Are you planning to borrow money from a licensed moneylender Singapore? With the rise of illegal money lenders, it is important to know the factors to consider when choosing a legal moneylender.

Understanding the terms of service of the loan agreement is essential when dealing with licensed moneylenders. This guide will provide an overview of the best-licensed moneylenders in Singapore and the factors to consider when borrowing personal loans from them.

The interest is the most important when borrowing from legal moneylenders Singapore.

A moneylender Singapore is required to offer rates that the Ministry of Law caps. Compare different lenders to ensure you get the best interest payment rate.

Also, take note of the refund terms of service. This includes the monthly installment amount, the length of the refund period, and any fees or charges associated with the loan.

Where Can I Find A List Of Licensed Moneylenders Singapore?

The Moneylenders Act and its rules govern legal moneylending in Singapore. Singapore currently has 154 licensed money lenders.

The website for the Ministry of Law has a comprehensive list of licensed money lenders. To reflect changes, the list is frequently updated.

Carefully read the information on the website to learn more about the risks associated with borrowing money from a money lender and your rights and obligations as a borrower.

The Consumer Protection (Credit Contracts) Act also controls moneylending operations. This Act covers every facet of credit agreements between a lender and a borrower for private, domestic, or family use.

Process Of Choosing The Best Personal Loan Money Lenders

Selecting the best personal lender for you can take time and effort. When selecting a moneylender, there are several things to look into.

These things consist of the following:

  • Determine the type of loan you require from a licensed money lender
  • Conduct research on the loan you intend to obtain from a licensed money lender
  • Organise all required documents before visiting a licensed money lender office
  • Check with the local law office if you’re dealing with a licensed money lender

Let’s look at each one of these in a little more detail:

Determine The Type Of Loan You Require From A Licensed Money Lender

Before taking out a loan from a licensed money lender, you must determine the type of loan you need.

If you need a small loan such as a personal loan, there are many different types of consumer loans available from licensed money lenders. Personal loans are helpful since they can be used for various purposes, such as consolidating debt, paying for unexpected expenses, or making a large purchase.

Comparing interest rates, costs, and terms from various lenders is critical before taking out a consumer loan. Knowing how much you can afford to pay each month is also crucial because personal loans frequently have deadlines for refund.

If you need a larger loan such as a business loan, many different types of loans are available from licensed money lenders. Business loans can be used for various purposes, such as expanding your business, buying new equipment, or hiring new employees.

Creating a business plan and ensuring you have the necessary collateral to secure the loan is also important.

Conduct Research On The Loan You Intend To Obtain From A Licensed Money Lender

It is important to research the loan you intend to obtain from a licensed money lender before borrowing from a licensed money lender. This will allow you to understand the terms and conditions of the loan and the refund options available to you.

Check Credit Score

All borrowers must have a credit check done by licensed money lenders. Always go to the Moneylender Credit Bureau website or Credit Bureau Singapore and request a copy of your credit report.

The report will indicate whether or not the money lender properly performed a credit check. A licensed money lender Singapore will probably decline to lend to you if your credit score is low. If you have a good credit score, you can get a loan faster.

Check Eligibility

Verify your eligibility for the type of loan you are taking as well. Remember that your annual income determines the maximum loan amount you can borrow in Singapore.

Based on your income and citizenship, the table below shows how much money you can borrow from Singapore’s authorised money lenders.

Yearly IncomeSingaporeans And Permanent ResidentsForeigners Residing In Singapore
Under $10,000$3,000$500
At least $10,000 but no more than $20,000$3,000$3,000
A minimum of $20,000Six times the monthly incomeSix times the monthly income

Organise All Required Documents Before Visiting A Licensed Money Lenders Office

Organising all required documents before visiting a licensed money lender office is very important to speed up the process and get your cash much faster.

This is because if you do not have all the required documents, the money lender will not be able to process your loan application process.

These documents include the following:

  • NRIC
  • Rent agreement, employment letter, work permit, and bank statements (for foreigners)
  • Income and employment documentation
  • Past CPF statements and current credit score
  • Proof of residency

Licensed money lenders approve unsecured loans such as consumer loans, based on annual income rather than your credit history.

