Information for Moneylenders

1. How can I start a moneylending business?
If you wish to start a moneylending business, you are required to apply for a Moneylender's Licence from the Registrar of Moneylenders. Before you submit your application, it is advisable that you familiarise yourself with the provisions of the Moneylenders Act 2008 (Cap. 188) and its Rules. These are obtainable from:

Toppan Lee Fung Pte. Ltd. Legal Publishing
1 Kim Seng Promenade, #18-01
Great World City East Tower Singapore 237994
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Please note that the applicant and/or any person who is or will be responsible for the management of the business will be required to sit for a Moneylenders' test conducted by the Registry of Moneylenders with regard to the Moneylenders Act and its Rules. Please click here for details of the Moneylenders' Test.

You may register or incorporate a sole-proprietorship, partnership, limited liability partnership, limited partnership or company to carry on a moneylending business. Please note that the principal activity of the business entity must be "moneylending". In the case of a company, one of the object clauses of the Memorandum of Association should be the carrying on of a moneylending business. An example of an object clause is as follows:

"To lend money in accordance with and under a licence issued under the Moneylenders Act 2008."

When naming your business, firm or company, you are advised not to use the words “finance company” or any derivative of those words, in view of Section 4 of the Finance Companies Act (Cap. 108), which prohibits the use of such words. Please refer to the Finance Companies Act for more details. If you decide to use the words “finance company” or any of their derivatives in your business name, please ensure that you have obtained the consent of the Monetary Authority of Singapore for the use prior to the registration of your business/company with ACRA. An application for a moneylender’s licence will not be approved when no such consent has been obtained.

The following are some of the criteria for the grant of a Moneylender's licence:
- the applicant and every person who is or will be responsible for the management of the business;- must be of good character and fit and proper persons to carry on the moneylending business; is above 21 years old; is familiar with the provisions of the Moneylenders Act (Cap 188) and its Rules;
- the applicant or any person who is or will be responsible for the management of the business:- is ordinarily resident in Singapore; must possess a minimum of 4 ‘O’ Level credit passes, including a credit pass in 'O' Level English as first language; is required to sit for a written test with regard to the Moneylenders Act and its Rules conducted by the Registry of Moneylenders. This will apply to applications received on or after 1 January 2011;
- the proposed business premises to be licensed is suitable for the conduct of the moneylending business; and
- a security deposit of $20,000 for every place of business for the proper conduct of the business, has been placed with the Accountant-General. The security deposit is to be provided in the form of an irrevocable Banker’s Guarantee upon approval of your application.
2. How can I apply for a Moneylender’s licence?

To be considered for a moneylender’s licence application, you will be required to either pass the Moneylender’s Test, and have a manager of your moneylending business pass the Moneylender’s Test. You may nominate up to two candidates (including yourself) to take the test. With effect from 22/08/2011, all applicants will be required to use the Moneylenders Test Booking System to book a test date. A non-refundable test fee of $130 (including Goods and Services Tax) shall be payable per attempt per candidate. Please have your SingPass ready and click here to access the Moneylenders Test Booking System.

If you pass the Moneylenders’ Test and the Registry finds you suitable for the application for a moneylender’s license, you will be invited to submit an online application for the moneylender’s license. Upon receiving the Registry’s invitation, please click here for the online application.

Important Note
All the information given in the application form must be correct and true. If the information given is found to be false or misleading, the Moneylender's Licence granted to you will be revoked by the Registrar of Moneylenders and you may be liable to prosecution for an offence under the Moneylenders Act 2008.

Processing Time
Your application will be processed upon your submission of all the required documents. In order for us to expedite the processing of your application, please ensure that all these documents are in order.

Application Fee
The application fee (non-refundable) for a moneylender’s licence is $600 (inclusive of GST). This is payable upon submission of your application.

Licence Fee
The fee of a moneylender’s licence is $1,320 per annum. This is payable upon approval of your application. All payments can be made electronically via the Online Business Licensing Service by eNets Credit/Debit or Internet Banking.
3. How to apply for approval for additional place(s) of business?
Under section 10 of the Moneylenders Act 2008, licenced 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 the application form to us together with a copy of your title deed/certificate evidencing your ownership of the proposed place of business or a tenancy, licence or other agreement evidencing your occupation of it.

