How Much Money Can I Borrow From Licensed Money Lenders In Singapore?

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How Much Money Can I Borrow From Licensed Money Lenders In Singapore?

May 9, 2024

Key Takeaways

In Singapore, the amount you can borrow from licensed money lenders depends on your annual income. If you earn less than $20,000, you can borrow up to $3,000; if your income is $20,000 or more, you can borrow up to six times your monthly income. Licensed money lenders offer a quick, regulated alternative to banks with interest capped at 4% per month, but they also come with strict adherence to legal guidelines to protect borrowers from excessive fees and unfair practices.

There are always circumstances where we will need money urgently. Our next payday might be too far away or our savings might not be enough.

If we do not wish to trouble our friends and families, our next available option would be to borrow from a financial institution.

When it comes to getting a loan, you have many options. You can go to a traditional bank or borrow from a licensed money lender in Singapore such as Credit Thirty3. Licensed money lenders offer competitive interest rates and fast approvals, making them a popular choice for borrowers.

This blog post will explore how much money can you borrow from a licensed money lender in Singapore and what to look out for when choosing one.

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What Is A Licensed Money Lender?

A licensed money lender is a financial institution licensed by the government to provide loans to borrowers. Licensed money lenders are required to follow the Moneylenders Act, which sets out the rules and regulations for their business.

Licensed money lenders must also be registered with the Registry of Moneylenders, which the Ministry of Law maintains. Therefore, licensed money lenders are well-regulated and provide an essential service to many people in Singapore.

Is It Safe To Borrow From A Licensed Money Lender?

It is safe to borrow from a licensed money lender in Singapore, as they have strict rules to follow.

For example, they are required by law to be registered with the Ministry of Law. They must follow a specific code established through extensive research on how creditors should operate safely in Singapore.

The rule protects borrowers from unfair interest rates and fees.

Moneylenders Act and Rules 

Licensed money lenders in Singapore are subject to strict regulations under the Moneylenders Act and moneylenders rules. These rules must be followed by all businesses who wish to operate within this industry, and failure to do so may lead to them being shut down or fined heavily if caught.

The following are some of the critical provisions of the Moneylenders Act Singapore:

  • Licensed money lenders must display their license prominently at their place of business.
  • Licensed money lenders can only lend up to a maximum amount of $3,000 if your annual income exceeds $20,000. If your annual income is $20,000 and above, you can borrow up to six times of your monthly income.
  • Licensed money lenders must give borrowers a copy of the loan agreement and a statement of account at the end of each month.
  • Licensed money lenders cannot use abusive or threatening language when communicating with borrowers.

How Do I Know If A Money Lender Is Licensed?

With the increase in loan scams, you need to be vigilant. You can check if a money lender is licensed in various ways. They include:

1. You can visit the Registry’s website or call them at 1800-2255-529. When you contact the Registry, you should have the money lender’s name and registration number ready.

2. Licensed money lenders have a physical address. Therefore, you should visit their offices and ensure that your loan is verified face-to-face before disbursement, not via SMS like loan scams.

3. Licensed money lenders don’t ask for any fee before your loan is processed and don’t charge interest rates more than 4% per month. So check on the fees and interest rates charged by the money lender you’re dealing with.

4. Licensed money lenders frequently advertise their loan offers via their own websites only, unlike loan sharks, who may advertise their offers via SMS, WhatsApp, email, and flyers. Therefore, before taking up the offer, you should check on the loan’s advertisement channel.

What To Consider Before Taking A Loan With A Licensed Money Lender

The government regulates licensed money lenders to ensure they provide fair and responsible lending services. Before visiting a licensed money lender, explore all the options that you have. Clarify any questions you have with the lender before entering a loan contract.

If you are considering taking a loan with a licensed money lender in Singapore, there are a few things you should take into account:

  • Consider the amount of money you need to borrow and whether you can repay the loan on time.
  • It is also important to compare interest rates and fees from different money lenders before deciding on one.
  • Make sure you understand the loan agreement’s terms and conditions before signing it.

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How Much Can I Borrow From A Money Lender?

If you are looking for a secured loan, you’re able to borrow any amount. A secured loan means that borrowers will need to submit collateral to the financial institution. In the unfortunate event that the loan cannot be repaid, the lender can will absorb the collateral.

For unsecured loans, this is how much you can borrow:

Annual incomeSingapore Citizens and Permanent ResidentsForeigners residing in Singapore
Less than $10,000$3,000$500
$10,000 – $20,000$3,000$3,000
$20,000 and aboveSix times of monthly incomeSix times of monthly income

Interest Rates That Licensed Money Lenders Can Charge

Licensed money lenders are legally prohibited from charging more than 4% monthly interest. Comparing the rates of different companies before taking out a loan is essential, so you don’t end up paying too much for your next financial endeavour.