This is because income is a good indicator of an individual’s ability to repay the loan. For salaried individuals, lenders will typically require payslips as proof of income.

The payslips will show the individual’s monthly income, giving the lender an idea of how much the individual can afford to repay each month. On the other hand, you may have to provide financial statements or tax returns as proof of income.

This is because self-employed individuals typically have more irregular incomes, which makes it more difficult to determine how much they can afford to repay each month.

Check With The Local Law Office To See If You’re Dealing With A Licensed Money Lender

The Money Lenders Act in Singapore establishes the guidelines authorised money lenders must adhere to to protect Singaporean borrowers. This includes limiting the amount of interest they are permitted to charge.

Licensed money lenders are not allowed to exceed the following under the Money Lenders Act:

  • Charge a monthly interest rate of more than 4% on the outstanding loan balance
  • Charge a late payment fee greater than 4% of the total loan amount
  • Charge any additional fees unless they are expressly permitted by law
  • A penalty of no more than $60 per month of late refund
  • When a loan is approved, a fee to not exceed 10% of the loan

The court will order legal costs for a money lender’s successful claim to recover the loan.

You can file a complaint with the Registry of Moneylenders if you believe a licensed lender has broken one of the laws above. The Registry will look into the complaint and, if necessary, take appropriate action.

Submit Your Loan Application

Submit Your Loan Application

Send your application to the loan provider of your choice. Most money lenders in Singapore provide convenient application methods, including in-person visits to their offices or giving your information online through their websites.

After applying for the loan, you might need to mail all of your supporting documents to your money lender if you don’t want to go to their office. Just make sure to confirm this with your loan provider before moving forward to avoid any potential delays.

How Can I Tell If I’m Dealing With A Legitimate Lender Or A Unlicensed Money Lender?

Knowing the difference between a legitimate lender and an illegal money lender is important because you don’t want to be taken advantage of financially.

Here are some things to look out for that may indicate you’re dealing with a loan scam:

Check Information Online See If The Licensed Money Lender Is Listed On Minlaw’s Registry

Check Information Online See If The Licensed Money Lender Is Listed On Minlaw’s Registry

When looking for a loan, it’s important to ensure you deal with a legitimate lender. There are many loan scams, and you don’t want to be a victim.

One way to tell if a lender is legitimate is to check Minlaw’s Registry. Minlaw is a government agency in Singapore that regulates moneylenders. If a moneylender is listed on Minlaw’s Registry, they are licensed and approved by the government.

Pay Attention To The Advertisements Made By The Licensed Money Lender

Have you ever gotten a message about loans? These are most likely from loan sharks or unauthorised money lenders.

Businesses use the opportunity to stay current with trends as they transition to digital. They might employ these strategies to persuade people to borrow money from them, including email, fliers and WhatsApp advertising.

But in reality, these contravene laws governing authorised money lenders’ advertising. Therefore, immediately block and report the number the next time you receive this type of advertising.

Only the three previously mentioned channels are allowed for licensed money lenders to advertise. They are closely regulated, and their licence might be taken away if they engage in illegal advertising. Working with licensed money lenders is advised due to the Singapore Moneylenders Act’s requirement that they do so.

Licensed Money Lenders Official Website

It is crucial to remember that the licensed lender you are thinking about ought to have a website. The website needs to have accurate details about the license of the money lender, their contact details, and their rates and fees.

Never use a money lender if they have a website with outdated or inaccurate information.

Check To See If The Licensed Money Lender Has A Physical Address

When looking for a licensed moneylender, you should always check to see if they have a physical address.

Many loan scams in Singapore will try to get you to send them money without ever giving you any money. If a moneylender in Singapore does not have a physical address, likely, they are not a legitimate lender.

You can do this by checking the moneylender’s website or calling them and asking for their address. Or visit their offices physically to confirm that they are who they claim to be.

Ensure That You Have All The Necessary Documents

After reviewing your NRIC and other personal ID documents, authorised money lenders will always return them. You’ll also receive a loan contract or note of contract from them.

The loan contract will have all the terms and conditions of the loan, including the amount borrowed, the interest rate, the refund schedule, and any other fees. Make sure you understand everything in the contract before signing it.

