Top 10 Best Licensed Money Lenders In Singapore (2025)

There will be times in our lives when we face urgent financial needs. Whether they are unexpected medical bills or temporary cash flow issues, we often turn to licensed money lenders for quick, reliable, and private personal loans.

But why licensed money lenders and not banks? This is because, as larger corporations, banks may take longer to approve your loans or impose stricter requirements that prevent you from borrowing. On the other hand, licensed money lenders offer greater flexibility, lower eligibility barriers, and faster approvals.

However, while it may be tempting to snatch a quick loan to solve your problems, it’s crucial to borrow wisely and understand all the key terms before you sign any contract.

In this article, let’s take a quick but deep dive into what you need to know when borrowing from the best licensed money lender in Singapore.

Make informed choices for your financial needs with our personal loan comparison page now.

What are licensed money lenders?

Licensed money lenders are authorised money lenders regulated by the Ministry of Law. Possessing valid moneylending licences, they are distinguished from illegal or unlicensed money lenders, as they operate under strict guidelines set out in the Moneylenders Act.

To find out whether the money lender you’re speaking to is legal, check if they’re on the Ministry of Law’s list of licensed money lenders. This list is updated monthly, so you can be assured that it is a trusted resource for you to suss out reliable money lenders.

Are licensed money lenders safe?

While safer than unlicensed money lenders, also known as loan sharks, borrowing from licensed money lenders can still involve risks. Let’s take a look at the risks involved when dealing with both types of lenders in Singapore.

Legal money lenders in Singapore often charge higher interest rates compared to banks due to their lower eligibility requirements. They also charge processing and late payment fees.

On the other hand, their illegal counterparts carry much more dire risks. These illegal money lenders may do the following actions that licensed money lenders are not allowed to do:

• Threaten or harass you
• Vandalise your place of stay
• Ask for your Singpass ID or password
• Ask you to sign a blank or incomplete contract
• Grant you a loan without exercising due diligence
• Charge exorbitant interest rates that exceed the legal cap

What about MAS-regulated lenders in Singapore?

The Monetary Authority of Singapore (MAS) regulates financial institutions in Singapore. These include banks, finance companies, credit card providers, and insurance firms. They all operate under the Banking Act rather than the Moneylenders Act.

MAS-regulated lenders differ from licensed money lenders in several ways. Firstly, they usually offer larger loans, such as home loans. They also follow different licensing standards from licensed money lenders, have stricter requirements, and take longer to approve loans.

DBS, OCBC, UOB, Standard Chartered, and Citibank are some of the banks regulated by the MAS. While these MAS lenders offer larger loans and tend to give lower rates, the process is usually slower. Additionally, because these banks enforce stricter eligibility requirements, people with a bad credit score or low income typically find it harder to get a loan from these MAS-regulated lenders.

How much can I borrow from a licensed money lender in Singapore?

The maximum personal loan sum you can get greatly depends on your income.

For Singaporeans and permanent residents with an annual income of less than S$20,000, the maximum is S$3,000. For Singaporeans and permanent residents with a yearly income of more than S$20,000, the maximum is six times your monthly income.

For foreigners with an annual income of less than S$10,000, the maximum is S$500. For foreigners with a yearly income of at least S$10,000 and less than S$20,000, the maximum is S$3,000. For foreigners with a yearly income of more than S$20,000, the maximum is six times your monthly income.

Other factors that determine how much you can borrow are your existing debts and credit history.

Best licensed money lenders in Singapore

Requirements for borrowing from a licensed money lender in Singapore

When borrowing from a licensed money lender in Singapore, you will need several things.

For employed and self-employed Singaporeans and PRs:

1. NRIC
2. Proof of income, such as the latest three months’ payslip or CPF contribution statements, or IRAS Notice of Assessment

For Foreigners residing in Singapore:

1. Valid work pass (Employment Pass, S Pass)
2. Proof of income
3. Proof of residence (tenancy agreement, utility bills, phone bills)

What to consider before borrowing from a licensed money lender?

