Financial News and Advice in Singapore

5 Best Licensed Moneylenders In Singapore

|Posted by | Debt Management, Personal Loans
Tags: , ,
5 Best Moneylenders In Singapore

Licensed moneylenders offer low interest rates of 1% per month, but are they viable for all loan seekers?

Licensed moneylenders are a legitimate channel in Singapore for those who need to take out a loan. (As long as they are properly registered, anyway.)

These alternative lending platforms commonly advertise low monthly interest rates, flexible repayment terms, faster approval and less stringent qualification criteria, as a way to differentiate themselves from traditional lenders like banks.

While they expand your range of borrowing options, licensed moneylenders have specific characteristics. They also work differently from bank personal loans.

Let’s take a look at five top licensed moneylenders in Singapore, how they work, and what you should look out for when borrowing from a moneylender versus a bank.

5 licensed moneylenders with quick approval and low interest rates


Accredit Pte LtdCredit Culture Pte LtdFriday Finance (IFS Consumer Services Pte Ltd)Lending Bee Pte LtdMinterest Money Pte Ltd
Indicative interest rateFrom 1% per monthFrom 0.8% to 1% per monthFom 1% per monthUpon enquiryFrom 0.55% to 3% per month
Loan amount and tenures Upon enquiryMax. loan:  6X monthly salary, or S$50,000
Allowable loan periods: 12, 24 or 36 months
Max. loan:  6X monthly salary
Allowable loan periods: Up to 18 months
Max. loan: 6X monthly salary, or S$300,000
Allowable loan periods: Up to 36 months
Max. loan: 6X monthly salary
Allowable loan periods: Up to 36 months
Fees and chargesProcessing fee: up to 10% 
Late fee: up to S$60 for every missed payment
Processing fee: from 1%
Late fee: S$60 for every missed payment
Processing fee: from 2%
Late fee: Upon enquiry
Upon enquiry Upon enquiry
LocationTampines, Hougang, Yishun and Dhoby Ghaut31A Keong Saik Road, Singapore 08913810 Eunos Rd 8, #09-04 Singapore Post Centre, Singapore 408600
Bedok North, Orchard, Jurong, Toa Payoh

60 Paya Lebar Road, #07-32, Paya Lebar Square, Singapore 409051

Accredit Pte Ltd

A licensed moneylender with four branches located around Singapore, Accredit offers a variety of loan types to meet different needs. Some of these include personal loans, business financing and debt consolidation, along with short-term loans with indicative interest rates of 1% per month.

Accredit offers same-day approval of loans to customers who apply in-person at any of their four branches. If you’re not quite ready to commit to a loan, you can send in an enquiry via their website for a staff member to discuss your options.

Do note that the actual amount you can borrow, for how long, and at what interest rates will be determined on a case-by-case basis, taking into account your monthly income and other relevant factors. It may be worth your while to pay them a visit for a loan personalised to your circumstances.

  • Locations: Various 
  • Interest: From 1% per month
  • Loan tenure and amount: Upon enquiry

Credit Culture Pte Ltd

Credit Culture is an online lending platform built for the self-service generation. Everything, from its simple application process and transparent fees to useful calculators and tools, are designed to empower you to confidently get the loan you want.

In particular, Credit Culture stands out for its low interest rates, backed by a guarantee that interest charges will never exceed 1% monthly. For context, MAS allows licensed moneylenders to charge up to 4% per month in interest.

True to its digital nature, loan applications can be made completely online. Except for special cases, there’s no need to mail in documents.

While no doubt convenient, this relatively ‘faceless’ method of getting a loan might not sit well with older folks. However, digital natives and borrowers belonging to the younger generation should feel right at home.

  • Locations: 31A Keong Saik Road, Singapore 089138
  • Interest: From 0.8% to 1% per month
  • Loan tenure and amount: From 12 to 36 months, up to six times monthly income, or S$50,000

Friday Finance (IFS Consumer Services Pte Ltd)

Following the success of its SME financing enterprise, IFS Capital Ltd launched a subsidiary – IFS Consumer Services Pte Ltd – to focus on the consumer borrowing market.

The result is Friday Finance, an online lending platform specialising in short-term, low-interest loans for the digital generation.

Like its breezy moniker suggests, borrowing a loan from Friday Finance is a hassle-free process simply set up an account online, submit your application (you can use MyInfo to speed things up), make an appointment to sign the loan contract, and receive your funds within the same day.

In an industry first, Friday Finance also includes automatic loan insurance that covers your outstanding loan amount in case of accidental death or total and permanent disablement.

For incidences of temporary total disablement requiring over 14 days of hospitalisation leave, you will be covered for two months of loan installment waiver (capped at S$400 per month).

Friday Finance provides relatively short loan tenures of up to 18 months at maximum, but they offer a 50% rebate of your processing fees for timely repayments.

