- There is currently a suspension on the processing of new applications for a moneylender's licence.
Which are the six firms that are piloting new business models for moneylending?
The Ministry of Law announced on 11 December 2018 that six firms have been selected to pilot new business models for moneylending, as part of an initiative to better protect borrowers through business-led improvements. These new models include more comprehensive use of data to assess creditworthiness, using digitalized processes to lower cost and giving better terms to those who repay their loans early or on time.
The six firms and the number of moneylending outlets each of them can apply to operate are: a. Credit 21 Private Limited (4 outlets); b. Dey Private Limited (4 outlets); c. IFS Capital Limited (1 outlet); d. Minterest Holdings Private Limited (1 outlet); e. Quick Credit Private Limited (4 outlets); and f. Xingang Investment Private Limited (1 outlet).
The six firms will be issued moneylending licences to operate the outlets they apply for, in a one-time lifting of the moratorium imposed on the issuance of new licences.The licensees will be allowed to operate for up to two years beginning in 2019, following which MinLaw will evaluate the results of the pilot and consider options for refining the moneylending regulatory regime.For more information, please refer to the Ministry of Law's press release.Where can I get a copy of the Moneylenders Act 2008 and its Rules?
You may refer to our website for the links to all the relevant laws and regulations of moneylending.What is the validity period of a moneylender's licence?
The moneylender's licence is valid for a period of 12 months.How much is the application fee for a moneylender's licence?
The application fee for a moneylending licence is $600 and is non-refundable. It applies only to applications for a new licence, but not to renewals of existing licences.
Please note that there is currently a suspension on the processing of new applications for a moneylender’s licence.When do I need to secure a place of business for my moneylending business?
You only need to indicate your proposed place of business when applying for a moneylender's licence. If the Registry finds you suitable to be issued with a moneylender's licence, you will be required to produce documentary evidence of having secured the use of suitable premises for the purpose of your moneylending business, before the licence is issued to you.Will I need a moneylender's licence for my business?
Under section 3 of the Moneylenders Act 2008, any person other than an excluded moneylender who lends a sum of money in consideration of a larger sum being repaid shall be presumed, until the contrary is proved, to be a moneylender. If you are unsure, you should obtain legal advice from your solicitor as to whether your intended business activity amounts to moneylending for which a licence is required.How much is the moneylender's licence fee?
The licence fee is $1,500 per annum.What should licensed moneylenders do if they wish to appoint a new director, manager, partner or sub
All licensed moneylenders must seek the prior approval of the Registrar of Moneylenders before appointing any new director, managing director, manager, partner or substantial shareholder. Please visit our website for the respective links on the application.What are the eligibility criteria for the Moneylender’s Test?
Please refer to our website for information on the eligibility criteria for the Moneylender’s Test. *Please note that there is a current suspension on the processing of new moneylending licences.