25. Repayment of loan
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The borrower shall be entitled to repay any money lent or interest thereon by cheque, money order or postal order and where in any proceedings taken in any court by a moneylender for the recovery of any money lent or the enforcement of any agreement or security made or taken in respect of money lent, the borrower gives evidence that he has posted a cheque, money order or postal order to the moneylender at his authorised address in payment of the money lent or any part thereof or of interest thereon, it shall be presumed that the amount stated in the cheque, money order or postal order has been paid to the moneylender towards payment of the money lent or interest thereon, as the case may be.
moneylender
“moneylender” includes every person whose business is that of moneylending or who carries on or advertises or announces himself or holds himself out in any way as carrying on that business whether or not that person also possesses or earns property or money derived from sources other than the lending of money and whether or not that person carries on the business as a principal or as an agent but does not include —(a)any body corporate, incorporated or empowered by a special Act of Parliament or by any other Act to lend money in accordance with that Act;(b)any society registered under the Cooperative Societies Act;(c)any person bona fide carrying on the business of banking or insurance or bona fide carrying on any business not having for its primary object the lending of money in the course of which and for the purposes whereof he lends money;(d)any pawnbroker licensed under the provisions of any written law in force in Singapore relating to the licensing of pawnbrokers; and(e)any finance company licensed under the Finance Companies Act.
A moneylender shall not accept in repayment of an amount exceeding $10 from a borrower in respect of the principal sum of or interest due for any loan given unless the repayment is made by cheque, money order or postal order.
principal
“principal”, in relation to a loan, means the amount actually lent to and received by the borrower;
A moneylender who contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $500.