Best Licensed Moneylenders in Singapore 2025
Need cash urgently but not sure where to turn? Licensed moneylenders in Singapore can be a helpful option when you’re facing short-term financial stress.
written_by SingSaver Team
updated: Jun 11, 2025
The information on this page is for educational and informational purposes only and should not be considered financial or investment advice. While we review and compare financial products to help you find the best options, we do not provide personalised recommendations or investment advisory services. Always do your own research or consult a licensed financial professional before making any financial decisions.
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Licensed moneylenders in Singapore can be a helpful option when you’re facing short-term financial stress—whether it’s paying off a medical bill, covering emergency home repairs, or managing a cash flow crunch.
But not all lenders are equal, and borrowing from the wrong one may lead to more harm than help. Here's a complete guide to understanding how licensed moneylenders work in Singapore, how to choose the right one, and what to be careful about before signing anything in 2025.
Best Licensed Money Lenders in Singapore
Best Licensed Moneylender
Credible.sg Personal Loan
Orange Credit Moneylender
1 2 Lend Pte Ltd
Friday Finance
What are licensed money lenders?
Licensed moneylenders are lenders that are officially registered with Singapore’s Ministry of Law and regulated under the Moneylenders Act. They’re different from unlicensed “Ah Longs” (illegal loan sharks) because they operate within strict legal guidelines.
They’re allowed to lend to both Singaporeans and foreigners, and must follow caps on interest rates, fees, and loan amounts. These moneylenders are also required to display their license number and should appear in the official Registry of Moneylenders.
Differences between money lenders and banks
|
Feature |
Licensed money lenders |
Banks |
|
Regulation |
Regulated by Ministry of Law |
Regulated by Monetary Authority of SG |
|
Loan approval speed |
Fast (same-day or next-day disbursement) |
Slower (may take days to weeks) |
|
Loan amount |
Smaller personal loans |
Larger loans (home, car, personal) |
|
Interest rates |
Higher (up to 4% per month, capped by law) |
Lower (around 3%–7% per annum) |
|
Credit score consideration |
Less strict |
Requires good credit score |
|
Borrower type |
Open to bad credit or no credit history |
Typically only creditworthy borrowers |
|
Income requirements |
None (but borrowing cap tied to income) |
Usually S$20,000 to S$30,000 annual income minimum |
|
Processing fees |
Up to 10% of principal (one-time) |
Typically S$0 to S$200 upfront or absorbed |
Banks offer lower rates, but licensed moneylenders provide quicker approvals and are more accessible if you don’t qualify for traditional credit.
Is it safe to borrow from money lenders in Singapore?
Borrowing from licensed moneylenders is safer than turning to unlicensed loan sharks. However, it still comes with risks.
Because interest rates are significantly higher than banks, it’s easier to fall into a debt spiral if you’re not careful. Some borrowers may also overlook hidden fees or rollovers that snowball their loan amount. And while licensed lenders must follow regulations, not all are equally ethical—some may use aggressive tactics to pressure repayments.
Always make sure you're working with someone on the official registry and read the fine print thoroughly before borrowing.
Things to consider before taking a loan from a money lender
Before signing anything, go through these important considerations:
Do you really need this loan?
A short-term loan should only be used for essentials—think medical emergencies, urgent bills, or life necessities. If the money is for shopping, travel, or luxury purchases, it might be better to hold off. Debt should be a last resort, not a convenience.
Higher interest rates
Licensed moneylenders can charge up to 4% interest per month—that's up to 48% per year! Compared to bank loans or even credit cards, that’s ridiculously steep. It adds up quickly if you miss payments, so know exactly what you’re agreeing to.
Find the lowest personal loan interest rates in Singapore
Don’t overpay—compare the lowest interest rates from banks in Singapore and choose a loan that saves you money.
Other fees and charges
Moneylenders can charge late fees (capped at S$60 per month) and administrative fees (up to 10% of the principal). These are regulated, but some borrowers overlook them and get caught off guard. Always ask for a breakdown of total repayment costs.
