Singapore legislation
Regulation 11
Regulation 11
Maximum rate of interest and late interest
Subregulation 1
The maximum rate of interest mentioned in section 36(1) of the Act is the nominal interest rate of 4% per month.
Subregulation 2
The interest charged on the loan is to be computed based on the monthly outstanding balance of principal remaining after deducting from the original principal the total payments made by or on behalf of the borrower which are appropriated to principal.
Subregulation 3
The maximum rate of late interest mentioned in section 36(1) of the Act is the nominal interest rate of 4% per month.
Subregulation 4
The late interest is to be computed based on the monthly outstanding balance of the amount of principal or interest or both that is overdue.
Subregulation 5
To avoid doubt, late interest is charged only on an amount that has fallen due and is not paid.