Licensed moneylenders offer interest rates almost similar to loansharks

STUNG by new rules on providing loans to home sellers in need of cash, some licensed moneylenders are shifting their focus to giving out personal loans - with high interest rates similar to those of loan sharks.

Under the law, there is no cap on interest for loans of over $3,000. For loans below the amount, the rates are capped between 12 per cent and 18 per cent a year.

However, some moneylenders are charging monthly interest rates of up to 20 per cent - about as much as what loan sharks offer. MORE