Are you short of funds and you are planning to borrow a personal loan from a legal money lender in Singapore? If yes, then here is a complete guide on how to go about it.

4 Things to Do Before Borrowing

  • Decide on the amount that you want to borrow
  • Prepare the relevant documents which include but are not limited to:
  • Proof of income and employment
  • NRIC
  • Bank statements
  • Residency proof
  • Tenancy agreement, employment letter, pass, (for foreigners)
  • Take note of interest rates, late repayment fee, and administration fee
  • Check from the Ministry of Law whether you are dealing with a licensed moneylender


Before approaching any moneylender it is important to conduct a self-assessment. Below is how to go about it:

  • Eligibility check – This is to determine if you are eligible for the amount you are applying for. In Singapore, the maximum amount you are eligible for depends on your annual income. You can research online the capping placed for different ranges of annual income.
  • Get your Credit Report – It is important to know your credit rating before proceeding to borrow a loan. This report can be accessed from Credit Bureau Singapore (CBS) or Moneylenders Credit Bureau (MLCB) If you have a bad credit rating, it is important to clean it up first.

Moneylender assessment

It is important to do an assessment on the potential lender to determine their legitimacy. There are a thousand lenders in Singapore and if you are not careful you may fall into the hands of unlicensed lenders commonly referred to as loan sharks.

How to Identify a Licensed Moneylender

Physical Address – A licensed money lender is required by law to have a physical address. This is where you go for your document verification. Any lender without a physical address isn’t legit and should be avoided.

Name Verification – You can verify if the name of the lender is registered by the Ministry of Law. This can be found on the Ministry of Law’s registry. If the name of the lender doesn’t appear on the register, then automatically that should raise a red flag

Advertisement – According to the ministry of law, moneylenders should only advertise through the following channels

  • Business or consumer directories
  • The website belonging to the lender
  • Posters inside or outside the lender’s premises

If a moneylender is offering loans through calls and messages, you are probably dealing with an unlicensed moneylender. Any moneylender using other forms of advertisement other than the one mentioned above should be avoided.

Interest rate and fee offered

Interest rate and fee are capped as follows

  • The interest rate at 4%
  • Late interest fee at 4%
  • Late payment fee not exceeding S$60
  • An administrative fee not more than 10%

Any lender offering rates other than the one mentioned above are not legitimate.

Contract Signing

A licensed money lender will always offer a contract document for signing once you enter into a contract with them.

Once you are satisfied with the above information, then you can go ahead and apply for your personal loan.