Singapore legislation
Regulation 20
Regulation 20
Unsecured loans by exempt moneylenders for persons with annual income of at least $20,000
Subregulation 1
An exempt moneylender must not grant any unsecured loan to a Singapore borrower if this will result in the outstanding unsecured loan amount of the Singapore borrower exceeding —
in a case where the annual income of the Singapore borrower is at least $30,000 — 4 months’ income of the borrower; or
in a case where the annual income of the Singapore borrower is at least $20,000 but less than $30,000 — 2 months’ income of the borrower.
Subregulation 2
For the purposes of this rule, the outstanding unsecured loan amount of a Singapore borrower is the total of the following:
the Singapore borrower’s share of the amount of the unsecured loan mentioned in paragraph (1);
the Singapore borrower’s share of the outstanding amount of every unsecured loan previously granted by the exempt moneylender (including, if the exempt moneylender is a corporation, its affiliated corporation) to the Singapore borrower.
Subregulation 3
In determining whether the outstanding unsecured loan amount of a Singapore borrower exceeds the amount of income mentioned in paragraph (1)(a) or (b), any interest (including late interest) and fees (including late payment fees) imposed by the exempt moneylender or its affiliated corporation are to be disregarded.
Subregulation 4
Any exempt moneylender who, without reasonable excuse, contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction —
in a case where the offender is an individual, to a fine not exceeding $10,000; and
in any other case, to a fine not exceeding $20,000.
Subregulation 5
This rule does not apply if the Singapore borrower has an annual income of at least $120,000 or has total net personal assets which exceed $2 million.