What Licensed Moneylender New Rules Mean for You in Singapore

The rules around licensed moneylenders in Singapore keep evolving to protect borrowers better. The latest change is the Advertising & Marketing Directions (v3.0), which take effect from 1 April 2025. These tighten restrictions on ads — banning things like social media promotions and sponsored links — while requiring clearer disclosures and new safeguards for vulnerable groups.

Just last year, in March 2024, the Registrar also refreshed licence conditions, making it compulsory for outlets to have test-qualified managers, approved bank accounts with anti-money laundering controls, GIRO or e-payment options, face-to-face onboarding, and tighter data-handling rules.

On top of these, the long-standing protections remain in place: strict caps on interest and fees (since 2015), aggregate unsecured loan caps that extend to foreigners (since 2018), and the use of MLCB credit checks and self-exclusion (since 2016).

If you’re considering borrowing, it’s worth understanding these rules — they can help you spot illegal practices and know your rights.

• 1 Oct 2015 — Caps introduced: Max 4% monthly interest; late fees ≤S$60.

• 1 Mar 2016 — MLCB credit bureau launched; borrowers can self-exclude.

• 30 Nov 2018 (4Q18) — Aggregate unsecured loan caps announced; protections extended to foreigners.

• Q1 2019 — Professionalisation: Companies limited by shares; S$100k paid-up capital; audited accounts.

• 1 Mar 2024 — New Licence Conditions: Qualified managers, approved bank accounts, onboarding rules.

• 1 Apr 2025 — Advertising & Marketing Directions (v3.0): tighter bans, new disclosures, vulnerable-group protections.

What you may do

• Business or consumer directories (print or online).

• Your own website.

• Posters, stickers, or signs only within or directly outside your approved business premises.

What you may not do

• Online & social media: No sponsored links, Facebook/YouTube ads, or tricks to appear alongside gambling sites.

• Directories: No listing in publications dominated by moneylenders, or directories outside official “moneylending/financial services” categories.

• Physical ads: No banners along walkways, parapets, or anywhere beyond your shopfront.

• Electronic messages: No promotional SMSes, WhatsApp messages, WeChat messages, or cold emails.

• Other solicitation: No telemarketing, marketing agents outside the shop, cross-promotions between licensees, or broadcasting audio that carries outside.

Mandatory disclosures

• Clearly state your licensed business name, official address, approved landline, and approved contact person.

• If offering “special rates,” spell out fees and conditions in plain text — no fine print.

• Never imply government approval (beyond stating you’re licensed), and never ask for SingPass credentials.

Extra protections

• Ads cannot target foreign domestic workers or low-income earners.

Penalties

• Breaching Registrar’s directions: fine up to S$20,000 and possible licence revocation.

• Misleading ads: fine up to S$20,000 and/or 6 months’ jail.
  

Governance & people

• Each outlet must have a Test-Qualified Manager who has passed the official written test and oversees compliance.

Bank accounts & anti-money laundering controls

• Use only Registrar-approved bank accounts (max five per licensee).

• Accounts must be in the licensee’s name; signatories limited to directors or qualified managers.

• No mixing business funds; all capital injections must flow through the first bank.

Operations & reporting

• Subscribe to official landlines under the business name.

• Notify Registrar within 7 days of any legal action.

• Use e-payments like GIRO and NETS as directed.

Audits

• Appoint an auditor by 31 December each year; submit reports within 4 months after year-end.

Loan process controls

• Meet applicants face-to-face at the licensed premises.

• Verify original ID, explain terms in a language the borrower understands, and keep full records.

• Only upfront deduction allowed is an admin fee capped at 10% of the loan.

• Interest & fee caps (since 2015): Max 4%/month, late fees ≤S$60/month, admin fee ≤10%, total charges can’t exceed principal.

• Loan caps (since 2018):

• Income ≤S$10k: SC/PR up to S$3k; foreigners up to S$500.

• Income S$10k–20k: up to S$3k.

• Income ≥S$20k: up to 6× monthly income.

• MLCB checks & self-exclusion (since 2016): Lenders must use bureau reports; individuals can exclude themselves from borrowing for 1–2 years. Self-exclusion remains in effect indefinitely until it is withdrawn.

• 2017: Bans misrepresenting “weekly loan is new law,” repeated rollovers to reapply fees, or splitting loans to rack up late charges.

• 2019: Moneylenders barred from granting loans brokered by illegal middlemen.
  

For licensees

• Marketing: Forget social media ads or flyers; stick to your website, approved directories, and shopfront.

• Front-of-house: Always onboard face-to-face, with clear explanations in the borrower’s language.

• Finance: Use only approved bank accounts; maintain AML controls; log notifications.

For borrowers

• Spot legal ads: Proper ads will only appear in approved channels. Flyers, SMS blasts, and social media ads are red flags.

• Protect your data: Never share your SingPass login.

• Insist on process: Demand a face-to-face meeting and a written contract

• Take control: If borrowing is becoming unmanageable, consider registering for MLCB self-exclusion.

Licensed moneylenders in Singapore are tightly regulated — and for good reason. These rules protect borrowers from predatory practices, keep lending costs transparent, and set professional standards for the industry.

If you’re exploring your loan options, the key is to stay informed, borrow responsibly, and always go through approved channels. That way, you can make confident financial decisions without falling into unnecessary risk.