Singapore Licensed Money Lender

A licensed money lender is a registered, legal money lender in Singapore authorised by the Ministry of Law’s Registry of Moneylenders to conduct money lending business.

Only local money lenders who have obtained a licence may operate as legitimate licensed money lenders, both online and in-person, at their registered business address.

Authorised money lenders in Singapore operate in accordance with the Moneylenders Act. This Act governs the regulation of money lending in Singapore, the designation and control of a credit bureau, as well as the collection, use, and disclosure of borrowers’ information for matters related to loan applications with money lenders.

In short, it outlines the legal boundaries within which licensed money lenders in Singapore may conduct their business activities.

You can easily access the full list of registered money lenders via the Registry of Moneylenders’ official directory of licensed lenders in Singapore.

According to MinLaw’s list, there are 153 licensed money lenders in Singapore as of the time of writing. This number may change periodically as the list is updated.

Here are the typical eligibility requirements to get a loan from licensed money lenders in Singapore:

• Ages 18 to 65
• Open to applicants with poor credit history or low credit scores
• Available to Singaporeans, Permanent Residents, and foreigners holding all types of work passes
• Suitable for employees, self-employed individuals, and business owners
• Applications from gig workers (e.g., food delivery riders, PHV drivers), freelancers (e.g., coaches, tutors), and commission-based agents (e.g., property agents, insurance agents) are welcomed

As a preferred licensed money lender in Singapore, 1-Cash provides accessible financial solutions tailored to diverse needs. Don’t hesitate to contact us to discuss your requirements.

No. Starting from 1 October 2015, licensed money lenders are restricted to charging the following fees only:

• A fee not exceeding $60 for each month of late repayment.
• A fee not surpassing 10% of the principal loan amount upon loan approval.
• Legal costs as ordered by the court for successful loan recovery claims by the money lender.

Legal money lenders in Singapore employ the reducing balance method to calculate interest charges on a loan. This means that interest is calculated based on the outstanding balance. As you make timely repayments and reduce your loan balance, the amount of interest paid per instalment decreases as well. This differs from the simple interest calculation used in the flat rate method, where interest is calculated based on the original loan principal.

Example: Assume you take out a loan of $5,000 at an interest rate of 24% per annum, with a loan tenure of 12 months.

All things being equal, a reducing balance loan results in lower total interest charged compared to a flat rate loan.

Yes, late interest on a money lender’s loan accumulates on a daily basis, as does compound interest.

Daily late interest rate = Money lender’s annual interest rate / 365 days

Daily compound interest rate = Money lender’s annual interest rate / 365 days

Late interest is calculated based on the overdue outstanding payment amount, while compound interest is calculated based on the overdue principal amount owed.

Absolutely! At 1-Cash, safeguarding your personal information is a top priority for us as a legal, licensed money lender in Singapore.

We have implemented stringent security measures and advanced technology to ensure the confidentiality and protection of your personal data. Our systems are regularly updated and monitored to guard against unauthorized access. We adhere to strict data privacy laws and industry standards to maintain the highest level of security.

Rest assured that your personal information is handled with the utmost care, and we are committed to maintaining a secure environment and confidentiality for all your interactions with us.

Yes, obtaining loans from private money lenders in Singapore can be relatively straightforward compared to traditional banks. Licensed money lenders often have more flexible lending criteria and can provide faster approval processes, making them a popular choice for individuals seeking quick financial solutions for their urgent needs.

Yes, legal money lenders in Singapore are often willing to extend loans to individuals with poor credit ratings. They focus more on the borrower’s current financial situation rather than solely relying on credit scores.

No, licensed money lenders do not provide loans to borrowers without a credit check. While legal money lenders in Singapore are generally more lenient compared to major banks — and they offer loans to those with poor credit scores — lawful quick money lenders will still conduct a credit assessment to determine your suitability for a loan.

The licensed money lender will assess your borrowing limit and creditworthiness through your Loan Information Report at the Moneylenders Credit Bureau (MLCB).

This may come as a surprise, but an unemployed person can obtain a loan from licensed private money lenders in Singapore, provided they can show evidence of consistent income.

This ‘income’ can include alimony, dividends, annuity payouts, monthly retirement plan payouts, and so on. The ability to furnish statements showing such ‘income’ will be very helpful in the process of determining whether or not you’re suitable for a loan.

Payment records will be reported to MLCB (Moneylenders Credit Bureau), but they will not be reported to CBS (Credit Bureau Singapore).

For licensed money lenders in Singapore, a maximum late interest rate of 4% per month for overdue repayment will be charged, along with a fee not exceeding $60 for each month of late payment. All fees will be clearly indicated in the loan contract.

Apart from a rapidly snowballing debt, defaulting on your loan may result in a negative mark on your MLCB Loan Information Report and likely lower chances of future loan approvals. You may also face legal proceedings for defaulting on your loan. If you have problems repaying your loan, contact your consultant immediately so we can propose a suitable repayment plan for you.

You can get in touch with your licensed money lender to negotiate your terms. Additionally, you may wish to reach out to local social service agencies, which are dedicated to aiding individuals in overcoming substantial debt challenges. They provide extensive guidance on credit management, credit counseling, and, when applicable, assistance in negotiating debt repayment plans with creditors.

Yes, you can apply for multiple loans even if you have an existing loan with us. However, we advise you to carefully manage your finances to avoid borrowing from a licensed money lender beyond your means.

In today’s day and age where scams are aplenty, make sure to only borrow from banks and trusted money lenders in Singapore, even if you need to get hold of emergency funds as quickly as you possibly can.

There are important things you need to know about borrowing from licensed money lenders. Here’s a quick look at how borrowing from licensed money lenders compares with borrowing from traditional banks.