If you have any questions, ask the moneylender or staff for clarification. Before taking out a loan from a registered moneylender in Singapore, you must fully comprehend the loan contract terms.

A Face-To-Face Verification With A Licensed Moneylender

This will give you a better sense of who they are and whether or not they are legitimate.

During the meeting, you can ask the moneylender questions about their place of business and its operations. You can also get references from other clients.

If the moneylender is unwilling to provide this information, it may indicate that they are not legitimate.

Before a licensed moneylender can make a loan disbursement, face-to-face verification is required. It’s time to move on from a lender if all you’re getting from them is an email or a text message informing you that your loan has been approved.

You can always ask for a contract if you are still trying to figure out the moneylender. This should outline the terms of your loan and the refund schedule. This will give you some protection if the moneylender is not legitimate.

By meeting with the moneylender and asking questions, you can better understand whether or not they are legitimate and avoid being scammed.

Check Out The Interest Rates And Fees Offered By Licensed Moneylenders In Singapore

A moneylender is allowed to set a 4% monthly interest rate cap. This restriction applies regardless of the borrower’s income or whether the loan you’re looking for is an unsecured or secured loan. For each month a borrower misses a payment, moneylender singapore can only charge a maximum rate of 4% per month.

Moneylenders permit only the following fees:

  • Additionally, licensed loan providers can impose a $60 monthly late payment fee
  • Upon loan authorisation, a fee of up to 10 percent of the loan’s total amount is assessed
  • If the money lender successfully gets the loan back, the court might order that they be paid

The total fees that a consumer loan lender may tack on top of the correct principal amount of the loan include late fees, advance administrative fees, arrears, and interest.

When Working With A Licensed Moneylender, What Should You Keep In Mind

When Working With A Licensed Moneylender, What Should You Keep In Mind?

Be aware of the following when taking out a loan from a registered money lender:

  • Keeping your NRIC card or any other personal identification documents like a driver’s licence, passport, work permit, employment pass, ATM card
  • The lender should not be requesting your Singpass account and password
  • The lender of the money should not acquire any information that contains passwords to your user accounts (e.g. internet banking account)
  • It must not withhold any amount from your loan without providing a justification
  • It should not be giving you a loan without performing proper research (e.g. before receiving your loan application form and any supporting paperwork, such as your income tax assessment and paystubs, the lender approves a loan over the phone, via SMS, or via email)
  • The lender should not be approving your loan without providing you with a copy of the note of contract for the loan
  • It also should not request your signature on a note of the contract that is blank or insufficient.

Such practices are not acceptable. If you come across one, you should report the moneylender to the Registry of Moneylenders, providing information such as the licensed moneylender’s business name, license number, and contact information.

What To Do After Your Loan Is Granted And You Get Your Cash

What To Do After Your Loan Is Granted And You Get Your Cash

After receiving your loan from a money lender, you should take the following actions to ensure you are familiar with the terms and refund of your loan.

  • Once your loan has been approved, you will receive a copy of the Loan Agreement from the lender. The terms and conditions of your loan, including the due date, interest, and approval fees, will be detailed in the agreement. Before signing the contract, make sure you have read it over thoroughly.
  • If you have doubts about the terms of the loan contract, always ask the money lender for clarification. After signing the contract, you are in charge of paying back the loan per the terms.
  • Make certain that the moneylender delivers to you the correct amount. The moneylender is only permitted an upfront deduction of a loan approval fee of up to 10% of the principal amount.
  • Contact your money lender right away if you’re having trouble making payments. Many regulated lenders are open to working with borrowers to develop a new refund strategy.
  • Make prompt payments on your loan instalments to avoid late payment fees and late interest.
  • Make sure the moneylenders issue you a receipt every time you make any payment towards your loan and check it for correctness (e.g. name, amount, date).
  • At least once every January and July, make sure you receive a statement of account for each of your loans and ensure all the information on it is accurate.
  • Every account and receipts of payment should be kept as documentation and evidence of payments.

Keep These Documents

Additionally, you ought to have the following paperwork on hand for reference:

  • A duplicate of the loan agreement
  • Receipts for each loan payment that you have made
  • A list of all your loans with an account statement
  • Copies of all accounts, invoices, and other pertinent paperwork

What If You Are Unable To Pay Licensed Money Lenders In Singapore?

