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Licensed money lenders in Singapore are legal money lenders regulated by the Ministry of Law (MinLaw). As approved money lenders, they offer a wide variety of legal loans to borrowers in Singapore, including quick short-term loans and personal loans at reasonable interest rates, while adhering to the Moneylenders Act.
If you have the intention to take out a loan from a licensed money lender, it is important to take steps to ensure you are engaging only legal money lenders because there is an increasing number of loan and money lender scams in Singapore.
Verify the lender’s details against the list of licensed money lenders in Singapore available on MinLaw’s website.
The lender’s company name, contact number, and business address reflected in their documents and money lender license displayed in the office premise must be the same as those from the regulator’s list.
When in doubt, ask the lender for its company registration license to prove its legitimacy. This will protect you from falling prey to illegal money lenders in Singapore who employ fraudulent lending tactics, harassment and violent behaviours for debt collection.
Avoid any lenders who attempt to market themselves through flyers, SMSes, emails, cold calling, WhatsApp messages, or Telegram messages.
Licensed money lenders in Singapore are only permitted to market their services via business or consumer directories in print or online media, their listed websites, and advertisements placed within their registered business premises.
If you receive unsolicited promotional messages outside of these three legal channels, chances are they are sent by scammers.
Verify the loan interest rates and fees that they impose.
As a rule of thumb, licensed money lenders in Singapore can only charge a maximum personal loan interest rate of 4% per month.
Late interest and fees are capped at 4% and S$60 per month respectively, while processing fees are limited to up to 10% of the loan sum. The fee structure is regulated by MinLaw. Any lender that goes beyond these fee caps can be charged for unfair practices.
Whether you are looking for the best licensed private money lender in Singapore offering the cheapest personal loan or a 24-hour money lender that can disburse an urgent cash loan to you today, we have compiled everything you need to know about taking out a private loan in Singapore.
Differences between banks and licensed money lenders in Singapore
Benefits & Disadvantages of borrowing from licensed money lenders
Do licensed money lenders offer urgent loans with no credit check in Singapore?
What are the personal loan interest rates legal money lenders in Singapore can charge?
Differences between banks and licensed money lenders in Singapore
Benefits & Disadvantages of borrowing from licensed money lenders
Do licensed money lenders offer urgent loans with no credit check in Singapore?
How to calculate interest on a licensed money lender loan?
How much is the maximum personal loan I can get from licensed money lenders?
What happens if you’re unable to pay your licensed money lender in Singapore?
How to settle licensed money lender disputes in Singapore?
What are the personal loan interest rates legal money lenders in Singapore can charge?
How to calculate interest on a licensed money lender loan?
How much is the maximum personal loan I can get from licensed money lenders?
What happens if you’re unable to pay your licensed money lender in Singapore?
How to settle licensed money lender disputes in Singapore?
Are all licensed money lenders monthly loan money lenders in Singapore?
Are all licensed money lenders monthly loan money lenders in Singapore?
Are there debt consolidation plan money lenders in Singapore?
Are there debt consolidation plan money lenders in Singapore?
Approaching a bank may be the first option that comes to mind when you need a loan. However, dealing with banking institutions requires lots of paperwork and lengthy processing time. If you make less than S$20,000 per annum, your chances of getting a loan from any bank in Singapore will be rather remote.
But what’s the difference between borrowing from banks and money lenders? Here’s a quick comparison including licensed money lender personal loan interest rates and bank loan interest rates in Singapore.
