Why Trust MoneySmart?To choose a money lender in Singapore, always start by checking that the lender is licensed with the Ministry of Law. Only consider licensed moneylenders, then compare their interest rates, fees, reputation, and terms. This protects you from illegal loan sharks and ensures you’re treated fairly under Singapore law.
1. Verify the lender's license
Before you borrow, confirm the lender appears on the Ministry of Law’s Registry of Moneylenders.
Check the official Registry online to see the updated list of licensed moneylenders.
Be wary of unsolicited advertisements via SMS, flyers, or social media—these are not allowed. Licensed lenders are only permitted to advertise:
On their own websites
Through approved directories
At their approved office location
A face-to-face identity check at the lender’s registered office is mandatory before they can issue a loan. Fully online loans (with no in-person verification) are prohibited by law.
2. Compare interest rates and fees
Compare all charges—not just interest rates—across several licensed moneylenders to find the best deal.
Interest rates are legally capped at 4% per month for both secured and unsecured loans.
Administrative fees can go up to 10% of the principal (often deducted from the loan upfront).
Late fees are capped at $60 per month on overdue payments.
Late interest is capped at 4% per month, but only on the overdue amount, not your full outstanding balance.
Always calculate the total effective cost, including all fees, to compare deals accurately.
3. Check their reputation and transparency
Choose a lender with a good reputation and transparent practices
Read independent reviews and forum posts to evaluate service quality and responsiveness.
Assess whether the lender is willing to explain terms and assist if you have repayment issues.
Insist on a clear, complete written contract with all repayment terms and fees spelled out. Never sign a contract you don’t fully understand—ask questions until you do.
Use MoneySmart's list of licensed alternate lenders for ease of mind
4. Know your rights and borrow responsibly
Protect yourself by understanding your rights and borrowing within your means.
Only borrow what you can realistically repay. Missing repayments means extra fees and can damage your credit record.
Review the full repayment schedule, total borrowing cost, and all contract terms before you commit.
A licensed moneylender must not keep your NRIC, ATM card, or other personal documents—walk away if you’re asked to hand these over.
If you encounter unfair treatment, you have the right to report the lender to the Registry of Moneylenders.
Final checklist before signing
Is the moneylender licensed? Checked against the Ministry of Law’s Registry.
Compared interest rates? Found the best total effective cost among several lenders.
Tallied all fees? Included admin and possible late fees in your calculations.
Read and understood the contract? Every clause and repayment schedule is clear to you.
Checked reputation? Searched for reviews and feedback.
No unsolicited ads? Avoided lenders advertising via SMS, email, or flyers.
Attended in-person check? Visited the lender’s approved office for face-to-face verification.
No retention of personal IDs? Your NRIC and cards have stayed with you at all times.
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