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How Much Can I Borrow From Money Lender In Singapore?

Let’s face it, sometimes life throws unexpected bills our way. Maybe your car needs repairs or an emergency pops up, and payday feels miles away. Even if you have some savings, it might not cover everything.

If you’d rather not ask friends or family for help, borrowing from a financial institution is an option. Here in Singapore, you can go to a bank or a licensed money lender Singapore. Money lenders can be appealing because they often give quick approvals and have competitive interest rates.

This article will answer two questions: how much can I borrow from money lender in Singapore, and what to consider when choosing one.

What Is A Licensed Money Lender?

One definition of a licensed money lender is a provider of lawful loans. They must abide by the exact rules set forth in the government-approved Moneylenders Act statute.

These restrictions are in place to protect borrowers! Not only that, but they are registered with a government body, which means that you can simply verify whether or not they are legitimate. Licensed money lenders are a secure choice for individuals in Singapore who are in need of a loan as a result of this piece of legislation.

Is It Safe To Borrow From A Licensed Money Lender?

Borrowing from a licensed money lender in Singapore can be considered safe, with some things to keep in mind. Here’s why:

  • Strict Rules: They’re required to be registered with the government, meaning they’re legit and not some shady operation.
  • Fair Rates and Fees: There are laws in place to prevent them from charging excessively high interest rates or hidden fees.
  • Protections: It is because of these restrictions that you will be treated fairly and that you will not be taken advantage of.

In spite of this, it is of the utmost importance to borrow money in a responsible manner and to obtain a thorough understanding of the terms of the loan before committing to anything.

What Are The Rules For Licensed Money Lenders?

In Singapore, licensed money lenders have to play by some pretty strict rules outlined in the Moneylenders Act and licensed money lender new rules. These rules are super important for any business lending money here. If they don’t follow these rules, they could face serious consequences, like getting shut down or being hit with big fines.

Here’s what those rules are all about:

  1. They’ve got to show off their license where everyone can see it at their place of business.
  2. They can’t lend you more than $3,000 if you make over $20,000 a year. But if you earn $20,000 or more, you could borrow up to six times your monthly income.
  3. After lending you money, they’ve got to hand you a copy of the loan agreement and a statement of account every month.
  4. And they’re not allowed to use mean or scary language when talking to you.

How Can I Tell If A Money Lender Is A Licensed One?

With all the scams out there, it’s important to be careful. Here’s how you can check if a money lender is licensed:

  • Head over to the Registry’s website or give them a call at 1800-2255-529. Make sure you have the money lender’s name and registration number handy.
  • Legit money lenders have real offices you can visit. So, drop by and make sure everything checks out in person before agreeing to anything. Don’t trust deals sorted out over text—those can be sketchy.
  • They won’t ask you for any fees before sorting out your loan, and they can’t charge you more than 4% interest per month. So, keep an eye on what they’re charging you.
  • Legit money lenders usually advertise their loans only on their own websites. If you’re seeing ads popping up everywhere, from SMS to email to flyers, you might be dealing with a shady operator.

What Should You Think About Before Borrowing From A Licensed Money Lender?

The government keeps a close eye on licensed money lenders to make sure they’re fair and responsible when lending money. So, before you head over to one, check out all your options. And if you’ve got any questions, don’t hesitate to ask the lender before you sign anything.

Here are a few things to keep in mind if you’re thinking about borrowing from a licensed money lender in Singapore:

  1. Figure out exactly how much money you need to borrow and make sure you can pay it back on time.
  2. It’s smart to shop around and compare interest rates and fees from different money lenders before you make a decision.
  3. Before you put your signature on anything, make sure you understand all the terms and conditions laid out in the loan agreement.

How Much Can I Borrow From A Money Lender?

Well, if you’re going for a secured loan, you can actually borrow any amount you need. But here’s the catch: for a secured loan, you’ve got to put up something valuable as collateral. This means if you can’t pay back the loan, the lender can take that collateral instead.

Now, for unsecured loans, here’s the deal:

Annual incomeSingapore Citizens and Permanent ResidentsForeigners residing in Singapore
Less than $10,000$3,000$500
$10,000 – $20,000$3,000$3,000
$20,000 and aboveSix times of monthly incomeSix times of monthly income

Interest Rates from Licensed Money Lenders

Here’s the scoop on interest rates from licensed money lenders:

They’re not allowed to charge you more than 4% interest per month. It’s important to shop around and compare rates from different companies before you borrow any money. That way, you can make sure you’re not shelling out more than you need to for your next financial move.

Fees from Licensed Money Lenders

Here’s the lowdown on fees from licensed money lenders:

If you miss a loan repayment within 14 days of the due date, they can hit you with a late payment fee of $60. And if they need to get a lawyer involved to collect what you owe, they can charge you up to $100 legally.

Other than that, licensed money lenders can’t tack on any extra fees unless the law says they can. So, you won’t get hit with surprise charges as long as you keep up with your payments and stay on the right side of the law.

