Moneylenders Act 2008 · 2020 Revised Edition · Part 3 · Regulation of Business of Moneylending, Enforcement and Proceedings
32. Licensees to inform borrowers of terms of loan
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Before lending, a licensee must give the borrower the required loan details in writing. This must be signed and acknowledged in writing by the borrower or their agent. Otherwise, the licensee cannot enforce interest, late interest or permitted fees. Breaking these rules is an offence with a fine up to $20,000, jail up to 6 months, or both.
Summary · Drafted with AI, checked against the official text on 30 Sep 2026.
Every licensee must, before granting any loan to a borrower, inform the borrower in writing as to such matters relating to the terms and conditions of the loan as may be prescribed.
The licensee must cause the written information provided to the borrower under subsection (1) to be signed by the borrower or the borrower’s agent together with a written acknowledgment by the borrower or the borrower’s agent (as the case may be) that the borrower has been informed by the licensee of the terms and conditions of the loan.
Where any loan has been granted in contravention of subsection (1) or (2), the licensee is not entitled to enforce —
the payment of all sums of interest, late interest and permitted fees payable under the contract for the loan, whether by the borrower or any surety; or
any guarantee or security given for the loan to recover any such sum.
For the purposes of subsection (3), if any amount of interest, late interest or permitted fees has been paid, it is recoverable as a debt due to the borrower or surety (as the case may be) and if not recovered, is to be set off against the outstanding amount of the loan.
interest
“interest”, in relation to a loan, means any amount by any name called, in excess of the principal paid or payable to a moneylender in consideration of or otherwise in respect of the loan, but does not include any permitted fee, stamp duty or other fee payable under this Act or any other written law;
Any licensee who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 6 months or to both.[19