5 Key Facts About the Registry of Moneylenders in Singapore

Key Takeaways

• The Registry of Moneylenders in Singapore ensures all licensed money lenders in Singapore operate legally and transparently.
• Borrowers are protected with interest and fee caps, receipt issuance, and data security requirements.
• Verifying lenders, understanding loan terms, and reporting suspicious activity are essential for safe borrowing.

Accessing loans in Singapore is now safer and more transparent thanks to the Registry of Moneylenders (RoM), the regulatory authority that oversees the licensing and conduct of money lenders in Singapore. For borrowers, financial institutions, and industry observers, understanding the RoM’s role is essential to navigating the moneylending landscape. The following five key facts explain why the Registry of Moneylenders in Singapore plays such a critical role in the local financial ecosystem.

1. The Registry of Moneylenders Oversees Legal Moneylending

The Registry of Moneylenders operates under Singapore’s Ministry of Law and is responsible for licensing and regulating lenders to ensure the industry functions in a transparent, fair, and ethical manner. Historically, moneylending was often associated with predatory practices, including excessive interest rates, hidden fees, and harassment of borrowers.

With the introduction of the Moneylenders Act and the Registry of Moneylenders, lending has been formalised. Borrowers now have legal recourse if a licensed money lender violates the law, and all licensed lenders are subject to regular oversight. This framework provides confidence to both borrowers and financial institutions that all transactions are legitimate and regulated.

2. Licensing Requirements Are Strict

No individual or business may engage in moneylending without a valid licence issued by the Registry of Moneylenders in Singapore. The stringent licensing process ensures that money lenders operate responsibly and understand the regulatory framework. Applicants must submit a detailed application, pass the Moneylender’s Test to demonstrate knowledge of the Moneylenders Act, and obtain approval for their business premises.

Licenses are generally valid for 12 months and must be renewed in advance of expiration. The Registry of Moneylenders has the authority to refuse, suspend, or revoke licences if statutory requirements are not met, ensuring that only responsible operators remain in the market.

3. Business Premises and Manager Approval

Licensed lenders must operate from locations approved by the Registry of Moneylenders. Each branch must appoint a Test-Qualified Manager responsible for ensuring compliance with all laws, maintaining proper records, and upholding professional standards in all dealings with borrowers.

Borrowers are required to meet the money lender in person for loan applications — fully remote approvals without face-to-face verification are prohibited. This ensures proper identity verification, thorough explanation of loan terms, and reduces the risk of fraudulent transactions.

4. Regulation of Loan Practices

The Registry of Moneylenders in Singapore closely monitors how money lenders offer and administer loans. Licensed lenders cannot solicit loans directly; borrowers must submit a written application first. Advertising is limited to their official business websites, consumer/business directories, and their own registered business premises. Misleading marketing materials are strictly prohibited.

Before signing a loan contract, borrowers must be fully informed of interest rates, fees, repayment schedules, and other binding loan terms. These measures protect borrowers from unfair practices and provide clarity on financial obligations.

5. Borrower Protections and Information Security

Singapore’s legal framework provides robust safeguards for borrowers. Licensed lenders regulated by the Registry of Moneylenders in Singapore are required to comply with:

• Maximum interest rates: Interest rates and late interest rates cannot exceed 4% per month. This applies to all loans, except business loans.
• Fee caps: Administrative fees cannot exceed 10% of the total loan, and late fees are capped at S$60 per month.
• Receipts and statements: Money lenders must issue receipts for all repayments and provide a statement of account at least every six months.

That’s not all. Licensed lenders are also obligated to protect the confidentiality, integrity, and security of all borrower information. Data collected may be used only for loan processing purposes, including assessing creditworthiness and determining the maximum legally allowable loan amount. Disclosure is limited to authorised parties, and compliance with the Personal Data Protection Act ensures personal data is safeguarded against misuse.

Any threatening or abusive behaviour by money lenders is illegal, and borrowers can file complaints with the Registry of Moneylenders or the police if necessary.

How the Registry of Moneylenders Protects Borrowers

The Registry of Moneylenders in Singapore plays a vital role in protecting borrowers by ensuring they deal exclusively with legitimate and responsible lenders. It maintains an up-to-date list of licensed money lenders, sets clear guidelines on loan practices, and enforces compliance with statutory requirements.

By doing so, the Registry of Moneylenders promotes transparency, ethical conduct, and adherence to the law in the moneylending industry, serving as a key safeguard that helps borrowers make informed and secure financial decisions.

Steps Borrowers Can Take to Stay Safe

Borrowers can take several proactive steps to ensure they only engage with licensed money lenders and avoid scams:

1. Verify the lender’s licence – Always check MinLaw’s official list of legal lenders to confirm the money lender is legally registered.
2. Understand loan terms fully – Ensure you understand interest rates, late fees, administrative fees, repayment schedules, and total repayment amounts. Ask for clarification in writing if needed.
3. Protect personal information – Never share your Singpass credentials, passwords, bank details, or other sensitive information outside of the official loan process.
4. Meet in person at approved premises – Licensed lenders must only meet borrowers at their approved business locations. Avoid lenders who insist on remote or online-only loan processing.
5. Keep records of all transactions – Maintain receipts and copies of the loan contract. Confirm that statements of account are issued at least every six months.
6. Report suspicious behaviour promptly – Harassment, coercion, or non-compliance should be reported to the Registry of Moneylenders or the police immediately.

By following these steps, borrowers can confidently access legitimate financial services while minimising the risk of falling victim to unlicensed or unscrupulous lenders.

Conclusion

The Registry of Moneylenders in Singapore is essential for maintaining a secure, fair, and professional moneylending environment. From licensing and premises approval to borrower protection, loan transparency, and data security, the Registry of Moneylenders ensures that licensed lenders operate under strict legal and ethical standards.​​

For borrowers, verifying a money lender’s licence, understanding loan terms, and remaining vigilant against unethical practices are crucial steps to safeguard financial interests.

If you are looking for a trusted, reliable licensed money lender, Galaxy Credit offers secure, transparent, and responsible loan services customised to your needs. Speak to our team or apply for a loan today to experience professional financial support with clear terms and peace of mind.