Please send the application form to:

          Registry of Moneylenders
          45 Maxwell Road
          #06-11 The URA Centre, East Wing
          Singapore 069118
Upon approval, you will be required to:
- place a security deposit of $20,000 with the Accountant-General in the form of an irrevocable Banker’s Guarantee for every additional place of business; and
- 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.
Approval of your proposed additional place(s) of business has to be renewed annually if you wish to carry on business at the additional place(s) of business after the expiry of a period of approval. Approved additional places of business will be processed for renewal at the same time as the renewal of a licence: see section below “Renewal of Licence”. The first renewal of an approved additional place of business will commence on the next renewal date of your 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.

Additional places of business will be approved (including renewed approvals) only if they satisfy the requirements under the Moneylenders Act 2008.

Please also note that no additional place of business will be approved (including renewed approval) if the applicant ceases to be a licensee. In addition, the approval of all additional place(s) of business (including renewed approvals) will terminate upon the expiry or revocation of a licence.

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

Please submit an online application at the website of Online Business Licensing Service (OBLS) for the following update/changes to your company’s/firm’s/business’ profile:

	Update/Changes	To submit online application	To return original licence	To forward a copy of tenancy agreement	To forward a copy of landlord’s approval
1.	Change of company/firm/business operating address
2.	Change of company/firm/business name
3.	Appointment of Agent to manage business in place of sole-proprietor or partners who are individuals
4.	Appointment/admission of new director / managing director / partner / manager
5.	Resignation/withdrawal of director / managing director / partner / manager
6.	Change of company/firm/business contact details
7.	Change of Bank Account information

For update (1), a copy of the tenancy agreement and landlord’s approval for you to operate a moneylending business and for display of signage for the proposed new business premises is to be forwarded to the Registry of Moneylenders within seven days of the online application. If you are submitting a sub-tenancy agreement, you will also need to submit a duly dated and signed copy of the main tenancy agreement.

For updates (1) to (3), you are required to return to the Registry of Moneylenders your original moneylender’s licence after we have approved your application.

Please note that for updates (1) to (4), you are required to submit the online application to seek approval from the Registry of Moneylenders before you proceed with the update/changes. You will also need to update this information with ACRA after receiving the approval from the Registry of Moneylenders.

A copy of the online application form for the abovementioned updates/changes is available HERE.

For allotment of new shares or transfer of shares, please write to our Registry to seek prior approval with the following information:

Name, NRIC/Passport Number, address of transferor (if applicable);
Name, NRIC/Passport Number, address of transferee (For foreigner, please also provide date of birth, gender and nationality);
Number of shares to be transferred/allotted;
Whether the transferee will become a substantial shareholder as a result of the share transfer/allotment; and
Whether the transferor (if applicable) will change any substantial shareholding.

For your information, “Substantial shareholding” and “substantial shareholder” have the same meanings as in Division 4 of Part IV of the Companies Act (Cap. 50).

In addition, a licenced moneylender must notify the Registry of Moneylenders in writing within 14 days of the making of a bankruptcy order against the licenced moneylender, or against any director, partner or substantial shareholder of the licenced moneylender.

Our address is:

          Registry of Moneylenders
          45 Maxwell Road
          #06-11 The URA Centre, East Wing
          Singapore 069118

