MinLaw Singapore had announced that six company have been selected to pilot new business models for moneylending, as part of an initiative to better protect borrowers through business-led improvements. These new models include a more comprehensive use of data to assess creditworthiness. Then using digitalized processes to lower cost and giving better terms to those who repay their loans early or on time.

On 11 May 2018, MinLaw sends an invitation for proposals to pilot new business models for moneylending. Applications closed on 20 July 2018. In fact, these six firms were selected for having the strongest proposals amongst the 38 firms which applied. They also met a set of stringent mandatory criteria, including the soundness and completeness of the business model, participation in debt assistance schemes, professional debt recovery practices, customer and communication strategies, and effective cost of credit and credit policies. For the instant, they have paid-up capital of at least $1 million, which shows their financial standing. They also have a demonstrating track record in providing consumer credit, whether in licensed moneylending or in other sectors of consumer credit.

The six firms and the number of moneylending outlets each of them can apply to operate are:

a.    Credit 21 Private Limited (4 outlets);

b.    Dey Private Limited (4 outlets);

c.    IFS Capital Limited (1 outlet);

d.    Minterest Holdings Private Limited (1 outlet);

e.    Quick Credit Private Limited (4 outlets); and

f.     Xingang Investment Private Limited (1 outlet).

The 6 company will issue moneylending licenses by MinLaw to work the outlets they apply for. In a one-time lifting of the moratorium forcing on the issuance of new licenses. Since moratorium is forcing in 2012, the quantity of moneylending outlets is diminishing from 215 outlets to 162 outlets as of now. The six firms will permit applying for licenses for up to 15 new outlets altogether, and this speaks to under 10% of the 162 outlets at present worked by the 157 authorized moneylenders.

The licensees will permit working for as long as two years starting in 2019, after which MinLaw will assess the aftereffects of the pilot and consider alternatives for refining the moneylending administrative routine.

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