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Guide to Loans From Legal Licensed Money Lenders in Singapore

Licensed money lenders in Singapore are legal private money lenders regulated by the Ministry of Law (MinLaw). As authorised 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.

Guide to Loans From Legal Licensed Money Lenders in Singapore
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How to check a money lender’s licence and verify the money lender’s legality?

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 in Singapore because there is an increasing number of loan and money lender scams here.

Step 1

Verify the private money lender’s details against the list of licensed money lenders in Singapore available on MinLaw’s website.

For starters, verify the private money lender’s details against the list of licensed money lenders in Singapore available on MinLaw’s website. The local money lender’s company name, contact number, and business address reflected in their documents and money lender licence displayed in the office premise must be the same as those from the regulator’s list.

When in doubt, ask the private money lender for its company registration licence 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.

Step 2

Avoid any lenders who attempt to market themselves through flyers, SMSes, emails, cold calling, WhatsApp messages, or Telegram messages.

Even if you need a quick loan from a money lender, avoid any lenders who attempt to market themselves through flyers, SMSes, emails, cold calling, WhatsApp messages, or Telegram messages. Licensed private 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 or illegitimate fast money lenders.

One of the easiest methods to verify if you are dealing with reliable money lenders in Singapore is in the loan interest rates and fees that they impose.

Step 3

Verify the loan interest rates and fees that they impose.

As a rule of thumb, reliable authorised 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.

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Everything you need to know about getting a loan from licensed online money lenders in Singapore

Whether you are looking for a licensed online money lender in Singapore offering the cheapest personal loan or an instant money lender that can disburse a swift cash loan to you today, we have compiled everything you need to know about taking out a private loan from trusted money lenders in Singapore.

Differences between banks and authorised legal money lenders in Singapore

Benefits & disadvantages of borrowing from licensed money lenders in Singapore

Do registered instant money lenders offer urgent loans with no credit check in Singapore?

What are the personal loan interest rates trusted online money lenders in Singapore can charge?

Differences between banks and authorised legal money lenders in Singapore

Benefits & disadvantages of borrowing from licensed money lenders in Singapore

Do registered instant 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 trusted money lender in Singapore?

How to resolve disputes with licensed money lenders in Singapore?

What are the personal loan interest rates trusted online 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 trusted money lender in Singapore?

How to resolve disputes with licensed money lenders in Singapore?

Do all licensed money lenders in Singapore provide monthly loans?

Do all licensed money lenders in Singapore provide monthly loans?

Are there debt consolidation plan money lenders in Singapore?

Need a quick loan?

Submit your online loan application here.

Are there debt consolidation plan money lenders in Singapore?

Need a quick loan?

Submit your online loan application here.

Are there debt consolidation plan money lenders in Singapore?

Need a quick loan?

Submit your online loan application here.

Differences between banks and authorised legal 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 legal private money lenders in Singapore? Here’s a quick comparison including registered money lenders’ personal loan interest rates and banks’ 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

  • At least 21 years old
  • Singaporeans and Permanent Residents with a minimum annual income of S$20,000 to S$30,000
  • Foreigners with a minimum annual income of S$40,000 to S$60,000
  • At least 18 years old
  • No minimum income

Documents required

  • CPF contribution history statement (latest six-nine months) or
  • Latest Income Tax Notice of Assessment or
  • Latest computerised payslip
  • CPF contribution history statement (latest three months) or
  • Latest Income Tax Notice of Assessment or
  • Latest three months’ bank statements with proof of income or
  • Latest computerised payslip

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

  • At least 21 years old
  • Singaporeans and Permanent Residents with a minimum annual income of S$20,000 to S$30,000
  • Foreigners with a minimum annual income of S$40,000 to S$60,000
  • At least 18 years old
  • No minimum income

Documents required

  • CPF contribution history statement (latest six-nine months) or
  • Latest Income Tax Notice of Assessment or
  • Latest computerised payslip
  • CPF contribution history statement (latest three months) or
  • Latest Income Tax Notice of Assessment or
  • Latest three months’ bank statements with proof of income or
  • Latest computerised payslip

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

  • At least 21 years old
  • Singaporeans and Permanent Residents with a minimum annual income of S$20,000 to S$30,000
  • Foreigners with a minimum annual income of S$40,000 to S$60,000
  • At least 18 years old
  • No minimum income

Documents required

  • CPF contribution history statement (latest six-nine months) or
  • Latest Income Tax Notice of Assessment or
  • Latest computerised payslip
  • CPF contribution history statement (latest three months) or
  • Latest Income Tax Notice of Assessment or
  • Latest three months’ bank statements with proof of income or
  • Latest computerised payslip

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

  • At least 21 years old
  • Singaporeans and Permanent Residents with a minimum annual income of S$20,000 to S$30,000
  • Foreigners with a minimum annual income of S$40,000 to S$60,000
  • At least 18 years old
  • No minimum income

Documents required

  • CPF contribution history statement (latest six-nine months) or
  • Latest Income Tax Notice of Assessment or
  • Latest computerised payslip
  • CPF contribution history statement (latest three months) or
  • Latest Income Tax Notice of Assessment or
  • Latest three months’ bank statements with proof of income or
  • Latest computerised payslip
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A businessman shaking hands with a loan officer after successfully borrowing from a licensed money lender
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Need a swift loan today?

111 Credit is a legalised money lender in Singapore 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 legitimate 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.

Benefits & Disadvantages

of borrowing from licensed money lenders in Singapore

Benefits of borrowing from licensed money lenders

Borrowing from licensed money lenders has become commonplace in our society, and these are the key reasons:
  • With a streamlined application process and fast approval, borrowers can receive disbursement of funds from quick money lenders in under 30 minutes.
  • No requirement on the minimum credit scores and income, and more flexible repayment schedules enable borrowers to apply for loans.
  • Availability of a wide range of loans including personal loans, renovation loans, medical loans, vacation loans, study loans, and Grab/Gojek loans to cater to different needs.
  • Most registered money lenders offer urgent cash loans to foreigners in Singapore as long as they meet the eligibility requirements and can furnish the required documents.
  • Since many licensed money lenders in Singapore accept quick online cash loan applications, borrowers can submit their loan enquiries anytime, online round the clock 24/7 anywhere, hence making the borrowing process extremely efficient.
  • With extensive information and monthly loan repayment calculators available on money lenders’ websites, borrowers can make faster and more informed decisions even without meeting a loan consultant.
Disadvantages of borrowing from licensed money lenders

While taking out a loan from a money lender has its advantages, there are a few shortcomings that may affect your cash flow if it is mismanaged:
  • Loans from money lenders tend to have higher interest rates compared to those from banks. This means borrowers may need a lot more funds to pay up the entire loan.
  • Licensed money lenders in Singapore charge high late interest and fees when borrowers are unable to make monthly repayment on time. Even though the chargeable fees are regulated, they are still much higher than bank fees.
  • Unlike bank personal loans that can stretch repayment periods up to 84 months, private loans from money lenders offer shorter tenures that are up to 12 months, with some offering up to 24 months. Borrowers need to be very disciplined with the monthly repayment, if not they may end up incurring very high late fees.
  • The approved processing fee for authorised money lenders in Singapore is up to 10% of the principal loan amount. This is much higher than bank fees which usually range between zero dollars to 3% of the approved loan amount.
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