Licensed Money Lender Singapore (FAQ)

A licensed money lender in Singapore is a financial institution authorised by the Ministry of Law to provide various types of loans to individuals and businesses. These lenders operate within the regulatory framework set by the government, which includes strict guidelines on interest rates, loan terms, and borrower protection measures. Unlike unlicensed money lenders or ‘loan sharks’, licensed money lenders adhere to legal requirements and ethical practices, ensuring transparency and fairness in their dealings with borrowers. Before engaging with any money lender, it’s crucial to verify their license status and review the terms and conditions of the loan agreement carefully. Additionally, borrowers should exercise caution and only borrow from licensed entities to avoid falling victim to illegal lending practices.

Distinguishing between licensed and unlicensed money lenders in Singapore is crucial to ensure you’re dealing with a legitimate and regulated institution. Here are some key points to help you differentiate between the two:

 

• License verification: Licensed money lenders in Singapore are registered and authorised by the Ministry of Law. Before engaging with a lender, you should verify their license status on the Ministry of Law’s website or check the list of licensed money lenders provided by the Registry of Moneylenders.
• Interest rates and fees: Licensed money lenders are bound by regulations that cap the interest rates they can charge on loans. These rates are set by the government and are typically lower than those offered by unlicensed lenders, who often impose exorbitant interest rates and hidden fees.
• Contracts and documentation: Licensed money lenders are required to provide transparent and legally binding loan agreements outlining all terms and conditions, including interest rates, repayment schedules, and fees. On the other hand, unlicensed lenders may operate without proper documentation or contracts, making it difficult to enforce borrower rights or resolve disputes.
• Advertising and Solicitation: Licensed money lenders are subject to strict advertising guidelines and are prohibited from engaging in aggressive or deceptive marketing tactics. Conversely, unlicensed lenders may use aggressive advertising strategies, such as SMS spam or flyers, to target potential borrowers.
• Physical presence and location: Licensed money lenders typically operate from registered office locations and have a visible physical presence. On the contrary, unlicensed lenders may operate covertly or through online platforms without a physical address or legitimate business operations. If you are in Singapore and need to verify the legitimacy of a money lender, you can refer to the list of Licensed Moneylenders maintained by the Ministry of Law. This list, https://rom.mlaw.gov.sg/information-for-borrowers/list-of-licensed-moneylenders-in-singapore/ is available at Ministry of Law’s website, provides details of licensed moneylenders in Singapore.

Licensed money lenders in Singapore are subject to a maximum interest rate cap of 4% per month. This applies specifically to personal loans for individuals, regardless of the borrower’s income level and whether the loan is secured or unsecured. In the event a borrower fails to repay the loan on time, the maximum rate of late interest that a money lender can charge is also 4% per month for each month the loan remains unpaid.

 

Additionally, a fee not exceeding $60 for each month of late repayment may be charged. These regulations aim to protect borrowers from excessive interest charges and fees, ensuring fair and transparent lending practices.

When dealing with a licensed money lender in Singapore, there are several key considerations to ensure you’re engaging with a properly licensed and reputable institution. Firstly, verify the lender’s license status by checking the Ministry of Law’s website or the Registry of Moneylenders. Ensure that the interest rates and fees offered by the lender comply with government regulations, with interest rates capped at 4% per month and late repayment fees capped at $60 per month. Additionally, review the loan terms and conditions carefully to ensure transparency and understanding. Finally, consider the lender’s reputation and customer reviews to assess their reliability and credibility in providing fair and ethical lending services.

To complete your loan application, you will typically need to provide several documents for verification purposes. These include:

 

• Original NRIC: Your National Registration Identity Card is essential for identity verification.
• Latest three months of original payslip: This helps the lender assess your income stability and capacity to repay the loan.
• Original PUB bill or handphone bill stating your residential address: Proof of residence is necessary to confirm your current address.
• ACRA (for business owners): If you own a business, providing your Accounting and Corporate Regulatory Authority (ACRA) documentation may be required for business loan applications.

 

Ensuring you have these documents ready can streamline the loan application process and expedite approval. However, requirements may vary depending on the lender and the type of loan you’re applying for, so it’s advisable to confirm specific document requirements with your chosen licensed money lender in Singapore.

The amount you can borrow is determined through assessments conducted by our loan officers, taking into account various factors such as your annual income, credit history, and financial obligations. These assessments are required by a licensed money lender in Singapore to help determine your eligibility and the maximum loan amount you qualify for. 

