Licensed money lender guide

Guide to the Best Licensed Money Lenders in Singapore 2024

Life often presents us with unexpected financial challenges. Despite our best efforts, sometimes we find ourselves in a situation where we do need to borrow money, for a variety of legitimate reasons.

While banks and financial institutions are typically the ideal choice, there’s a growing trend of individuals turning to licensed money lenders for an easier and hassle-free borrowing experience.

In this article, we’ll offer valuable tips for borrowing from a licensed moneylender in Singapore. These tips will help you secure the right financial support for your needs while protecting you from loan shark traps.

What is a Licensed Money Lender?

In Singapore, a licensed money lender represents either loan companies or individuals who are authorized and regulated by the Ministry of Law to provide various types of loans to borrowers. These licensed moneylenders are held to stringent standards outlined in the Moneylenders Act, ensuring their commitment to conducting lending operations with the utmost fairness and transparency.

What You Should Look for When Choosing a Money Lender

There are more than 150 licensed money lenders in Singapore. Plus, loan sharks are masquerading as legal money lenders. How do you sift through your options to find the best licensed money lender in Singapore?

Here are a few things to look out for:

  • Licensed: Make sure that the money lender is licensed and registered in the Registry of Money Lenders. The fastest way to verify is to check the complete list of licensed money lenders on MinLaw’s website.
  • Interest Rates: Licensed money lender should charge fair rates and terms. Based on the Ministry of Law’s regulation, legal money lenders should not charge interest rates more than 4% per month for their loans.
  • Reputation and reviews: It’s equally important to read customer feedback. Take into account the number of positive reviews of the money lenders across major review websites. Be wary of lenders with relatively low reviews online from forums, directories, Google reviews, and licensed money lender review sites.
  • Transparency: A licensed moneylender will be transparent about all loan details, including fees, interest rates, and repayment terms. Be cautious of lenders who are not forthcoming with information.

Best Licensed Moneylenders in Singapore By Location (2024)

Bugis – Bugis Credit

With more than a decade of experience, Bugis Credit has established an excellent reputation as a credible, go-to money lender in Bugis. They offer personal loans, foreigner loans, business loans, and payday loans. Best of all, they offer customized loan plans to suit each client’s needs.

Raffles – Raffles Credit

One of the top 10 licensed money lenders in Singapore, Raffles Credit boasts more than 10 years of experience. With 5-star ratings across major review websites, they have become a renowned personal loan money lender in Raffles Place. You can get your personal loan, payday loan, and other types of loans within an hour with customized monthly repayment plans.

Raffles – 1 Fullerton Credit

Formerly known as GM Creditz, 1 Fullerton Credit Pte Ltd was established in 2009. With more than 10 years of experience, they offer a wide array of loan options at the lowest possible interest rates. They are the best legal money lenders in the heart of Singapore and are known for their customer-focused approach and excellent reputation.

Chinatown – A1 Credit

Established in 2011, A1 Credit is known to provide excellent service as proven by its numerous excellent reviews. Boasting 4.9 stars out of 5 stars on Google reviews, this licensed money lender has become the go-to for short-term personal loans. Best of all, A1 Credit guarantees that all its clients will receive immediate financing to get through tough financial situations.

Bras Basah – Fortune Credit

Since 2010, Fortune Credit has established an excellent reputation in Singapore’s Bugis area. Thanks to their friendly and accommodating staff, their clients can’t help but sing praises for their comfortable and efficient service. Fortune Credit is an excellent choice if you’re looking for customized repayment plans.

Orchard – 365 Credit Solutions

With more than a decade of experience, 365 Credit Solutions have established an excellent relationship with clients. They are known for their unparalleled customer-centric approach. 365 Credit Solutions specialize in offering personal loans, foreigner loans, payday loans, business loans, and bridging loans.

Is Borrowing From a Money Lender in Singapore Legal?

Yes! Licensed money lenders in Singapore are approved lenders under the Ministry of Law. They are allowed to provide instant cash loans to Singaporeans, Permanent Residents, and Foreigners. Additionally, they are required to abide by the set of rules and regulations related to the Moneylenders Act.

Are There 24-Hr Open Licensed Lenders in Singapore?

There is no 24-hour money lender in Singapore. If a lender claims to be open 24 hours, you might be dealing with a loan shark. However, you can visit the licensed money lender’s official website where you can submit your online loan applications at any time.

If you submitted during the lender’s operating hours, you can get your personal loan within a few hours. But if you submitted on a Sunday morning, the earliest you can get your loan is on Monday morning.

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

In Singapore, you will find a wide variety of financial assistance – from traditional bank loans, government grants, and instant cash loans from reliable money lenders. Both money lenders and banks offer personal loans, business loans, and other types of credit facilities. However, you must understand the pros and cons of these loan options.