5. How do I renew my Moneylender’s licence?
A moneylender’s licence is renewable subject to the good conduct of the moneylender and the proper conduct of his moneylending business. An application is not required to be submitted to renew a licence. If a licensed moneylender does not notify our Registry at latest one (1) month before the expiry of his licence that he does not wish to renew his licence, our Registry will take the necessary steps to process the licence for renewal. If at the time a licence is due to expire, a licensed moneylender has one or more approved additional places of business and our Registry has not received any notification in writing from the licensed moneylender that he does not wish to carry on business at any of those additional place(s) of business, our Registry will also at the same time process the renewal of approval for the additional place(s) of business. With effect from 1 January 2011, all existing licensed moneylenders who were licensed before 1 January 2011 will be required to fulfil the following requirements before their licences can be renewed, the applicant or any person who is or will be responsible for the management of the business:- must possess a minimum of 4 'O' Level credit passes, including a credit pass in 'O' Level English as first language; and must sit for and pass a written test conducted by the Registry of Moneylenders with regard to the Moneylenders Act and its Rules. Details of the written test will be sent to each licensed moneylender in due course. Moneylenders should prepare the following documents and forward them to our Registry for the purpose of the renewal of moneylender's licence at least 2 months before the expiry of their license: Tenancy Agreement covering the operative period of licence for another year; Renewed Banker's Guarantee/Debit Advice from Bank showing the renewal of Banker's Guarantee; A Duly Completed GIRO application form (for licensees who do not have a GIRO arrangement with the Registry of Moneylenders for the deducton of the licence fee); Monthly/Quarterly statements of moneylending transaction (for licensees who have not submitted outstanding statements). Our Registry will notify the licensed moneylender as to whether his licence is renewed and whether the approvals for additional place(s) of business are renewed prior to the expiry of his licence.
6. How can I terminate my Moneylender’s licence?
If you wish to terminate your moneylender's licence, you may submit your termination application HERE.

7. How can 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:

a brief description of the applicant;
a copy of the Instant Information Service printout on the applicant issued by ACRA;
the business(es) and registered address(es) of the applicant;
the telephone and fax numbers of the applicant;
a detailed description of each type of activity for which the exemption is sought and the reasons for seeking the exemption;
a detailed description of the types or classes of borrowers in relation to each type of moneylending activity for which exemption is sought; and
a draft scope of exemption for our consideration.

Applications may be submitted to our address below:

          Registry of Moneylenders
          45 Maxwell Road
          #06-11 The URA Centre, East Wing
          Singapore 069118

All applications are considered on a case-by-case basis. The fee for the Certificate of Exemption is as follows:

		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

We will advise you of the mode of payment of the fee after your application is approved.

8. How do I renew my certificate of exemption?

To renew your Certificate of Exemption, please write to the Registry of Moneylenders (one month before the expiry of your Certificate of Exemption) with the following information and supporting documents:

a copy of the Instant Information Service printout issued by the ACRA;
whether there are/will be any changes in the company’s business(es) and registered address(es);
whether there are/will be any changes in the company’s business activities covered by the existing/previous Certificate of Exemption;
whether 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
whether the company has granted any loans after the expiry of the Certificate of Exemption (for late renewals only).

All applications are considered on a case-by-case basis. The fee for the renewal of the Certificate of Exemption is as follows:

		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

We will advise you of the mode of payment of the fee after your application is approved.

9. Do I qualify as an “excluded moneylenders” under the Moneylender
Act 2008?
Under the Moneylenders Act 2008, “excluded moneylenders” will not be required to be licensed or seek exemption from the Act to grant loans. Excluded moneylenders include any person who:
1. I. is licensed, approved, registered or otherwise regulated by the Monetary Authority of Singapore under any other written law, to the extent that such person is permitted or authorised to lend money or is not prohibited from lending money under that other written law;
2. II. lends money solely to his employees as a benefit of employment;
3. III. lends money solely to accredited investors within the meaning of section 4A of the Securities and Futures Act (Cap. 289); and
4. IV. lends money solely to —
  1. a. corporations;
  2. b. limited liability partnerships;
  3. c. trustees or trustee-managers, as the case may be, of business trusts for the purposes of the business trusts;
  4. d. trustees of real estate investment trusts for the purposes of the real estate investment trusts,
5. V. carries on any combination of the activities or services in (II), (III) or (IV); or
6. VI. carries on any business not having for its primary object the lending of money in the course of which and for the purposes whereof he lends money.
Persons granting business loans to sole-proprietors, partners or limited partners where such lending does not fall under any of the categories of excluded moneylenders, are not excluded moneylenders. These lenders will still need to apply for a licence or exemption under the Act to grant such loans.