Fees That Licensed Money Lenders Can Charge

Licensed money lenders can charge a late payment fee of $60 if you do not make a loan repayment within 14 days of the due date. They can also set a legal price of $100 if they have to ask a lawyer to collect your outstanding loan amount.

Licensed money lenders cannot charge any other fees unless the Moneylenders Act allows them to do so.

How Can I Tell If An Advertisement Is From A Licensed Money Lender Or A Loan Shark?

There are tell-tale signs of a loan shark. You can tell if an advertisement is from a licensed money lender or a loan shark by the following signs:

  • Licensed money lenders are required to display their license number in all advertisements. Loan sharks will not have a license number.
  • Licensed money lenders cannot use abusive or threatening language in their advertisements, but loan sharks will.
  • Loan sharks will often offer loans of more than $3,000, regardless of your annual income.

What Should I Do After My Loan Is Approved?

Once your loan is approved, you should receive a copy of the loan agreement and a statement of account from the licensed money lender. Please review these documents carefully before signing them.

Ensure you understand the terms of the loan and the repayment schedule. If you have any questions, you should ask the money lender for clarification. After signing the loan agreement, you will be legally obligated to make the monthly repayments on time.

Pros And Cons Of Borrowing From Licensed Money Lenders

Licensed money lenders in Singapore offer a quick and easy way to borrow money, but there are also some drawbacks.


  • They can offer loans with flexible repayment terms. You can tailor the loan to your individual needs and budget.
  • Licensed money lenders can also offer competitive interest rates, saving you money in the long run.
  • They are fast and reliable as the loan application process is not complicated.
  • You can receive your cash as quickly as 15 minutes.
  • They understand your needs as they have been serving the borrowers for numerous years.


However, there are also some downsides to consider. They include:

  • Licensed money lenders may charge high fees for late payments or early repayment, so it is essential to read the fine print before taking out a loan.
  • There is no clear ranking on the list of licensed money lenders in Singapore. You will have to evaluate and choose the best licensed money lenders based on their customer reviews. Here is an example of a lender with good reviews.

Comparing Loans: Banks vs. Licensed Money Lenders

Singapore has two main types of lenders: banks and licensed money lenders. Licensed money lenders are private companies that lend money to individuals, while banks are larger financial institutions that offer various services, including loans.

The main advantage of borrowing from a bank is that you will likely get a lower interest rate. However, the application process is often more complicated, and it may take longer to get approved for a loan.

The main advantage of borrowing from a licensed money lender is that the application process is usually more straightforward and quicker.

However, you will likely pay a higher interest rate and may be charged additional fees if you miss a payment or default on loan.

What If I Am Unable to Repay My Loan With A Licensed Money Lender?

Laws in Singapore regulate licensed money lenders. If you cannot repay your loan, you should approach the money lender to work out a repayment plan. Licensed money lenders are running a business as well. They will definitely try their best to assist you with your loan.

Licensed money lenders must also give you a cooling-off period of at least one day to cancel the loan without any penalties. If you have taken out a loan and are struggling to repay it, options are available to help you.

What Can I Do If A Licensed Money Lender is Harassing Me?

If a licensed money lender is harassing you in Singapore, there are several things you can do. First, you should keep all documentation and evidence of the harassment, including text messages, phone calls, or emails.

You can then file a police report and make a complaint to the Licensed Moneylenders Association (LMA). The LMA will investigate the matter and take appropriate action if necessary.

Additionally, you can contact Credit Counseling Singapore (CCS) for free counseling and advice on dealing with your debt if you cannot pay the money lender. CCS can also help you negotiate with creditors and develop a repayment plan.

If you are feeling overwhelmed or helpless, please reach out for help. Many resources are available to assist you in managing your debt and dealing with difficult situations like this.

Borrow Safely In Singapore

In short, even when one is in desperate need of money, they should never borrow from a loan shark. It is illegal for loan sharks to lend money without the correct license.

Licensed money lenders can be a good option if you need to borrow a small amount of money and cannot get a loan from a bank. When dealing with a licensed money lender, remember that they cannot use abusive or threatening language when communicating with you.

Lastly, beware of loan scams. Some loan sharks may pose as licensed money lenders and use such tactics. Therefore, you should check the license number of any money lender before doing business with them.

To borrow from a competent and trustworthy licensed money lender in Singapore, click here.