Moneylenders Act 2008 · 2020 Revised Edition · Part 3 · Regulation of Business of Moneylending, Enforcement and Proceedings
36. Maximum rate of interest and late interest
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A licensed moneylender must not make a loan contract that charges interest or late interest above the maximum rate the minister sets. Such a contract, and any guarantee or security for the loan, cannot be enforced. Charging above the maximum rate is an offence, with a fine of up to $20,000, up to 6 months in prison, or both.
Summary · Drafted with AI, checked against the official text on 30 Sep 2026.
Last amended by an amending law of 2018.
A licensee must not enter into a contract for a loan under which the interest or late interest charged exceeds the maximum rate of interest or late interest prescribed by the Minister.
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;
For the purposes of subsection (1), the Minister may prescribe different maximum rates of interest or late interest for different classes or descriptions of borrowers or loans.
Where any contract for a loan has been entered into by a licensee in contravention of subsection (1) —
the contract is unenforceable against the borrower or any surety;
the licensee is not entitled to enforce any guarantee or security given for the loan; and
any money paid by or on behalf of the licensee under the contract is not recoverable in any court of law.
Any licensee who charges interest or late interest at a rate exceeding the maximum rate of interest or late interest that is prescribed for the loan 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.[22A