Singapore legislation
Regulation 21
Regulation 21
Unsecured loans by licensees
Subregulation 1
A licensee must not grant any unsecured loan (except a debt consolidation loan) to a Singapore borrower whose annual income is less than $20,000 if the total of the following amounts exceeds $3,000:
the Singapore borrower’s share of the amount of the unsecured loan;
the outstanding unsecured loan amount of the Singapore borrower.
Subregulation 2
A licensee must not grant any unsecured loan (except a debt consolidation loan) to a Singapore borrower or foreign borrower whose annual income is at least $20,000 if the total of the following amounts exceeds 6 months’ income of the Singapore borrower or foreign borrower, as the case may be:
the Singapore borrower’s or foreign borrower’s share of the amount of the unsecured loan;
the outstanding unsecured loan amount of the Singapore borrower or foreign borrower.
Subregulation 3
A licensee must not grant any unsecured loan (except a debt consolidation loan) to a foreign borrower whose annual income is less than $10,000 if the total of the following amounts exceeds $500:
the foreign borrower’s share of the amount of the unsecured loan;
the outstanding unsecured loan amount of the foreign borrower.
Subregulation 4
A licensee must not grant any unsecured loan (except a debt consolidation loan) to a foreign borrower whose annual income is at least $10,000 but less than $20,000 if the total of the following amounts exceeds $3,000:
the foreign borrower’s share of the amount of the unsecured loan;
the outstanding unsecured loan amount of the foreign borrower.
Subregulation 5
A licensee which, without reasonable excuse, contravenes paragraph (1), (2), (3) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.
Subregulation 6
In paragraphs (1) to (4) —
Definition
“6 months’ income”, in relation to a Singapore borrower or foreign borrower, means where Y is the total income of the Singapore borrower or foreign borrower during the 3 months immediately preceding the month in which the application for the unsecured loan is made;
Definition
“annual income”, in relation to a Singapore borrower or foreign borrower, means where Y is the total income of the Singapore borrower or foreign borrower during the 3 months immediately preceding the month in which the application for the unsecured loan is made;
Definition
“outstanding unsecured loan amount”, in relation to a Singapore borrower or foreign borrower, means the amount reflected in the credit report obtained under section 66(5)(b) of the Act in relation to the Singapore borrower or foreign borrower as the aggregate of the Singapore borrower’s or foreign borrower’s share of the outstanding amount (excluding any interest, late interest or fee) of every unsecured loan previously granted by a licensee to the Singapore borrower or foreign borrower, as the case may be.