Singapore legislation

Regulation 8

of Moneylenders Rules 2009

Regulation 8

Licensee to inform borrower of terms of loan

For the purposes of section 32(1) of the Act, every licensee must, before granting any loan to a borrower, inform the borrower in writing as to all of the following matters:

(a)

the nominal interest rate for the loan expressed as a percentage per month, and the amount of interest for the loan;

(b)

that interest will be computed on the monthly outstanding balance of the principal;

(c)

the date or day when the interest on the principal will be credited to the loan account as payable;

(d)

the nominal interest rate for late interest (if any), expressed as a percentage per month;

(e)

that late interest (if any) will be computed on the monthly outstanding balance of the amount of principal or interest or both that is overdue;

(f)

whether any permitted fees will be charged and, if so, what the permitted fees are, how they are or will be computed and the circumstances under which they will be charged;

(g)

in the case of a term loan —

(i)

the frequency of the instalment payments if the borrower does not default on any payment;

(ii)

the amount of each such instalment payment;

(iii)

the portions of each such instalment payment that will be appropriated to repayment of the principal and payment of the interest (excluding late interest); and

(iv)

the total number of instalments and the total amount the borrower will pay over the entire term of the loan if the borrower does not default on any payment.

Read in full context — Moneylenders Rules 2009 →