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Information for Moneylenders

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1. How do I start a moneylending business?

[Please note that there is currently a suspension in the processing of applications for new moneylender licences. Please click here for more information.]

 

To start a moneylending business, you are required to do the following:

 

i) Register a sole-proprietorship or a partnership, or incorporate a company wherein the principal activity of the business entity is “moneylending”; and

 

ii) Apply for a moneylender's licence from the Registry of Moneylenders.

 

You, or the person who will be responsible for the management of the moneylending business, also will be required to pass the moneylender's test on the Moneylenders Act (Cap.188) and Rules conducted by the Registry of Moneylenders. It is advisable that you be familiar with the provisions of the Moneylenders Act (Cap.188) and its Rules, which can be obtained from the following sources:

 

i) Online at http://statutes.agc.gov.sg/; and

 

ii) Toppan Lee Fung Pte. Ltd. Legal Publishing (website:www.toppanleefung.com/webshop)

2. How do I apply for a moneylender’s licence?

[Please note that there is currently a suspension in the processing of applications for new moneylender licences. Please click here for more information.]

 

Persons responsible for the management of a moneylending business should be familiar with the provisions of the Moneylenders Act (Cap.188) and the relevant legislations. In this regard, a person who will be responsible for the management of your moneylending business will be required to pass the moneylender's test conducted by the Registry of Moneylenders.

 

 

Moneylender's Test

To be eligible to for the test, the candidate must possess a minimum of 4 GCE ‘O’ Level credit passes that includes a credit pass in English as the first language. A non-refundable test fee of $130 (inclusive of GST) shall be payable per attempt per candidate. You may click HERE to access the Moneylender's Test Booking System to register for a test slot.

 

 

Moneylender’s Licence Application

If the person, who will be responsible for the management of the moneylending business, passes the moneylender's test and the Registry finds the person suitable for the moneylending industry, your business entity will be invited to submit an online application. You may click HERE to access the online application. 

 

In addition to having a person responsible for the management of the moneylending business passing the moneylender's test, the following are criteria for the grant of a moneylender's licence:

 

i) the applicant and every person who is or will be responsible for the management of the business must:-

 

  • be ordinarily resident in Singapore;
  • be of good character;
  • be a fit and proper person to carry on the moneylending business;
  • be at least 21 years old; and
  • be familiar with the provisions of the Moneylenders Act and its Rules

 

ii) the proposed business premises has been deemed suitable by the Registrar for the conduct of the moneylending business; and

 

iii) a security deposit of $20,000 for every place of business for ensuring the proper conduct of the moneylending business has been placed with the Accountant-General. The security deposit is to be provided in the form of an irrevocable Banker's or Insurance Guarantee upon approval of your application. 

 

Application Fee
The $600 (inclusive of GST) non-refundable application fee is payable upon the submission of your application.

 

Licence Fee 
The moneylender’s licence fee is $1,320 per annum, which is payable upon approval of your application. Payments can be made electronically via LicenceOne by eNets Credit/Debit or Internet Banking.  

 

Other relevant legislations

You may find a copy of the Moneylenders Rule 2012, the Licensing Conditions and the Advertising Directions HERE.

 

3. How do I apply for additional place(s) of business?

 

[Please note that there is currently a suspension in the processing of applications for new moneylender licences. Please click here for more information.]

 

Under section 10 of the Moneylenders Act, licensed moneylenders may operate from more than one location with the approval of the Registrar of Moneylenders. If you wish to apply for approval to carry on business at additional place(s) of business, please complete and submit an application via eServices

 

Upon approval, you will be required to:

 

i) place a security deposit of $20,000 with the Accountant-General in the form of an irrevocable Banker’s or Insurance Guarantee for every additional place of business; and

 

ii) pay a prorated additional licence fee of $110 per month based on the unexpired months of your current moneylender’s licence for every additional place of business.

 

The renewal for approved additional place(s) of business will be processed concurrently with the renewal of moneylender’s licence: see section below “Renewal of Licence”. The additional licence fee payable for the renewal of approved additional place(s) of business will be $1,320 per annum for every additional place of business.

 

Do note that the approval of all additional place(s) of business (including renewed approvals) will terminate upon the expiry or revocation of a licence.

4. How do I update my company’s or licensee’s particulars?

Please submit an online application at LicenceOne for the following updates:

 

i) Change of company/ firm/ business operating address;

 

ii) Change of company/ firm/ business name;

 

iii) Change of company/ firm/ business contact details;

 

iv) Change of bank account information;

 

v) Appointment of agent to manage business in place of sole-proprietor or partners who are individuals;

 

vi) Appointment/ admission of new director/ managing director/ partner; and

 

vii) Resignation/ withdrawal of director/ managing director/ partner.

 

For update (i), the licensee will be required to obtain a copy of the letter of approval from the landlord of the proposed premises for a moneylending business to be conducted and for signage to be displayed conspicuously at the business premises. The letter of approval must be forwarded to the Registry within seven days of the online application, failing which the progress and outcome of which can be adversely affected. Please note that a tenancy agreement is not required to be submitted to the Registry at this juncture.

