1 Fullerton Credit Pte Ltd is a licensed moneylender (License No. 101/2022) listed in the Registry of Moneylenders, under the Ministry of Law in Singapore.

Ultimate Guide to Borrowing from Licensed Money Lenders in Singapore

Happy young asian couple Borrowing from Licensed Money Lender

It’s easy to find reliable money lenders in Singapore. A quick visit to the Registry of Moneylenders will help you find hundreds of lenders. However, it’s easy to fall for the empty, high-yield promises of loan sharks in Singapore.

You must work only with a dependable, licensed moneylender in Singapore. If you have yet to find a reliable one, allow us to make it easier for you. Here’s a complete guide to everything you need to know about borrowing money from licensed moneylenders.

What Is a Licensed Moneylender?

Most borrowers identify licensed moneylenders to function like banks. However, this isn’t true because banks have strict guidelines and handle hundreds of thousands of loan applications in a single day.

Licensed lenders are Singaporean small personal loan providers or microlenders who now have uniform Ministry of Law regulation after the MoneylendersAct of 2008. In doing so, the Ministry of Law (MinLaw) and the Registry of Moneylenders (ROM) can protect the rights of both borrowers and lenders with proper representation.

How to Verify if a Money Lender Is Licensed?

As of writing, Singapore has hundreds of licensed money lenders offering high-quality, purpose-specific loans. However, they cannot directly approach you to use their loans. If you’ve received a text message, call, or chat with a loan offer, the other party is likely a loan shark.

Licensed money lenders cannot use direct communication to advertise their services. Plus, you’ll find all licensed lenders in ROM’s dedicated database, which anyone can check at any time.

Types of loan offered by Singapore lenders

Singapore’s licensed moneylenders can offer you either a secure or unsecured loan. With banks, high credit score borrowers can take out unsecured loans with minimal requirements and subjectively low interest rates. Plus, they have an option to secure the loan with collateral or guarantors. Poor credit score borrowers will need collateral or guarantors to secure their loan and lower interest rates.

With licensed moneylenders, you can take out an unsecured loan if the lender deems your income, work stability, and lifestyle as enough to address the financing. Some lenders can ask for collateral or ask you to work with guarantors to give the former a sense of security working with you.

  • Secured: Financing that requires collateral or guarantors. An option for high credit score borrowers to lower their interest rates further.
  • Unsecured: High interest rate financing without any collateral. In some loans, the high interest rate can be extremely troubling that borrowers can’t pay them back and require debt consolidation services.

Popular Loans Offered by Moneylenders in Singapore

MinLaw and ROM are extremely strict in monitoring moneylending products because lender services are easy to access and abuse. For example, some borrowers will find it irresistible to apply for a loan that releases the cash on the same day.

Despite strict regulation, many licensed moneylending products have become famous. Here are the top five loans that receive the most Singaporean and foreign borrower applications.

Woman Having a Cup of Coffee


Anyone can use a personal loan that gives them up to six months of their salary in an instant. A general purpose loan, personal loans can be released on the same day you submit all your requirements and receive loan application approval.

  • Loan Amount: Up to six months of your salary
  • Interest Rate: 1-4% per month
  • Processing Fees: Not more than 10% of loan principal
  • Loan Term: 12 Months

Couple Applying Loan For a House


Foreign workers in Singapore have extremely few financing options in the country. Thankfully, microlenders can give them up to six months of their salary in a single day. Now, they have financial aid during emergency situations that anyone can encounter in the country.

  • Loan Amount: Up to six months of your salary
  • Interest Rate: 1-4% per month
  • Processing Fees: Not more than 10% of loan principal
  • Loan Term: 12 Months

Business Woman Giving a Letter


It’s rare for Singaporean employers to pay delayed salaries. However, system malfunctions, supplier issues, and other problems can happen any time. Payday loans became famous because it helped many Singaporeans avoid delays paying their bills. Salaries workers in Singapore find payday loans a convenient service.

  • Loan Amount: Up to six months of your salary
  • Interest Rate: 1-4% per month
  • Processing Fees: Not more than 10% of loan principal
  • Loan Term: 1 month

Young Business People


You need huge capital to start a business. You and your business partners can always ask your friends and family for financial backing. Alternatively, you can wait for a few more years to save money from your existing occupation. However, your third option is to use either a bank or licensed moneylender business loan, and you’ll get much more flexible terms with the latter.

  • Loan amount: Up to S$200,000
  • Interest rate: 5-15% per month
  • Processing Fees: Not applicable
  • Loan Term: 24 Months

Wooden House With Coins and Calendar


Monthly installment loans work like bank bridging loans. However, you can use monthly installments for virtually any product, service, or property you need. Licensed moneylenders have limited monthly installment funding, but they can function just as well as bank-issued lines of credit or credit cards

  • Loan Amount: Up to six months of your monthly salary
  • Interest Rate: 1-4% monthly
  • Processing Fees: Not more than 10% of loan principal
  • Loan Term: 12 Months

Some Reminders Before You Start Borrowing From Licensed Moneylenders

Before you fill up your loan application, make sure you have objectives to focus on your financing. Hundreds of thousands of Singaporeans have poor credit scores and continue to pay for debts because they lacked concentration during their financial commitment.