Bank
Licensed money Lender
Borrowing limit
From S$1,000 to ten times monthly income
Singaporean and Permanent Residents (PRs) – S$3,000 to six times monthly income
Foreigners – S$500 to six times monthly income
Repayment period
12 to 84 months, though most offer tenures up to 60 months
Up to 12 months, though a few lenders might extend the tenure up to 24 months
Interest rates
From 3.38% per annum
Up to 4% per month
Fees
Around 1%
5% to 10%
Loan eligibility
Documents required
Borrowing limit
From S$1,000 to ten times monthly income
Singaporean and Permanent Residents (PRs) – S$3,000 to six times monthly income
Foreigners – S$500 to six times monthly income
Repayment period
12 to 84 months, though most offer tenures up to 60 months
Up to 12 months, though a few lenders might extend the tenure up to 24 months
Interest rates
From 3.38% per annum
Up to 4% per month
Fees
Around 1%
5% to 10%
Loan eligibility
Documents required
Bank
Licensed money Lender
Bank
Licensed money Lender
Borrowing limit
From S$1,000 to ten times monthly income
Singaporean and Permanent Residents (PRs) – S$3,000 to six times monthly income
Foreigners – S$500 to six times monthly income
Repayment period
12 to 84 months, though most offer tenures up to 60 months
Up to 12 months, though a few lenders might extend the tenure up to 24 months
Interest rates
From 3.38% per annum
Up to 4% per month
Fees
Around 1%
5% to 10%
Loan eligibility
Documents required
Borrowing limit
From S$1,000 to ten times monthly income
Singaporean and Permanent Residents (PRs) – S$3,000 to six times monthly income
Foreigners – S$500 to six times monthly income
Repayment period
12 to 84 months, though most offer tenures up to 60 months
Up to 12 months, though a few lenders might extend the tenure up to 24 months
Interest rates
From 3.38% per annum
Up to 4% per month
Fees
Around 1%
5% to 10%
Loan eligibility
Documents required
111 Credit is an Orchard money lender that offers competitive rates and fast loan disbursement.
Are you a business owner who’s been wondering “What is the interest rate on a business loan?”. It is good to note that licensed money lenders like 111 Credit offer a reducing interest rate starting from 4.28% per month. While bank rates are lower in comparison, not everyone is eligible for bank loans.
Just to put things into perspective, OCBC and UOB’s business loan interest rates hover around the 8.75% to 10.88% per annum mark. Yes, they’re much lower, but not everyone is able to obtain these loans.
of borrowing from licensed money lenders
While it is true that legal money lenders in Singapore offer short-term loans, personal loans, and private loans for bad credit, they will still conduct relevant credit checks to assess if they are confident of recovering the loan sum from the borrower.
By law, a face-to-face meeting has to be conducted to verify borrowers’ identities before the loan can be disbursed.
Discuss your loan needs with 111 Credit today.
Licensed money lenders in Singapore can only charge a maximum interest rate of 4% per month — most usually offer an interest rate of 1-4% per month.
Keep in mind that while late interest is also capped at 4% per month for each month the loan is repaid late, it can only be charged on the amount that’s repaid late.
The money lender is not allowed to levy late interest on amounts that are outstanding but not yet due to be repaid.
Example
If a borrower takes a loan of $5,000, and fails to pay for the first instalment of $1,000, the money lender can charge the late interest on $1,000 but not on the remaining $4,000 as it is not due yet.
Legal money lender interest rates are calculated using the reducing balance method. This method derives interest payments based on the outstanding principal balance.
The upside of this method is that you tend to pay much less in interest because the principal amount is reduced after every repayment. Let’s assume you took a personal loan for S$3,000 that should be repaid over a 6-month tenure using an effective interest rate of 7% per annum.
If the lender uses a flat rate method, your total interest payable will be strictly S$210. If the reducing balance method is applied, the total interest payable will be lesser:
Month
Instalment amount
Principal payment
Outstanding principal
Interest payable
1
S$510.26
S$492.42
S$2,507.58
S$17.84
2
S$510.26
S$496.79
S$2,010.79
S$13.47
3
S$510.26
S$498.30
S$1,512.48
S$11.95
4
S$510.26
S$501.56
S$1,010.93
S$8.70
5
S$510.26
S$504.25
S$506.68
S$6.01
6
S$509.59
S$506.68
S$0
S$2.92
Total
S$3,000.00
S$60.88
| Month |
|---|
| 1 |
| 2 |
| 3 |
| 4 |
| 5 |
| 6 |
| Total |
| Instalment amount | Principal payment | Outstanding principal | Interest payable |
|---|---|---|---|
| S$510.26 | S$492.42 | S$2,507.58 | S$17.84 |
| S$510.26 | S$496.79 | S$2,010.79 | S$13.47 |
| S$510.26 | S$498.30 | S$1,512.48 | S$11.95 |
| S$510.26 | S$501.56 | S$1,010.93 | S$8.70 |
| S$510.26 | S$504.25 | S$506.68 | S$6.01 |
| S$509.59 | S$506.68 | S$0 | S$2.92 |
| S$3,000 | S$60.88 |
When attempting to tabulate your loan interest, utilising a monthly loan repayment calculator can be very useful when it comes to determining your monthly loan repayment amount.
How much money you can borrow from a legal money lender is regulated by MinLaw. The maximum amount is 6 times your monthly income at any one point, across all licensed money lenders.
Borrower’s Annual Income
Singapore Citizens and Permanent Residents
Foreigners
Less than S$10,000
S$3,000
S$500
At least S$10,000 and less than S$20,000
S$3,000
S$3,000
S$20,000 and above
Six times of monthly income
Six times of monthly income
Source: Registry of Moneylenders
Bear in mind that late interest and fees are capped at 4% and S$60 per month respectively, while processing fees are limited to up to 10% of the loan sum. The fee structure is regulated by MinLaw. Lenders who exceed these fee limits may face charges for engaging in unfair practices.
If you cannot afford to make a repayment, you should first attempt to negotiate a new repayment plan with your money lender. Asking for a payment extension is important because failing to fulfil your monthly loan repayment in Singapore can lead to several unfavourable outcomes:
Compound interest and late interest, which is capped at 4% per month, will start accruing on your balances owed.
