Your Trusted Guide to Licensed Money Lenders in Singapore

Without the right know-how, getting a loan from a legal money lender in Singapore can be a tricky affair. In this guide, we walk you through how to identify authorised private money lenders in Singapore, what they can and cannot do, how they compare with banks, and more. Read on for a complete guide to borrowing from a licensed money lender in Singapore.

How to identify licensed money lenders in Singapore

An authorised licensed money lender is a registered loan company that conducts legal money lending with borrowers. It is approved, licensed, and regulated by the Ministry of Law. Governed by the Moneylenders Act, there are strict rules and regulations that registered money lenders have to abide by.

If you’re looking to get a quick cash loan to tide you through an urgent period, a quick and reliable money lender in Singapore can help. In fact, legitimate money lenders are very inclusive — they aim to help anyone who needs to get a loan fast with minimal hassle, even if you have a bad credit history and have been rejected for bank loans in the past.

To check whether a private money lender in Singapore is licensed, all you have to do is access MinLaw’s list of licensed money lenders in Singapore. The list is periodically updated to show which local money lenders are in operation, as well as the ones that have been suspended.

As of the time of writing, there are 154 legalised money lenders in Singapore. The Ministry of Law has the authority to suspend registered money lender licences as it deems fit.

What private licensed money lenders in Singapore can and cannot do

The following is a set of activities that licensed money lenders may engage in.

Advertise, but not wherever they want

Authorised money lenders in Singapore are only allowed to advertise through three platforms; via their websites, at their business premises (interior and exterior), or in business or consumer directories (in print or online media).

Charge an interest rate of up to 4% per month

The maximum rate of interest an authorised money lender may charge in Singapore is capped at 4% per month. This holds regardless of the borrower’s income and whether the loan is an unsecured or secured one.

Similarly, the maximum late interest that authorised private money lenders in Singapore are permitted to charge is capped at 4% per month if the borrower fails to make the payment on time. The late interest can only be charged on the amount repaid late.

Take note that reliable money lenders in Singapore cannot levy late interest on outstanding amounts that aren’t yet due to be repaid. For instance, if you borrow $2,000 and are due to repay $1,000 but you missed your payment, the late non-payment interest can only be charged on the $1,000 that’s overdue.

Charge late fees and administrative fees (capped)

A licensed money lender’s late payment comes with a fee. All authorised money lenders in Singapore are allowed to impose:

a late fee ≤ $60 for every month of late repayment;

a processing fee ≤ 10% of the loan principal when a loan is granted; and

legal costs that are ordered by the court, for costs incurred on the successful claim by the licensed money lender to recover the loan.

Bear in mind the total charges chargeable by authorised money lenders in Singapore — such as interest, late interest, upfront processing fee, as well as late fees — cannot be more than an amount equal to the principal of the loan i.e. if you borrowed $2,000, the total of the interest, late interest, late repayment fee, and processing fee cannot exceed $2,000.

Offer loans to borrowers with a steady income

The maximum loan amount you can get for an unsecured loan from a licensed online money lender in Singapore is dependent on your annual income. Accordingly, you can get:

Up to 6 times your monthly income, if you earn at least $20,000 per year (Singaporeans, Permanent Residents, and Foreigners)

Up to $3,000, if you earn less than $20,000 per year (Singaporeans and Permanent Residents)

Up to $3,000, if you earn at least $10,000, but less than $20,000 per year (Foreigners)

Up to $500, if you earn less than $10,000 per year (Foreigners)

Secured loans typically come with a cap on how much you’re allowed to borrow, depending on the value of your collateral, e.g. your home or car.

According to the latest property cooling measures, if you are getting a home loan where the Option to Purchase is granted on or after 16 December 2021, your Total Debt Servicing Ratio (TDSR) has to be ≤ 55% for the purchase of properties. This metric takes into account all your existing debt obligations, such as a car loan and other secured and unsecured loans across all banks, local money lenders and financial institutions.

MinLaw regularly updates licensed money lenders’ rules on their page on borrowing from legalised money lenders in Singapore, so check it out for more up-to-date details.

Offer borrowers flexible repayment schedules

Most reliable money lenders in Singapore offer flexible repayment schedules starting from as short as one month up to 12 months, with some even offering loan tenures up to 24 months. Before you finalise the loan from your money lender, consider your income, budget, and financial obligations very carefully before signing your loan contract with the stipulated loan terms. Always negotiate your repayment schedules with your trusted quick money lender to your advantage.