Borrowing From Licensed Money Lenders

Easy to obtain. You can get cash loans within the day.High interest rates up to 4% per month
Fast approvals and a less stringent approval process.Amount you can borrow will depend on your annual income
Lower annual income eligibility requirementPenalties for late or missed payments
Flexible loan repayments to suit your financial capacityTypically has a shorter repayment period of up to 12 months
Borrow up to 6x your monthly incomeQuick cash loans can lead to your debt getting out of control

Borrowing From Banks

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
Enjoy longer loan tenure of up to 7 yearsLengthy application process and may take a few days to a week.
Higher maximum loan amounts compared to licensed money lendersHigh minimum annual income requirement, especially for foreigners
Some banks may waive processing fees or offer benefits for certain credit facilitiesInterest rates will depend on several factors, including credit history, income, other debt obligations, and more.

How Much Can You Borrow From a Licensed Money Lender?

There are two types of loans that you can borrow from licensed money lenders:

Secured Loans: This type of money lender loan requires collateral, such as a house or car. With a secured loan, you can borrow any amount. The catch? If you fail to repay your loan, your collateral will be repossessed to settle the debt you owe.

Unsecured Loans: This type of money lender loan is not backed by any collateral. As such, you can only borrow up to 6x your monthly salary.

Here’s how much unsecured personal loans you can borrow from a licensed money lender based on your monthly income:

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

interest rate website

What Are the Interest Rates and Fees?

All licensed money lenders in Singapore are required to abide by the rules set by the Ministry of Law. That said, money lenders need to follow the caps on interest rates, late fees, and other costs. This protects borrowers from incurring debt that is beyond their capacity to repay.

Interest Rates

The maximum interest rate that licensed money lenders can charge is 4% per month. This cap applies regardless of the type of loan and the borrower’s income.

If a borrower fails to repay the loan on time, the maximum late interest that money lenders can charge is 4% per month for each month the loan is repaid late.

Additional Fees and Charges

  • Late repayment fee: Maximum of S$60 per month of late repayment
  • Administrative fee: Up to 10% of the principal loan amount when a loan is granted
  • Legal costs
avoid and refuse assistance from illegal lenders

How To Avoid Unlicensed Money Lenders?

Unlicensed money lenders, also known as loan sharks or “ah longs” in Singapore, are notorious for lending huge loan amounts at sky-high interest rates. The interest rates are typically above the cap set by the Ministry of Law.

Worst of all, they are infamous for their harassment tactics. That said, it’s best to avoid dealing with illegal money lenders. Here are a few tips to avoid them.

1. Verify the Money Lender’s License

The best and easiest way to avoid loan sharks is to check their license before doing any loan transactions. Verify their authenticity and credibility by checking the complete list of licensed moneylenders on MinLaw’s website.

Along with their license number, you will also find the lender’s business address, contact information, and official websites.

2. Check The Money Lender’s Advertising Channels

Unlicensed money lender or Loan sharks are now moving digitally. They use social media and emails to advertise their loan services to unsuspecting individuals. Some may also send unsolicited text messages. 

For instance, there have been reports of people being added to WhatsApp group chats before receiving advertisements about money lending services.

These are prohibited by the Ministry of Law. If you happen to encounter such ads, immediately block and report the number or social media page.

Licensed money lenders are only allowed to advertise through three 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. Understand the Terms of the Loan

Licensed private money lenders are required to properly explain the terms and conditions of a loan to you. Additionally, it must be explained in a language you understand. Some of the details you should know about include:

  • Loan amount
  • Interest rate per month
  • Loan tenure
  • Repayment schedule
  • Late fees

An illegal loan provider will immediately grant you the loan without explaining the terms.

4. Requires Face-to-Face Verification

As previously mentioned, you can submit applications online via the legal money lender’s official website. As part of the approval process, a loan officer will reach out to you to schedule an appointment. This is for a face-to-face verification. During the appointment, the loan officer will also go through the loan terms in person.

Illegal money lenders will approve loans remotely. They will approve your loan application through email, SMS, or phone call without providing any documentation. Plus, they will not even do due diligence through face-to-face verification.

That said, if your loan is approved without a face-to-face meeting with a loan officer, it’s time to turn your back and report the incident immediately. You may be dealing with a loan shark.

5. Get a Copy of the Loan Contract

Another surefire way to avoid loan sharks is to get a copy of the loan contract. Licensed money lenders in Singapore are required to provide you with a complete loan contract that details the interest of the loan, loan amount, loan tenure, and repayment schedule.

Note: An illegal money lender may try to get you to sign a blank or incomplete loan contract. If you’re not given a loan contract, immediately cancel your application and stop communicating with them.

MinLaw’s Reminder to Borrowers

Before you start looking for legal money lenders in Singapore, consider other options first. Aside from traditional bank loans, you can also apply for Government grants. There are available government schemes and assistance that may help you tide over tough financial situations.

