Legal conditions to apply for moneylender’s license
There are many companies in Singapore, which are providing payday loan in Singapore. Getting loan in Singapore is little bit harder than all other countries because of their legalities. It is important to get loan from licensed money lenders sg. To find licensed companies is not an easy task because getting a license is not an easy thing. There are many legal requirements a person needs to fulfill in order to apply for the license. Here are some conditions from the Moneylenders Act (Cap. 188) (and any revised edition of the Act) and the Moneylenders Rules 2009 for obtaining and holding a moneylender’s licence.
- First condition is that all licensees need to make sure that activities that are being performed under their licenses are legal and according to the law of Singapore. If that is not the situation, the license holder will be considered responsible even if he himself did not perform the act.
- There is a specific fee of loan approval, which is 10% of the whole amount of the loan. Other than this fee, the lender needs to give the total amount of loan to the borrower in one go. The lender has no right to subtract any kind of amount from the principle amount, which needs to be given to the borrower, no interest rate no installment. These payments should only be charged on the fixed time. License will not be granted to the loan in which the lender has the right to deduct these payments upfront.
- To give a business loan, the lender needs to get all the documents and records of the business with the Accounting & Corporate Regulatory Authority. The papers that are required involve income tax assessment, audited financial statement, invoices, and utility bills. The reason of obtaining these papers is to make sure that the business is at least 2 years old. It is also important for the lender to research potential customer ratio of the business and to find out whether the company is running by the laws of the country or not.
- It is also important for the money lender’s license holders to verify their clients year income before giving or approving any loan to make sure that the borrower can return the money or time or not. They should get all these information in paper proof.
- The lenders will have to obtain the registrar’s agreement before going further with the loan proceedings. They will have to get the approval of the registrar to transfer the money no matter the transferee is new or an old employee of the lending company.
- It is also important for the licensee to hire a well-educated and well-trained person to run his all businesses places, which are approved. It is also important to hire a different person for each place. The person, the licensee is hiring should be able to obtain his own license. He must have passed the Moneylenders’ Written Test; his appointment should be approved from Registrar. In case the previous employee leave the job, the lender will get six months time to hire a new one.
- The lender should have one or more telephone lines from a licensed telephone company. If not the case, the registrar can reject to approve the money lending company or to grant the license.
There are many other rules and regulations to apply for the license of the money lending company. It is very important for the person who wants to start his business and for that he can search through internet https://easycredit.com.sg.