Nature of Moneylending services
Licensing exemption for moneylenders
According to the Moneylenders Act 2008
“exempt moneylender” means any moneylender who has been granted an exemption under section 35 or 36 from holding a licence;
"Any person may apply under section 91(1) of the Moneylenders Act to exempt his business from all or any of the provisions of the same Act. You may submit an application to us with the following information ready:
(a) A write-up containing:
(i) a brief description of the applicant’s current business activities;
(ii) a profile of the applicant, including any experience in moneylending or related business activities; and
(iii) the reason(s) for seeking an exemption
(b) A copy of the applicant’s Business Profile issued by ACRA;
(c) The telephone and fax numbers of the applicant;
(d) A detailed description of each type of activity for which the exemption is sought and the reasons for seeking the exemption;
(e) Profile(s) of borrowers;
(f) The interest and fees, if any, which the applicant intends to charge; and
(g) A draft scope of exemption for our consideration"
"Depending on the business activity exempted, the fees may range from $1,000 to $4,000 per year. The exemption is valid for a period up to a maximum of 3 years."
| Class | Class of Exemption | 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 |
"To extend your validity period of the certificate of exemption, you are required to submit an application to the Registry of Moneylenders at least one month before the expiry of your existing certificate of exemption."