The moneylending business in Singapore is one of the most vibrant and dynamic in the region. This is because the Singapore government has implemented regulations and guidelines for this market to protect both the lender and the borrower.
Several bodies for moneylending
With a vibrant market for financial solutions, there are a few associations in Singapore that exist to help both the creditors. Each body has its own code of conduct and charters as well as the philosophy which will be mentioned below.
The Moneylender Association of Singapore
The Moneylenders Association of Singapore was established in 2005. This is one body which was intended to be the voice for registered moneylenders in the country. To date, there are about 200 licensed moneylenders in Singapore that offer all types of loans and financial solutions to the people. The Moneylender Association of Singapore or MLAS was intended to grow the moneylending industry of Singapore. Besides that, it helps to protect the interest of its members. The aim is to ensure that every licensed firm is a member of MLAS which has more than 150 members to date.
What makes MLAS so important is that it preserves and advocates ethical practices in this market which has often been pre-conceived negatively. This will improve the image of moneylenders while improving the industry to be a vital part of businesses across the country.
Members of MLAS get to enjoy different types of benefits that include, among others:
- Special discounts for insurance
- software and technological advancements in financial packages
- Related events and seminars
- Constant market updates
Moneylenders Credit Bureau
The Moneylenders Credit Bureau or MLCB is hosted and operated by DP Information Group. This is one initiative by the Ministry of Law of Singapore for all licensed moneylenders operating in the country. The firms and credit companies are obligated to provide information about their loans offered and payment patterns of their customers to be input into the MLCB. The Ministry of Law has appointed DP Information Group to design this system which started in 2016.
What the MLCB does is that it will provide a centralized system for licensed moneylenders to view a debtor’s other loans. As such, they can evaluate if the borrower has the capability of repaying the loan he is applying for. In other words, it will give a calculated judgment on the indebtedness and creditworthiness of the applicant. It is important to note that the information in the MLCB is not made available to other parties and is used mainly for forecasting purposes. This simply functions like a central credit checking agency but is targeted for use by the registered moneylenders before they agree to provide any form of financial solutions for its customers.
Credit Association of Singapore
The Credit Association of Singapore or CAS is mainly involved in managing the Registry of Moneylenders. The main objective is to have all the registered moneylenders in Singapore be a part of the CAS. It is to become the main voice for the members while protecting the interests of the parties involved.
Besides, that, the CAS is vital in ensuring the moneylending continues to become an integral part of both individuals and businesses in Singapore while it maintains the close relationship with the government on all related areas which includes, among others policy input and feedback from industry.
Members of the CAS can leverage on many areas and benefits. This include access to the latest software and tools, updates on the latest events and seminars offered by the CAS and related parties, latest information on new policies and regulations and any form of legal advice if required.