The Moneylenders Act regulates licensed moneylenders in Singapore by setting out the legal framework that licensed money lenders must operate within. This includes limits on interest rates, fees, and charges, as well as requirements for transparency in loan agreements and advertising. The Act also provides protections for borrowers, such as the right to receive clear information about loan terms and the ability to lodge complaints against unethical practices.
A licensed money lender is an individual or company authorized to offer loans according to standards set in the Moneylenders Act. They must be officially listed in the Ministry of Law’s Registry of Moneylenders, ensuring their legitimacy.
Key Considerations:
| Criteria | Licensed Money Lender | Unlicensed Lender |
|---|---|---|
| Legal Status | Registered with MinLaw | Not registered |
| Adherence to Act | Must comply | Does not comply |
| Physical Office | Mandatory | Often absent/offline |
All licensed lenders are required by law to maintain a physical office location in Singapore. The Ministry of Law performs regular checks and updates the registry to safeguard borrowers from unlicensed practices.