24 hours money lender singapore

Are There 24-Hour Open Licensed Money Lenders in Singapore?

When financial difficulties arise, it’s easy to panic and taking out a personal loan is a common option. But when you’re pressed for time, you may be tempted to find a 24-hour money lender in Singapore.

Whether you need quick cash for a medical emergency or car repairs, a licensed money lender in Singapore can provide you with an instant cash loan. Unfortunately, there is no 24 hours money lender in Singapore. If you encounter one, it is highly likely that they are loan sharks masquerading as legal money lenders.

Thankfully, you can apply online. Licensed money lenders have business websites that are available 24 hours so that borrowers can send online loan applications.

Can You Get Your Cash Loan the Same Day?

Most licensed money lenders’ online portals are integrated with MyInfo. This speeds up the application process since it pre-fills your personal information. Additionally, once you submit an online application form, the system will collate real-time data from credit bureaus and in-house data. 

As a result, it makes it possible to be approved within minutes.

Remember, you’ll need to visit the licensed money lender’s business address for a face-to-face verification before your loan is disbursed. If you applied during the licensed money lender’s operating hours, it is possible to get the cash loan the same day.

What if you applied on a Sunday? The earliest the cash can be disbursed will be on Monday.

Are Money Lenders Legal in Singapore?

The Ministry of Law regulates and checks the activities of licensed money lenders in Singapore. They are required to abide by the rules and regulations of the Moneylenders Act. These agencies are allowed to offer legal loans to Singaporeans, Permanent Residents, and Foreigners.

As such, if you are in need of urgent cash, deal only with a licensed money lender. Verify their credibility by checking the complete list of licensed money lenders on MinLaw’s website.

How Can a Licensed Moneylender Help You?

Most Singaporeans immediately turn to traditional banking loans when they need financial assistance. But what if your loan application is rejected?

You can turn to a trusted and credible licensed money lender. Here’s how they can help you:

Less Stringent Loan Application

Singapore banks have stringent requirements. Plus, they have a longer loan application process because they perform thorough checks on your credit history, income, and employment history.

If you don’t qualify for credit facilities offered by banks, you can borrow from a licensed money lender instead. While you still need to provide information, such as monthly income, they are less stringent when assessing your eligibility.

Different Types of Loans Available

Personal Loan

This is the most common type of loan and can be used to pay for different expenses. For instance, you can use it to pay for medical emergencies or car repairs.

  • Minimum Age: At least 18 years old
  • Minimum Income: S$2,000
  • Loan Amount: Up to 6x your monthly income
  • Interest Rate: 1-4%
  • Repayment Period: Up to 12 months (subject to the terms and conditions of the agreement)
  • Processing Fee: Not more than 10% of the principal amount when the loan is granted
  • Late Fees: Maximum of S$60 each month of late repayment
  • Credit Check Required: Yes

Foreigner Loan

This is similar to a personal or emergency loan, but it is available for foreigners living in Singapore.

  • Minimum Age: At least 18 years old
  • Minimum Income: S$3,000
  • Loan Amount: Up to 6x your monthly income
  • Interest Rate: 1-4%
  • Repayment Period: Up to 12 months (subject to the terms and conditions of the agreement)
  • Processing Fee: Not more than 10% of the principal amount when the loan is granted
  • Late Fees: Maximum of S$60 each month of late repayment
  • Credit Check Required: Yes

Payday Loan

When you need to take a quick cash advance, you can take out a payday loan. This type of loan will help you pay off your monthly rent, utility bills, or medical emergencies.

  • Minimum Age: At least 18 years old
  • Minimum Income: S$2,000
  • Loan Amount: Up to 1x your monthly income
  • Interest Rate: 1-4%
  • Repayment Period: Within 1 month or on the next payday
  • Processing Fee: Not more than 10% of the principal loan amount when the loan is granted
  • Late Fees: Maximum of S$60 each month of late repayment
  • Credit Check Required: No

Business Loan

This type of loan is perfect for business growth and expansion. This loan will help you pay rent, buy more inventory, or keep your business afloat.

  • Minimum Age: At least 18 years old
  • Minimum Turnover: S$60,000
  • Years in Operation: At least 1 year of business operation
  • Loan Amount: Up to S$200,000
  • Interest Rate: 5-15%
  • Repayment Period: Up to 24 months (subject to the terms and conditions of the agreement)
  • Processing Fee: N/A
  • Late Fees: Varies depending on the agreement
  • Credit Check Required: Yes

Bridging Loan

As the name implies, this loan will help “bridge” the period between the purchase of your new property and the sale of your existing one.

