All you need to know about Licensed Money Lender in Singapore


Introduction to licensed money lenders in Singapore

When you’re living in one of the most expensive countries in the world, being short of cash can be an issue for many, especially when you have to pay off essential bills like your monthly mortgage or hospital fees.

In these cases, many may turn to applying for a loan from a bank but local banks tend to have a longer processing time and more stringent rules. For borrowers looking to get an instant cash loan, a licensed money lender is your best bet.

Licensed money lenders in Singapore are regulated by the Ministry of Law and have to adhere to the Moneylenders Act when conducting their business. Licensed money lenders are always registered under the official Registry of Moneylenders with a unique license number that shows their legitimacy.

How to avoid loan scams by illegal money lenders in Singapore

With the rise of money lender scams in Singapore, it’s important to differentiate between illegal and approved money lenders in Singapore. It’s always best to first check the money lender license number of your borrower but here are some other ways to identify a possible scam.


Licensed Money Lender Illegal Money Lender
Has a registered money lender license number in the Registry of Moneylenders Does not have a registered license number
Has a registered physical office address May not have a physical address
All loan applications must include a face-to-face interview in the lender’s office before money is disbursed to you. Will usually request for a remote or online loan application and loan can be disbursed without meeting face to face.
Only allowed to advertise on their websites and at lender’s office May advertise through SMS, emails, calls
Prohibited from threatening clients. Licensed money lender harassment could result in loss of license May use threats and violence as a method for debt collection

Here are some other ways you can identify a licensed money lender as well as prohibited practices that may be a sign that the lender may be illegal.

It’s important to read up about licensed money lenders in Singapore so you can better identify a good one and avoid scams. At Galaxy Credit, we share our knowledge with readers on our blog so they can make an informed decision. Check it out below.

Read more about licensed money lenders Singapore.

Banks vs licensed money lenders in Singapore

While it is always recommended to try for a loan with a bank first, a reliable licensed money lender can also be a reliable option.

It is a known fact that banks are more affordable as private money lenders’ interest rates can be pricey for many. However, not all candidates may get their bank loans approved and that is when authorised money lenders in Singapore may be of help.

For a clearer understanding of the differences between a bank and money lenders, here’s a breakdown of what they both offer.



Banks Licensed money lenders
Provides loan up to 10 times monthly income Provides loans up to 6 times monthly income
Minimum annual income requirement for Singaporeans & PR: $20,000

Minimum annual income requirement for foreigners: $45,000

Will offer loans to borrowers with an annual income of less than $10,000
Average interest fee of 3.5 – 11% per annum Interest fee can range from 1 – 4% per month
Repayment period of up to 5 years Repayment period of up to 12 months
Requires a good credit score for loan approval Does not require a good credit score
Allows online loan applications Loan applications can be done online, but will require face to face verification in lender’s office before loan is disbursed

Why you should approach a legal money lender in Singapore

Fast approvals Borrowers can make an enquiry with a Singapore online money lender on their website, go down to their branch office for a short interview and collect their loan in a single day.

Bank applications usually take a few days.

Less strict on credit scores Licensed money lenders usually do not check borrowers’ credit scores when approving a loan. Borrowers with a bad credit score can still get their loans approved, but usually at higher interest rates.

Banks will not accept borrowers with a bad credit score.

Flexible loan agreement If you require an extension on your loan, you can negotiate your loan terms and fees with your lender.

Banks have a fixed late fee that is non-negotiable.

Get your fast loan today.

When you should NOT approach a money lender in Singapore

While private money lenders in Singapore are a great option for those looking for a quick loan with a bad credit score, not all borrowers are suitable to take a loan from one.

You should not approach a money lender in Singapore if:

You are unable to pay on time

While it is advised to never miss any of your payments whether you are borrowing from a licensed money lender or a bank, the consequences are much higher if you’re unable to pay a money lender in Singapore.

Private money lenders have high interest rates and even higher late fees as these enterprises have a higher risk when running their businesses compared to banks.

Unfortunately, this can greatly affect borrowers who have a history of late repayment and long-term debt. If you have a tendency of deferring your payments, work on managing your finances before approaching a licensed money lender.

You have a good credit score

Legal money lenders are usually an option for those with a bad credit score as they are less strict on borrowers’ credit scores. If you have a stable monthly income and a good credit score, it is recommended to apply for a loan with a bank as they generally have much lower interest rates that will help with your finances in the long run.

Here’s how you can obtain your credit report with Credit Bureau Singapore (CBS).

You have multiple loans and want to take another

To manage your finances well, you should never apply for a loan that exceeds your financial capabilities. Reaching out to various lenders for multiple loans may also increase the responsibility and stress of repaying them. This could lead to you deferring your payments and landing yourself in even bigger debt, especially with the high interest rates and fees of money lenders in Singapore.

