Law Ministry imposes 3-day cooling-off period for loans taken from licensed moneylenders

Channel NewsAsia (CNA)State / PublicCenter3 hr. ago

Starting September 15, 2026, borrowers in Singapore taking unsecured loans from licensed moneylenders will be granted a mandatory three-business-day cooling-off period. During this time, they can cancel the loan at a reduced cost, with no interest charged. Licensed moneylenders will only be allowed to retain a portion of the loan approval fee, up to S$50 for loans of S$5,000 or less, and up to 3.5% of the principal for larger loans, to cover administrative costs. This change aims to allow borrowers to reconsider impulsive credit decisions while compensating lenders for their due diligence. The regulation applies to all unsecured personal loans except business loans and was developed in consultation with the Credit Association of Singapore.

Bias read (Center): The article presents a factual update on a regulatory change introduced by the Ministry of Law in Singapore. It provides balanced information about the new cooling-off period, including both the benefits to borrowers and the compensation structure for moneylenders. There is no evident ideological sl

The Straits TimesParty-aligned🔒Center4 hr. ago

The Singapore Ministry of Law introduced a new regulation requiring a three-business-day cooling-off period for unsecured loans from licensed moneylenders, effective September 15. During this period, borrowers can cancel loans with reduced financial penalties for lenders. Previously, lenders could retain full loan approval fees and accrued interest upon cancellation. Under the new rules, lenders can only keep a portion of the approval fee, capped at specific limits based on loan size. For loans under $5,000, lenders can retain up to $50, while for larger loans, the cap is 3.5% of the principal. The policy aims to prevent impulsive borrowing decisions while ensuring lenders are fairly compensated for their services. The measure was developed in collaboration with the Credit Association of Singapore and includes additional guidelines encouraging lenders to offer incentives for timely repayments and support distressed borrowers through financial restructuring or referrals to social services.

Bias read (Center): The article presents the policy as a balanced regulatory measure designed to protect both borrowers and lenders. It does not take a clear ideological stance but rather explains the rationale behind the policy, emphasizing fairness and stakeholder interests. There is no evident slant toward either a左