 

It’s important to note that the specific amount you can borrow may vary from person to person based on individual circumstances and lending criteria. To get a clear understanding of your borrowing capacity, we recommend discussing your financial situation with one of our loan officers, who can provide personalised guidance.

Yes, it is possible to apply for a loan with a licensed money lender in Singapore even if you have a bad credit score or outstanding loans, but the approval process may be more challenging. Lenders typically assess your creditworthiness based on various factors, including your credit history, income, and existing financial obligations. Having a bad credit score or existing loans may affect your eligibility and the terms of the loan, such as the interest rate and loan amount. It’s important to disclose your financial situation accurately when applying for a loan and to explore options from reputable lenders who specialise in assisting borrowers with imperfect credit. Additionally, be prepared for higher interest rates and stricter repayment terms compared to borrowers with better credit scores. It’s important to carefully consider your financial situation and explore all available options before applying for a loan, especially if you have a bad credit score or outstanding loans.

Before taking up a loan, there are several important factors to consider to ensure you make an informed decision:

 

• Purpose of the loan: Determine why you need the loan and whether it’s for a necessary expense or discretionary spending. Understanding the purpose can help you choose the right type of loan and avoid borrowing more than you need.
• Affordability: Assess your financial situation to determine if you can afford the loan repayments comfortably. Consider your income, expenses, and existing debt obligations to ensure the loan fits within your budget.
• Interest rates and fees: Compare interest rates, fees, and charges from different licensed money lenders in Singapore to find the most competitive offer. Pay attention to the Annual Percentage Rate (APR), which reflects the total cost of borrowing, including interest and fees.
• Loan terms: Review the loan terms carefully, including the repayment schedule, loan duration, and any penalties for early repayment or late payments. Make sure you understand all terms and conditions before agreeing to the loan.
• Credit score impact: Understand how taking out a loan may impact your credit score. While timely repayments may improve your credit score, missed payments can have a negative effect. Consider the long-term implications for your creditworthiness.
• Alternative options: Explore alternative sources of funding, such as savings, family assistance, or government assistance programmes, before committing to a loan. Sometimes, there may be better alternatives that can help you avoid unnecessary debt.
• Risk assessment: Evaluate the risks associated with the loan, including economic conditions, fluctuations in income, unforeseen expenses, and your ability to repay. Consider potential worst-case scenarios such as job loss, medical emergencies, or other unforeseen circumstances that may affect your financial stability. It’s crucial to have a contingency plan in place to mitigate these risks and ensure you can meet your repayment obligations.

Before applying for a loan with a licensed money lender in Singapore, it’s crucial to consider several key points to ensure you make an informed decision:

 

• Explore alternatives: Before approaching a money lender, explore other financial assistance options provided by government agencies. These schemes may offer more favourable terms or assistance tailored to your needs.
• Legal obligations: Understand that entering into a loan contract with a licensed money lender is a legal obligation. Ensure you are prepared to fulfil the terms of the contract, considering your income and financial commitments.
• Borrow responsibly: Borrow only what you need and can comfortably repay. Be mindful that failing to meet the contractual terms can result in financial strain for you and your family due to late payment fees and interest charges.
• Understand loan terms: The law requires money lenders to explain loan terms in a language you understand and provide you with a copy of the loan contract. Take the time to fully comprehend the repayment schedule, interest rates, and applicable fees.
• Caveat consideration: Thoroughly evaluate the risks before consenting to the money lender lodging a caveat on the sale proceeds of your property upon default. This can hinder property sales until the loan is repaid, potentially affecting your financial well-being.
• Compare terms: Shop around different money lenders to find the most favourable terms. Take your time to compare offers and ensure you’re comfortable with the terms and conditions before committing to a loan.

Keeping track of your monthly repayment schedule is essential to ensure timely payments and avoid late fees or penalties. Here are some methods to help you stay organised:

 

• Calendar reminders: Set up reminders on your smartphone or calendar app to notify you of upcoming payment due dates. You can schedule reminders a few days in advance to give yourself enough time to make the payment.
• Automatic payments: Consider setting up automatic payments with your bank or the money lender to deduct the loan repayment amount directly from your account on the scheduled due date. This can help prevent missed payments and streamline the repayment process.
• Payment tracking spreadsheet: Create a spreadsheet to track your loan payments, including the due dates, payment amounts, and confirmation numbers. Update the spreadsheet regularly to monitor your progress and ensure all payments are accounted for.
• Loan management apps: Utilise loan management apps or financial management tools that allow you to track your loan repayment schedule conveniently. These apps often provide features such as payment reminders, transaction history, and customisable payment schedules.
• Communication with lender: Maintain open communication with your licensed money lender in Singapore regarding your repayment schedule. If you encounter any difficulties or anticipate challenges in making timely payments, inform the lender in advance to explore alternative solutions or repayment arrangements.
• Review statements and receipts: Regularly review your loan statements and payment receipts to verify that all payments have been processed correctly and to identify any discrepancies or errors that may require attention.

