Table of Contents

Money Lender Licence: Documents, Fees, Application Steps

Money Lender Licence: Documents, Fees, Application Steps

Curious about borrowing from a licensed lender or becoming a legitimate money lender in Singapore? You’ve come to the right place.

In this article, we break down the steps for thoroughly checking a money lender’s licence, why you should check a money lender’s licence before borrowing from them, as well as everything else you need to know about the application process for a money lender’s licence in Singapore — in case you’re thinking of starting a money lending business of your own.

How to Check a Money Lender’s Licence

The first step you should take before a loan application —apart from knowing the criteria, documents needed for a loan, how to apply for a loan, etc— is to make a list of licensed money lenders you’d like to get a loan from, then spend some time to see if they are indeed legitimate. This means checking the legitimacy of the money lender’s licence carefully.

To verify the legitimacy of a money lender’s licence, follow these steps:

  1. Visit the money lender’s physical office and verify the address using the information from MinLaw’s list of legalised lenders.
  2. Ask to see the money lender’s licence — make sure the licence number tallies with the record in the Registry of Moneylenders’ database

Why Should You Check a Money Lender’s Licence Carefully?

There has been a spike in the number of cases where scammers impersonate legal lenders to solicit personal data from victims for illegal acts.

A legal lender with a money lending licence in Singapore is not permitted to solicit loans via calls, SMSes, or social media. It is necessary for them to abide by the rules and regulations from the Ministry of Law.

Application for a Money Lender’s Licence

Is it easy to apply for a money lender’s licence?

It is not the easiest to apply for a money lender’s licence. There are multiple steps involved when it comes to the application for a money lending licence in Singapore.

How can potential money lenders apply for a money lender’s licence?

Before you can apply for a money lender’s licence, you need to first submit an application for the mandatory Money Lender’s Test. This test is meant to test your knowledge on all things related to the business of money lending, including the proper ways a licensed lender should conduct its business, the rules and regulations on licensed money lending in Singapore, etc.

Once you have passed the Money Lender’s Test, you may proceed to apply for a money lender’s licence online. Ensure that you meet all the stipulated requirements and furnish all the necessary documents required for obtaining a money lender’s licence to prevent hiccups.

The estimated processing time for one’s application for a money lending licence will take up to four weeks from the time you submit your application and provide all the documents and information required by the Registry of Moneylenders.

Tip: Read this compilation of information for aspiring legal lenders to find out more about the processes and requirements.

Fees and documents required for obtaining a money lending licence

There are various fees and documents you need to know about before submitting an application for a money lender’s licence.

Be sure to furnish all the documents required to get a money lending licence as well as take note of the assortment of fees for getting a money lender’s licence.

Fees for obtaining a money lending licence

  • Upfront application charges: $600
  • Money lender’s test fee, per attempt: $130
  • Moneylending licence application fee: $1,500
  • Security deposit sum: $20,000

Documents required for obtaining a money lending licence

  • Documentary proof on the money lender’s availability and the sources of fundings
  • Test-Qualified Manager’s education certificates and qualifications
  • Scanned NRIC copies, both front and back, of everybody involved in the money lender’s business
  • Fully filled Annex form

Looking to apply for a money lending licence? Applications for new money lending licences are being put on hold

The Registry of Moneylenders has put on hold the issuing of new licences at this time. As at time of writing, there’s no indication when the temporary suspension on applications for new money lending licences will be lifted.

What Licensed Lenders Cannot Do

If you are still unsure, we’ve put together certain practices a legal lender is not allowed to carry out.If you spot any of these red flags from your shortlisted list of lenders, you should avoid dealing with them.

  • Using abusive or threatening language
  • Soliciting your SingPass details
  • Failing to give back your key personal identification documents, e.g. passport and NRIC
  • Making you sign an incomplete or blank contract for the loan
  • Giving loan approval without any detailed explanation of the loan terms
  • Refusing to give you a copy of the signed loan contract
  • Soliciting loans through phone calls and SMSes

What Licensed Lenders Can Do

In case you didn’t already know, according to the Moneylenders Act, a legal lender is only permitted to charge a maximum interest rate of 4% per month based on the borrowed loan amount. The maximum late interest rate chargeable on a late or missed repayment is also limited to 4% per month.

Calculation of the interest should be done in accordance with the remaining balance of the principal after deducting payments made toward paying down the principal. For example, if the principal loan amount is $6,500 and you have already paid $2,500 towards the principal, interest should only be calculated for the remaining $4,000.

A licensed lender may also enforce other charges like loan processing or administrative charges or court-ordered legal fees incurred by the money lender for the successful recovery of a loan if there is ever a case of a borrower failing to make repayment.


There are many rules and regulations that licensed lenders must follow. It is not the easiest to become an accredited legal money lender in Singapore to say the least. For starters, all approved money lenders must have a valid money lending licence in order to commence operation in this industry.

Want to borrow money from an approved money lender? Consider Galaxy Credit and Investments Pte Ltd. We are a legal 24 hours money lender with a moneylending licence in Singapore, certified under the Ministry of Law. If you are looking for safe and quick access to a variety of loans, such as Payday Loans, Debt Consolidation Loans, Renovation Loans, and Wedding Loans, rest assured that our team of friendly and experienced loan officers has got your back.

To apply for a loan with us, you should be:

  • At least 21 years old and have a stable source of income
  • A Singaporean, PR, EP, or S-Pass Holder
  • Able to provide proof of identity (e.g. Singapore IC or foreign passport)
  • Able to provide proof of income (e.g. payslips, monthly bank or CPF statements, latest Income Tax Assessment Notice)

For further enquiries about our company and loan options, feel free to contact us today.


While we try to provide the most accurate information on this website, it may not reflect the most current developments. The information on this website may be changed without notice and is not guaranteed to be complete, correct, or up-to-date. All information provided is for informational purposes only and shall not be relied upon as professional advice. We shall not be liable for any loss or damage resulting from the use of this website.

Related Posts

The popularity of local money lenders in Singapore is soaring. However, are these lenders dependable and legit? The answer is YES. There are many …

Table of Contents


Table of Contents

Verified by MonsterInsights