24-Hour Money Lenders In Singapore: Where To Find Them And What To Take Note Of
May 3, 2021
When you’re facing financial difficulties, panic may set in. Whether you need quick cash for something as basic as car repairs or as crucial as surgery, finding a 24-hour money lender is urgent.
Here’s another thing: we Singaporeans are always tied for time. Work takes most of our time, so some of us only have the wee hours or the weekends for our needs. That’s why it’s essential to get to a licensed money lender outside business hours or Sundays.
Let’s discuss your options below.
What Do Licensed Money Lenders In Singapore Do?
The Ministry of Law regulates and checks licensed moneylenders’ activity in Singapore. These agencies offer legal loans to everyone, whether citizens, PRs or foreigners.
If you need urgent cash, most licensed moneylenders offer streamlined application processes. But can you get that loan at any time during the day?
Are There 24-hour Money Lenders In Singapore?
You can’t find 24-hour money lenders in Singapore, unfortunately. If an agency claims to be open non-stop, it’s probably a loan shark masquerading as a legal loan officer. Please be careful of these scammers!
The other possibility is that the licensed moneylender is breaking the law.
Don’t stop reading, though. Here’s a solution for you:
Most moneylenders in Singapore have 24-hour websites where you can apply even at 2am.
Now you’re probably wondering where you can get your cash.
Credit Thirty3 boasts fast approval times. You can apply with us anytime, and we will get back to you within an hour.
Here’s how it works:
Our loan platform uses MyInfo to get your info from several government agencies and credit bureaus. Connect with SingPass, and we’ll have access to your financial background. That way, there’s no room for human error, so that our website will process your application in minutes.
However, the Ministry of Law imposes face-to-face verification as a mandatory step in loan disbursement.
No licensed moneylender can hand you the cash without due diligence—those who promise that are either Ah Long or breaking the law.
So, a loan officer from Credit Thirty3 will contact you as soon as the business hours start. For example, if you apply on a Sunday, we may arrange a meeting to hand you your cash first thing on Monday.
Warning: Some loan sharks build professional-looking websites that mimic the legal ones. To avoid being scammed, you should double-check your moneylender on the MinLaw official website.
The scammers build really similar websites, but it will provide mobile numbers that expose their scam. All licensed moneylenders will have a landline.
How To Apply For A Personal Or Emergency Loan
Most moneylenders in Singapore have streamlined loan applications on their websites.
Here are the basic steps below:
1. Go to your chosen loan provider’s website.
2. Add your standard details (name, citizenship status, income, desired loan amount); it only takes minutes.
3. Log in on the website using SingPass. That way, your financial data is automatically filled in on your moneylender’s website.
4. Upload any required documents, such as:
– Payslips or tax statement to verify your income
– Utility bills that prove your residence
Next, you will have to click to submit your application and wait for the results. Some moneylenders in Singapore promise to pre-approve your request as quickly as ten minutes, whereas others might take an hour.
Now, the most crucial step is to arrange an appointment at your moneylender’s headquarters. Remember that it’s a red flag if the loan provider skips this step.
At the meeting, the loan agent will clearly explain your contract terms and answer your questions transparently. Then, you can collect your money.
How To Spot An Unlicensed Money Lender
The first step of spotting an Ah Long is that they promise 24-hour loans.
However, no legal creditor will meet with you in the middle of the night to hand you cash without due diligence.
Here are other signs of an unlicensed moneylender (or one who’s not abiding by the law):
1. Lack Of A Well-Written Contract
Loan sharks don’t write up complete contracts. Instead, they ask you to sign blank documents or semi-completed ones. Missing info includes:
– Precise instalment schedule
– Interest amounts
– All applicable fees
– A precise course of action in the case of missed payments and loan default
– Your rights and obligations
– The moneylender’s rights and obligations
There should be two copies of this contract: one for you, signed by the moneylender, and the other for your financial partner.
Instead, loan sharks use:
– Oral agreements
– Texts, WhatsApp messages
MinLaw restricts moneylenders’ fees to the following:
– 4% monthly interest rate
– $60 penalty fee for late payment
– 10% of your maximum loan amount as an administrative fee
By comparison, the Ah Long will impose chaotic fees, ever-growing interest rates, and substantial penalty sums.
They may even require loan-approval charges to speed your application. This means that they request money before disbursing your loan. Licensed moneylenders will never do that.
3. Advertising Channels
Licensed moneylenders in Singapore can only advertise their practice on:
– Business directories
– Consumer directories
– Their websites
– Their headquarters’ walls, doors, windows, etc.
So, texts, flyers or Google Ads all point to an illegal moneylender.
4. Maximum Loan Amount
The Ministry of Law restricts maximum loan amounts to the following sums depending on your income and citizenship status:
|Annual income||Singapore Citizens and Permanent Residents||Foreigners residing in Singapore|
|Less than $10,000||$3,000||$500|
|$10,000 – $20,000||$3,000||$3,000|
|$20,000 and above||Six times of monthly income||Six times of monthly income|
If your moneylender is offering more, it is not that they are nice. It’s probably an Ah Long.
