Unlicensed moneylender jailed & fined for targeting domestic helpers with illegal high-interest loans
A 47-year-old Singaporean has been sentenced to jail and fined for running an illegal moneylending operation that exploited domestic helpers with steep interest rates.
On Monday (23 June), Stanley Suresh Nadaraja was handed a seven-month jail term and a S$30,000 fine after pleading guilty to operating a moneylending business without a valid licence.
If he fails to pay the fine, he will serve an additional month behind bars.
Started lending money after accident
According to The Straits Times (ST), Stanley, a former school van driver, started his unlawful business in October 2021.
He had fallen on hard times after a serious injury and began offering loans to cover his medical expenses and daily needs.
Initially, he lent money to his wife’s acquaintances, but his services soon reached a wider circle.
Word of his loans spread among foreign domestic workers, some of whom began reaching out to him directly for financial help.
From 2021 to 2023, Stanley gave out 19 loans amounting to at least S$5,900, and collected about S$885 in interest.
Source: linyuwei on Canva, for illustration purposes only
15% interest rate & sensitive data collected
Stanley charged a flat 15% interest on each loan and required borrowers to hand over personal information, including their passport numbers and bank account details.
He disbursed the funds via PayNow and received repayments through the same platform.
In 2021, he issued three loans worth a total of S$900 to three helpers.
The following year, he gave 11 loans amounting to S$3,500 to eight more.
By 2023, he had extended five loans totalling S$1,500 to another four helpers.
His activities were exposed on 3 Oct 2023 when he visited a condominium to confront a helper about an overdue repayment.
The helper’s employer, alarmed by his appearance at their home, lodged a police report.
Stanley was eventually traced by the authorities and charged in court in 2024.
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Featured image adapted from thanomphong on Canva, for illustration purposes only.