Late payment fees, which are capped at S$60 per month, will start accruing for every late repayment.
The money lender may post a Letter of Demand to request payment or visit your home or place of employment. Even though licensed money lender harassment or threats are not allowed, they are permitted by law to contact you and visit your residence or office.
The lender may take you to court and file for litigation against you. You would also be liable for legal costs ordered by the court.
Most licensed money lenders in Singapore will want to settle disputes as amicably as you do. If you are caught in a dire situation and are unable to repay your loan, try to renegotiate for an extended payment schedule.
Don’t be afraid to ask for help. There are social service agencies that may help you mitigate financial disputes. These agencies can assist you to recover from debt problems by providing credit management information, credit counselling, and negotiation of debt repayment plans with your creditors.
You may also wish to lodge a complaint against your licensed money lender If you are experiencing licensed money lender harassment. Contact The Registry of Moneylenders at 1800-2255-529 or fill in their online form. The respective authority will take the errant moneylender to task.
In the worst-case scenario when you have exhausted all plausible debt-relief options, you may consider filing for bankruptcy. Bankruptcy carries significant repercussions, so it's important to treat the situation with the seriousness it deserves.
Yes, licensed money lenders do provide monthly repayment loans (i.e. loans with monthly instalments). Most legal money lenders in Singapore offer loan tenures ranging from 3 to 12 months. You may find 24-month loans directly from some lenders, too.
Learn more about 111 Credit’s monthly loans.
A debt consolidation plan is a debt refinancing program to help borrowers consolidate all their unsecured credit facilities into one single loan. It is a service offered by participating banks and financial institutions.
Besides approaching banks and financial institutions, borrowers can also access money lenders’ debt consolidation plan to refinance their outstanding credit facilities into one single loan.
Licensed money lenders like 111 Credit offer debt consolidation loans to help borrowers consolidate and streamline their multiple debts while possibly cutting down on the total interest incurred on their debts.
The key advantage to leveraging debt consolidation loans lies in the convenience of managing only one account which reduces the chances of late or missed payments happening.
Utilising a debt consolidation loan might also help to accrue less interest which enables borrowers to pay off the debt while saving on interest charges.
How does it work?
Think of it as a type of personal loan that can pay off all existing unsecured debts.
With a money lender’s debt consolidation plan, you no longer need to manage multiple credit facilities, remember various due dates, and be charged different interest rates.
All you need to do is to make timely repayments for the debt consolidation loan according to the repayment schedule.
Need a loan from a legal money lender in Singapore? The first step is to get your documents ready for submission:
Documents required for Singaporeans / PRs
Documents required for foreigners
Don’t be in a hurry to sign up for a loan, always compare money lenders and scout around for the best money lender in Singapore by making personal loan interest rate comparisons amongst different loan packages.
Do also consider the loan terms and monthly repayment amount before shortlisting the one that is most suitable for you.
After which, you will be invited to visit the money lender’s office for a face-to-face verification.
The loan officer will present the loan contract and repayment schedule for your confirmation. Be sure to clarify all loan terms before committing.
Once the loan contract is signed, your loan will be disbursed directly to your bank account or given to you in cash.
Fill out the online loan application form for in-principle approval.
After which, you will be invited to visit the money lender’s office for a face-to-face verification.
The loan officer will present the loan contract and repayment schedule for your confirmation. Be sure to clarify all loan terms before committing.
Once the loan contract is signed, your loan will be disbursed directly to your bank account or given to you in cash.
The cheapest personal loan in Singapore may not be within everyone’s reach. Personal loans from banks are typically easier on the wallet, but they are only offered to those with a good credit score.
If you need an urgent loan with considerably little to no credit check in Singapore and you don’t have a stellar credit score, a licensed money lender loan may be your best bet. Even though licensed money lenders’ interest rates are higher than bank loans’ interest rates in Singapore, it can still be a viable solution to tide you over the financially challenged phase.
That being said, you should compare money lenders before settling on the one that best caters to your needs.
If you are asking questions like “Where to borrow money quickly in Singapore?” and “Where can I find the best licensed money lender near me?”, it is time to reach out to 111 Credit, a fully-licensed money lender in Orchard with 13 years of experience.
As an online money lender in Singapore that prioritises borrowers’ needs, 111 Credit accepts quick personal loan online applications and promises an average loan processing time of just 25 minutes.
Reach out to 111 Credit to discuss your loan needs today.
As an online money lender in Singapore that prioritises borrowers’ needs, 111 Credit accepts quick personal loan online applications and promises an average loan processing time of just 25 minutes.
Reach out to 111 Credit to discuss your loan needs today.
304 Orchard Road #01-36A,
Lucky Plaza, Singapore 238863
Monday – Saturday 11am to 7.30pm
Sunday 10am to 5pm
Closed on Public Holidays
+65 6908 8111
+65 6908 8111