Here are 5 myths about borrowing from registered money lenders – it’s always useful to have the right understanding of what they do before you take a loan.

After having identified what legitimate money lenders are allowed to do, take a look at what they can’t do.

Solicit loans through messages or cold calls

Legal money lenders in Singapore cannot solicit loans through social media platforms, text messages, WhatsApp, emails, flyers, direct phone calls, etc.

Been receiving annoying spam messages asking you to take up loans from ‘instant and trusted online money lenders in Singapore’? Those are likely sent by unlicensed money lenders and/or scammers. Do not entertain them.

Perform loan transactions entirely online

It is a must for licensed online money lenders in Singapore to meet the borrower in person at their office premises to conduct face-to-face verification of the borrower’s identity before granting any loan.

In short, licensed online money lenders in Singapore are not permitted to perform loan transactions entirely online. This rings true even if they are recognised as instant legitimate money lenders.

Skip contract explanation and financial assessment

Financial assessments such as checking a borrower’s tax notices and payslips must be executed by legalised money lenders in Singapore before a loan can be approved.

Likewise, the law requires dutiful local money lenders to explain all loan terms clearly to borrowers in language that they fully comprehend. Borrowers may clarify or ask loan officers to repeat information if necessary — a good and trusted money lender in Singapore will not hesitate to go the extra mile so that you clearly understand all that the loan contract entails.

You should also receive a copy of the loan contract. Apart from understanding all the contractual terms, pay extra attention to the repayment schedule, interest rates, and slew of fees applicable.

Keep your NRIC or any other personal ID documents

When getting a loan from your chosen trusted money lender in Singapore, make sure your money lender doesn’t withhold your NRIC, driver’s licence, passport, or other personal identification documents as it isn’t within their legal right to do so. They are also not allowed to acquire any information that contains passwords to your Singpass account, internet banking account, email account, etc.

Withhold a receipt each time you make your loan repayment

Ensure your trusted money lender in Singapore issues you a receipt each time you make your loan repayment, and check that all details are correct (e.g. name, amount paid, outstanding amount, date).

Definitely make it a habit to retain all statements of accounts and receipts of payments as documentation of payments.

Banks vs licensed money lenders: Which is the better option?

Regardless of whether you’re borrowing from a licensed money lender or bank, there are some key differences you need to know about. Depending on how soon you need the loan, your credit rating, and your eligibility, you may prefer one over the other.

Here’s a quick comparison between borrowing from banks and legal fast money lenders, assuming you are getting a personal loan:

BANKS

MONEYLENDERS

Max. sum you can borrow

Up to 10x monthly income

Up to 6x monthly income

Max. repayment period

Up to 7 years

Up to 12 months

Loan approval duration

Up to 2 weeks (for a new customer)

The same day, typically within 30 minutes of face-to-face verification

Typical interest rate

3.5 – 6% per annum

1 – 4% per month

Ease of loan approval

Stringent

Lenient

Processing fee

Typically 1% of the approved loan amount, some charge no processing fee

Up to 10% of the approved loan amount

Application procedure

Apply online or visit the branch office

Apply online or visit the lender’s office, but identity verification before loan approval has to be done in-person.

Can’t qualify for a bank loan?

We offer fast loan approval with less stringent criteria.

Advantages and disadvantages of borrowing from a legal money lender in Singapore

Borrowing from licensed instant money lenders often comes with its own set of advantages and disadvantages.

ADVANTAGES

DISADVANTAGES

Near-instant approval (usually less than 30 minutes)

Simple application process

Minimal documents required

Fund disbursed by cash or bank transfer immediately after loan contract signing

Accessible to most people, including those with bad credit history

Allows the borrower to get up to 6 times their monthly income

Hefty late charges (late interest up to 48% p.a. on overdue principal and/or interest)

High interest of up to 4% per month (up to 48% p.a.)

High processing fee (up to 10%)

Short loan tenure (typically up to 12 months repayment period)

DISADVANTAGES

Hefty late charges (late interest up to 48% p.a. on overdue principal and/or interest)

High interest of up to 4% per month (up to 48% p.a.)