Avoid this situation by ensuring you understand the different purposes of all available loan varieties in the market completely. Furthermore, brush up on your loan application’s terms and conditions, which your licensed moneylender will help you understand.

  • Much More Suitable Debt Consolidation Products Exist

Truthfully, you can use licensed money lender personal loans and other financial products as a helpful way to pay the debt. However, if you’re struggling to pay multiple debts, it’s better to consult with reliable debt consolidation companies.

Most charitable institutions and community-oriented financial institutions are willing to broker your debt consolidation. In doing so, you can have a low-interest loan guaranteed to have the least interest rate possible, giving you a chance to settle your debts and improve your credit scores.

  • A Clear Plan and Purpose For Your Loan

The majority of Singapore debtors had misguided financial management and budgeting skills, spiraling them to deep debt. However, with a clear plan and purpose for your loan, you’re unlikely to encounter major repayment issues.

Additionally, read the terms and conditions of your financing. Take note and schedule your regular payment periods. Next, check your interest rates and record other miscellaneous fees your loan might have.

To have a clear objective, you should list your priorities for financing. For example, college financing will require you to cut corners and say no to some non-crucial expenses. If you still spend highly on other things and never save enough for repayment, you can consistently find yourself in deep debt.

  • Investigate Your Prospect’s License To Lend Money

Only one way exists to verify your licensed moneylender’s existence: head to the Ministry of Law’s Registry of Moneylenders. Upon downloading the list of licensed moneylenders in Singapore, you can check if your prospective moneylenders have registered and own a license to provide their services.

Unscrupulous loan sharks, or ah longs, have long conquered Singapore’s microlending economy in the past. With the Moneylenders Act of 2008, licensed money lending under the Ministry of Law’s watchful eye gave many Singaporeans and foreign workers financial opportunities alternative to banks and financial institutions.

  • Do Some Research and Comparison With Other Loan Providers

The majority of licensed moneylenders in Singapore have synonymous products and services. However, some money lenders can have promotional interest rates. All lenders can provide lower interest rates for personal loans. However, they cannot go beyond the Ministry of Law-mandated interest cap of 1-4%. More about this topic later.

Therefore, it’s best to visit loan comparison sites to learn more about the latest promotions that licensed moneylenders offer. You might get lower interest rates or even higher than usual personal or bridging loan amounts.

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The Ministry of Law’s Rules and Regulations That License Lenders Follow

Licensed moneylenders have rules that the Ministry of Law sets. The Registry of Moneylenders adopts them as part of a prospective moneylender’s licensing program. All would-be owners of moneylending brands have to pass a series of examinations before receiving a license to operate. Failure to pass means they’re disqualified from running a money lending business.

On the other hand, licensed moneylenders in Singapore have excellent service quality and guaranteed service because they’ve gone through the stringent registration and licensure process. Therefore, you’re working with an exceptionally-dependable lending company.

Advertising Restrictions

All licensed moneylenders cannot advertise using social media or reach out to prospective customers. Therefore, if you receive an offer message that exaggerates the lowest interest rates and regular payment in the market, it’s highly likely an ah long offering a deal that’s too good to be true.

On the other hand, licensed moneylenders can have their respective social media accounts and websites. However, they’re restricted from keeping contacts and mailing lists on all their platforms. Any outreach activity is illegal under MinLaw’s terms and conditions.

Licensed Moneylender Responsibilities

You can file a complaint to the Registry or MinLaw if your licensed moneylender fails to provide you with any of the following responsibilities. All moneylenders in Singapore must perform these.

  • Complete Contract Explanation

Even if you’ve already used their personal or payday loan service once, your moneylender’s staff must explain the loan’s terms and conditions and answer all your concerns. They must openly welcome a borrower who has more than a dozen questions, especially if it’s the borrower’s first time to use moneylending services.

If they fail to completely explain the contract, you have the right to back out of the loan, even if you’ve signed the contract. Truthfully, all licensed lenders will ask you to sign a form that verifies your full loan terms and conditions understanding after the lender’s representative has completed their explanation.

  • Signed Loan Contract Copy

After you’ve signed the full terms explanation form, you’ll sign the loan contract your lender presents to you. Both parties in the transaction must sign the contract and have a respective copy. The licensed moneylenders in Singapore have the responsibility of providing all borrowers with their respective contract copy.

  • Cautionary Statements Regarding Financial Product

The Registry assures that all approved and licensed moneylenders in Singapore completely understand the products they’re selling. If the borrower didn’t ask about it, the lenders must still explain all the loan’s limitations through cautionary statements. They perform this in the spirit of goodwill and giving borrowers a fair chance to re-evaluate their loan applications.

