Trusted Licensed Money Lender
in Singapore | Legal & Reliable

Licensed private money lenders provide legal personal and business loans to individuals and companies in Singapore. They are registered with the Ministry of Law’s Registry of Moneylenders. The Ministry of Law regularly audits authorised money lenders in Singapore, such as Sumo Credit, to ensure they consistently operate within its guidelines.

The Registry of Moneylenders’ official list of registered lenders is frequently updated, providing potential borrowers with peace of mind that any company listed is regulated. Rest assured that when you borrow from a legal money lender in Singapore, you are borrowing from a legitimate business.

Yes, you can borrow from multiple money lenders provided you haven’t exceeded the loan cap imposed by the Registry of Moneylenders. When it comes to taking multiple loans from registered money lenders, definitely give it some serious thought — you have to be confident in your ability to repay your monthly instalments punctually!

Absolutely. Licensed money lenders are legal loan providers authorised by the Registry of Moneylenders. They are a safe, alternative option for those who are unable to obtain loans from traditional banks and financial institutions. Do not mix these legal money lenders up with illegal lenders like Ah Longs.

In 2018 and 2019, new rules were implemented to better protect borrowers taking loans from licensed money lenders. One of the most crucial changes introduced borrowing limits for Singaporeans, Permanent Residents, and Foreigners.

Additionally, the new rules allowed individuals to exclude themselves from taking loans from licensed private money lenders. This measure helps individuals better manage their borrowing behaviour and avoid falling into potential debt traps.

Furthermore, hiring and service standards among trusted licensed money lenders improved significantly because companies are now required to obtain approval from the Registry of Moneylenders for any individual they hire or appoint as a shareholder.

Several things can happen if you are unable to pay your money lender:

1. You’ll incur late interest charges and compound interest charges on sums owed
2. You’ll incur late payment fees for each month of skipped or late payments

Licensed money lenders are permitted to take the following actions in the name of recovering what borrowers owe:

1. Your money lender can call you or send you messages to remind you about making repayments at reasonable times of day
2. Your money lender can send you a Letter of Demand by mail, issue it in person at your residential address or workplace (last resort)
3. Your money lender can appoint a debt collector to collect debts from you
4. Your money lender can take legal action against you for the purpose of recovering loans

Most private money lenders in Singapore charge an interest rate of 1 – 4% monthly for unsecured loans. The maximum they are permitted to charge is 4% monthly, and this applies to late interest rates, too.

Authorised money lenders in Singapore are allowed to charge an admin fee of up to 10% of the loan principal. This can only be charged at the point when the loan is being granted, not before. Take note the admin fee will be deducted from your approved loan amount, so don’t be alarmed when the loan disbursed falls short of your approved loan sum!

Licensed money lenders can charge interest, late interest, one-time admin fee and late repayment fees up to the limits set by regulations. But, the total interest, late interest, admin fee and late repayment fees cannot be more than the loan principal amount.

Apart from money matters, licensed money lenders can also advertise — however, they can only advertise through three main channels:

1. Consumer or business directories
2. The money lender’s website(s)
3. Advertisements inside or on the outside of the money lender’s office 

Additionally, licensed money lenders who take legal action against borrowers to recover their loans can bill borrowers all court-ordered legal costs if their claims are successful.

You can look up the official list of licensed money lenders on the Registry of Moneylenders’ website and check if your private money lender is listed.

For double assurance, make sure to visit the local money lender’s office and ask to see their moneylending licence — their office address, landline number and licence number should all tally with the information found in the Registry of Moneylenders’ list.

You have several options when it comes to settling licensed money lender disputes. But first, always try to talk things out amicably with your money lender to see if a new repayment plan that’s more feasible for your current situation can be agreed upon.

Otherwise, you can consider contacting social service organisations for assistance or, as a last resort, file for bankruptcy.

If a registered private money lender resorts to harassment tactics such as pressuring you with threats or aggression, please file a complaint with MinLaw’s Registry of Moneylenders by filling out their online complaint form or calling them on 1800-2255-529.

These are some of the following acts that constitute as harassment by a licensed private money lender:

• Repeatedly contacting you or visiting your home at odd hours
• Stalking you at your residence or workplace
• Threatening you with the potential consequences of defaulting on your loan
• Openly displaying a Letter of Demand at your residence or on social media

If you’ve witnessed illegal money lending in Singapore, report it immediately to the police by calling 999 or 1800-255-0000. Alternatively, you can call the National Crime Prevention Council’s X Ah-Long hotline (1800-924-5664). You can also call the Ministry of Law at 1800-2255-529. When you’re reporting a case of illegal money lending, provide as much detail as possible.

The main differences between a bank loan and a private money lender loan are:

• Banks have much tougher eligibility requirements
• Banks focus greatly on borrowers’ credit score and credit history
• Banks have relatively lower interest rates
• Banks have longer long tenures

That being said, not everybody can qualify for bank loans. In times of need and emergencies, licensed money lenders are a legal, safe alternative to consider. Never ever borrow from illegal money lenders for they are dangerous and unscrupulous — you could be putting your family and your own safety at risk!

It is legal to borrow money from a licensed money lender, but not an unlicensed lender. Borrowing from an unlicensed lender is fraught with risks and the lack of legal protection.

For example, unlicensed lenders tend to charge exorbitant interest rates and fees to unsuspecting borrowers. They don’t offer loan contracts and typically resort to violence and harassment when recovering debts. Many unlicensed lenders are also very exploitative and aggressive.