If you do not qualify for these options, borrowing from legal money lenders may be your next best option. However, keep these in mind:

  • You are obligated to fulfill any loan contract you enter with a licensed money lender.
  • Make sure that you can abide by the contractual terms.
  • When borrowing money, take into account your income and other debt obligations.
  • Borrow only what you need and can afford to repay.
  • Ask questions to ensure that you fully understand the loan details, in particular, the interest rates charged, repayment schedule, and other fees.
  • Read the fine print. Be careful in agreeing to any contractual term that allows a legal money lender to lodge a caveat on the sales proceeds of your real estate property in case you fail to repay the loan.
  • Compare loan packages between the top licensed money lenders to find the most favorable terms.
How to apply for a loan

How To Apply For A Loan With A Licensed Money Lender


  • At least 21 years old
  • Singaporean, Permanent Resident, or Foreigner
  • Minimum Salary:
    • Singaporean or Permanent Resident: S$2,000
    • Foreigners: S$3,000


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)


  • 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)

Frequently Asked Questions

1. How Do I Know If the Money Lender is Legit?

All licensed moneylenders in Singapore are governed by the Registry of Moneylenders, which operates under the Ministry of Law. This registry is responsible for keeping borrowers safe and ensuring the integrity of the money lending industry. To verify a moneylender’s license, simply check its registration number on the Ministry of Law’s website.

2. Are There Any Money Lender Red Flags I Should Watch Out For?

Loan sharks are notorious for resorting to threats and harassment. However, they are now using new tactics to pretend to be a licensed money lender. That said, make sure to verify the money lender’s license before dealing with them.

Aside from that, you must also watch out for these red flags:

  • Refusing to return your NRIC card or any personal identification documents, such as passport or employment pass
  • Asking you to disclose your SingPass username and/or password
  • Asking you to sign a blank or incomplete loan contract
  • Granting you a loan without receiving your loan application or doing due diligence
  • Contacts you through SMS, WhatsApp, emails, or social media
  • Resort to threats, harassment, or abusive language
  • Withholds a part of your principal loan amount for any reason
  • Charges fees before the loan is granted

3. What Should I Do After Being Granted A Loan?

  • Make sure that you received the correct principal loan amount. The money lender can only deduct an upfront approval fee of 10% of the total principal amount.
  • Pay the monthly loan installments on time. Late repayments will lead to late interest charges and fees.
  • The money lender must issue a receipt for every repayment made towards the loan. Check it for correctness, such as the name, amount, and date of payment.
  • The money lender must also provide you with a statement of account for all your loan(s) at least once every January and July. Check the details for any discrepancies.
  • Keep all the receipts and statements of accounts as documentation and evidence of repayments.

4. I’m Not Taking Out a Personal Loan, But I Am Standing As Surety. What Should I Look Out For?

  • Make sure you understand your responsibilities as a surety
  • Get a copy of the loan contract when the loan is granted to the borrower
  • The loan officer must also explain to you the terms and conditions of the loan.
  • The licensed money lender is not allowed to retain your NRIC card or any other personal identification documents
  • The licensed money lender is not to ask for any information that contains passwords to your user accounts, such as the SingPass account or internet banking account.

5. What are the Legal Money Lenders Debt Collection Practices?

Licensed moneylenders are required to adhere to strict guidelines and debt collection practices to ensure fair and ethical treatment of borrowers. Borrowers should not feel pressured or mistreated during the debt collection process. 

However, if they behave threateningly which causes you distress and makes you feel unsafe, this act is considered “unlawful harassment”. Additionally, if a debt collector keeps monitoring your movements –taking photos, or emailing you at work constantly, they can be charged with “unlawful stalking”.

6. How Can You Lodge a Complaint Against a Moneylender?

If you ever come across a licensed money lender who isn’t following the proper rules and regulations, you may report them to the Registry of Moneylenders by:-

7. What Should I Do if I Am Being Harassed by Unlicensed Money Lender?

If you find yourself in a dire situation where you realize that the money lender you’re dealing with is a loan shark, don’t panic. Here’s what you can do:

  • Do not make any further repayments to the loan shark
  • Secure your personal information and contact number, especially if you’ve given them to the loan sharks
  • Call the police hotline on 1800-924-5664 (1800-X-AH-LONG) or 999 for urgent cases
  • Do not give in to the loan sharks’ threats

What if I’m dealing with a licensed money lender but their actions and words are unreasonable?

If the licensed money lender’s actions are legal, you can:

  • Try to negotiate repayment terms
  • Seek external assistance to resolve the debt, such as government financial assistance.

Remember, the Registry of Moneylenders is not in the position to assist you in negotiating with money lenders. That said, you may wish to approach social service agencies that help consumers recover from serious debt problems. These agencies offer general credit management information, credit counselling, and assistance in negotiating a debt repayment plan with creditors.


There may be situations where you find yourself in dire need of cash. While traditional bank loans may be the first choice of others, some turn to licensed money lenders for faster approval. Licensed money lenders are a viable alternative, but safeguard yourself against loan scams.

Key Takeaways

  • Choose to deal with licensed money lenders who abide by the rules and regulations set by the Ministry of Law.
  • Compare loan plans from top licensed money lenders and check whether the moneylender has excellent reviews across review websites.
  • The legal money lender must not charge more than a 4% interest rate per month.
  • When borrowing from a licensed money lender, you must have a copy of the loan contract complete with details.

In need of urgent cash? Moneylender Review has everything you need to find the top licensed money lenders with the best loan terms. Use this one-stop platform to compare and find the most favorable loan plan that will suit your needs today.

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