However, if you have multiple loans, the only loan that might be suitable for you is a debt consolidation loan. A debt consolidation plan with a money lender helps you combine all your loans into a single loan with a single lender, often with a lower interest rate, which would be much easier to manage.

What to enquire with licensed money lenders to avoid being overcharged

Licensed money lenders can charge their borrowers through several means: interest rates, late interest rates, late repayment fees and administrative fees.

It’s important to go through your contract and loan terms thoroughly and be aware of the possible fees you can be charged. Take note of your payment date to avoid incurring extra late charges. Under the Ministry of Law, licensed money lenders have a cap on the fees they can charge. Make sure your borrower is not overcharging you by referring to the table below.


Chargeable fee Maximum charged
Interest rate 4% per month (48% p.a.)
Late interest rate 4% a month (48% p.a.) for the amount that was not paid on time, excluding the remaining loan amount
Late repayment fee $60 for each month of late repayment
Administrative fee 10% of the principal loan amount

In total, the sum of all charged fees cannot exceed the principal loan amount.

Have a question about taking a loan?

Drop us a call or reach out to us!

The different types of loans licensed money lenders offer

Licensed money lenders offer both secured and unsecured loans. Secured loans are often used for vehicle and property purchases while unsecured loans are more flexible if you are taking a personal loan – this can be used for personal reasons including credit card bills, renovation or student fees.

Secured loans also require collateral (such as a car or property) to be pledged, which can be seized by the lender if the borrower is unable to pay off their loans.

If you’re deciding between a secured and unsecured loan, here are the differences between the two:


Has a bigger loan amount with lower interest rates Has a smaller loan amount with higher interest rates
Borrowing limit for home loans and car loans subject to maximum TDSR of 55%. HDB and EC loans subject to MSR of 30%. Car loans’ LTV kept at maximum 60-70%. Has a borrowing limit depending on borrower’s income and citizenship
Requires declaration of collateral Does not require collateral
Fixed loan use for vehicle/property purchase Flexible loan use (if personal loan)
Easier to obtain even with bad credit history Easier to get with a more favourable credit history
Loan application may take a few more days Fast loan disbursal

Here are the types of loans that you can apply for, depending on your financial needs:

Need a loan? Apply for one in 5 minutes!

How to apply for a loan with a legal instant money lender

Documents required for Singaporeans/PRs:

✓ Proof of income for the preceding 3 months prior to loan application

  • Eg. Payslips, income statements, bank statements

✓ CPF contribution statement


✓ IRAS Notice of Assessment (for self-employed individuals)

Documents required for foreigners:

✓ Latest payslips for the 3 months prior to loan application

✓ Valid employment pass

✓ Passport

✓ Tenancy agreement / billing proof of address

Before applying for your loan, remember to compare money lenders and their different rates as well as loan tenures and repayment schedules. Loans with lower interest rates are not necessarily the best – because if loan tenures are short, it means a higher repayment amount per month.

So pick one with an interest rate, loan tenure and monthly repayment amount that is comfortable for you and your budget.

Check out our loan application process and apply here.

Reasons why money lenders may reject your loan

There are times when a borrower may submit the required documents but still get their loan rejected. Here are some reasons why this could happen:

You do not have an income

When applying for a loan with a money lender, you will be required to prove you have a steady source of income. Without one, you will be considered a risky borrower who may not be able to repay their loan. Even the best licensed money lenders in Singapore will not take such a risk so always prepare the needed documentation that proves you have a regular source of income.

Your income does not need to come from full-time employment but could also come from various part-time jobs or even rental income.

You deferred your past loan repayments

While money lenders may not access your credit score during the loan application, they will check your borrowing history with other lenders through the Money Lenders Credit Bureau (MLCB).

If you have an unfavourable history of deferring past loan repayments, future lenders may not take the risk of offering you a loan.

You applied for too many loans within a short time frame

Lenders will also be able to check the number of loan applications you have made with other lenders through MLCB, and when a borrower has applied for several loans in a short span of time, this is usually a red flag for the lender.

Lenders avoid such clients as borrowers who have multiple loans to pay off have a higher risk of deferring their loan repayments.

You have filed for bankruptcy

If you are unable to pay off your past loans, you may have been advised to file for bankruptcy. However, filing for bankruptcy can impact your financial future including applying for a loan.

A past lender has taken legal action against you

Licensed money lenders are able to file for litigation against their borrowers if they are unable to repay their loans. In such cases, the borrower’s legal history will be on record and other lenders will be able to access them. If a lender has taken legal action against a client, future money lenders are more likely to avoid them.

Apply for a loan with the best licensed money lender in Singapore

At Galaxy Credit, we offer flexible personal loans including medical, business and study loans.

