Introduction to money lenders in Singapore.

Introduction

Money lending is a business and a licensed money lender in Singapore must meet certain requirements. 

The Money Lenders Act requires that you register as a moneylender with the Commercial Affairs Department (CAD) or apply for a license from the Monetary Authority of Singapore (MAS).

Money Lending Business Act

The Money Lenders Act (Cap. 185) is a piece of legislation establishing the rules and regulations for the moneylending industry in Singapore. 

The Money Lenders Act applies to all moneylenders in Singapore, regardless of whether they are licensed or unlicensed.

The Money Lenders Act is administered by the Ministry of Law, which has two divisions under its purview:

  • The Financial Services Regulatory Division (FSD) oversees all aspects related to financial services regulation and licensing;
  • The Legal Service Division provides legal advice on matters relating to public law, civil litigation, and regulatory issues affecting financial institutions and intermediaries, including insurance companies, as well as advising on other matters affecting these institutions;

the Money Lenders Act governs the conduct of licensed and unlicensed moneylenders in Singapore. 

The Money Lenders Act is administered by the Ministry of Law, which has two divisions under its purview:

Registered Moneylender vs. Licensed Moneylender in Singapore

You may have heard the term “registered moneylenders” or “licensed moneylenders” before, but do you know what it means? 

The government of Singapore regulates the money lending industry to ensure that lenders are ethical, transparent, and fair. 

There are separate rules governing registered and licensed money lending companies to ensure this.

 A registered money lender is a company or individual who lends out cash to individuals or businesses as long as they meet several requirements set out by the Monetary Authority of Singapore (MAS). 

Licensed money lenders are required to obtain licenses from MAS before offering their services.

The license is issued only after MAS has determined that a licensed moneylender will operate in a way that is fair and transparent.

Licensed moneylenders are also required to have an official agent who ensures that the rules and regulations for lending are followed.

The Financial Services Regulatory Division (FSD) oversees all aspects related to financial services regulation and licensing;

The Legal Service Division provides legal advice on matters relating to public law, civil litigation, and regulatory issues affecting financial institutions and intermediaries, including insurance companies, as well as advising on other matters affecting these institutions. 

The difference between a registered and a licensed moneylender is that a registered moneylender is not required to have an official agent, but he or she must meet the same requirements as a licensed one.

The main difference between a licensed and registered moneylender is that the former must have an official agent, while the latter does not.

Credit License Number

A credit license number is a unique 10-digit number issued by MAS. Each license has its number. 

The credit license number can be found on the moneylender’s website or their business card if they have one. 

You can also find it on your loan contract or promissory note, which you should keep safe in case you need to refer to it in the future.

Registration Number

The moneylender’s registration number is the first three digits of their license number. It can be found on the moneylender’s website, business cards, or advertisements.

Conclusion

We hope this article was useful in learning more about the Money Lenders Act in Singapore. You can also refer to our other articles on this topic if you want to know more about how to apply for loans or find a licensed moneylender.