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.
Starting from September 15, 2026, borrowers in Singapore who take out unsecured loans from licensed moneylenders will face a mandatory three-day cooling-off period. This new regulation, announced by the Ministry of Law, allows borrowers to cancel the loan and receive a reduced refund of the loan approval fee. Licensed moneylenders, which are not allowed to solicit loans through digital means, will retain only a portion of the approval fee, up to a maximum of either S$50 or 3.5% of the loan principal, whichever is lower.
During the cooling-off period, borrowers will not be required to pay interest on the loan, and the total amount they owe will not exceed the principal amount. The Credit Association of Singapore, a representative body for licensed moneylenders, helped develop this framework, which aims to give borrowers time to reconsider credit decisions and ensure moneylenders are compensated for their work.
Licensed moneylenders are required to meet borrowers in person before granting a loan, and the ministry will work with moneylenders to implement the new cooling-off period smoothly.
Written by urgent.news from CNA - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Borrowing from a licensed moneylender? New cooling-off period starts Sep 15 channelnewsasia.com
