Do you have a loved one with huge debts from banks and money lenders, yet they want to borrow more? Such behaviours can cost family relationships and even cause separation.
However, things don’t have to get so bad if you know how to ban someone from money lender.
You can block your relatives from borrowing money from money lenders in Singapore. They can also voluntarily apply for self-exclusion, a service that hinders them from taking loans.
Here is a detailed guide on how to ban someone from money lender, apply for a self-exclusion listing, and much more.
The Moneylenders Association of Singapore (MLAS) has a social responsibility to protect borrowers from loans. They help individuals ban relatives with bad borrowing behaviours from taking more loans.
They achieve this through the:
The DNL Directory is a feature on MLAS’s official website that allows members of the public to make an application to money lenders in Singapore. Through it, the applicant requests lenders to turn down any loan application made by their relatives or loved ones.
This can help to avoid getting to more debts from legal and blacklisted money lenders in Singapore.
However, legal money lenders are not bound to the DNL Directory and can grant individuals a loan even if they are in the DNL registry. The directory only acts as a point of reference for MLAS members when giving out loans.
However, MLAS urges its members not to allow those listed to take out loans.
Also, the DNL Directory is accessible to MLAS members only. Therefore, any licensed money lenders that are not registered with the MLAS cannot access it.
At what point do you say enough is enough and ban your relative from borrowing from money lenders?
You can block them when:
In Singapore, there is no loan limit for secured loans. However, unsecured loans are limited depending on your annual income.
You may have a family member with heaps of debts from licensed and blacklisted moneylenders in Singapore.
In such a scenario, you can ban him or her from taking other loans. This is because if this continues, your family can go bankrupt and even lose the home to cover the massive debts.
Gambling can lead a person into unending borrowing behaviour. Unfortunately, this activity is not meant to earn someone a living – instead, it should only be for fun. Therefore, a person should limit how much they should spend on it.
If your relative is addicted to gambling and keeps borrowing money to place bets, you can ban him or her. This is because there is no guarantee that your family member will win and find money to repay the debts.
When someone becomes unemployed, he or she may not be able to repay debts. If such people keep borrowing from money lenders, the debts may accumulate, and their family may have to come to their rescue.
Therefore, you can ban your unemployed loved one from taking loans if you know he or she has awful borrowing behaviour.
If you want MLAS to list your relative in the DNL Directory, you have to provide some documents for verification. These include:
Still wondering how to ban someone from money lender? A self-exclusion listing is another perfect alternative. However, this is voluntary – you cannot do it without the person’s consent.
It is a service offered by the Moneylenders Credit Bureau (MLCB) for individuals to voluntarily exclude themselves from applying for unsecured personal loans from licensed money lenders.
However, one can take out a debt consolidation loan if they have several loans to ease the burden. The service began on 15 Jul 2019.
If you are in the MLCB self-exclusion listing, you cannot take out any unsecured personal loans. You can only borrow secured loans such as auto, mortgage, or home equity loans from legal money lenders.
The service is open to everyone in Singapore; that is:
Individuals can register for self-exclusion as long as they have a valid Singpass. On the other hand, employers or employment agencies can register on behalf of their foreign workers.
However, the Ministry of Law states that one can apply on behalf of another person if consent is given.
If you want to apply for a self-exclusion listing in Singapore, the process is simple. However, the process differs depending if you are a Singaporean or foreigner.
Here are the steps to follow:
1. Log in to MLCB’s official website
2. Click Next to proceed with the online application process.
You will be required to choose the minimum period you wish to exclude yourself from taking unsecured loans.
Also, the following documents are needed:
Walk into the MLCB office with their identification documents for in-person registration.
They can also authorise a person with a valid Singpass to register on their behalf. For this process to be successful, provide the following documents:
Moneylenders Credit Bureau allows individuals to exclude themselves from taking unsecured loans for a certain period. The time frame depends on whether you are a Singaporean or a foreigner.
It is important to note that you cannot end your self-exclusion listing period earlier. However, once it expires, you can start making loan applications with licensed money lenders.
Always ensure you do not work with blacklisted money lenders in Singapore to avoid being overcharged.
The Moneylender Credit Bureau charges for self-exclusion listing registration and withdrawal. You can pay individually, or your employer can pay on your behalf.
For persons with a valid Singpass, the total cost for registering or withdrawing is $1.50. On the other hand, for an authorised person registering or withdrawing on behalf of a foreigner, the price is $2.60. Both fees are inclusive of GST.
If you have applied for a self-exclusion listing, you can verify if the process was successful. by requesting a copy of your MLCB report. Through it, you will know your self-exclusion listing status and the minimum period excluded.
The MLCB report shows the details of your loans, including the loans you have taken from licensed money lenders and your repayment details. As a result, it helps legal money lenders to weigh the risks of lending you money.
You can get your MLCB report from;
If your self-exclusion listing period has expired, you can apply for withdrawal. After withdrawing, you are allowed to take out unsecured personal loans from licensed money lenders.
The withdrawal process is similar to the registration process, which is open to Singaporeans, permanent residents, and foreigners.
For Singaporeans and permanent residents with valid Singpass, here are the steps to follow:
1. Go to MLCB’s official website home page. Find the Public page and click Self-Exclusion.
2. Click Next.
During the withdrawal process, you will be required to provide the following documents:
Foreigners without a valid Singpass can visit the MLCB office with their identification documents and do an in-person withdrawal process.
They can also authorise someone with a valid Singpass to make an online withdrawal on their behalf. During the process, the following documents will be needed:
Licensed money lenders in Singapore play a crucial role in the financial industry by giving out loans. However, every person has a personal responsibility to ensure that they borrow what they can pay.
If you have a loved one with a bad borrowing habit, you could be wondering how to ban someone from money lender.
You can apply to MLAS for the relative to be banned from taking loans. Also, you can ask him or her to apply for a self-exclusion listing through MLCB. Through these two options, your loved one will be blocked from taking some loan types.
You can contact 1AP Capital if you need a loan. We are a licensed money lender that offers all loan types under one roof.