Why is the money lending Singapore act is a protection act?


 

The Singapore Moneylenders Act protects you.

The government has established a stringent legal framework to protect borrowers like you; therefore, you should only approach licensed moneylenders for your financial needs.

In addition, licensed moneylenders are prohibited from overcharging their customers with excessive fees and interest rates, ensuring that borrowers do not fall victim to predatory or unfair practices.

 

Here are the rates licensed money lending singapore is charged for their services.

Up to 4% per month is charged on the remaining principal as loan interest.

Up to 4% per month on the outstanding balance for each month of late payment.

Fee for late payment: up to S$60

Administration charge: Up to 10% of the principal

Note that the total amount of late fees, admin fees, interest, and late interest charged by your lender cannot exceed the principal amount of your loan.

 

 

Elite Investment and Credit is a licensed moneylender in Singapore, and we are committed to serving your financial needs with honesty and courtesy. Learn today about our low-interest loans!

Is it necessary or advisable for any lender, arranger, facility agent, or security agent to be licensed, qualified, or otherwise entitled to carry on business in this jurisdiction: (a) by reason only of its execution, delivery, or performance of the finance documents; or (b) to enable it to enforce its rights under the finance documents?

 

Where a lender, arranger, facility agent, or security agent is not carrying on business or performing any regulated activity in Singapore (or if carried on wholly outside Singapore and in a manner that does not bring the action within the regulatory ambit of the relevant Singapore legislation), the mere execution, delivery, performance, or enforcement of rights under the finance documents does not require that entity to be licensed to carry on business in Singapore. If, however, the lender, arranger, facility agent, or security agent is conducting a regulated activity under the finance documents, where it may be required to obtain the necessary license or approval from the regulator under one of the statutes referenced in the preceding paragraph, failure to do so may result in penalties and the finance documents may become unenforceable due to illegality.

Moneylender's license

Under the Moneylenders Act, a person who lends money in exchange for a more considerable sum of money is presumed to be a moneylender until the contrary is proven. No one may engage in the business of moneylending in Singapore without a moneylender's license unless they are an "excluded moneylender" or "exempt moneylender" under the Moneylenders Act.

A lender that lends money exclusively to corporations, limited liability partnerships, trustees or trustee-managers of business trusts, trustees of real estate investment trusts, and accredited investors is an "excluded moneylender."

 

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