The Registry of Moneylenders (ROM), a division of the Insolvency and Public Trustee’s Office, will extend the Monetary Authority of Singapore’s (MAS) restrictions on motor vehicle and residential property loans to licensed moneylenders, with effect from 6 April 2013.
This will be done by way of a new licence condition, which will be issued to the moneylenders on 5 April 2013. The new licence condition will require moneylenders to comply with the prevailing loan restrictions set out under MAS’ Notices 632 and 642, which may be updated by MAS from time to time.
For Notice 632, it includes prohibiting banks from granting any credit facility beyond a stipulated quantum or tenure to borrowers for the purchase of a residential property, as well as mandating banks to conduct checks with credit bureaus and HDB to assess the borrower’s creditworthiness prior to the granting of such a facility.
As for Notice 642, it includes prohibiting banks from granting any credit facility beyond a stipulated quantum or tenure to borrowers for the purchase of a motor vehicle, and mandating banks to conduct checks with credit bureaus to assess the borrower’s creditworthiness prior to the granting of such a facility.
For the avoidance of doubt, the temporary lifting of the financing restrictions for the purchase of used motor vehicles registered on motor vehicle dealers’ inventory on or before 4 March 2013, as announced by MAS on 5 April 2013, is applicable to the licensed moneylenders.
While it is not common for licensed moneylenders to offer motor vehicle or residential property loans, the extension of these restrictions will complement MAS’ lending curbs.
The Registry will continue to monitor the moneylending industry closely and implement further measures if required.
Republished based on press released from
REGISTRY OF MONEYLENDERS
INSOLVENCY & PUBLIC TRUSTEE’S OFFICE
MINISTRY OF LAW
5 APRIL 2013