  1. Minimum Age: At least 18 years old
  2. Additional Requirement: Must exercise the Option to Purchase (OTP)
  3. Minimum Income: S$2,000
  4. Loan Amount: Up to 6x your monthly income
  5. Interest Rate: 1-4%
  6. Repayment Period: Up to 1 month only or until the property’s completion date
  7. Processing Fee: Not more than 10% of the principal loan amount when the loan is granted
  8. Late Fees: Maximum of S$60 each month of late repayment
  9. Credit Check Required: Yes

Top 5 Licensed Moneylenders in Singapore (2022)

How To Apply 

Eligibility:

  • At least 18 years old
  • Singaporean, Permanent Resident, or Foreigner
  • Minimum Salary:
    • Singaporean or Permanent Resident: S$2,000
    • Foreigners: S$3,000

Requirements:

Singaporean or Permanent Residents

  • Identity card
  • Proof of residence such as a utility bill, a letter addressed to you, or a tenancy agreement
  • Proof of employment, such as a certificate of employment or a recent 3 months’ worth of payslip
  •  SingPass (to log into CPF, HDB, IRAS website)

Foreigners

  • Passport
  • Work Permit / S Pass / E Pass
  • Proof of residence such as a utility bill, a letter addressed to you, or a tenancy agreement
  • Proof of employment, such as a certificate of employment or a recent 3 months-worth of payslips
  • Recent 3 months worth of payslips
  • Proof of income, such as bank or account statement
  • SingPass (to log into IRAS website)

Pros and Cons of Borrowing From Licensed Money Lenders vs. Banks

In Singapore, you will never run out of options when you need financial assistance. You can turn to banks or licensed money lenders to help you tide over financial difficulties.

Borrowing From Licensed Money Lenders

ProsCons
Quick approval times (less than 30 minutes if you have all the required documents ready)High interest rates up to 4% per month
Lower annual income eligibility requirementThe amount you can borrow will depend on your annual income
Flexible loan repayments to suit your financial capacityTypically has a shorter repayment period of up to 12 months
Less stringent in terms of checking your credit historyPenalties for late or missed payments
Same-day loan disbursementPossibility of your debt getting out of control

Borrowing From Banks

ProsCons
Most banks charge a flat rate of around 5.6% per annum on the principal of the loanStrict eligibility criteria and thorough credit history check
Longer repayment period of up to 7 yearsLengthy application process. Some loan applications may take a few days to a week.
Higher maximum loan amounts compared to licensed money lendersHigh minimum annual income requirement
Some banks may offer extra services, such as waiving processing feesInterest rates will depend on your credit history, income, other debt obligations, and more.

How Much Can You Borrow From a Licensed Money Lender?

With a licensed money lender, you can borrow any amount as long as it is a secured loan. For unsecured loans, you can borrow up to 6x your monthly income.

Take a look at the table below:

Borrower’s annual incomeSingapore Citizens and Permanent ResidentsForeigners residing in Singapore
Less than $10,000
$3,000
$500
At least $10,000and less than $20,000$3,000N/A
At least $20,0006 times monthly income6 times monthly income

What Are the Interest Rates and Fees?

Licensed money lenders are only allowed to charge interest rates of up to 4% per month. This cap applies regardless of the borrower’s income and whether it is a secured or unsecured loan.

Aside from interest rates, licensed money lenders in Singapore can charge the following fees:

  • Maximum of S$60 per month of late repayment
  • Administrative fee of up to 10% of the principal loan amount when a loan is granted
  • Legal costs

Remember, the total charges imposed by the legal money lender (including interest, late interest, upfront administrative fee, and late fee) must not exceed the principal loan amount.

How To Avoid Illegal Loan Providers?

Licensed money lenders follow the rules and regulations set by the Moneylenders Act. Unfortunately, some unlicensed money lenders masquerade as legal money lenders to trick innocent individuals. That said, it’s crucial to properly scrutinize the lender you are dealing with.

Here are some ways to avoid illegal money lenders:

1. Verify The Money Lender’s License

The best and easiest way to verify the credibility of a money lender is by checking the complete list of licensed money lenders published on MinLaw’s website or check the complete the money lenders list from our website. There you will find the money lender’s license number, business name, and business address. Make sure that the address listed is correct.

2. Advertising Channels

Unlicensed money lenders trick unsuspecting individuals into an online loan scam through advertisements. They send spam text messages, WhatsApp, emails, and social media posts. If you encounter such ads, ignore them or report the advertisements to the Registry at 1800-2255-529 or via their website.

