab”, “Best Start-up Stand” to “Best Pitch Blunder of the Day”.

DAY 2 MORNING (4TH MAY 2017) – SEMI FINAL PITCH ROUNDS

Day 2 will see our 10 semi-finalists head back to our INNOV8 Stage for a morning of intense pitch battles. With a brand new panel of judges who will be tasked with the hard job to find our 3 INNOV8 Finalists 2017. The semi-finals will be 5-minute pitches & 5 minute question time.

Pre our Headline Keynote on day 2, our Business Rocks Founder – Jonny Cadden – will announce on the Headline Stage who will be heading into INNOV8 Award Finale at 16:00 that same day.

DAY 2 AFTERNOON (4TH MAY 2017) – FINAL PITCH ROUNDS

The final of the INNOV8 Award will start at 16:00 in our Headline Stage that can seat over 800+ of the #BR2017 Festival Community. We will bring in an elite panel of judges specially selected for our final pitch rounds for increased scrutiny on our 3 start-ups.

The winner will be selected live by our panel and the award will be presented by the Jonny Cadden, Founder, Business Rocks & our INNOV8 Sponsor.