Licensed Money Lenders

Traditional Banks

Maximum Personal Loan Sum

6 times monthly salary

10 times monthly salary

Loan Tenure

Up to 12 months

Up to 7 years

Interest Rates

1-4% per month

3-6% per annum

Administrative Fee

Up to 10% of approved loan sum

1-2% of approved loan sum

Accessibility

• No min. income requirement
• Open to people with poor credit rating
• Foreigners can apply
• Key factor is one’s ability to show proof of consistent income

• Min. income requirement of $20,000 annually for Singaporeans & PRs
• Min. income requirement of $40,000 – $60,000 annually for foreigners
• Not available to people with bad credit

Before taking a loan from a licensed money lender, consider the interest rates, repayment terms, fees, and your ability to repay the loan. Additionally, ensure that the lender is licensed and registered with the Ministry of Law, guaranteeing you are dealing with a legal and legitimate money lender in Singapore.

Carefully assess your finances—consider your income, expenses, and the potential impact of late payment charges, which will apply for overdue repayments. Always receive a copy of your signed loan contract from the lender and take time to compare licensed money lenders online to find the most reliable option.

Do a quick check on the licensed money lender online by searching for the lender’s name in MinLaw’s official list of legitimate money lenders in Singapore.

Compare the lender’s office address, licence number, and landline number with the details listed in the official list. Ensure they match.

Just so you know, a licensed money lender online is NOT allowed to:

• Use calls, SMS, WhatsApp, Telegram, or other social media platforms to solicit loans
• Demand an upfront fee to process your loan
• Approve and disburse a loan remotely without requiring you to meet the lender at their registered business premises

Tip: Illegitimate money lenders typically insist on conducting transactions fully remotely. If you encounter a local money lender who refuses to meet you in person at their registered business address, cease all communication with the lender and do not proceed further.

Apart from offering reasonable, transparent, and fair loans to borrowers who fall within the various limits they must comply with, licensed private money lenders in Singapore are only permitted to use the few advertising channels listed below to market their money lending services:

On their own official website(s)

On their registered office’s shopfront as well as window decals and office interior

In consumer or business directories

Legal private money lenders in Singapore are allowed to take the following steps to recover the money loaned to you in the event that you miss your repayments:

Serve you a Letter of Demand by mail or in-person

Visit your home or workplace

Engage professional debt collectors to collect debt on their behalf

Initiate legal action against you

Should legal action be taken against you, you will be liable for the court-ordered legal costs incurred by the money lender to recover the money owed, if the money lender is successful with the reimbursement claim.

Licensed money lenders are prohibited from charging exorbitant interest rates, engaging in aggressive collection practices, or using threats and intimidation to recover debts. Legal private lenders must also provide clear and transparent loan agreements to protect their customers.

Here’s a quick overview of what licensed money lenders cannot do:

• Contact individuals via messaging apps, texts, or social media to solicit loan applications
• Advertise on websites not owned by the money lender
• Demand Singpass login credentials or retain your NRIC and other official personal ID documents
• Provide loans without clearly explaining the terms or ensuring the borrower fully understands the terms and conditions
• Have a borrower sign an incomplete or blank loan agreement, or fail to provide a copy of the signed contract
• Approve and disburse loans remotely without proper credit checks or a face-to-face meeting
• Demand payment of administrative fees before processing the loan
• Overcharge on interest, fees, or impose late charges on amounts not yet due
• Threaten, verbally or physically abuse, or harass borrowers

Licensed money lenders’ harassment should never occur. If you encounter such distressing behaviour, be sure to file a complaint with MinLaw’s Registry of Moneylenders as soon as possible. You can do so by filling out their online complaint form or calling them on 1800-2255-529.

Not all private money lenders in Singapore are quick or reliable. For example, illegal money lenders are considered private money lenders, but they are certainly not trustworthy. Avoid illegitimate money lenders at all costs!

Apart from family and friends, one should only borrow from a bank or a licensed legal money lender in Singapore.

Instant money lenders offer incredibly quick loan processing, approval, and fund disbursement, but they still need to meet you in person to verify your identity at their registered office.

The best quick and reliable money lenders in Singapore can provide instant approval and cash disbursement in under 30 minutes, provided all required documents are in place.

Although legal money lenders in Singapore allow you to apply for loans on their websites 24/7, their offices do not operate around the clock. All online money lenders in Singapore have fixed opening hours for their registered offices.

Not all online money lenders in Singapore are trustworthy. While many authorised local money lenders offer their services online and can be fully trusted, there are also many unlicensed money lenders that should be avoided at all costs.

Note that reliable online money lenders in Singapore typically have an online presence and allow you to apply for loans securely on their websites, often integrating Singpass capabilities to maximise convenience for their borrowers.

To receive your cash loan from a money lender, you will still need to visit the legal money lender’s business premises to sign the loan contract in person.

Not all licensed money lenders are open for business on Sundays. If you’re in the Tampines region, you’ll be happy to know that 1-Cash is open from 11 am to 5 pm on Sundays, and from 11 am to 7:45 pm from Monday to Saturday.

To find highly rated legitimate money lenders, make sure to do your research thoroughly. Search for ‘registered money lenders in Singapore’ or ‘authorised money lenders in Singapore’ online and read reviews of these local money lenders.

Also, ask around if you have friends or family who have had experience borrowing from licensed money lenders to learn more about these private money lenders in Singapore.

Yes, if you know where to look. 1-Cash is one of the fast money lenders you can approach for quick loan approval and fast loan disbursement. If all required documents are in place, you can expect to receive your loan in under 30 minutes.