How much you’re allowed to borrow
Here’s a general guideline under Singapore law for unsecured loans:
|
Annual Income |
Singaporeans & PRs |
Foreigners residing in SG |
|
Below S$10,000 |
Up to S$3,000 |
Up to S$500 |
|
Between S$10,000–$20,000 |
Up to S$3,000 |
Up to S$3,000 |
|
Above S$20,000 |
Up to 6x monthly income |
Up to 6x monthly income |
This ensures you don’t borrow more than you can realistically repay, though it’s still important to assess your own budget.
Approval rate & loan disbursement
Licensed moneylenders are known for fast approvals—some even disburse funds within an hour. You usually need to go down in person for identity verification and to sign the contract, as remote loans are not allowed under Singapore law.
Compare the fastest cash loan options in Singapore
Impact on your credit score
Loans from moneylenders don’t affect your credit score the same way as bank loans do, because most licensed moneylenders don’t report to Credit Bureau Singapore (CBS). But if you default and end up in court, that will go on public record, and future lenders may still see it.
How to make sure a moneylender is licensed?
Always verify the lender’s license on the Ministry of Law’s official Registry of Moneylenders.
Avoid any lender that:
-
Offers loans via unsolicited SMS, WhatsApp, or social media ads
-
Asks you to transfer a "processing fee" before disbursement
-
Refuses to provide a proper loan contract
-
Uses aggressive sales or threats
Licensed moneylenders must operate from a physical office, provide detailed loan documentation, and conduct face-to-face verification.
If you encounter any suspicious moneylenders that may be unlicensed or even be loan sharks, report them immediately to either the police hotline at 1800-255-0000 or the X-Ah Long hotline at 1800-924-5664.
Frequently asked questions about licensed money lenders
What fees can licensed money lenders charge?
They’re allowed to charge:
-
Up to 10% of the loan principal as an admin fee
-
Late interest (up to 4% per month on overdue amounts)
-
Late fee (capped at S$60 per month)
-
Legal costs if they have to take legal action
-
Which is the best money lender in Singapore?
There’s no single “best,” but look for licensed lenders with transparent fees, clear contracts, good reviews, and fast service. Popular names often mentioned include Orange Credit, 1 2 Lend, and Friday Finance.
Are there 24-hour money lenders in Singapore?
No licensed moneylender in Singapore operates 24/7. Office hours are usually between 10 am and 7 pm on weekdays. Be wary of anyone claiming to offer midnight or online-only approvals—that’s often a red flag.
Is borrowing from a licensed money lender safe?
It’s generally safe if you borrow from a registered moneylender and understand the terms. But the high interest rates mean it’s only suitable for short-term, urgent needs.
How to find a licensed money lender near me?
Use the official Ministry of Law registry website to search by location or name. You can also visit the lender’s physical office to clarify details in person—this is actually required by law.
How do I tell if an advertisement is from a licensed or unlicensed moneylender?
Licensed moneylenders are only allowed to advertise through:
-
Their business websites
-
Official directories
-
Inside their own premises
If you get loan offers via text, email, social media, or phone calls, it’s likely from an unlicensed source
-
Can I trust the content of advertisements from money lenders?
Only partially. Even licensed lenders may highlight the “good” parts of their loan packages while leaving out important fees or conditions. Always read the loan contract in full and ask questions before signing.
How long does it take to get a loan from licensed money lenders?
It can be as fast as a few hours, especially if you bring all your documents. You’ll usually need to make a trip to their office to verify your identity and sign paperwork.
What if I can't repay my loan on time?
Inform the lender immediately. Most licensed moneylenders will allow repayment plans, though late fees and interest will still apply. Avoid ignoring them—it can lead to legal action and increased debt. Consider approaching Credit Counselling Singapore (CCS) for help if you're overwhelmed.
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SingSaver Team
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