Are you searching for a legal money lender in Singapore? You may need some fast cash for an array of personal reasons such as unexpected medical expenses or paying for renovations on a new home.

If you’re working with limited time, or are struggling with your credit score, your best option is to approach a licensed money lender, as opposed to banks. But the problem is that there are many illegal money lenders masquerading as authorised loan companies in Singapore.

How would you differentiate a legal moneylender from these unlicensed alternatives? Well, you don’t need to worry because we’ve prepared this quick and comprehensive guide on how to spot a trustworthy legal money lender in Singapore.

Interest rates

The Singapore government has set specific and strict guidelines for the money lenders when it comes to the maximum interest rate they can impose on your loan. All rates should only go up to a maximum of 4%–so if a money lender is presenting you with an interest rate above this, do not accept the offer.

Even if the money lender offers you a larger loan sum than others might, you should not fall for these schemes that will end up trapping you into a dangerous financial situation.


A legal moneylender will be transparent from start to finish. Your licensed money lender should never hold back any information from you, and if the information they are presenting is difficult for you to understand, just let them know so they may explain it to you in a way which you will understand.

In contrast to this, an illegal money lender will want to slide a few terms under the radar without you knowing. It is common for illegal money lenders to withhold on explicitly showing you the terms of your loan agreement. This allows them to impose new fees and rates at their whim or fancy, which will end up putting much more financial burden on you. So never take up any loan agreement without seeing all the terms in black and white–even if the money lender insists they are giving you a more attractive deal!


Any legal money lender in Singapore worth trusting will be registered with the Singapore Ministry of Law. So one way to make certain that the money lender you’re dealing with is authorised is to check the Ministry of Law’s website.

If a money lender mentions that they are new, and have yet to be added to the list of legal money lenders in Singapore, do not take the risk of moving forward with them as your loan company of choice. 

Loan fees 

All licensed money lenders in Singapore are only allowed to impose 3 different types of charges on your given loan agreement and they are as follows:

  • A late payment fee not exceeding $60 for each month of late repayment
  • A maximum fee of 10% of the principal loan amount when a loan is granted
  • Legal costs ordered by the court for a successful claim by the money lender for the recovery of the loan

As previously mentioned, your licensed money lender should be transparent with you from start to finish. That’s why these fees should be presented to you before you even sign the loan contract, and they should be detailed in your contract as well. 

Unlicensed money lenders may try to impose other fees on you by being vague or not letting you see the full contract before you sign with them. So be sure to never agree to accept a loan without a detailed and complete contract.

Trustworthy Money Lenders Singapore

These are the most obvious and simple ways to determine whether you’re dealing with a trustworthy money lender in Singapore. For an even easier option, you can reach out to us for your loan needs! Just leave us a comment below or contact us at our hotlines: : (+65) 62244746 (Yishun) and (+65) 62244749 (Tampines).