In July 2019, the Ministry of Law announced a set of measures to stem the increase in moneylending activities targeting foreigners. Here are the key changes that have taken effect:
- Borrowing capped at $500 for foreigners earning less than $10,000 a year
The maximum amount that an FDW (who earns less than $10,000 a year) can borrow in total from licensed moneylenders has now been reduced from $1,500 to $500. More details can be found HERE.
- FDWs cannow apply for self-exclusion from borrowing from licensed moneylenders
Here’s how you can explain the process to your FDW:
- Self-exclusion is voluntary. Once your FDW has signed up, she would not be able to borrow from licensed moneylenders for a minimum of two years.
- Applying for self-exclusion requires a Singpass ID. As a third party, you can help her apply for it using your Singpass ID at https://mlcb.com.sg/Borrowers/ExclusionList.aspx.
- Download the authorisation form for her to sign and declare that she understands the implications of self-exclusion.
- You can also help your FDW apply for self-exclusion through employment agencies or NGOs such as Centre for Domestic Employees (CDE)
Do’s and Don’ts of Managing Finances
|Share tips on good financial habits with your FDW
Tap on these useful educational materials to help your FDW manage her finances:
|An FDW MUST NOT borrow from unlicensed moneylenders
Warn your FDW against loan offers from social media, phone calls or text messages, as these are from unlicensed moneylenders. If she is caught borrowing from unlicensed moneylenders, she will be barred from working in Singapore.