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Before you approach a moneylender, consider the various financial assistance schemes that are offered by Government agencies. After exploring these alternatives and you still can’t address your financial needs, then you should look for a licensed moneylender for help.  

Before you make any loan, consider what is the amount of money that you need and do not borrow more than what you can repay. Consult our loan specialists to find out what type of loan is suitable for you. Make sure you have fully understood the terms and conditions applied to the loan contract.

You are legally obliged to fulfil any loan contract. Bear in mind that if you are unable to adhere to the contractual terms, the late payment fees and interest payment will be an additional burden for you and your family.

With effect from 1 October 2015, the maximum interest rate moneylenders can charge is 4% per month. This is the maximum rate of late interest a moneylender can charge. It applies regardless of the borrower’s income and whether the loan is an unsecured or secured one.

Late interest only applies to the amount that is repaid late. For example, if Person A takes a loan of $10000, and fails to pay for the first instalment of $3000, the moneylender can charge the late interest on $3000 but not on the remaining $7000 that is not due yet.

With effect from 1 October 2015, all moneylenders are only allowed to impose the following charges:

• Fee not exceeding $60 for each month of late repayment;
• Fee not exceeding 10% of the principal of the loan when a loan is approved; and
• Legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan

The total charges, which include interest, late interest and administrative fee, imposed by a moneylender cannot exceed the principal of the loan.

You may visit https://rom.mlaw.gov.sg to access the list of licensed moneylenders.

Be mindful of the moneylenders if they:

• Use abusive language or threatening word towards you
• Request for your SingPass user ID and/or password
• Retain your NRIC card or other personal ID documents
• Grant you a loan without giving you the Note of Contract
• Grant you a loan before you submit all the relevant documents and application form
• Withhold any part of your principal loan

The practices mentioned above are not acceptable. Report the moneylender to Registry of Moneylenders immediately if you encounter one.

Check that the moneylender has delivered to you the correct principal amount of the loan. The moneylender is only allowed an upfront deduction of loan approval that amounts up to 10% of the principal amount.

Ensure that you receive a statement of account for all your loan(s) atleast once every January and July, check that all the information provided is correct. You will also need to receive a receipt every time you make any repayment towards your loan. Safe keep these documents as evidence of payments.

Remember to pay the loan instalments on time to avoid incurring late payment fees and late interest.