A licensed moneylender in Singapore is a business licensed by the Ministry of Law to lend money within strict limits. It may charge interest of up to 4% a month, an upfront fee of up to 10% of the loan and a late fee of up to S$60 a month. All charges together can never exceed the amount borrowed.
Those caps protect borrowers, but 4% a month is still many times a bank’s rate. This guide explains the rules, your rights and how to tell a licensed lender from an illegal one. It does not name or rank any moneylender.
A caution on borrowing: this is the most expensive legal credit in Singapore. The Ministry of Law’s own advice is to borrow only what you need and are able to repay, and to consider government assistance schemes first.
How Much a Licensed Moneylender Can Lend
For secured loans there is no cap on the amount. For unsecured loans, the Registry of Moneylenders sets these limits, which apply to your total borrowing across all licensed moneylenders:
| Annual income | Singapore Citizens and Permanent Residents | Foreigners residing in Singapore |
|---|---|---|
| Less than $10,000 | $3,000 | $500 |
| $10,000 to under $20,000 | $3,000 | $3,000 |
| $20,000 or more | 6 times monthly income | 6 times monthly income |
Moneylenders report loans to the Moneylenders Credit Bureau, which is how the combined cap is enforced.
The Interest and Fee Caps
These are the only charges permitted, as at November 2026:
- Interest: up to 4% a month. The cap has applied since 1 October 2015.
- Late interest: up to 4% a month, charged only on the amount that is overdue.
- Late fee: up to $60 for each month of late repayment.
- Loan approval fee: up to 10% of the principal, charged when the loan is granted.
- Legal costs: only those ordered by a court for a successful claim by the moneylender.
The overall cap: total interest, late interest, the approval fee and late fees cannot exceed an amount equal to the principal. On a $2,000 loan, you can never be charged more than $2,000 on top of repaying the $2,000.
A moneylender may charge less than the caps. Rates and fees can be compared and negotiated.
What a Licensed Moneylender Loan Costs in Dollars
Take an illustrative unsecured loan of $2,000, repaid over six months in equal parts of principal, at the maximum rates.
- Approval fee: 10% × $2,000 = $200, deducted upfront. You receive $1,800.
- Interest at 4% a month on the reducing balance: $80 + $67 + $53 + $40 + $27 + $13 = $280
- Total charges if every payment is on time: $480
That is 24% of the loan in six months, on cash of $1,800.
Now miss one instalment by a month. The overdue amount is about $413 (one-sixth of the principal plus that month’s interest).
- Late interest: 4% × $413 = about $17
- Late fee: up to $60
One slip adds up to $77. Several in a row bring the overall cap into view.
For comparison, $2,000 on a bank credit line at 22.9% a year, repaid the same way, would cost about $134 in interest. Our comparison of emergency loans sets the options side by side.
The short version: The legal maximums are 4% a month in interest, 10% upfront and $60 a month for lateness, with total charges capped at the principal. A licensed moneylender never contacts you first, never lends fully online and never asks for money before releasing a loan.
How to Check a Licence
- Use the official list. The Registry of Moneylenders publishes the list of licensed moneylenders with each business’s name, address and contact details.
- Match the details exactly. The Registry warns that unlicensed lenders and scammers pose as licensed ones. Check the physical address and website against the list before visiting any website or calling any number.
- Go in person. The moneylender must verify your identity face to face at its approved place of business.
Licensed moneylenders may advertise in only three ways: business or consumer directories, their own websites, and advertisements on or inside their own premises.
What the Moneylender Must Do, and Must Not Do
Must:
- Explain the terms of the loan in a language you understand.
- Give you a copy of the loan contract, called the Note of Contract.
- Hand over the full principal, less an approval fee of no more than 10%.
- Issue a receipt for every repayment.
- Give you a statement of account at least once every January and July.
Must not:
- Solicit loans by SMS, WhatsApp, phone calls or social media.
- Approve a loan by phone, SMS or email before receiving your application and documents.
- Keep your NRIC, passport or other identity documents.
- Ask for your Singpass user ID or password.
- Withhold any part of the principal for any reason.
- Use abusive or threatening behaviour.
Before signing, read the Note of Contract for the interest rate, the repayment schedule and every fee. Keep your copy and all receipts.
The Registry’s guidance also describes a cooling-off period for unsecured loans: you may cancel within three business days of disbursement by repaying the principal, with no interest and a capped approval fee. Ask the moneylender to show you this term in the contract.
Warning Signs of Unlicensed Moneylending
Any one of these means stop:
- An unsolicited message or call offering a loan.
- Approval with no documents and no visit.
- A request to transfer “GST”, “processing fees” or a “deposit” before the loan is released. The Registry describes these as scams.
- A request for your Singpass details or bank login.
Where to report:
- Police hotline: 1800-255-0000, or the I-Witness portal at police.gov.sg/iwitness, for unlicensed moneylending. Make a police report if you are harassed or threatened.
- Registry of Moneylenders: 1800-2255-529, for complaints about a licensed moneylender’s conduct.
- ScamShield helpline: 1799.
The Registry’s guidance is plain: do not borrow from unlicensed moneylenders.
If You Cannot Repay
The Registry does not negotiate on a borrower’s behalf, because the loan is a private contract. It suggests negotiating directly or through a lawyer or social service agency.
- Credit Counselling Singapore (CCS) works with participating licensed moneylenders through a debt management programme. Call 6225 5227.
- Other agencies listed by the Registry include the Association of Muslim Professionals, One Hope Centre, Adullam Life Counselling, Arise2Care Community Services, Blessed Grace Social Services and Silver Lining Community Services.
- Self-exclusion. You can register with the Moneylenders Credit Bureau to bar yourself from new unsecured moneylender loans, for one or two years for citizens and Permanent Residents. It is voluntary and generally cannot be withdrawn during that period.
MoneySense’s guide to managing debt covers options for bank debts held at the same time.
Before You Go to a Moneylender
- Check the bank routes first. Even a credit line at around 23% a year is a fraction of 4% a month. See personal loans.
- Find out why banks declined you. Our guide to loans with bad credit explains credit reports and the rules that block lending.
- Look for help that is not a loan. Hospital social workers, Social Service Offices and payment plans with the party you owe.
- Test the repayment. Put the instalment into our budget planner. If it does not fit, the late fees will follow.
What To Do Next
- Verify the moneylender on the Registry’s list, using only the contact details shown there.
- If you still decide to borrow, ask for the rate, the approval fee and the full repayment schedule in writing before you sign, and compare more than one quote.
- Borrow the smallest amount for the shortest period you can manage, and check the cash you will actually receive.
- Keep the Note of Contract and every receipt.
- Use our debt payoff calculator to plan the payoff, and call CCS early if a payment looks likely to be missed.
