Frequently Asked Questions
Most frequent questions and answers

Do note that we are not a moneylender site but only seek to compare and provide you with the best rates amongst our list of licensed moneylenders.

To qualify for a loan with our list of licensed moneylenders, you have to:

  • Be a Singaporean or Permanent Resident of Singapore. For foreigners, you will need to present your passport or employment pass

  • Be above 21 years of age, not discharged as bankrupt and not facing any bankruptcy proceeding.

  • Be permanently employed, with a valid working permit (for foreigners) or self employed with a valid proof of income.

You should keep these key points in mind: 

    • Before approaching a moneylender, consider other alternatives, such as the various financial assistance schemes offered by various Government agencies. You may contact the agencies to find out more about their schemes.

    • You are legally obliged to fulfil any loan contract you enter into with a licensed moneylender.

    • Consider whether you are able to abide by the contractual terms, bearing in mind your income and financial obligations. Borrow only what you need and are able to repay. Be mindful that if you are unable to meet the contractual terms, the late payment fees and interest payment will be a financial strain not just on yourself but also on your family.

    • The law requires moneylenders to explain the terms of a loan to you in a language you understand and to provide you with a copy of the loan contract. Make sure you fully understand the terms of the contract, in particular, the repayment schedule, the interest rate charged and the fees applicable.

    • Consider carefully before agreeing to any contractual term which allows a moneylender to lodge a caveat on the sale proceeds of your real estate property upon default of the loan repayment. When a caveat is lodged against your property, you will not be able to sell it without first repaying the moneylender in full. If the repayment is taken from the net proceeds from the sale of the property, it can wipe out all or a substantial portion of the proceeds.
    • You should shop around different moneylenders for the most favourable terms. You should not rush into and commit yourself to a loan until you are satisfied with the terms and conditions.

One of the things that one must always consider before taking a loan is the debt to income ratio. In a bid to protect the citizenry from unscrupulous lenders, the government has put a law in place forbidding any lending to those who have already reached their max. If you are already paying 60% of your monthly salary to creditors, then you are not going to find a legitimate lender that will lend you any more money. Some lenders have even taken this threshold down to 40%. Getting close to that 60% threshold says that one is irresponsible with money and is therefore overextended. This may reflect poorly on one’s credit rating.

For secured loans, you can obtain a loan of any amount. For unsecured loans, you can obtain:

  • Up to $3,000, if your annual income is less than $20,000;

  • Up to 2 months’ income, if your annual income is $20,000 or more but less than $30,000;

  • Up to 4 months’ income, if your annual income is $30,000 or more but less than $120,000; and

  • Any amount, if your annual income is $120,000 or more.

With effect from 1 October 2015, the maximum interest rate moneylenders can charge is 4% per month. This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured one. If a borrower fails to repay the loan on time, the maximum rate of late interest a moneylender can charge is 4% per month for each month the loan is repaid late.

The computation of interest charged on the loan must be based on the amount of principal remaining after deducting from the original principal the total payments made by or on behalf of the borrower which are appropriated to principal. [To illustrate, if X takes a loan of $10,000, and X has repaid $4,000, only the remaining $6,000 can be taken into account for the computation of interest.]

The late interest can only be charged on an amount that is repaid late. The moneylender cannot charge on amounts that are outstanding but not yet due to be repaid. [To illustrate, if X takes a loan of $10,000, and fails to pay for the first instalment of $2,000, the moneylender may charge the late interest on $2,000 but not on the remaining $8,000 as it is not due yet.]

With effect from 1 October 2015, all moneylenders are only permitted to impose the following charges and expenses:

  • a fee not exceeding $60 for each month of late repayment;

  • a fee not exceeding 10% of the principal of the loan when a loan is granted; and

  • legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.

The total charges imposed by a moneylender on any loan, consisting of interest, late interest, upfront administrative and late fee also cannot exceed an amount equivalent to the principal of the loan. [To illustrate, if X takes a loan of $10,000, then the interest, late interest, 10% administrative fee and monthly $60 late fees cannot exceed $10,000.]

Do not borrow from unlicensed moneylenders. Verify that a moneylender is licensed by checking the list of licensed moneylenders. Click here to access the list of licensed moneylenders.

Notwithstanding that the moneylenders are licensed, be mindful if they:

  • Use abusive language, or behave in a threatening manner towards you.
  • Ask for your SingPass user ID and/or password.

  • Retain your NRIC card or any other personal ID documents (e.g. driver’s licence, passport,work permit, employment pass or ATM card).

  • Ask you to sign on a blank or incomplete Note of Contract for the loan.

  • Grant you a loan without giving you a copy of the Note of contract for the loan and/or without properly explaining to you all the terms and conditions.

  • The moneylender does not keep your NRIC card or any other personal ID documents (e.g.driver’s licence, passport).

  • Grant you a loan without exercising due diligence (e.g. approving a loan over the phone, SMS or email before even receiving your loan application form and supporting documents, such as the income tax assessment and payslips).
  • Withold any part of your principal loan amount for any reason.

    Such practices are not acceptable. If you encounter them, you should report the moneylender to the Registry of Moneylenders, with information such as the moneylender’s business name, licence and contact numbers. Please see Question 10 for more details.

    To find out more about unlicensed moneylenders, you may click on this link: http://www.spf.gov.sg/ahlong/

You should ensure that:

  • You understand your responsibilities as a surety;

  • You receive a  copy of the Note of Contract at the time that the loan is granted to the borrower;

  • The moneylender has explained the terms in the Note of Contract in a language that you understand; and

  • Make sure you receive a statement of account for all your loan(s) at least once every 6 months, and check it for correctness (e.g. name, amount, date); and

  • The moneylender does not keep your NRIC card or any other personal ID documents (e.g.driver’s licence, passport).

  • The moneylender does not acquire any information that contains passwords to your user accounts (e.g. Singpass account, Internet banking account, email account).
  • Identity Card (IC)

  • Proof of Residence (Recent bill or letter addressed to your home address)

  • Note your SingPass login details

  • Make sure you receive a statement of account for all your loan(s) at least once every 6 months, and check it for correctness (e.g. name, amount, date); and

  • Proof of Employment:

    (a) For salaried employees: Recent payslip for a 3 month duration

    (b) For Self-Employed: Notice of Assessment for the past 2 years

  • Make sure the moneylender delivers to you the correct principal amount of the loan. The moneylender is only permitted an upfront deduction of a loan approval fee of up to 10% of the principal amount.

  • Pay the loan installments on time to avoid incurring late payment fees and late interest.

  • Make sure the moneylender issues to you a dated and signed receipt every time you repay your loan or pay any fees in cash, and check it for correctness (e.g. name, amount, date). 

  • Make sure you receive a statement of account for all your loan(s) at least once every 6 months, and check it for correctness (e.g. name, amount, date); and

  • You should retain all statement of accounts and receipts of payments, as documentation and evidence of payments.

Issued by the Registry of Moneylenders on 1 June 2012 
Last Updated on 4 August 2017
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