High processing fee (up to 10%)

Short loan tenure (typically up to 12 months repayment period)

24-hour money lenders in Singapore: Do they exist?

There aren’t any 24-hour money lenders in Singapore that are licensed and legal. Those that run 24/7 and market themselves as ‘24-hour quick money lenders’ are likely to be illegal.

Although licensed private money lenders in Singapore have websites that run 24/7 (i.e. you can submit your loan application on the licensed money lender’s website anytime and anywhere to get a loan from the money lender), their physical offices have fixed office hours and do not operate round the clock.

Keen to apply for a loan?

Drop by our office or reach out to us here!

How to determine which licensed money lender is the best one for you

Even amongst licensed fast money lenders, the one that serves your needs best may vary. Here are some characteristics that define the “best” money lenders in Singapore to help you decide:

Legal money lender with licence certificate and qualifications

A good variety of loans is offered to meet your needs

Fast loan application and approval process

Quick loan disbursement

Competitive interest rates and charges

Credible reputation

Verified reviews on Google and other websites

Negotiation is possible for a loan repayment schedule that works for you

Patient, knowledgeable loan officers who go the extra mile to ensure borrowers fully understand all loan terms

Convenient office location

Depending on your situation, a quick money lender who possesses a few of these qualities may be right for you. For example, if you are dealing with rapidly growing debt from multiple loans, you would look for fast money lenders who offer competitive interest rates.

If you have multiple loans, you might also pay attention to licensed instant money lenders near you who provide debt consolidation loans. But before going for it, it helps that you know the difference between debt consolidation loan and debt settlement. While they’re both forms of debt relief, they function differently, which is why it is important that you understand exactly how debt settlement works and what a debt consolidation loan is first. Being clear about these seemingly interchangeable debt relief methods allows you to make an informed decision on which one you should go for.

Looking for a reliable money lender in Singapore?

R2D Credit is a licensed money lender since 2009 and we have served more than 2,600 borrowers, with over 2,400 5-star reviews on Google.

How to borrow from licensed money lenders in Singapore

The process of borrowing from a licensed money lender is straightforward.

Go to your licensed money lender’s loan webpage

Check that your licensed money lender is indeed legitimate – call them and check that their details are the same as those stated on MinLaw’s list

Fill out the online loan application form with your personal details (e.g. name, contact number, salary, and the desired loan amount)

Wait for a loan officer to contact you

Set up an appointment to meet your loan officer at your licensed money lender’s registered business address

Meet your loan officer; bring all necessary documents with you when you visit to ensure you get the fastest loan from the money lender

Ensure you are clear about all the loan contract’s terms and conditions, late charges, interest payments, repayment schedules, etc, before signing the contract. Feel free to get your loan officer to clarify anything you may be unsure of

Thereafter, your cash loan will be disbursed immediately via cash or bank transfer.

Documents required

Employed Singaporeans: IC, CPF contribution statements, latest 3 months’ payslip (if monthly salary > $6,000)

Self-employed Singaporeans: IC, IRAS Notice of Assessment (NOA), proof of income (bank statement or any official income statement)

Foreigners: Employment pass, proof of home address (tenancy agreement, proof of billing address), latest 3 months’ payslips

What happens if you’re unable to pay the money lender

If you don’t repay your loan on time, expect to incur late fees, late interest, and compound interest on the amount that’s repaid late. If your loan is a secured one, your pledged collateral may be at risk of being liquidated.

Should you find yourself in such a situation, try to request a realistic payment extension — work things out amicably with your licensed money lender as many are usually willing to negotiate reasonably.

What to do if you encounter harassment from a licensed money lender

Common acts of harassment include:

Spamming the borrower with SMSes and calls

Spamming the borrower’s home and office with calls

Contacting the borrower during odd hours

Visiting/ loitering around the borrower’s home and workplace repeatedly
or during unusual hours

Threatening the borrower

Using abusive language with the borrower

Using violence on the borrower

You may report to the Registry of Moneylenders at 1800-2255-529 or via their website should you wish to lodge a complaint against a money lender. Rest assured your personal details will be kept confidential. Additionally, the Registry will investigate errant licensed money lenders.

At R2D Credit, we ensure that all our staff adhere to the highest standard of professionalism and ethics.

Seeking a trustworthy licensed money lender in Singapore?

Disclaimer

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.