Best Licensed Money Lenders in Singapore 2025

While bank personal loans are fairly mainstream for big-ticket expenses like home renovations, loans from licensed moneylenders on the other hand, carry a degree of controversy. However, with the right mindset, proper research, and responsible borrowing habits, a loan from a legal money lender can be just as manageable and even beneficial.

Once you’re confident in your decision, the next step would be to find the best licensed money lender in Singapore to suit your needs.
cartoon licensed moneylender offering out personal loans exemplified by bags of cash and a contract

What Are Money Lenders?

Licensed money lenders in Singapore are individuals or businesses legally allowed to offer personal loans, often at higher interest rates than traditional banks. They are authorised by the Ministry of Law and operated under strict regulations set out by the Moneylenders Act. It’s important to not mistake them for unlicensed lenders, commonly known as loan sharks, who operate illegally and without oversight.


Licensed money lenders typically serve as an alternative financing option for individuals who fail to qualify for bank loans, due to factors like lower credit score or insufficient income documentation. Additionally, they also provide other loan types typically not available at banks, such as payday loans and foreigner loans. Plus, their eligibility criteria tend to be more lenient and flexible, coming with shorter approval times.


But that’s just the tip of the iceberg. Now, let’s dive into the key differences between money lenders and banks.

Difference Between Money Lenders vs Banks

Criteria Licensed money lenders Banks
Target customers Those with lower credit scores, lower income, fewer eligible documents Those with good credit scores and stable income
Loan types Personal loans, payday loans, foreigner loans Personal loans, renovation loans, car loans
Interest rates Capped at 4% per month (by law) ~3% – 7% p.a.
Minimum income requirements At least $10,000 for foreigners $20,000 – $30,000 (Singaporeans); $40,000 – $60,000 (foreigners)
Minimum loan amount Can be below $1,000 with max amount dependent on income From $1,000 – $5,000
Approval speed Faster approval; some same-day or within hours Slower; may take several days with background checks
Loan tenure Shorter term, usually 6 – 24 months

Flexible repayment instalments 		Longer term, usually 1 – 7 years

Fixed repayments
Loan disbursement Typically same day or within 1 working day; via cash or transfer

Requires in-person verification 		1 – 3 working days; credited to bank account

May be fully digital
Processing fee Capped at 10% of principal loan amount None to 1% of principal

Can be waived during promotions
Regulation By MinLaw under Moneylenders Act By MAS


Based on this table, it’s clear that there are major differences in personal loans between licensed money lenders and banks. The barriers to entry for the former are generally lower—more lenient minimum annual income, smaller minimum loan amount, shorter loan tenure, quicker loan approvals, and funds disbursement. These factors make it a more accessible option for individuals who struggle to meet the stricter qualifying criteria set out by banks.

So why does a stigma still surround licensed money lenders in Singapore?
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Is it Safe to Borrow From a Money Lender?

While legal money lenders in Singapore are regulated and generally safer than unlicensed loan sharks, there are still some concerns. 


Personal loans from licensed money lenders may be seen as risky to borrowers due to their high interest rates and fees, such as late payment charges. Although interest rates are legally capped at 4% per month, these translate to much higher annual interest rates. Without proper financial discipline or timely repayments, borrowers can easily fall into a cycle of debt accumulation and over-indebtedness, especially if you default on loans.


Another important point is that unsecured loans from money lenders naturally carry higher risk, as they’re not backed by collateral like a property or vehicle. 


It’s also crucial to do your due diligence—research the lender carefully in order to steer clear of unlicensed money lenders, otherwise referred to as “ah longs” or loan sharks, who operate illegally without consumer protection.

Safe to Lend, or Sharks in Disguise?

Still not convinced if licensed money lenders are trustworthy in Singapore? Read our guide to learn how to spot unscrupulous lenders and protect yourself.
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Things to Consider Before Taking a Loan from a Money Lender

Before committing to a personal loan, here’s what to weigh before stepping up to the plate:

Establish a clear rationale

Although personal loans can be used for almost any purpose, with great power comes great responsibility. You’re borrowing a substantial sum, and this amount shouldn’t be taken lightly or used on a whim. As a prospective borrower, it’s pertinent that you have a defined reason for taking the loan and a solid repayment plan to boot.

Otherwise, as the adage goes, “you fail to plan, you plan to fail”. A poorly considered loan could lead to greater financial strain and a deeper debt spiral.

Interest rates

There are two terms when it comes to interest rates: Applied Rate (AR) and Effective Interest Rate (EIR).

