Law Ministry invites proposals to pilot moneylending models

THE Ministry of Law (MinLaw) on Friday invited proposals to pilot business models for moneylending, in its search for ways to better protect borrowers.

All pilot proposals must meet specific criteria which impose higher standards than the current legal requirements for licensed moneylenders. These criteria relate to applicant profile, soundness and completeness of the business model, participation in debt assistance schemes, customer acquisition and communication strategy and professional debt-recovery practices.

Applicants must have paid-up capital of at least S$1 million, to ensure that they are of sufficient financial standing, and a track record in providing consumer credit, whether in licensed moneylending or in other sectors of consumer credit.