5. Illegal Practices
If you’re late repaying the loan, a licensed moneylender will go over the legal steps with you. You can also ask the help of Credit Counselling Singapore if you can’t repay your loan. This NGO can negotiate another repayment schedule or will help with loan consolidation options.
Worst case scenario, a licensed moneylender can take you to court.
Ah Long, on the other hand, use:
– Physical force
– Harassment (workplace, family)
– Acts of vandalism
– Unlawfully seizing your property
How To Avoid An Online Loan Scam
Imagine you’re in black waters, looking for a quick 24-hour loan. Then, an ad pops up.
This is a loan shark fishing for desperate customers with their savvy online scams. Building a professional-looking website is easy nowadays. With a fake address, loan sharks can effortlessly hook hundreds of unsuspecting Singaporeans before the police get wind of them.
So, here are the signs that point to an online loan scam:
1. Remote Application And Loan Disbursement
In this era of high-tech and high-speed, most loan providers in Singapore and abroad accept online loan applications. It’s also fairly common for your submission to be pre-approved in minutes.
While this practice has its advantages, it also created enough space for Ah Long to scam people.
Loan sharks may use the information you’ve filled in on their website to track you down even if you don’t end up borrowing money from them.
That’s why we urge you again to vet your moneylender on MinLaw’s official website.
However, if you’ve sent your loan application, another tell-tale sign is this: The Ah Long will approve and even disburse your loan without a due-diligence meeting and transparent contract.
2. Illegal Practices
Let’s say you only need $500 for an emergency. This sum is small, so the loan shark gives you the money quickly, even at midnight.
However, they’ll ask you to hand over your ID card, SingPass or bank account passwords as a sign of good faith. Remember that no good-faith legal creditor will ever request that of you.
Besides, the Ah Long may ask the same things if you’re late repaying the loan. Even if you think that handing over these documents is innocuous enough, don’t be fooled. The loan shark can use your passwords and ID for illegal practices, and then, you’re becoming an accomplice. As such, you may be prosecuted and faced with gaol time, fines, plus strokes of the cane.
3. Fees And Interest Rates
Remember that loan sharks will ask:
– Upfront charges
– Processing fees
– Erratic interest rates
– Huge missed-payment charges
4. Physical Addresses
MinLaw requires licensed moneylenders to have physical addresses for due diligence and signing the contract. If a creditor doesn’t have this sort of address, they’re likely operating an illicit practice.
Licensed Money Lenders In Singapore FAQ
If you’re here, you know that there’s no 24-hour moneylender in Singapore. Any creditor who promises this sort of non-stop service is either Ah Long or operating outside the law.
However, you know that you can apply on licensed moneylenders’ websites at any time of the day. You also learnt how to steer clear of iffy characters.
Now, let’s look at some of the most frequently asked questions:
How Is My Interest Rate Calculated?
We already established that the maximum allowed interest rate is 4%/ month. No one can ask you for more, even if your income is in the low range or if you’re borrowing more money without collateral.
Let’s say that you’re borrowing $1,000. Your first month’s interest rate is 4% of that $1,000, aka $40. At the next installment, you’ll have to pay 4% of the remaining sum and so forth.
So, even if your interest rate is fixed at 4%, the actual sum decreases as your debt shrinks.
What about late repayment charges?
MinLaw establishes a $60 maximum fee for each month of late repayment and caps the interest rate at 4% per month.
Here’s the catch: that 4% are calculated based on the installment you’re late for.
Let’s say you need to reimburse a debt of $5,000, and your monthly instalments are $300. If you’re late paying one instalment, this late fee charge is 4% of $300, meaning $12.
If the moneylender asks you to repay 4% of $5,000, meaning $200, they’re moving outside of the law.
How Do I Lodge A Complaint Against A Money Lender?
Although moneylenders’ activity is regulated and verified by the Ministry of Law, some loan agents may try to break the rules. It happens in every business.
If you’re catching wind of illicit practices, you can contact the Singapore Police or the Registry of Moneylenders.
For this complaint, you’ll need your creditor’s:
– Company name
– License number
– Contact info
You can contact the Registry of Moneylenders:
– By phone: 1800-2255-529
– Online: https://eservices.mlaw.gov.sg/enquiry/
What Can I Do If A Licensed Money Lender Is Harassing Or Threatening Me?
Remember that nobody is allowed to use violence against you, whether physical or verbal. Therefore, you must contact the police immediately at:
Emergencies – 999
Police Hotline – 1800 255 0000
Emergency SMS – 71999
I-Witness – https://www.police.gov.sg/iwitness
What Must A Money Lender Tell Me Before Granting A Loan?
A moneylender can’t approve your loan until you’re okay with the contract terms. Thus, a legal creditor should inform you about:
– Your nominal interest rate
– All the charges
– The installment amounts
– The late fees and interest rate
– Your tenor
You should also receive a cautionary statement before getting the loan.
This document includes various potential abuses that certain moneylenders use. You will also find specific courses of actions outlined clearly on how to report these practices formally. After you understand all the details, you will sign this document.
Want an emergency loan now? Credit Thirty3 in Singapore features a 24-hour available website where you can fill in your application in minutes.
Apply now, and you can have your cash in hours!