Credit Culture, Singapore-based fintech that is among the six entities selected as part of a pilot by MinLaw, announces S$40 million (US$29.5 million) funding from Malaysian-listed investment holding company, RCE Capital Berhad.

The funding is to be directed to build up Credit Culture’s operational capability as it gathers pace to be one of the first pilot licensees to operate under the new pilot by the Ministry of Law on new business models for the personal loans industry.

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In December 2018, Credit Culture, which is a subsidiary of Dey Private Limited, was selected as one of six entities that are part of a pilot by the Ministry of Law. The pilot seeks to professionalise the personal loans space.

Credit Culture is said to be the first Singapore fintech startup that provides digital solutions for personal loans.

Founded by a group of former bankers, Credit Culture’s use of proprietary technology allows applicants to apply online using a simplified process. It’s then supported by instant and personalised loan terms from its credit-scoring engine to assess the creditworthiness of a customer instantly.

It proceeds on to allow loan application process that can auto-populate the necessary fields using government sites like MyInfo. The system reduces the need for often cumbersome processes which in turn makes the application more convenient for consumers.

In terms of saving costs, reduced manpower and competitive rates capped at 1% per month once operation begins are what the company offers.

All rates and fees are presented upfront when presenting loan offers so the consumer is able to make an informed decision before taking up the loan. Credit Culture also ensures the removal of high late interest and extra charges for early settlement.

Edmund Sim, founder and Chief Executive Officer of Credit Culture, said that its approach increases transparency and brings costs down.

“This investment aligns with RCE Capital’s core business of providing personal loans and bringing opportunities to the underbanked,” said Shahman Azman, Chairman of RCE Capital Berhad.\

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Credit Culture plans on championing clearing debts towards its consumers and is committed to providing funding options across all income segments.

Image Credit: Credit Culture