How do you resolve the situation if you cannot pay a licensed money lender? The majority of people ask themselves this question when they are in debt.

If you ever find yourself in this predicament, it’s critical to act quickly to try and fix the situation before the time you make any repayment towards your loan.


After negotiating with the lender, consider enrolling in a DRS if you still need to pay the loan.

You will pay a debt management company that has received government approval each month under the DRS. Your creditors, including the authorised moneylender, will then divide these refunds.

Only borrowers who owe money to three or more unguaranteed creditors, including authorised money lenders, are eligible for the DRS.

Debtors with unguaranteed debts of less than $150,000 can participate in a debt refund plan with a payday lender.

Debt Consolidation Plan Money Lender

You can combine your debts from various lenders into one loan with reasonable interest rates if you have several obligations to them. This can help you pay off debt faster and make the loan refunds more manageable.

A bank, credit union, or authorised money lender are places where you can apply for a debt consolidation program.

Evaluating the interests and costs charged by various lenders is critical before selecting a debt consolidation strategy. Additionally, you must confirm that you can afford the monthly payments.


You may be declared bankrupt if you are unable to pay your debts. You can have your debts forgiven through this legal procedure.

However, it will significantly affect your financial situation and should only be used as a last option.

If you are considering bankruptcy, you should consult a qualified insolvency practitioner. They can help you decide whether bankruptcy is the best course for your circumstances.

Organisations That You Can Approach For Help

If you cannot pay back the loan, there are several organisations you can approach for help.

Credit Counselling Singapore (CCS)

Credit Counselling Singapore (CCS)

Credit Counselling Singapore is a government agency that provides free debt advice and assistance to individuals. They provide help to individuals who are struggling to manage their debt and help them to come up with an effective refund plan.

They can negotiate with creditors to reduce or waive late payment charges and help individuals apply for debt restructuring programs.

Monetary Authority Of Singapore (MAS)

Monetary Authority Of Singapore (MAS)

The Monetary Authority of Singapore provides financial education and support to individuals facing financial difficulties. They offer debt restructuring schemes that allow individuals to restructure their loans, for example, by extending the loan period and reducing the interest.

National Council On Problem Gambling (NCPG)

National Council On Problem Gambling (NCPG)

The National Council on Problem Gambling assists individuals who are struggling with problem gambling. They provide counselling services and financial assistance to those in need.

They also offer debt management plans and other support services to help individuals to manage their debt.

Licensed Moneylenders Singapore Guide (2024): How To Get The Best Personal Loans From Legal Moneylenders 1

Credit Collection Association Of Singapore (CCAS)

All credit agencies and associations are represented by the Credit Collection Association of Singapore. They make sure that all credit bureaus uphold their code of conduct.

They also offer dispute resolution services to clients and agencies. If you ever have a problem with your lender, you can talk to them to get it worked out.

ComCare (MSF)

ComCare (MSF) 

ComCare is a social service arm of the Ministry of Social and Family Development (MSF). They provide financial assistance to individuals and families who are facing financial difficulties. They also offer various services such as debt counselling, financial planning and budgeting, and skills training.

The Significance Of Personal Loans From Licensed Lenders

Getting a consumer loan from legal lenders is a great way to finance your needs and reach your financial goals.

There are many options available, and it is important to research to find the best lender for you. Consumer loans can be a great way for individuals to manage their finances.

They provide access to funds for expenses such as home improvements, debt consolidation, or large purchases. Additionally, consumer loans can provide quick access to funds, which can be beneficial in times of emergency or unexpected expenses.

With favourable terms of service, you can get a personal loan from us, Lending Bee. We offer flexible refund options, quick approval, and competitive rates.

With our help, you can get the financial assistance you need to reach your goals. Contact us or apply now to get the best loan deals.

About Ashley Sim

Calling herself a “professional multi-tasker”, Ashley worked as a relationship manager in a bank for five years. She left her job just before the pandemic happened and became a freelance writer for about a year. Now, she’s making the most of her love for writing and knowledge of the banking and financial industry in her role as a content marketing lead. She hopes to help people make better financial decisions through her content and campaigns.