We provide instant loans for emergency situations and pride ourselves as a trusted 24 hours money lender in Singapore.

Keen to apply for a loan? Drop us a loan enquiry and we will get back to you within one working day.

Apply for your loan online now.


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.

Table of Contents

Related Posts

Whether you are a Singapore citizen, permanent resident, or foreign worker residing in Singapore, securing a personal loan in Singapore has never been easier. As long as you qualify for the type of loan you are applying for, the process is pretty simple, quick, and straightforward. If you’ve reached a tough spot financially and are in need of emergency cash with the lowest personal loan rates, here are some tips you should follow when considering applying for a legal loan in Singapore.

1. Check your credit score

A credit score is used by banks, financial institutions, or licensed money lenders to gauge the likelihood of you paying off your loans on time. If you want to get the lowest personal loan rates, you have to have a substantial credit profile that shows a higher credit score or rating.

The higher your credit score, the more likely you are to get approved for a personal loan in Singapore as it shows creditworthiness. As these credit reports are sourced from a credit bureau, you will also be able to source your own credit report by requesting a copy online or from Credit Bureau Singapore for $6.42.

2. Don’t apply for too many loans at once

For a smooth sailing loan application process, you have to ensure you do not have too many loans running at once. When you apply for too many loans at one go, lenders will raise an inquiry with the credit bureau to evaluate your creditworthiness. These can be considered hard inquiries where a lender is initiating a credit inquiry on behalf of the borrower.

Bear in mind that with each direct inquiry from a legal moneylender, there is a possibility that the loan evaluation process will be further scrutinised. Rather than having multiple credit inquiries, it is much more ideal to figure out the various types of legal loan options available and identify the right fit before applying for a loan.

3. Plan your budget before applying

As with all financial plans, it is best to budget well at the very beginning, before you even apply for a loan. This step is crucial to ensure that you can repay the loan on time to avoid late fees and extra charges. If you have a gauge on the range of monthly instalment payments that you are financially able to commit to, it will be much easier to choose the type of loan in Singapore.

Doing it this way would mean that you would already know the maximum interest fee you can commit to. Budgeting wisely also requires you to look at timelines to help you work out a comfortable repayment agreement or loan tenure.

4. Prepare substantial proof of income

You must have the right documents so that you can have a smooth sailing loan application process. These include your NRIC; proof of income and employment documents such as your last 3-6 months of payslip or income tax notice of assessment (NOA); current credit report; past CPF statements; proof of residence or tenancy agreement; employment letter; employment pass and bank statements (for foreigners).

It is usually not difficult to secure proof of income for employees having a monthly salary arrangement. However, other employment arrangements like commission-based work or self-employment may prove more complex for verifying future income. Regardless of the reason, it is usually a must for borrowers to find a way to prove that they will honour their debt.

If you are applying for a personal loan without formal proof of income, you can consider showing past bank statements that indicate regular payment from an employer or credit card statements to show that you have paid your bills on time. The credit history reflects your past credit management so it can be used as an indicator of creditworthiness. Documentation of annual tax returns from IRAS can also help your cause. You should also protect your credit score to get a higher rating. Lastly, you can also consider providing a larger amount of downpayment to secure a reasonable loan tenure.

Ultimately, applying for a personal loan in Singapore is not difficult. As long as you follow the tips above and ensure you have the necessary documents on hand, you will experience a quick and seamless application and approval process.

Interested in securing a personal loan in Singapore? Find out more about your legal loan options with us.

Your personal loan in Singapore was approved by a licensed moneylender – congratulations! Now comes the challenging part – sticking to the repayment schedule. There are two reasons why it is important to repay your loan as scheduled.

Firstly, there are monetary penalties every time you are late on a payment. This includes:

  • A one-off late payment penalty every time you fail to pay the monthly instalment by the set date. This fee is capped at $60 per month.
  • Interest on the amount due. This is calculated at up to 4% of the amount due for that month (not the outstanding loan balance).

Secondly, the cumulative debt that you incur as a result of these penalties makes it more likely that you will default on future payments. Remember, a failure to meet your financial obligations today can have catastrophic effects on your credit rating for years to come.

But not to worry, we have got your back! Here are 4 simple and proven ways you can use to adhere to your personal loan repayment plan.

1. Adjust the instalment due date

If you are employed full-time and have a constant monthly stream of income, it is important to keep your payday in mind when it comes to repaying your personal loan. Also consider last-minute purchases and emergency expenses, which will affect your repayment schedule.

Once you have a clear idea of when you receive your salary every month, approach your licensed moneylender and ask for a revised due date for your monthly instalments. As there may be administrative expenses involved with the amendment, it is best to be absolutely sure before informing your lender.

