A moneylender must have a licence – Room for rent in Singapore
Section 5(1) of the Act provides: Room for rent in Singapore.
Every moneylender carrying on the business of moneylending in Singapore shall take out a licence.
The court will not help an unlicensed moneylender to claim back a loan.
Section 7 (1) (a) of the Act:
A licence shall be taken out in respect of each name under which moneylending business is conducte. No licence shall be granted to a person not ordinarily resident i n Singapore or to a firm where the person proposed to be responsible for the management of the firm is not ordinarily resident in Singapore.
If any person(Section 14 (1) & (1A) of the Act) carries on business as a moneylender without holding a licence or, being licensed as a moneylender, (Section 15 (2) (b) of the Act) carries on business as such in any name other than his authorised name or (Section 10 (13) (a) of the Act at any place other than his authorised address or addresses; he shall be guilty of an offence.
The test of residence for the purposes of the Act is the same as the test of residence used in revenue cases. The relevant test is contained in section 2 of the Income Tax Act (Cap 134) which provides:
in relation to an individual, means a person who, in the year preceding the year of assessment resides in Singapore except for such temporary absences there from as may be reasonable and not inconsistent with a claim by such a person to be resident in Singapore and includes a person who is physically present or who exercises an employment (other than as a director of a company) in Singapore for 183 days or more during the year preceding the year of assessment. Thus there is a test relating to physical presence and one relating to employment.
No limitation of interest rate imposed by a licensed moneylender for unsecured loans for a business purpose.. Moneylenders are not allowed to lodge a caveat on HDB flats w.e.f 19 July 2010.
Real Estate Agents & Salespersons are affected in the following manner:
Must not be a licensed moneylender or an employee of a licensed moneylender
Must not refer clients to moneylenders
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