Singapore Loan Nightmare: ₹1.75 Cr Debt Explodes to ₹147 Cr, Shocks High Court

• A S$250,000 (₹1.75 crore) loan taken in Singapore in 2010 from a licensed moneylender ballooned to S$21 million (₹147 crore) by 2021 due to exorbitant interest and fees.
• Loan terms included 4% monthly interest, 8% monthly late payment interest, and a S$2,500 monthly late-payment processing charge, leading to rapid debt escalation.
• The borrower sold his S$2 million house to the moneylender's director in 2016 to manage the debt, then became a tenant in his own home, paying high rent.
• Despite selling the house, the debt continued to grow, leading to a dispute over unpaid rent and the borrower refusing to vacate.
• The High Court, with Judge Philip Jeyeratnam, called the debt's growth "conscience-shocking" and ordered a retrial, citing concerns of fraud and usury.

Why It Matters: Extreme loan terms can turn small debts into life-ruining liabilities, demanding careful scrutiny.