30 May 2018
From 11 May 2018 to 20 July 2018, the Ministry of Law (“MinLaw”) is inviting proposals to pilot new business models for moneylending (“Pilot”). The objective of the Pilot is to better protect borrowers through business-led improvements in the moneylending industry.
Interested participants are required to provide the following information in their applications:
- Applicant profile
- Business proposal
- Proposed participation in debt assistance schemes
- Customer acquisition and communication
- Debt recovery practices
- Effective cost of credit
- Credit policy
Further details of these mandatory criteria which impose higher standards over and above the current legal requirements for licensed moneylenders requirements are set out in Annex A to the MinLaw press release. Applications must be submitted in the form set out in Annex B.
Among other things, applicants must have paid-up capital of at least S$1 million and have a good and established track record in providing consumer credit, whether in licensed moneylending or in other sectors of consumer credit.
Pilot licences will be issued for a one-year period, and may be renewed for another under the Pilot. The validity of the pilot licence is expected to begin in 2019 and conclude in 2020.
The following materials are available on the MinLaw website www.mlaw.gov.sg:
- Press release
- Annex A - Invitation for proposals to pilot new business models for moneylending
- Annex B - Pilot application form