As a licensed money lender in Singapore, Orange Credit aims to streamline the loan process for our customers, offering almost instant approval following assessment. We prioritise providing hassle-free procedures to address our customers’ financial needs promptly. With our nearby money lending services, we focus on understanding the priorities of our customers and offering the best solutions to alleviate their financial difficulties efficiently.

Orange Credit offers several unique benefits that set us apart as a preferred lending institution:

 

• Fast approval process: We strive to provide almost instant approval following assessment, ensuring quick access to funds for our customers’ financial needs.
• Hassle-free procedures: Our loan application and approval procedures are designed to be hassle-free, making the borrowing process smooth and efficient for our customers.
• Customer-centric approach: At Orange Credit, we prioritise the needs of our customers, tailoring our services to provide the best solutions for their financial difficulties.
• Nearby money lending services: With our conveniently located branch, we offer accessibility and convenience, allowing clients to access our services easily.
• Flexible loan options: Orange Credit offers a range of loan products and repayment plans to suit various financial situations and preferences, providing flexibility to our clients.

 

By choosing Orange Credit as your preferred licensed money lender in Singapore, you can benefit from our commitment to providing fast, hassle-free, and customer-centric lending services tailored to your needs.

The speed of fund disbursement can vary depending on several factors, including the type of loan, the licensed money lender in Singapore‘s internal processes, and the completeness of your application. At Orange Credit, we aim to provide quick access to funds following loan approval. Once your loan has been approved and signed, funds are typically disbursed within the same working day, allowing you to address your financial needs promptly.

After your loan has been approved, your licensed money lender in Singapore will provide you with the details of the loan agreement, including the loan amount, repayment terms, and any applicable fees or charges. It’s important to review the terms and conditions carefully to ensure you understand your obligations as a borrower. Once you accept the terms of the loan agreement, the funds will be disbursed to your designated bank account, and you can start using them according to your needs.

When standing as a surety for a loan with a licensed money lender in Singapore, it’s essential to understand the responsibilities and risks involved. As a surety, you are essentially guaranteeing the repayment of the loan if the primary borrower defaults. Before agreeing to stand as a surety, carefully review the terms of the loan agreement and assess the borrower’s ability to repay the loan. Consider the implications for your own financial situation and ensure you are comfortable with assuming this responsibility before providing your guarantee.

Our outlet is located at 810 Geylang Road, #01-91, City Plaza, Singapore 409286.

 

Our operating hours are as follows:

 

• Monday to Friday: 11 am to 8 pm
• Saturday: 11 am to 3 pm
• Sunday & Public Holiday: Closed

 

Feel free to visit us during our business hours for any inquiries or assistance regarding our services as a licensed money lender in Singapore.

After being granted a loan, it’s important to manage your finances responsibly to ensure timely repayment and avoid any financial difficulties. Here are some steps to take:

 

• Review loan terms: Familiarise yourself with the terms and conditions of the loan agreement, including the repayment schedule, interest rates, and any applicable fees.
• Set up repayment plan: Establish a repayment plan that aligns with your budget and financial goals. Make sure to budget for loan repayments to avoid missed payments and late fees.
• Monitor finances: Keep track of your expenses and income to ensure you can comfortably afford the loan repayments. Adjust your budget as needed to accommodate any changes in your financial situation.
• Communicate with the lender: Maintain open communication with your licensed money lender in Singapore and notify them promptly if you encounter any difficulties in making repayments. They may be able to offer assistance or alternative repayment options to help you stay on track.
• Avoid taking on additional debt: Resist the temptation to take on additional debt while repaying your loan to prevent financial strain. Focus on paying off your existing debt before considering new borrowing.

To ensure that you’re applying for a loan from a legal money lender, you can check the Ministry of Law’s website for the List of Licensed Money Lenders in Singapore. This official list provides the names of money lenders who are authorised and regulated by the government to offer financial services in compliance with legal requirements. By verifying the lender’s license status on this list, you can have peace of mind knowing that you’re dealing with a legitimate institution and safeguard yourself against potential scams or illegal lending practices.