2. Know your finances

This method is all about how well you know your finances. Before you can even determine a feasible repayment plan for your personal loan in Singapore, you need to first assess your current income and expenses.

While there are many free apps today that can help ease the burden of recording your daily personal finances, you still need the discipline to keep this habit consistent. Just think of how invaluable this information will be in helping you see where your money is going and how you can cut back on unnecessary expenses in time for your next repayment.

3. Prioritise your debts

Now that you know where to cut back on expenses, the next step is to determine where your income will go. All debts are not created equal and you have to determine the order of which gets paid first and that depends on two factors:

  • Size of each debt
  • The interest rate on each debt

Together, they dictate the amount by which your debt increases if you do not pay them in full. The idea is to gradually climb out of the debt by ensuring that you either maintain or reduce the amount owed.

You can use either the debt snowball or debt avalanche strategy to accelerate debt repayment.

Debt snowball – List all your debts – from smallest to largest – and make the minimum payment every month to prevent further increase in debt. Pay off the smallest debt first as best you can, and make minimum payments to the remaining debts with any money left. Over time, you will pay off that debt, and you can apply the same strategy to the next smallest debt.

Debt avalanche – List all your debts and make the minimum payment on all debts every month. Pay off the debt with the highest interest using any money that remains. Over time, you will pay off that debt, and you can apply the same strategy to the next high-interest debt. In this way, you are essentially decreasing the amount of interest you are paying.

4. Be mindful of your spending

Last but not least, budget carefully. Before taking out a personal loan in Singapore, be sure to assess your current spending and ensure that it doesn’t clash with your repayment plan. This comes with some financial planning and discipline.

If you realise you’re someone who tends to overspend, then it is time for some serious introspection on your finances and addresses the true cause of perpetually being in debt. How you spend is in your control and it is one of the best long-term solutions to having a solid financial future.

Good thing is, we’re here to help you.

Galaxy Credit is a licensed money lender that specialises in helping you secure a personal loan in Singapore. Talk to us today about our loan solutions.


When applying for a personal loan in Singapore, you need to ensure you have all the documents required to get a loan. You should be aware of the documents that are needed and know how much you can borrow. Having your income details and proof of employment on hand will certainly help with your application.

The documents that are required will depend on the bank or moneylender you choose but generally, they will require these essentials:

  • Proof of Income
  • ID copy
  • Employment information, like Employment Pass or CPF statement.

Proof of Income

If you want to borrow money from banks or financial institutions then an income statement will be required. The bank will ask for your income level and salary details so they can check if you qualify for a certain amount of loan.

In short, documents you may need for proof of income includes:

  • Contribution statement to your Central Provident Fund (CPF)
  • Latest income tax Notice of Assessment
  • Latest computerised payslip
  • Bank statement showing salary crediting into your bank account
  • Other income statements as required

ID copy

If you are applying for a personal loan, the lender will ask for a photocopy of your identification card, like your NRIC or Employment pass card just to confirm your eligibility and legal status.

Employment information

If you are applying for an employee loan, then the lender will ask for your employment details such as your Employment pass card or CPF statement. The lender might also ask for proof of employment like an employment contract, job offer letter, and details of salary and bonus.

Tips to secure a personal loan in Singapore

You should carefully evaluate your current financial needs and your earning power. Plan and record your monthly budget and expenditure to establish a monthly repayment plan that you are comfortable with.

Loan Amount

This is the most important factor to consider when applying for a personal loan in Singapore. Knowing the correct amount of loan required will allow you to choose the right type of personal loan. It is also important that you obtain the lowest personal loan rates that suit your needs and try not to surpass your borrowing limit.

Loan Tenure

The loan repayment period is also crucial in determining the length of time you have between monthly instalments. Ideally, you will plan to quickly repay your personal loans and avoid incurring late payment fees and an accumulation of unwanted debts. Remember, the inability to repay your loans on time and in full will eventually affect your credit score.


Besides the obvious interest rate fees, there are also processing fees charged by both banks and moneylenders to process your loan application. Do check thoroughly to determine if other hidden fees are involved as they will affect your total loan amount. Also, clarify on late payment fee charges and their late payment interest rates before signing anything.

Avenues for personal loan promotions

Sometimes, there are special loan deals offered by both banks and licensed moneylenders. Banks, which are typically the big players in Singapore’s finance hub, often advertise personal loan promotions on an ad-hoc basis via their websites, newspapers, financial sites, or social media platforms. Licensed moneylenders, on the other hand, advertise their services on their corporate website, business directories, or via posters at their registered offices.

If you are looking for a flexible and affordable loan in Singapore, visit Galaxy Credit. We offer the lowest interest rates on our loans and have a quick approval process. We have personal loans to cater to your needs. Talk to us and we will help you fill out an online application!