FAQ

FAQs

Explore common questions about licensed money lenders in Singapore

What does it mean to be a licensed money lender in Singapore?

A licensed money lender is a legal and registered entity in Singapore, approved by the Ministry of Law’s Registry of Moneylenders. They are authorized to provide loans according to Singapore’s regulations.

Licensed money lenders can only operate if they hold a valid license and conduct business at their registered premises or through approved online platforms.

The Moneylenders Act establishes the legal framework for licensed moneylenders in Singapore. It regulates money lending activities, oversees the operation of credit bureaus, and manages how borrowers’ information is collected, used, and shared. This ensures that all moneylending practices comply with Singapore’s laws and protect borrowers during the loan process.

You can locate all licensed money lenders by visiting the Registry of Moneylenders’ official directory. This directory is regularly updated to reflect the current number of registered lenders, which, according to the Ministry of Law (MinLaw), currently stands at 153. Keep in mind that this figure may change over time.

At Sinceremoneylender, we welcome many applicants to meet their financial needs. Here’s who is eligible:

Age Requirement: Applicants must be between 18 and 65 years old.

Credit History: Individuals with poor or challenging credit scores are welcome to apply.
Residency Status: Open to Singaporeans, Permanent Residents, and foreigners holding any type of work pass.
Employment Type: Suitable for employees, self-employed individuals, and business owners.
Other Professions: Applications are encouraged from gig workers (e.g., food delivery riders, PHV drivers), freelancers (e.g., coaches, tutors), and commission-based agents (e.g., property or insurance agents).

The amount you can borrow depends on your annual income and residency status: 

 

Annual IncomeSingapore Citizens/PRForeigners Residing in Singapore
Less than $10,000Up to $3,000Up to $500
$10,000 to less than $20,000Up to $3,000Up to $3,000
At least $20,000Up to 6x your monthly incomeUp to 6x your monthly income

Licensed money lenders in Singapore must adhere to strict guidelines for interest rates and fees. The maximum interest rate is capped at 4% per month, while late interest is also limited to 4% per month on overdue amounts. Borrowers may incur a maximum late fee of $60 per month for overdue payments, and administrative fees are restricted to 10% of the approved loan principal. These regulations are in place to protect borrowers and ensure fair lending practices.

No, there are no penalties for early repayment or full settlement of a loan. Since 1 October 2015, licensed money lenders can only charge the following fees:

  • A late repayment fee of up to $60 per month.
  • A one-time fee not exceeding 10% of the loan principal, charged upon approval.
  • Court-ordered legal costs for successful loan recovery.

In Singapore, legal money lenders typically use the reducing balance method to calculate interest. Under this method, interest is charged based on the outstanding loan balance. As you repay the loan, the amount of interest due decreases with each installment, which means you pay less interest over time.

This approach is different from the flat rate method, where interest is calculated on the original loan amount for the entire loan term, regardless of how much has been repaid.

Example Comparison:

Loan Amount: $5,000
Interest Rate: 24% per annum
Loan Term: 12 months

MethodReducing BalanceFlat Rate
Total Interest$673.57$1,200.00

As shown, the reducing balance method results in a lower total interest charge throughout the loan.

If you miss a payment on your loan, the money lender will typically charge late interest, which accumulates daily. The interest is calculated based on the overdue amount and may also be compounded. In addition, the lender may take further legal action if the overdue amount is not settled, leading to additional fees and potential legal consequences. It is important to contact the lender immediately if you anticipate any difficulty in making your payment on time.

Absolutely! At Sinceremoneylender, we take your privacy and security seriously. As a licensed money lender in Singapore, we have implemented robust security protocols to ensure your personal information is fully protected.

Our state-of-the-art technology and frequent system updates are designed to prevent unauthorized access to your data. We comply with all data protection regulations and industry best practices to safeguard your information.

You can trust that your details are handled securely, and we are dedicated to ensuring a safe and confidential experience throughout your dealings with us.

Yes, private money lenders in Singapore typically offer a more accessible borrowing process compared to traditional banks. They are licensed and tend to have less stringent requirements, enabling quicker loan approvals. This makes them a favorable option for individuals who need fast financial assistance in urgent situations.