Licensed money lenders in Singapore are only allowed to advertise through 3 main channels:

  • Business or consumer directories both in print or online media
  • The licensed money lenders’ official website
  • Advertisements placed within or on the exterior of the money lender’s office premises

3. Must Properly Explain the Terms of the Loan

The law requires licensed money lenders to explain the terms and conditions of a loan to you. It must be in a language you understand. They must present all details of the loan terms, including the interest rate, loan tenure, loan amount, repayment schedule, and late fees. Lastly, they must be willing to answer any inquiries you might have.

An unlicensed money lender or loan shark will grant you the loan even without receiving your loan application. They will not explain the loan terms and will try to keep you in the dark.

4. Check If The Licensed Money Lender Has A Physical Address

Another way to avoid dealing with an unlicensed money lender is to ensure that they have a physical business address. Never deal with any lender remotely – whether online or through text messages.

As previously mentioned, the Registry of Moneylenders keeps a monthly updated list. There you will find the licensed money lender’s physical business address and where you will go for the face-to-face verification process. Make sure that the office address of the lender matches the one listed on MinLaw’s website.

Note: Never meet up with a lender at an unknown place. Check the official list of licensed money lenders first.

5. Requires a Face-to-Face Verification

Today, licensed money lenders have official websites where you can apply online. However, you are still required to make an appearance at their office for a face-to-face verification. This is an essential step before the licensed money lender can disburse the loan.

If you receive an email or SMS saying the lender granted you a personal loan without meeting them in person, report them immediately to the authorities. Never entertain any unsolicited calls saying they’ll grant you a loan.

A Few Reminders to Borrowers From the Ministry of Law

Before you borrow money from a money lender, it’s best to consider all your options. For one, you can consider applying for government assistance schemes and grants. 

If you decide to take out a personal loan from a money lender, here are a few reminders:

  1. Any loan contract you sign with a licensed money lender is legally binding. You are obligated to fulfill the contract within the agreed loan period.
  2. Take into account your income and other debt obligations. Borrow only what you need and can afford to repay.
  3. Licensed money lenders must thoroughly explain the loan terms.
  4. Make sure that you understand all the loan details, including the interest rate, loan tenure, repayment schedules, and other fees.
  5. Be careful in agreeing to any contractual term that allows a money lender to lodge a caveat on the sales proceeds of your real estate property in the event you default on your loan. This may mean that you won’t be able to sell the property without first repaying the money lender in full.
  6. Compare loan packages from different licensed money lenders before committing to one.

Frequently Asked Questions

What are the Red Flags I should Watch Out For?

Loan sharks are using different tactics to lure individuals into an online loan scam. Some may pretend to be licensed money lenders. So aside from verifying that the money lender is licensed, be wary of these red flags as well:

  • Asking for your SingPass username and/or password
  • Retaining your NRIC card or any personal identification documents
  • Asking you to sign a blank or incomplete loan contract
  • Remotely grants you a loan without even receiving your loan application
  • Granting you a loan before face-to-face verification
  • Resorting to abusive language, threats, or harassment
  • Withholds any part of your principal loan for any reason

How Do I Lodge a Complaint Against a Money Lender?

Immediately report illegal money lenders to the Registry of Moneylenders at 1800-2255-529 or to the Ministry of Law’s website.

The Registry will thoroughly investigate all complaints. Rest assured that the Registry will never disclose your personal details to the money lender without your consent. However, you may need to attend an interview with an officer to provide all the relevant information and documents related to your loan transactions.

For unfair practices and/or contracts, you can pursue the matter through the Small Claims Tribunal or the Court under the Consumer Protection Act.

Can I Borrow From More Than One Money Lender?

Yes, you can. However, you can get overwhelmed and lose track of your repayments. That said, it is highly discouraged. But it should be fine as long as you can afford the repayment and be able to pay on time.

Closing

Facing a financial crisis can induce panic and distress. However, even if you are in desperate need of money, never deal with illegal money lenders. If traditional bank loans and government grants are out of your options, trust only licensed money lenders in Singapore.

Key Takeaways:

  1. There are no 24-hour money lenders in Singapore. However, licensed lenders have official websites where you can apply for instant cash loan anytime, anywhere.
  2. You’ll need to visit the legal lender’s business address for a face-to-face verification before your loan is disbursed.
  3. The maximum interest rate that licensed money lenders can charge is up to 4% per month
  4. You can borrow up to 6x your monthly income with a legal lender

Need help sifting through licensed money lenders in Singapore? Read informative, reliable, and transparent reviews at Moneylender Review. Find the most reliable moneylenders in Singapore and compare the top loan offers to suit your financial situation with Moneylender Review.

Related Posts

Still Looking for Best Money Lenders in Singapore?