Chit Funds Act 1971 · 2020 Revised Edition · Part 4 · Chit Funds — General Provisions
43. Limits on lending powers of chit fund company
Feedback & supportA chit fund company must not lend to any person other than to a subscriber who has not purchased the chit fund amount.
chit fund company
“chit fund company” means a company which carries on chit fund business and holds a valid licence granted under section 7. All branches and offices in Singapore of the company are deemed to be one chit fund company for the purposes of this Act;
A chit fund company may lend to a subscriber who has not purchased the chit fund amount but the amount so lent must not exceed 75% of the aggregate contributions already paid by that subscriber or any other percentage that may be specified in regulations made under this Act.
subscriber
“subscriber” includes any person who has agreed to participate in a chit fund or has signed the agreement in token thereof.
A chit fund company that lends to a subscriber under subsection (2) is not to be deemed to be a moneylender under the Moneylenders Act 2008 and that Act does not accordingly apply to any transaction under this section.