As mentioned earlier, borrowing from licensed money lenders involves several considerations. Here are the most important ones.

Interest rates

Ensure the interest rates charged are within your means. According to the Ministry of Law, the maximum interest rate licensed money lenders in Singapore can charge is 4% per month. This applies to late interest rate, too.

Fees

In addition to interest rates, you will also need to pay various fees depending on the situation. The fees can include processing fees and late payment fees. According to the regulations, the lenders can only set:

• a penalty fee not exceeding S$60 for each month of late repayment;
• a processing or administrative fee not exceeding 10% of the loan principal when a loan is granted; and
• legal costs as instructed by the court if and when a money lender succeeds in making a claim associated with loan recovery.

Understand the contractual terms

It is paramount that you carefully consider the terms before agreeing to the loan contract. Pay special attention to the loan tenures, interest charges and fees. If you have any questions, do not hesitate to clarify.

Remember, the law mandates that the money lender explain all loan terms to you in a language that you understand. For instance, if you only speak Mandarin, the licensed money lender has to explain the loan terms to you in Mandarin.

Lender’s reputation, customer reviews, track record, and transparency

A good way to determine if a licensed money lender is a good fit for you is to check its reputation. You can do this by checking their reviews. Pay attention to how their previous customers comment on their conduct and transparency, too, when seeking out good money lenders in Singapore.

Check if they’re certified by the Singapore FinTech Association (SFA)

The SFA’s FinTech Certification programme offers a MAS-recognised certificate. Only companies registered and operating in Singapore and providing a technology solution for the financial sector can apply. A money lender that has this certificate is credible, compliant, and provides quality service.

Compare licensed money lenders

Even if your financial need is urgent, don’t rush to borrow from one lender before considering other lenders. Find a reliable money lender who can support your financial situation by offering optimal loan tenures, interest rates, and other factors. For instance, if you want to keep your borrowing costs to a minimum, look for a legal money lender who offers competitive interest rates and low fees.

Alternatively, consider seeking financial assistance from government agencies rather than borrowing from licensed money lenders if you wish to do so.

What happens if I’m unable to repay my loan?

It is highly discouraged to miss the repayment date when borrowing from licensed money lenders. This is because failure to abide by the terms will result in several penalties.

1. You will incur additional charges. According to MinLaw’s FAQs, money lenders may charge a maximum late interest rate of 4% per month for each month the loan is repaid late. Moreover, a fee not exceeding S$60 for each month of late repayment may also be incurred.
2. Your credit profile at the Moneylenders Credit Bureau will take a hit, which affects your likelihood of getting future loans approved.
3. You may receive payment reminders. It is within the money lender’s rights to send reminders via text or phone calls. The money lender may even hire a debt collector to visit your place of residence or employment to collect the debt. That said, debt collectors have to adhere to strict guidelines under the Protection from Harassment Act (POHA) – they cannot threaten, harass, injure, stalk, or abuse you. If you face illegal behaviours from debt collectors, you can call the police or file a report with the Registry of Moneylenders. Alternatively, contact MinLaw at 1800-225-5529, or submit a feedback form online.
4. You may face legal action. Licensed money lenders who do not receive payment may take you to court.

If you are unable to repay your debt, there are two options available to you.

You may contact the licensed money lender directly or through an intermediary (lawyer or social service agency) to help you negotiate the repayment terms.

Personal loans: banks vs licensed money lenders

Also read: Singapore Personal Loan Comparison: Money Lenders vs Banks

Conclusion

While there are many trusted licensed money lenders in Singapore, the best licensed money lender in Singapore for you will depend on your specific financial situation and needs. To make an informed decision, compare the various interest rates, loan tenures, and fees to find the lender who can best support you.

Remember, it is crucial to verify the money lender’s licence before engaging. Review the terms carefully before signing the contract, and don’t hesitate to clarify anything you don’t understand.

Looking for the best licensed money lender in Singapore? Contact us or apply anytime you’re ready!

Other common FAQs