Yes, legal money lenders in Singapore often consider applicants with poor credit scores. Unlike traditional lenders, they tend to evaluate the borrower’s present financial situation and ability to repay, rather than relying exclusively on credit scores.

Yes, licensed money lenders in Singapore do require a credit check before approving a loan. Although they may be more accommodating than banks, especially for individuals with low credit scores, they still assess your creditworthiness by reviewing your Loan Information Report from the Moneylenders Credit Bureau (MLCB). This helps them determine your borrowing limit and ability to repay the loan.

Yes, an unemployed person can qualify for a loan if they can prove a stable source of income, such as alimony, annuity payments, or retirement benefits. Evidence of such income helps lenders assess loan eligibility, even without traditional employment.

No, while licensed money lenders report repayment records to the Moneylenders Credit Bureau (MLCB), these details do not impact your Credit Bureau Singapore (CBS) score.

If you miss a payment, you may incur a late fee and additional interest charges. The late interest is capped at 4% per month, and there may be a fee of up to $60 for each month of delay. These details will be specified in your loan agreement.

Defaulting on a loan can lead to increased debt, a negative entry on your MLCB Loan Information Report, and reduced chances of securing future loans. Additionally, legal actions could be pursued. If you’re facing difficulties repaying, it’s important to reach out to your consultant for a tailored repayment plan.

If you find yourself facing financial challenges, it is important to communicate with your licensed money lender. You may be able to discuss and renegotiate the terms of your loan. Additionally, there are local social service organizations that specialize in supporting individuals dealing with debt. They offer valuable services like credit counseling, and debt management guidance, and can help facilitate negotiations for more manageable repayment plans with your creditors.

Yes, you can apply for additional loans while repaying an existing one. However, it’s important to assess your financial situation carefully to ensure that you can manage the repayments of multiple loans responsibly without exceeding your repayment capacity.

Licensed money lenders offer faster loan approval and more flexible terms, especially for those with poor credit scores or urgent financial needs. Unlike banks, which have stricter eligibility criteria and longer processing times, licensed money lenders often cater to emergencies with quick disbursements. However, it’s essential to ensure the lender is licensed to avoid scams, as unlicensed entities may impose unfair terms. Always choose a trusted, regulated lender for safety and reliability.

Before borrowing from a licensed money lender in Singapore, it’s important to evaluate the interest rates, repayment terms, and any additional fees. Assess your financial situation, including your income, expenses, and the ability to make timely repayments. Ensure that the lender is legally registered with the Ministry of Law, confirming that they are a legitimate money lender.

It’s also essential to be aware of the consequences of late payments, which may include extra charges. Always request a copy of the signed loan agreement and consider comparing different licensed money lenders online to find the best and most reliable option.

To ensure you’re applying for a loan from a legitimate money lender, start by verifying your license. You can do this by checking the lender’s name against the official list of licensed money lenders provided by the Ministry of Law (MinLaw) in Singapore.

Here’s how to verify:

  • Compare Information: Check the lender’s name, office address, license number, and landline number to ensure they match what’s listed in MinLaw’s official directory.
  • Look for Red Flags: A legal money lender online will never:
    Use calls, SMS, WhatsApp, Telegram, or other social media channels to aggressively promote loans.
    Request any upfront payment or fee for loan processing.
    Approve or disburse loans without meeting you in person at their registered business location.

Important Tip:
Illegitimate money lenders often refuse to meet in person or insist on conducting all transactions remotely. If you encounter such a situation, immediately stop communication with the lender and do not proceed with the loan application.

Licensed money lenders in Singapore are allowed to advertise their services only through specific channels: on their official website, on their office shopfront and interior, and in consumer or business directories. If a borrower fails to repay a loan, the lender can recover the money through several lawful means, including sending a Letter of Demand, visiting the borrower’s home or workplace, hiring professional debt collectors, or taking legal action. If legal action is successful, the borrower may also be required to pay the lender’s court-ordered legal costs.

