Borrowing from a licensed moneylender? New cooling-off period starts Sep 15
The cooling-off period will apply to all unsecured loans from licensed moneylenders, except business loans, and last three business days, excluding Saturdays, Sundays and public holidays.
Effective September 15, 2026, borrowers in Singapore will face a mandatory three-business-day cooling-off period when taking out unsecured loans from licensed moneylenders. This cooling-off period allows borrowers to cancel the loan without incurring interest charges. Licensed moneylenders, however, will only be able to retain a portion of the loan approval fee, typically up to 3.5% of the loan principal, but not exceeding the approval fee itself.
This change aims to give borrowers more time to reconsider credit decisions while also compensating moneylenders for their services.
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- Borrowing from a licensed moneylender? New cooling-off period starts Sep 15 channelnewsasia.com
