How can a lender rebut the presumption that he is a moneylender? – HDB flat for sale in Singapore
Not every man who lends money at interest carries on the business of moneylending. Generally, a man who carries on a moneylending business is one who is ready and willing to lend to all and sundry. It does not mean that a moneylender can evade the Act by limiting his customers to those whom he chooses to designate as “friends”. HDB flat for sale in Singapore.
What is prohibited by the Act is not moneylending but the business of moneylending. The giving of a number of loans to friends does not constitute the business of moneylending, unless there is a system and continuity about the transactions. The lender must show that although he engages in moneylending, he is not in the business of moneylending. In this respect it is important to establish whether there is a system and continuity in his moneylending activity. When such ingredients are present, one solitary loan may be sufficient to nail a person as a moneylender.
Whether one can be said to be carrying on the business of moneylending must depend on the particular facts of any given case. The lender normally must discharge the burden placed upon him by himself giving evidence to the effect that he is not a moneylender and by submitting to cross-examination on the point.
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