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How to Legally Borrow Money from Licensed Moneylenders in Singapore

Man in grey suit hands a folded brown envelope to man in white business shirt
Man in grey suit hands a folded brown envelope to man in white business shirt

Mention the word ‘moneylender’ and many people imagine a bunch of hot-blooded youngsters who hound families and demand exorbitant payments. That couldn’t be further from the truth with licensed moneylenders. In this period where cash is tight and people seek additional funds for payments and purchases, we debunk 5 moneylender myths, showing how they are a legitimate option when applying for legal loans.

But first, you need to understand what exactly is a licensed money lender?

According to the Moneylenders Act in Singapore Statues a moneylender is a person or an agent carrying out the business of moneylending. Always keep in mind, that under Singaporean law, no person can be a moneylender without having a license to do so unless they are exempted under the Moneylenders Act.

Exempted moneylenders 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.

What do you need to know from the money lenders?

Like in any transactional dealing, it is imperative to know your rights and the information that you must receive at the time of any agreement. A licensed money lender must inform the borrower about the terms of the loan, interest rates, late interest charges that you may incur, and other important details such as details about the instalment payments.

Also, do not forget 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 moneylender. It also informs the borrower about where to report or lodge a complaint should a situation as that arrives.

What makes you eligible to borrow money?

Under Singaporean law, there are certain requirements that you must complete in order to borrow money from a licensed moneylender.

All borrowers are required to duly fill an application form that includes their particulars such as:

  • Full name
  • Date of birth
  • Nationality
  • Personal Identification number
  • Full residential address
  • E-mail
  • Contact number
  • Amount applied for
  • Some supporting documents are required to be submitted which include:
  • Proof of borrower’s income (three months preceding the date of loan application)
  • Income Tax statements
  • Utility Bills

Not a Singaporean National? No Problem.

Given the cosmopolitan and diverse nature of Singapore, a lot of ex-pats and foreign nationals make the country their permanent or temporary home. So, if you are a foreign national residing in Singapore and find yourself in dire need of money, you do not need to make SOS calls to your friends or family overseas. The good news is that help is near and licensed money lenders in Singapore can help foreign residents borrow money. All that a foreign national may need is a few additional documents such as:

  • Employment pass that is valid at the time of application
  • Passport
  • Tenancy agreement
  • Job appointment letters
  • Bank statements

Know your Rights

As is true for any kind of financial transaction, the borrower must know their due rights and be aware of any malpractices or unfair practices that they can fall prey to. Here are a few things to keep in mind.

When you are dealing with a licensed money lender remember that at no time you should entertain any threatening language from the money lender.

Any of your important identification documents cannot be held up by the lender.

You must also be aware that withholding any part of the principal loan amount by the research must not be accepted under any circumstance.

In cases where you feel that are being subjected to unfair practices, you can report the money lending company in Singapore or lodge a complaint at the Registry of Moneylenders. You can also submit your complaint online on the Registry of Moneylenders.


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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