How Much Can I Borrow From Licensed Money Lenders?

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How Much Can I Borrow From Licensed Money Lenders?

How Much Can I Borrow From Licensed Money Lenders?
How Much Can I Borrow From Licensed Money Lenders?

During these unprecedented times where massive retrenchments are happening, it is best to be equipped for all kinds of emergencies. This includes instances where you may find yourself in financial need without having enough funds at hand.

This is when you can consider taking up a loan from authorised money lenders in Singapore, who can help you overcome the situation. But first, you need to understand: What exactly is a legal lender?

According to the Moneylenders Act, a money lender is a person or an agent carrying out the business of moneylending. Always keep in mind that under Singapore law, no person can be a money lender without having a licence to do so, unless they are exempted under the Moneylenders Act.
Exempted money lenders in Singapore are those who are permitted to lend money under a law other than the Moneylenders Act, for instance, a pawnbroker, who has been permitted under the Pawnbrokers Act.

Anyhow, if questions like “how much can I borrow from a money lender?”, “has anyone taken a loan from licensed money lenders?”, and “is licensed money lender a safe option?” have been on your mind, take heart that this article will address them all below.

Read on to find out more.

Is there a limit to how much I can borrow from licensed money lenders?

There is no limit to how much you can borrow for secured loans — how much you can actually borrow depends on the value of your pledged collateral and your ability to service the monthly repayments.

On the other hand, there is a stringent limit to how much you can borrow for unsecured loans like a personal loan, payday loan, wedding loan, renovation loan, etc.

How much can I borrow from legal money lenders?

The answer to how much you can borrow from legal money lenders depends very much on your income if you’re looking to take up an unsecured loan.
According to the regulations set by the Registry of Moneylenders, the total maximum loan amount you can borrow across all lenders at one time is capped at 6x your monthly income.


Assuming this is your first unsecured loan from a money lender and you make over $20,000 annually. The maximum loan amount you can borrow is up to 6x your monthly income.

If you have an existing loan with a licensed lender at the time of applying for a second loan, the maximum you can borrow for the second loan will be whatever amount you get after subtracting the existing loan you have from the sum that’s 6x your monthly income.

Is licensed money lender a safe option for fuss-free loans?

Yes, a licensed money lender is a safe option if you’re looking for fuss-free loans that are legal through and through. If you didn’t already know, a loan contract with an authorised lender is legally binding by both parties — the authorised lender and the borrower.

What to expect from good licensed lenders?

As with any transactional dealing, it is imperative to know your rights and the information that you must receive at the time of any agreement.

A good, licensed lender must inform the borrower about the terms of the loan, interest rates, late interest charges that they may incur, and other important details such as the instalment schedule.

You also need to check for a cautionary statement. This can be a powerful tool for you as it informs the borrower of any untoward conduct carried out by a money lender. It also informs the borrower about where to report or lodge a complaint, should a situation like that arise.

How can I find safe money lenders?

Refer to the Registry of Moneylenders’ official list of licensed money lenders in Singapore for a comprehensive list of all the licensed lenders in sunny Singapore. If a money lender is not on the list, you can assume that it isn’t a safe money lender.

Only lenders with valid licences will be featured in this list. On the contrary, unsafe lenders who have breached the strict rules and regulations that govern them will be taken to task and investigated — their licences may be revoked or suspended.

If you know anyone who’s taken loans from a licensed money lender, ask him or her for their opinion on their money lender or if they would recommend their money lender. There’s no harm in asking around for recommendations for trusty, safe money lenders, really.

While you’re at it, make sure to do thorough research on the money lenders you’re keen on working with, too. Read reviews online to have a gauge of other borrowers’ experiences. Make sure the lenders’ business address, licence number, landline number are aligned with the information found in the Registry of Moneylenders’ list!

Am I eligible to borrow from a licensed lender?

Under Singapore law, there are certain requirements that Singaporeans and PRs must complete to borrow money from a licensed lender. Eligibility aside, there are also ways to increase the chances of loan approval.

A simple infographic listing the loan application requirements for a Singaporean

Not a Singaporean? No problem. Given the cosmopolitan and diverse nature of Singapore, many expats make the country their permanent or temporary home. If you are a foreign national residing in Singapore and find yourself in dire need of money, licensed lenders can help you out. You’ll need a few additional documents, such as:

A simple infographic listing the loan application requirements for a foreigner

Know your rights when borrowing from authorised lenders

The borrower must know their rights and be aware of any malpractices that they can fall prey to. Here are a few things to keep in mind when you are dealing with a licensed lender:

  • Remember that at no time should you entertain any threatening language from them.
  • None of your important identification documents can be held by the lender.
  • Withholding any part of the principal loan amount by the lender must not be accepted under any circumstance.

In cases where you feel that you are being subjected to unfair practices, you can report the lender or lodge a complaint at the Registry of Moneylenders.

Conclusion: Only borrow what you need from legitimate, safe money lenders

If you’re looking for a legal lender to borrow from, you can consider reaching out to R2D Credit today.

Not only do we offer quick and convenient loans, but also we’re a money lender in Yishun that’s only a 1-minute walk away from Yishun MRT. Easily obtain hassle-free and speedy loans that are suited for your needs, whether it is to purchase a big ticket item, fund your education, or support any medical emergencies.


The information provided on our website is for educational and informational purposes only and is not intended to be a substitute for legal or financial advice. While we try to ensure that information on this website is accurate, we do not warrant that the information will be free from error. We shall not be liable for any loss or damage that may arise from the use of this website.

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