How To Ban Someone From Taking A Loan With A Money Lender

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.

How MLAS Offers Protection From Loans

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:

Do Not Lend (DNL) Directory

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.

When To Ban Your Loved One From Taking A Loan

At what point do you say enough is enough and ban your relative from borrowing from money lenders?

You can block them when:

They Have Many Existing Loans

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.

They Are Addicted To Gambling

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.

They Aren’t Making A Living

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.

Documents Required To Ban Someone From Taking A Loan

If you want MLAS to list your relative in the DNL Directory, you have to provide some documents for verification. These include:

• Photocopy of requesting an individual’s NRIC: Provide your loved one’s NRIC (front and back) to the MLAS.
• Proof of relationship with the person: You must prove the relationship between you and the person you want to ban from taking loans. For example, you can give a marriage certificate if it is your spouse.
• A cheque: Each request to ban someone from money lenders costs $50, payable to MLAS. You must provide a cheque of this amount and cross it.
• Cover letter: Lastly, provide a letter explaining why you want to block the person from taking loans. You need to include their full name and contact details for verification.

What The MLCB Self-Exclusion Listing Is About And Who Can Apply

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.

What Is A Self-Exclusion Listing?

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.

Who Can Apply For Self-Exclusion Listing?

The service is open to everyone in Singapore; that is:

• Singaporeans
• Singapore permanent residents
• Foreign domestic workers (FDWs)

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.

How To Apply For Self-Exclusion Listing

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.

Singaporeans And Permanent Residents With Valid Singpass

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:

• MLCB’s application form: This is a document where you fill in your details such as your name, contact, mobile number, and email address. It also entails the details of the authorised person, who should be the same person submitting the application.
• Identity proof: The Moneylenders Credit Bureau also requires your NRIC to verify your identity.
• A fee of $3 or $5: This is to prove that you have paid for the registration process. If you are doing self-registration, you will pay $3, but if you are an employer registering your FDW, you must pay $5.

Foreigners Without A Valid Singpass

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 application form: This is to provide the details of the registrant and the authorised person. Another critical section is ‘Authorisation to Register on Registrant’s Behalf.’ Ensure that you fill in all the sections for a successful application.
• Proof of relationship: This shows the relationship between the foreigner and the person applying on their behalf.
• Registration fee of $3 or $5: This shows MLCB you have paid for the registration process.

Effective Period Of Self-Exclusion

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.

• Singaporeans and permanent residents: You can choose a minimum of one or two years of exclusion.
• Foreigners: If you are a foreigner, you can only exclude yourself from borrowing unsecured loans for a minimum of two years.

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.

Costs Of The Self-Exclusion Listing

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.

How To Verify If You Have Been Excluded

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;

• Credit Bureau Singapore (CBS) or
• MLCB’s official website for $6.42, payable via Mastercard, Visa, or eNets. You can also visit their offices for direct purchase

How To Withdraw From A Self-Exclusion Listing

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.

Singaporeans And Permanent Residents With Valid Singpass

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:

• Application form: This is the MLCB’s withdrawal application form that provides your details. It entails your full name, mobile number, email, and contact number. It also shows the details of the authorised person, who must be the same person submitting the online withdrawal application.
• Proof of identity: Provide your passport or NRIC.
• Payment proof of $3 or $5: The Moneylenders Credit Bureau charges the withdrawal process, and therefore, you should have the payment proof ready.

Foreigners Without A Valid Singpass

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:

• MLCB application form: Download the online form and fill in the details. Ensure that they fill in the ‘Authorisation to Register on Registrant’s Behalf’ for a successful application.
• Proof of relationship: This is to show the relationship between the applicant and the one applying on their behalf.
• Proof of payment: This shows that you have paid the withdrawal fee to the Moneylenders Credit Bureau.

A Ban May Be The Best Move To Make

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.

Contact us now or apply for a loan with us today.