As mentioned by many financial advisors, it is always best to have at least 6 months’ worth of emergency funds ready. However, no matter how prepared we are, there could always be unexpected financial situations. Sometimes, we do need extra cash, fast. The cash could be for an urgent bill, for your medical bill, or for your education.

When you need to borrow money immediately, the first thing we tend to do is search online for the best loan in Singapore. We can also use a loan calculator to determine how much to borrow.

However, you have to beware of online loan scams. Are there truly legal money lenders in Singapore? How much can you borrow from a licensed moneylender? Where are legal money lenders located?

A licensed moneylender in Singapore can help you obtain the short-term financial assistance you need. However, before you approach any lender that claims to be able to lend you money immediately, do a background check on them.

You have to know:

  • Your borrowing rights
  • How much you can borrow from licensed moneylenders
  • How to differentiate a legal and fake lender
  • Where to borrow
  • What are the interest rates licensed moneylenders can charge


What Should I Consider Before Taking a Loan From a Licensed Moneylender?

When you need financial assistance urgently, you might turn to the first lender you find.

However, you should make sure that it is a licensed moneylender! A legal moneylender can offer fast cash with minimal paperwork and often flexible repayment terms; however, some important things to consider before taking out a loan from a licensed moneylender.

  • It is important to understand the interest rate and fees that will be charged. Licensed moneylenders must disclose this information upfront, so make sure you know the total cost of the loan before agreeing to anything.
  • Consider whether you will be able to repay the loan on time. Missing a payment can result in significant late fees and damage your credit score, so be sure you can afford the monthly payments before taking out the loan.
  • Remember that a loan from a licensed moneylender should only be used as a last resort.
  • You should never commit to a loan without checking the terms and conditions first. Shop around different lenders for better deals to find one who will work best with your needs.
  • It may seem like an easy way out at first. Still, you should consider it carefully before signing any contract which allows a moneylender to lodge their caveat against your property. This will prevent the future sale of the house without repaying them in full first–and if repayment comes from what’s left after selling off all assets, then this could wipe away nearly every penny.
  • It is critical to understand your legal duties while borrowing money. You are legally required to fulfill any loan arrangement you agree to with a licensed moneylender; failure to do so can result in fines or jail.


What Are The Interest Rates Licensed Moneylenders Can Charge?

How much can you borrow from a licensed moneylender in Singapore? You have to know your borrowing rights!

A money lender is allowed to charge a total interest rate of 4%.

This restriction is applicable irrespective of your salary or whether you are applying for an unsecured or secured loan. If someone declines to settle their obligation on time, a moneylender may charge a maximum late interest rate of 4% per month for every month the loan is not repaid on time.

After subtracting the initial principal and all stipulated payments made in the name of the borrower to the principal, the amount of outstanding principal will be used to calculate the interest paid on loan.

Loan Example:

If Sasha takes out a $15,000 loan and repays $8,000, only the remaining $7,000 may be used to calculate interest.

The only late interest can be levied on amounts that are repaid late. The licensed moneylender in Singapore cannot impose interest on amounts that are due but have not yet been repaid. For example, if Sasha takes out a $15,000 loan and doesn’t make the first payment of $5,000, the moneylender may impose late fees on the $5,000 but not on the rest $10,000 because it is not yet due.


What Are The Fees Charged By Licensed Moneylenders?

According to the latest list of licensed moneylenders in Singapore, there are 154 licensed moneylenders. Only moneylenders are permitted to levy the following fees and expenses:

  • A cost of no more than sixty Singapore dollars for every month that payments are late;
  • When a loan is authorised, a fee of no more than ten percent of the loan’s principal is charged;
  • Legal fees spent by the moneylender to successfully reclaim the loan

The total fees that a moneylender can levy on a personal loan. These costs, which may include arrears, advance administrative fees, late fees, and interest, cannot be more than the amount equal to the loan’s principal.


How Do I Know If A Moneylender Is Legal Or Not?

If you’re considering taking out a loan from a moneylender, it’s important to ensure that the moneylender is licensed and legal. With so many loan scams reaching you via SMSes, Emails and WhatsApp messages, you need to remain alert and protect yourself.

Money lender Singapore is licensed by the Ministry of Law. You can check the list of licensed moneylender here.

When you’re looking for a moneylender, be sure to avoid unlicensed moneylenders. Unlicensed money lenders are not regulated by the government, which means they may charge higher interest rates and fees. They may also use illegal methods to collect debts, such as harassment or intimidation. If you take out a loan from an unlicensed moneylender, you have no legal protection if things go wrong.

It is important to remember that even though the moneylenders may be licensed, be cautious when they:

  • Utilise intimidating words or actions when speaking to you.
  • Request your SingPass password or user ID.
  • Keep your personal identification documents you may have, such as your driver’s licence, passport, job pass, or ATM card.
  • Request your signature on an unfinished or blank Note of Contract for the loan.


How Much Can Singaporeans, PRs & Foreigners Borrow?

Personal loans offered by licensed moneylenders are unsecured loans. No collateral is required.

The table below shows  the aggregate total that may be borrowed at any given moment from all Singaporean lenders for unsecured loans:

Borrower’s annual incomeSingapore Citizens and Permanent ResidentsForeigners residing in Singapore
Less than $10,000$3,000$500
At least $10,000
and less than $20,000
At least $20,000 and above6 times monthly income6 times monthly income



I Saw an Advertisement by a Moneylender. How Do I Know if It Is Legal?

Licensed moneylenders are now restricted to only three channels when advertising their services:

  • business or consumer directories (in print or online media),
  • websites belonging to the lender’s site
  • advertisements displayed on the inside or outside of the moneylender’s business premises

All other forms of advertisement are prohibited by law. This refers to SMSes, WhatsApp messages, emails and calls! Moneylenders are prohibited from using text messages or phone calls to request loans, so if you get an unsolicited message asking for a loan, they’re most likely unlicensed.


What Supporting Documents Do I Need For My Loan Application?

You will need to provide:

  • NRIC or Passport (proof of identity)
  • Bank statements or utility bills (proof of residence)
  • CPF statements or payslips (proof of income)
  • Income tax statements (proof of income)


What Must A Licensed Moneylender Inform Me Before Approving My Loan?

A good licensed moneylender will be patient and clear in their explanations. Please ensure that they explain the:

  • Interest rate
  • Late interest charge
  • Any other fees
  • Repayment amount


What Should I Do After Getting My Personal Loan?

1. It is important to ensure you receive the correct principal amount of your loan. The licensed moneylender is only allowed an upfront deduction of 10% as their approval fee.

2. Paying your loan installments on time will help avoid incurring late payment fees and higher interest rates.

3. Make sure the licensed moneylender gives you a receipt every time you make a repayment on your loan, and double-check it for accuracy.

4. Ensure that you receive a statement of account for all of your loans at least once a year in January and July and that you review it for accuracy.

5. All accounts and payment receipts statements should be kept as documentation and proof of payments.


Fast Cash From A Licensed Moneylender

Licensed moneylenders in Singapore can provide you with the cash you need to get through a difficult financial situation. With speedy application processes, you are able to get your cash much faster than with traditional banks.

Need an instant cash loan in Singapore? Lending Bee’s online loan application form helps you apply in just 3 minutes! Our professional loan officers will review and get back to you within 1 hour!

Apply now!


About Lending Bee

In a volatile, uncertain, complex and ambiguous world, you can count on one thing – your partner in credit, Lending Bee. Just like an industrious bee, we are committed to helping each and every customer access credit – quickly, easily and seamlessly.