Licensed money lenders are bound by strict regulations to ensure fair and ethical lending practices. They are not allowed to:

  • Contact potential borrowers through messaging apps, texts, or social media to solicit loan applications.
  • Advertise their services on third-party websites not owned by the lender.
  • Request Singpass credentials, or retain official personal documents like NRIC for security.
  • Offer loans without clearly explaining all terms and ensuring that borrowers understand the conditions.
  • Ask borrowers to sign incomplete or blank loan agreements, or fail to provide a signed copy of the agreement.
  • Approve and disburse loans without conducting proper credit checks or having an in-person meeting.
  • Demand administrative fees before starting the loan processing.
  • Charge excessive interest rates, hidden fees, or late charges on amounts not due.
  • Engage in harassment or threats, whether verbal, physical, or otherwise, to collect debts.

These restrictions are in place to protect consumers and maintain a safe and transparent lending environment.

Harassment by a licensed money lender is strictly prohibited. If you find yourself in such a situation, it is important to report the incident immediately. You can file a complaint with the Ministry of Law’s Registry of Moneylenders. This can be done either through their online complaint form or by contacting them directly at 1800-2255-529.

Not all private money lenders in Singapore are dependable. Some, like illegal lenders, may offer quick loans but are far from trustworthy. To ensure safety and reliability, it’s best to borrow from a licensed money lender or a bank, avoiding any unlicensed or illegal lenders. Always verify credentials before proceeding with a loan to avoid potential risks.

While money lenders offer fast processing and approval, they still require in-person verification of your identity at their registered office. However, the best money lenders in Singapore can ensure rapid loan approval and cash disbursement within 30 minutes, provided all necessary documents are submitted.

While many licensed money lenders in Singapore offer online loan applications 24/7, their physical offices operate within specific hours. You can apply for a loan at any time via their website, but keep in mind that services like processing and customer support are only available during business hours.

Not every online money lender in Singapore can be trusted. While numerous licensed money lenders have shifted to online platforms, providing a secure and reliable service, some illegal lenders pose significant risks.

Legitimate money lenders typically feature a secure online application process, sometimes incorporating Singpass for enhanced convenience and verification. However, it’s important to remember that even when applying online, you will need to visit the lender’s physical office to finalize the loan contract in person.

Be cautious and ensure that the lender is licensed before proceeding with any loan agreement.

Yes, certain money lenders in the Tampines area are open on Sundays. For example, sincere moneylender operates from 11 AM to 5 PM on Sundays and from 11 AM to 7:45 PM Monday through Saturday, offering a convenient schedule for those in need of financial services.

To ensure you are dealing with a legitimate money lender, check that they are registered and licensed. Search for licensed money lenders in Singapore and read customer reviews. Asking for recommendations from trusted friends and family can also provide valuable insights. Always verify the lender’s status through the Ministry of Law’s official website to ensure they are authorized to lend in Singapore.

Finding a fast money lender is straightforward if you know where to look. One option is Sinceremoneylender, known for quick loan approval and fast disbursement. As long as you have all the required documents ready, you can expect the loan to be processed and disbursed in under 30 minutes.
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We offer loan packages tailored to fit our clients’ specific needs and repayment abilities, ensuring you’ll never have to worry about future payment difficulties!

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Opening Hours

Mon – Fri 11:30am to 7:30pm

Sat 11:30am – 7:00pm
Closed on Sun & Public Holidays

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© Copyright 2025, all rights reserved Sincere Moneylender

License number : 96/2025

We are located at

Blk 709 Ang Mo Kio Avenue 8, #01-2583, Singapore 560709

Our Contact

62915665

Our Mailing address

enquiry@sinceremoneylender.com.sg

Opening Hours

Mon – Fri 11:30am to 7:30pm
Sat 11:30am – 7:00pm
Closed on Sun & Public Holidays

We offer loan packages tailored to fit our clients’ specific needs and repayment abilities, ensuring you’ll never have to worry about future payment difficulties!

Opening Hours

Mon – Fri 11:30 am to 7:30 pm
Sat 11:30 am – 7:00 pm
Closed on Sun & Public Holidays

Explore

Loan Services

© Copyright 2025, all rights reserved Sincere Moneylender