AR refers to the flat monthly rate charged by money lenders. Do note that AR is “applied” on the remaining principal balance, not the original loan amount. Hence, it doesn’t account for the compounding effect or reducing balance over time—AKA the true cost of borrowing over time. Furthermore, under the Moneylenders Act, the AR is legalled capped at 4% per month, which adds up to a staggering 48% p.a. if taken at face value.

To illustrate, imagine you borrow $10,000 at 4% per month for a tenure of 12 months. This means you’ll pay a 4% interest on the outstanding balance each month.

In contrast, EIR refers to the true annual cost of the loan. It accounts for compounding interest, loan tenure, repayment frequency, and additional fees like processing or late payment charges. This results in EIR more accurately reflecting the real cost of the loan borne by the borrower.

Using the above example, your loan’s AR is 4% per month with a monthly repayment of about $1,065.52. However, the EIR also roughly translates to 48% p.a., which is a very high cost compared to traditional bank loans. This may climb even further if other fees and charges apply, which brings us to our next point.

Fees and charges

We can’t talk about personal loans without addressing their peripheral fees and charges. Like most financial products, personal loans come with their own set of pesky fees that borrowers should be aware of.

Common charges include processing fees and late payment charges. The former is capped at 10% of the loan principal amount while late payment charges range between $60 to $100 depending on the lender. While these charges may seem minor, they can quickly add up if not managed carefully.

Minimum & maximum loan amount

Each personal loan comes with their respective minimum loan amounts and maximum loan limits. For unsecured loans, these limits are typically tied to the borrower’s annual income. According to MAS, the legal borrowing limit for unsecured credit is up to 6 times your monthly income.

Minimum annual income Singapore citizens / PRs Foreigners residing in Singapore
< $10,000 $3,000 $500
$10,000 ≤ x < $20,000 $3,000 $3,000
≥ $20,000 6x monthly income 6x monthly income


So for example, if your monthly salary is $5,000, you can potentially borrow up to $30,000 since it’s 6 times your monthly salary.

Approval rate & loan disbursement

Bank loans typically take a few working days to approve due to more stringent document verification. In contrast, loans from money lenders require less paperwork and therefore, tend to be approved faster within 24 hours, if possible.

Meanwhile, funds disbursements can happen within the same day too. In fact, some lenders even provide loan approvals in under an hour, allowing quick access to money during emergencies.

Impact on credit card limit & credit score

Taking up a personal loan can reduce your available credit card limit by the loan amount, and by extension, impact your credit score. Essentially, the bank is lending you a portion of your credit limit as your loan, therefore the obligation falls on the borrower to repay both the outstanding loan and credit card balances.

How this affects your credit score in the long run depends on how responsible you are with your repayments. Consistent and timely repayments can actually improve your credit score over time. However, frequently overdue repayments or early defaults will be detrimental to your credit score and signal higher credit risk to future lenders.
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Frequently Asked Questions

What are the fees that licensed money lenders can charge?

All money lenders can only impose the following fees:
  • Late repayment fee: Up to $60
  • Processing fee: Up to 10% of principal loan amount
  • Legal court costs for a successful claim by money lender in recovering a loan

    • Who is the top money lender in Singapore?

    There’s no single “top” licensed moneylender in Singapore. The best moneylender for you depends on your individual needs and financial profile. It will vary based on borrowing criteria like loan amount, credit score, annual income, preferred loan tenure, repayment amount and flexibility, and more.

    It is always important to compare offers from various lenders licensed under the Ministry of Law before locking in a loan.

    Are there 24-hour money lenders in Singapore?

    Yes, there are 24-hour moneylenders in Singapore—specifically online lenders.

    Since they operate online, borrowers can apply for a loan anytime, regardless of day or night. In general, loan approvals and fund disbursements are fairly quick for these too.

    Is it safe to take loans from a money lender?

    Yes, it is safe as long as you follow the guidelines above to verify a licensed moneylender.

    Is there a licensed money lender near me?

    Yes, there are various licensed moneylenders located all across Singapore. To find one near you, either visit the Ministry of Law’s list of licensed moneylenders or search on Google Maps.

    If adopting the latter approach, you can simply type in the keywords “licensed moneylender” + your preferred neighbourhood.

    How to tell if an advertisement is from a licensed or unlicensed moneylender?

    As a general rule of thumb, licensed moneylenders are only allowed to advertise through 3 channels:
  • Business or consumer directories (print or online media)
  • Official moneylender’s website
  • Advertisements placed within or outside the moneylender’s business premises


    • All other channels besides these are strictly prohibited.

    Can I trust an advertisement’s content before taking up a loan from a moneylender?

    The onus is on the borrower to read up on the loan contract terms and exercise due discretion before proceeding with the loan.

    Related Links

    Licensed Money Lenders vs Loan Sharks

    Is Taking a Loan From a Licensed Money Lender Safe?