When you're in urgent need of funds, the last thing you want is to fall for a personal loan scam. But with more borrowers turning to online platforms, fraudsters have become increasingly sophisticated in targeting unsuspecting individuals.

From fake websites to shady loan agents promising instant approvals, it can be tricky to tell what’s real and what’s not. Before you share any personal details or transfer money, here are six common signs that the loan offer in front of you might be a scam.

Getting a surprise message offering you a personal loan via WhatsApp, SMS, or social media? That’s a major red flag.

In Singapore, licensed moneylenders are strictly prohibited from advertising through these channels, as outlined by the Singapore Police Force. Legitimate lenders can only promote their services via business or consumer directories, their own websites, or at their registered physical premises.

Unfortunately, scammers often exploit platforms like Telegram, Facebook DMs, or WhatsApp to impersonate licensed lenders and bait victims into applying for fake loans. These messages usually promise fast approvals or attractive loan terms — but their real goal is to trick you into handing over personal information or upfront fees.

If a personal loan offer finds you before you’ve even started looking, it’s best to delete the message and report the sender. Always verify a lender’s license status through the Ministry of Law’s Registry of Moneylenders before engaging.

If a lender claims your loan is guaranteed to be approved — run. That’s a red flag.

Every personal loan application must go through a proper review process, which includes assessing your income, existing debt, and credit history. This is to ensure borrowers are not overextended and can repay the loan.

At SingSaver, some of our partners may offer pre-qualification, which simply means you're likely to be approved based on basic details like your income or employment. But that’s not a confirmation — you’ll still need to submit documents and pass verification before the lender makes a final decision.

So, if you see phrases like “100% approval” or “no checks required,” that’s your cue to be cautious. Legitimate lenders don't skip the fine print — and neither should you.

Be wary of lenders who promise instant loans with no credit check required. In Singapore, all regulated banks and licensed moneylenders are required to assess your ability to repay before disbursing a loan. This includes checking your credit history through Credit Bureau Singapore (CBS) and reviewing your income documents.

These checks are part of MAS regulations and help ensure borrowers aren’t taking on more debt than they can manage. Lenders also use your debt-to-income ratio to evaluate whether you can reasonably afford the repayments.

So, if someone is offering you fast cash without reviewing your financial background, it’s likely not a legitimate lender. Scammers often skip these essential steps to lure unsuspecting borrowers — but skipping due diligence is a major red flag.

If a lender asks you to pay a fee before your loan is approved or disbursed, that’s a major red flag. Scammers often request “processing fees”, “admin charges” or “security deposits” via PayNow or bank transfer — and once paid, they disappear without a trace.

In Singapore, licensed moneylenders are not allowed to collect any fees before the loan is officially disbursed and the contract is signed. All legitimate charges — including interest, late fees and processing fees — must be clearly stated in the loan agreement.

Scam lenders often create a false sense of urgency with phrases like “offer valid today only” or “limited approval slots” — anything to get you to commit before you’ve had a chance to think it through. This high-pressure tactic is designed to short-circuit your judgment and push you into a rushed decision.

In Singapore, ethical lenders are required to give you time to review the loan terms and ask questions before signing any contract. You're never expected to decide on the spot — and if someone insists you must act now or lose the deal, it’s a clear red flag.

Take your time. A legitimate lender won’t disappear overnight.

Scam loan offers often come wrapped in red flags — think poor grammar, unbranded emails, suspicious links, or messages from personal Gmail or Yahoo accounts. Some even reach out via WhatsApp using unverified numbers. These are clear signs something isn’t right.

Legitimate lenders in Singapore are required to use official business channels and adhere to professional standards. If you receive a loan offer riddled with spelling mistakes or sent from a random email, pause and verify.

To stay safe, always cross-check the lender’s name against the Ministry of Law’s official Registry of Licensed Moneylenders. If the lender isn’t on the list — walk away.

Falling for a loan scam can feel overwhelming — but you’re not alone, and there are steps you can take to protect yourself and potentially recover your funds. Here’s what to do next.

1. Try to recover your funds: If you’ve made a payment via PayNow, credit/debit card, or bank transfer, contact your bank immediately. Early reporting significantly increases your chances of freezing or recovering the funds. Unfortunately, recovery is much harder if payment was made through gift cards, cryptocurrency, or overseas wallets, but still report the incident — every detail helps build a case.

2. Report the scam: Even if you’ve managed to recover your money, it’s important to alert the authorities so others don’t fall victim to the same scheme. You can file a report through:

• ScamShield helpline: 1799

3. Seek financial and emotional support: If the incident has left you financially or emotionally shaken, reach out to Credit Counselling Singapore (CCS). They offer resources and counselling to help you regain control of your finances.

4. Explore safe financing alternatives: Still in need of a personal loan? Always go through trusted platforms like SingSaver, where all listed lenders are vetted and licensed. Avoid social media “agents” promising fast cash. And before applying, verify any lender via MinLaw’s Registry of Licensed Moneylenders.