Depending on the sort of activity they are engaged in, a lender, arranger, facility agent, or security agent may need a license, qualification, or another legal right to conduct business in Singapore. A license under the applicable statute is required before a company can engage in certain commercial operations because those activities are governed by law. A license is required for moneylending under the Moneylenders Act and banking activities under the Banking Act, respectively. Let us try to discuss more about them:
Anyone wishing to do banking business in Singapore must have a current license. A valid license issued under the Banking Act is essential for anyone who wants to do banking activity in Singapore. A “banking business” is any activity that involves receiving money on current or deposit accounts, paying and collecting checks drawn on or paid into customer accounts, making advances to customers, and any other activity that the Monetary Authority of Singapore (MAS), Singapore’s central bank, may specify.
The benefit of having a banking license is that a licensed bank is considered to be an “excluded moneylender” under the Moneylenders Act and is therefore exempt from needing a separate license for lending activities. Unless it falls under a different category of “excluded moneylenders,” a lender that is not licensed as a bank is required to obtain a moneylender’s license (discussed below).
License for a lender
Until the opposite is established, it is assumed that a person is a moneylender under the Moneylenders Act if they lend a small amount of money in exchange for a bigger sum of money being returned.
According to the Moneylenders Act, unless a person is an “excluded moneylender” or “exempt moneylender,” they are not allowed to conduct moneylending business in Singapore without a license. You can find the best money lender in Ang Mo Kio who are the trusted ones and have easy policies to apply for loans.
A lender that only extends credit to companies, limited liability partnerships, trustees or trustee-managers of business trusts, trustees of real estate investment trusts, and/or accredited investors is referred to as an “excluded moneylender.”
Please be aware that certain activities are subject to separate regulations in Singapore under the Securities and Futures Act, including financing for securities and providing custodial services for securities (Cap. 289). These are not discussed in further detail here, although a capital markets services license may be necessary if a lender, arranger, facility agent, or security agent engages in operations that fall under those categories.