  • Locations: 10 Eunos Rd 8, #09-04 Singapore Post Centre, Singapore 408600
  • Tel: 6303 0306
  • Email: hello@fridayfinance.sg
  • Interest: From 1% per month
  • Loan tenure and amount: Up to 18 months, up to six times monthly income

Lending Bee Pte Ltd

Lending Bee offers one of the largest loans among licensed moneylenders in Singapore. You can apply for a loan of up to S$300,000 – that’s great if you need to borrow a large amount and don’t wish to take out several smaller loans from different lenders.

They also claim to offer customised repayment plans with longer repayment periods, which would be a boon for those who need to borrow high sums.

The moneylender has four conveniently located branches throughout Singapore, to better facilitate your loan application which requires an in-person visit to sign the loan contract form.

You can also download the Lending Bee app (iOS, Android) to make your application and keep track of your loan repayments. The app also contains a budget-tracker, so you can keep track of your overall finances as well.

  • Locations: Various
  • Tel: 6219 1611
  • Interest: Upon enquiry
  • Loan tenure and amount: Up to 36 months, up to six times monthly income or S$300,000

Minterest Money (formerly QianNow)

Minterest Money offers an exceedingly lowest interest rates on loans – as low as 0.55% per month – through a combination of conventional credit assessment tools and big data analytics.

The moneylender believes this approach to be a fairer one, as it takes into account other factors such as education level, career experience and debt-asset ratio for a big picture view of your credit worthiness.

Hence, you might stand a higher chance of getting a favourable loan rate, depending on whether your profile fits.

Another advantage is the online-first service, which provides pre-approval of your loan in as little as five minutes. However, you’ll need to make a visit in person to sign the loan contract.

  • Locations: 60 Paya Lebar Road, #07-32, Paya Lebar Square, Singapore 409051
  • Tel: 6387 8623
  • Email: grace@minterestmoney.com
  • Interest: From 0.55% to 3% per month
  • Loan tenure and amount: Up to 36 months, up to six times monthly income

What should you look out for when borrowing from a moneylender (instead of a bank)?

Licensed moneylenderBank
Shorter loan tenures (up to 3 years)Longer loan tenures (up to 7 years)
Interest charged monthlyInterest charged annually
No early repayment feesEarly repayment may incur a fee
Can borrow even after exceeding Unsecured Credit Borrowing LimitCannot borrow once Unsecured Credit Borrowing Limit is reached (12X monthly income)

Loan periods

Licensed moneylenders typically offer loan periods of up to 36 months. Now because shorter loan periods mean higher monthly repayments, this indirectly limits how much you can borrow in total.

Hence, licensed moneylenders may not be viable if you only have a limited budget for your monthly repayments.

Bank loans are offered with longer periods, stretching to five or even seven years. This makes high-amount loans easier to manage, as your loan instalments are lower.

If you require a large loan and long repayment timeline, a bank loan would be a better fit.

Interest payment: Monthly vs Annual

Licensed moneylenders charge monthly interest on the amounts you borrow, typically 1% per month. As a result, you may think that moneylender loans are cheaper than bank loans.

But that is not necessarily so, as the following side-by-side comparison will illustrate:

S$10,000 loan, 3 yearsLending Bee*Citi Quick Cash^
Interest1% per monthEffective Interest Rate: 8.5% per annum
Monthly repaymentS$332.15S$316
Total interest paidS$1957.40S$1,376.0 (29% lower)

Sources:

*Lending Bee loan calculator

^SingSaver’s Personal Loan comparison tool

It is therefore a good idea to do some comparison shopping before you sign up for a loan, whether from a moneylender or a bank.

Fees for early repayment

Licensed moneylenders do not charge a fee if you repay your loan early. (And in fact, because of the way they calculate interest, paying off your loan early actually results in you paying less interest in total).

Bank loans, on the other hand, charge a fee if you repay your loan early, usually pegged at the remaining interest charges at the point of early repayment. Some special loans, however, may be exempt from this fee.

Borrowing beyond your Unsecured Credit Borrowing Limit

MAS regulations stipulate that you can only have up to 12 times your monthly income in unsecured loans. You won’t be able to make further borrowing from banks and other financial institutions beyond this limit.

However, licensed moneylenders are still allowed to extend a loan to you, and up to six times of your monthly income to boot.

Of course, this is subject to an evaluation of your repayment ability, because giving out risky loans without heed is a good way to go out of business.

In that sense, licensed moneylenders may be considered a last resort for some.

However, no matter your circumstances, you should always consider your ability to see your loan through, as defaulting on your financial commitments can have serious and long-lasting consequences.

Read these next:
5 Ways to Get the Highest Credit Score in Singapore
What’s The Difference Between Loan Sharks And Licensed Moneylenders?
A Guide To Avoiding Common Money Mistakes In Singapore
What Really Happens If You Skip Credit Card Bills, Loan & BNPL Payments
Top 6 Myths About Personal Loans, Busted


By Alevin Chan
An ex-Financial Planner with a curiosity about what makes people tick, Alevin’s mission is to help readers understand the psychology of money. He’s also on an ongoing quest to optimise happiness and enjoyment in his life.