MINISTRY OF LAW (MINLAW)Required to operate

Moneylender's Licence

The Moneylender's Licence is required by the Ministry of Law (MINLAW) for businesses engaging in moneylending activities in Singapore. The licence is valid for 1 year, with processing typically completed in 2 weeks, depending on the complexity of the application and document submissions.

Validity
1 year
Processing time
2 weeks, depending on the complexity of the application and/or submission of documents in support of the application
Issuing authority
MINISTRY OF LAW (MINLAW)

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Who needs the Moneylender's Licence

This licence applies to Singapore businesses registered under the following SSIC industry codes:

What's involved in getting the Moneylender's Licence

The scope of the application — what must be in place, how the agency reviews, and where applications typically stall.

What this licence allows the business to do

The Moneylender's Licence permits a business to operate legally as a moneylender in Singapore, enabling it to provide loans to individuals or businesses under regulated conditions.

What must be in place before the licence can be granted

Before the licence can be issued, several conditions must be met. These include:

  • Documentary Evidence of Funds: Businesses must provide proof of the sources and availability of funds for moneylending. This may include bank statements, income slips, and IR8A forms from previous years.
  • Qualified Manager(s): The business must have a qualified manager with the necessary educational qualifications and certifications. Proof of these qualifications must be submitted.
  • Identification Documents: Scanned copies of the front and back of NRICs for all individuals involved in the moneylending business must be provided.

How the agency reviews and decides

The Ministry of Law reviews the application by assessing the completeness and accuracy of the submitted documentation. This includes verifying the sources of funds and ensuring that the qualified manager meets the required educational standards. The agency may also conduct background checks on the individuals involved in the business.

Common reasons applications stall

Applications for a Moneylender's Licence can face delays for several reasons, including:

  • Incomplete Documentation: Missing or insufficient documentation can lead to processing delays. Ensuring all required documents are submitted in the correct format is crucial.
  • Insufficient Evidence of Funds: If the documentary evidence of funds does not clearly demonstrate the sources and availability of capital, the application may be rejected or delayed.
  • Unqualified Manager: If the appointed manager does not meet the educational qualifications or certification requirements, this can also result in application issues.

Required documents and prerequisites

Items the applicant typically needs ready before submitting:

  • Documentary Evidence of Funds
  • Documentary evidence on the availability and the sources of funds for the moneylending business, i.e. how are the funds accumulated (e.g. copies of bank statements, IR8A for the past years, income slips etc.)
  • File format: doc, docx, jpg, pdf, gif
  • Maximum upload per attachment: 7 MB
  • Education Qualification and Certificates for Qualified Manager(s)
  • Proof of educational qualifications for the test-qualified manager
  • File format: doc, docx, jpg, pdf, gif
  • Maximum upload per attachment: 7 MB
  • Front and back NRICs of all Person(s)
  • Scanned copies of the NRICs (both front and back of NRICs) of all persons to be involved in the moneylending business
  • File format: doc, docx, jpg, pdf, gif
  • Maximum upload per attachment: 7 MB

Moneylender's Licence FAQ

Do I need this licence to start operating?

Yes, a Moneylender's Licence is mandatory for any business intending to engage in moneylending activities in Singapore. Operating without this licence can lead to legal penalties.

What can my business do once licensed?

Once licensed, your business can legally provide loans to individuals and businesses, subject to the regulations set forth by the Ministry of Law. This includes setting interest rates and terms for repayment.

What happens if I operate without it?

Operating without a Moneylender's Licence is illegal in Singapore and can result in severe penalties, including fines and imprisonment. It is crucial to obtain the licence before commencing any moneylending activities.

What's the most common reason applications get rejected?

The most common reason for rejection is incomplete documentation. Applications lacking sufficient evidence of funds or failing to meet the qualifications for the appointed manager often face delays or denials.

Can a foreign-owned company hold this licence?

Yes, foreign-owned companies can apply for a Moneylender's Licence in Singapore, provided they meet all the necessary requirements and have a qualified manager who fulfills the educational criteria.

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