Singapore legislation
Regulation 21C
Regulation 21C
Restrictions on unsecured loans to foreign borrowers
Subregulation 1
A licensee must not grant any applicable unsecured loan to a foreign borrower whose annual income is below $30,000 if, at the time the licensee intends to grant that loan, the aggregate of the outstanding loan amounts for all foreign borrowers of the licensee, each whose annual income is below $30,000, is $80,000 or more.
Subregulation 2
A licensee must not, in an applicable year, grant applicable unsecured loans to more than 35 foreign borrowers each whose annual income is below $40,000.
Subregulation 3
For the purposes of paragraphs (1) and (2), where a licensee grants an applicable unsecured loan to a foreign borrower as a joint borrower with any other person, the foreign borrower is regarded as one foreign borrower.
Subregulation 4
For the purposes of paragraph (2), a foreign borrower to whom a licensee grants one or more applicable unsecured loans in an applicable year is regarded as one foreign borrower.
Subregulation 5
A licensee who grants an applicable unsecured loan to a foreign borrower knowing that, or recklessly or negligently failing to ascertain whether, the granting of that loan is in contravention of paragraph (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.
Subregulation 6
In this rule —
Definition
“annual income” has the meaning given by rule 21(6);
Definition
“applicable unsecured loan” means any unsecured loan except a debt consolidation loan;
Definition
“applicable year” means —
the period of 12 months starting on 1 January 2023; and
every 12‑month period after the end of the period in paragraph (a);
Definition
“outstanding loan amount”, in relation to a foreign borrower, means the amount reflected in the loan account book kept, or caused to be kept, by the licensee under section 38(1)(c)(ii) of the Act as the aggregate of the foreign borrower’s share of the outstanding amount (excluding any interest, late interest or fee) of every applicable unsecured loan previously granted by that licensee to that foreign borrower.