Restrictions on vehicles, residential property loans extended to licensed moneylenders

Restrictions on motor vehicle and residential property loans will extend to licensed moneylenders from April 6. The Registry of Moneylenders said in a statement on Friday that this will be done by way of new licence condition, which will be issued to the moneylenders on April 5.

The new licence condition will require moneylenders to comply with the prevailing loan restrictions set out under Monetary Authority of Singapore's set under two notices which may be updated by from time to time.

The notices prohibits banks from granting any credit facility beyond a stipulated quantum or tenure to borrowers for the purchase of a residential property or a motor vehicle. It also mandates banks to conduct checks with credit bureaus and HDB to assess the borrower's creditworthiness prior to the granting the facility.

The temporary lifting of the financing restrictions for the purchase of used motor vehicles registered on motor vehicle dealers' inventory on or before March 4 is applicable to the moneylenders.