Archive · 29 Dec 2025
Singapore Man's Rs 1.7 Crore Loan Balloons to Rs 147 Crore
A man in Singapore took a loan of Rs 1.75 crore in 2010.
The loan had very high interest rates and fees.
Over time, the debt grew to Rs 147 crore.
The man had to sell his home to the moneylender's director and now rents it back.
The court is looking into whether the loan and rental agreements were fair and legal.
The judge was shocked that a small loan turned into such a huge debt.
The moneylender's director says the man is responsible for his situation, but the court wants to investigate further.
A Singapore man's S$250,000 (Rs 1.75 crore) loan ballooned to S$21 million (Rs 147 crore) due to high interest rates and fees.
The loan had a 4% monthly interest rate, 8% late payment interest, and a S$2,500 late payment processing fee.
The man sold his S$2.1 million (Rs 14 crore) home to the moneylender's director and now rents it back for S$7,000 - S$8,500 per month.
The High Court ordered a retrial to investigate potential illegality in the loan and rental agreements.
The judge found it shocking that a small loan led to such a massive debt and raised concerns about fraud or violations of statutory duties.
- Who
- A Singapore man and a moneylender's director
- What
- A loan debt spiraled out of control due to high interest rates and fees
- When
- The loan was taken in 2010, and the debt reached Rs 147 crore by the end of 2021
- Where
- Singapore
- Why
- Due to high monthly interest rates, late payment interest, and processing fees
- Original Loan Amount
- S$250,000 (Rs 1.75 crore)
- Final Debt Amount
- S$21 million (Rs 147 crore)
- Monthly Interest Rate
- 4%
- Late Payment Interest
- 8% per month
- Late Payment Processing Fee
- S$2,500 per month
- Home Sale Price
- S$2.1 million (Rs 14 crore)
- Monthly Rent
- S$7,000 - S$8,500