 

After the Registrar has deemed the proposed premises to be suitable for moneylending business to be conducted, the licensee will then be required to forward to the Registry the following documents:

 

i) A copy of the tenancy agreement of the premises covering the entire/ remaining licence period;

 

ii) A copy of the proof of ownership of the premises in the form of property tax or strata title deed.

 

Do note that for updates (i), (ii), (v), (vi) and (vii), you must first submit the online application and obtain approval from the Registry of Moneylenders before you proceed with the update/changes. After you have received the approval from the Registry of Moneylenders, you may then update this information with the ACRA.

 

For updates which involve the allotment of new shares/transfer of shares/resignation of shareholder(s)/inclusion of new shareholder(s), please write in to the Registry via e-mail to seek the prior approval of the Registrar with the following information:

 

i) A clear copy of an up-to-date identification card of the transferor and the transferee (if applicable); and

 

ii) Number of shares to be transferred/ allotted.

 

For the purpose of obtaining the Registrar’s prior approval for the employment or engagement of any person to assist in the carrying on of the business, including persons employed or engaged to perform debt collection, you are required to submit an application to the Registry. Please please complete and submit an application via eServices

5. How do I renew my moneylender’s licence?

The renewal of the moneylender’s licence is subject to the good conduct of the moneylender. Licensees should prepare the following documents and forward them to the Registry upon notification:   

 

i) A tenancy agreement for the proposed place of business covering at least a one-year period immediately following the expiry of the existing licence;

 

ii) A copy of the proof of ownership of the premises in the form of property tax or strata title deed;

 

iii) A copy of the updated list of persons employed and/ or engaged to assist in the carrying on of the business, including persons employed or engaged to perform debt collection;

 

iv) A renewed Banker's Guarantee or Insurance Guarantee for a sum of $20,000, covering  the entire licence period; and

 

v) A duly completed GIRO application form (for licensees who do not have an existing GIRO arrangement with the Registry for the deduction of $1,320 as the licence fees).

6. How do I terminate my moneylender’s licence?

To terminate your moneylender's licence, you may submit your termination application HERE.

7. How do I apply for a certificate of exemption from the Moneylenders Act?

Under section 35(1) of the Moneylenders Act, a company or other business entity may apply for exemption from the Moneylenders Act. There is no prescribed form for the application for a certificate of exemption. Applicants are to write to the Registry of Moneylenders with the following information and supporting documents:


i) A brief description of the applicant;

 

ii) A copy of the Instant Information Service printout on the applicant issued by ACRA;

 

iii) The business(s) and registered address(s) of the applicant;

 

iv) The telephone and fax numbers of the applicant;

 

v) A detailed description of each type of activity for which the exemption is sought and the reasons for seeking the exemption;

 

vi) A detailed description of the types or classes of borrowers in relation to each type of moneylending activity for which exemption is sought; and

 

vii) A draft scope of exemption for our consideration.

 

Applications may be submitted to the Registry via https://licence1.business.gov.sg

 

 


Please note that the fees  for the certificate of exemption are as follows, which will be advised to you after your application is approved:

 

Class

Class of Exemption

Annual fee

(i)

Where the person exempted carries on the business of moneylending solely by granting personal or consumer loans to individuals.

$3,000

(ii)

Where the person exempted carries on the business of moneylending solely by granting loans other than those specified in paragraph (i) above.

$1,000

(iii)

Where the person exempted carries on the business of moneylending to persons referred to in paragraphs (i) and (ii).

$4,000

8. How do I renew my certificate of exemption?

To renew/ extend your certificate of exemption, you are required to submit an application to the Registry of Moneylenders at least one month before the expiry of your existing certificate of exemption with the following information and supporting documents:

 

i) A copy of the Instant Information Service printout issued by the ACRA;

 

ii) If there are/will be any changes in the company’s business(s) and registered address(s);

 

iii) If there are/will be any changes in the company’s business activities covered by the existing/previous certificate of exemption;

 

iv) If there are/will be any changes to the types or classes of borrowers in relation to any of the company’s business activities covered by the existing/previous certificate of exemption; and

 

v) If the company has granted any loans after the expiry of the certificate of exemption (for late renewals only).

 

Such an application can be submitted at https://licence1.business.gov.sg

 

You may refer to rule 24 of the Moneylenders Rules 2009 for the fees for the renewal of your existing certificate of exemption.

9. How do I know if I qualify as an excluded moneylender under the Moneylenders Act?

If your business model fits fully the description of an excluded moneylender defined under section 2 of the Moneylenders Act, a copy of which can be retrieved HERE, you shall be deemed as an excluded moneylender. In the event that you are unsure if your business model qualifies you as an excluded moneylender, you are advised to seek independent legal advice before commencing the intended business.

10. How do I make payment when I receive the Notice of Offer of Composition?

Payment can be made using the Self-Automated Machines (S.A.M). Please refer to the user guide.

Last updated on 29 Dec 2017