Moneylending to Work Permit Holders

Assoc Prof Fatimah Lateef asked the Minister for Manpower whether work permit holders are legally allowed to borrow money from licensed and unlicensed moneylenders.

Mr Lim Swee Say: Our law does not prohibit members of the public, including work permit holders, from borrowing from licensed moneylenders.

However, under the Moneylenders Act, it is illegal for moneylenders to operate without a license. For their protection, all members of the public, including work permit holders, should not borrow money from unlicensed moneylenders.

The Singapore Police Force (SPF) takes strong enforcement actions against unlicensed moneylenders such as loansharks. If convicted, an individual who acts as an unlicensed moneylender can be sentenced to a fine of up to $300,000, seven years imprisonment, and 12 strokes of the cane.