Spotting a Licensed Money Lender vs. a Loan Shark

When you’re checking out ads for loans, keep an eye out for these clues that separate the legit lenders from the loan sharks:

  • Look for a licence number. Legit money lenders have to show their license number in all their ads. If you don’t see one, it’s a sign that it might be a loan shark trying to pull a fast one.
  • Pay attention to the language. Licensed money lenders aren’t allowed to use abusive or threatening language in their ads. But if the ad sounds aggressive or sketchy, it could be from a loan shark trying to intimidate you.
  • Check the loan amount. Legit money lenders usually stick to loans under $3,000 based on your income. If someone’s offering you a huge loan no matter what you earn, it’s likely not from a licensed money lender. That’s a big warning sign that you might be dealing with a loan shark.

What’s Next After My Loan Gets The Green Light?

After your loan gets approved, you’ll get a couple of important documents from the licensed money lender: a copy of the loan agreement and a statement of account. Make sure to give them a good look-over before putting your signature on anything.

It’s crucial to understand all the ins and outs of the loan terms and the repayment schedule. If anything seems unclear, don’t hesitate to ask the money lender for clarification. Once you sign on the dotted line, you’re committed to making those monthly repayments on schedule, so it’s essential to be fully informed.

Pros and Cons of Borrowing from Licensed Money Lenders

Borrowing from licensed money lenders in Singapore has its upsides and downsides. Let’s break them down:


  • Flexible Repayment Terms: You can customise the loan to fit your needs and budget, thanks to flexible repayment options.
  • Competitive Interest Rates: Licensed money lenders often offer competitive interest rates, which can save you money in the long run compared to other borrowing options.
  • Quick and Reliable: The loan application process is straightforward and doesn’t take forever, so you can get the cash you need fast—sometimes as quickly as 15 minutes.
  • Experience: With years of serving borrowers, licensed money lenders understand your needs and can offer personalised assistance.


  • High Fees: Be wary of high fees for late payments or early repayment. It’s crucial to read the fine print before signing on the dotted line to avoid unexpected costs.
  • Lack of Clear Ranking: Unlike with other financial institutions, there’s no clear ranking system for licensed money lenders in Singapore. You’ll need to do your own research and rely on customer reviews to find the best licensed money lender near me.

While borrowing from licensed money lenders can be convenient and efficient, it’s essential to weigh the pros and cons carefully before making a decision.

Comparing Loans: Banks vs. Licensed Money Lenders

When it comes to borrowing money in Singapore, you’ve got two primary options: banks and licensed money lenders. Let’s break down the differences between them:

Banks: These are the big players in the financial world, offering a wide range of services, including loans. One big perk of borrowing from a bank is that you’ll probably snag a lower interest rate. But the trade-off is that the application process can be more complex and time-consuming.

Licensed Money Lenders: These are private companies that specialise in lending money to individuals. The upside of borrowing from them is that the application process tends to be simpler and quicker. However, you’ll likely face higher interest rates, and there’s a chance you could get hit with extra fees if you miss a payment or default on your loan.

So it’s a bit of a trade-off. With banks, you might save on interest, but it could take longer to get approved. Licensed money lenders offer speed and simplicity, but you might end up paying more in the long run. It all comes down to what matters most to you: time, cost, or convenience.

What If I Can’t Pay Back My Loan To A Licensed Money Lender?

Don’t panic! Singaporean laws have got your back when it comes to licensed money lenders. Have a conversation with your lender about the possibility of establishing a repayment plan if you are having problems making payments. After all, they are running a business, and it is most likely that they will do everything in their power to assist you.

Additionally, licensed money lenders are required to provide you with a cooling-off period of at least one day after you have taken out the loan payment. This means that you are free to terminate the loan without incurring any additional fees or penalties.

If you are having trouble repaying your debt, it is important to keep in mind that there are various solutions available to assist you in getting back on track.

What Should I Do If A Licensed Money Lender Is Bothering Me?

If you’re dealing with harassment from a licensed money lender in Singapore, there are steps you can take to address the situation. Here’s what you can do:

  • Keep records: Make sure to save any evidence of harassment, like text messages, phone calls, or emails. These records will be important if you decide to take further action.
  • File a police report. Report the harassment to the police. They can investigate the matter and take appropriate action to protect you.
  • Reach out to the Registry of Licensed Money lenders. Make a complaint about the lender’s behaviour. They’ll look into the issue and take the necessary steps to resolve it.
  • Contact Credit Counselling Singapore (CCS): If you’re struggling to repay the loan and need assistance, CCS offers free counselling and advice. They will be able to assist you in negotiating with your creditors and developing a repayment plan that is suitable for your needs.

Always keep in mind that you are not the only one coping with this. Managing your debt and dealing with challenging situations, such as harassment from money lenders, can be made easier with the assistance of tools that are accessible to you. If you find yourself in need of assistance, do not be afraid to ask for it.

Borrowing Safely In Singapore

When you’re in a tight spot and need cash fast, it’s crucial to steer clear of loan sharks. They’re not operating within the law and could get you into serious trouble.

Instead, consider licensed money lenders as a safer option, especially if you only need a small amount of money and can’t secure a loan from a bank. Just keep in mind that licensed money lenders must abide by the rules and cannot use abusive or threatening language when dealing with you.

And watch out for scams! Some loan sharks might pretend to be licensed money lenders to trick you. Always double-check the license number of any money lender before you start doing business with them.