  • Receipt Issuance

All licensed moneylenders must provide you both a copy of your contract and a receipt that verifies all of your initial and regular payments. Additionally, all loan processing and miscellaneous fees presented on your contract must have their corresponding receipts. Failure to do so allows borrowers to file a complaint regarding the service provider.

Upon your loan’s completion, you’ll receive a final receipt that you have zero obligation to the licensed moneylender because you’ve accomplished all your responsibilities with exceptional results.

  • Provide You With a Statement of Accounts

Some licensed moneylenders can provide you with a loan beyond 12 months loan term, such as a business loan. It’s the moneylender’s responsibility to send you a statement of accounts. The document must present a complete and detailed report of all your payments, penalties, and interest rate.

Loan Fee Caps and Details

The Moneylenders Act of 2008 touches upon different subjects regarding loan fee caps. Any licensed money lender must comply with all the amount ceilings and loan term specifications. These rules exist because loan sharks have continuously abused borrowers by changing their terms and conditions or providing high-amount loans to individuals incapable of paying.

Additionally, the caps allow moneylenders to operate independently from banks and financial institutions because the former cannot reach the latter’s offered loan amounts and terms.

  • Loan Principal

The total loan amount you can borrow from moneylenders. For most personal and bridging loans, this is about six times of your monthly salary.

  • Interest Rate Limit

All licensed moneylenders can only charge you a 1-4% maximum interest rate per month. Anything beyond is a considerable MinLaw regulation breach.

  • Processing Fees & Late Fees

Licensed moneylenders in Singapore can only charge 10% of the loan’s total value for processing fees. Additionally, the late fee total for the loan’s entirety must not exceed S$60.

  • Products Must Lack of Malicious Intent

MinLaw and the Registry will take decisive action against any lender providing financial services that send borrowers into deeper debt. Its regulation safeguards all borrowers from such product developments.

  • Debt Repayment Must Not Exceed Double The Principal Amount

A borrower who has spiraled deeply in debt must be capable of paying it before the interest reaches double the principal amount. Therefore, lenders with debtors must file a claim before the interest reaches double the principal to avoid this occurrence.

How Much Loan Amount Can You Borrow From Licensed Moneylenders?

All borrowers in Singapore can borrow up to six months of their total monthly salary for personal loans. On the other hand, they can borrow higher amounts for business loans.

However, lenders can lower the personal loan amounts depending on your income stability and amount. If you have existing debt, your income-to-debt and income-to-expense ratio play enormous roles in the personal loan amount you’ll receive.

Debt Collector Rights and Responsibilities

If the lender decides to use a debt collector to work on your default, the collectors can help you create a repayment option. They have a responsibility to help you find viable repayment solutions. However, they cannot pressure you into paying unless the lender files a lawsuit against you and appoints them to collect.

In most cases, debt collectors may refer you to a debt consolidation service to lower your interest. Consolidators evaluate your current income stability and character before negotiating terms that allow you to quickly climb back from deep debt.

Reporting Poor Moneylending Activities

Licensed lenders aren’t immune to oversight, errors, and role abuse. Additionally, any breach in MinLaw regulations automatically merits decisive action from MinLaw and the Registry. Poor moneylending activities, such as contract changes or failure to clarify details before you signed the contract, are situations you can contest.

You can correspond with the Registry and provide details about your case. The Registry has the power to revoke moneylending licenses to offenders through a complete event review, performance evaluation, and lender standing accounting.

Recourse If a Loan Shark is Harassing You

Truthfully, loan sharks are outside the MinLaw and Registry’s regulatory oversight. These criminal organizations have physically and emotionally harassed borrowers who defaulted on their loans. If you’ve worked with an active ah long that continuously changed your loan contract details to keep you trapped, you have recourse and protection in Singapore.

During these situations, it’s best to keep calm. Despite their threats, stop paying for your loan. Then, contact Singapore’s “X-Ah Long Hotline” at 1800-924-5664. For any immediate threats to your wellbeing, especially if it’s currently happening, contact the police for your safety at 999.

Loan Application Form

How to Apply for a Loan?

If you follow the steps we’ve listed below, you can conveniently apply for a loan and receive your cash within the same day. However, make sure you’re eligible and possess all the necessary requirements to get your loan within a few hours. Here are some eligibility requirements you need to meet and documents to submit with your loan application.


  • You are of 21 years of age and above
  • Singapore and PR minimum: S$2,000 (for foreigners, S$3,000)


  • Singapore/PRs:
    • Identity card / NRIC
    • Proof of residence (utility bill, a letter addressed to you, and/or tenancy agreement)
    • Proof of employment (certificate of employment or 3 months recent payslip)
  • Foreigners:
    • Passport
    • Work Permit / S-Pass / Employment Pass
    • Proof of residence (utility bill or tenancy agreement)
    • Proof of employment (certificate of employment or 3 months recent payslip)
    • Proof of income (bank or account statement)

Steps To Apply For a Licensed Money Lender Personal Loan

Trust us, you’ll breeze through the steps we’ve listed below and get your cash in an instant.

1. Visit Their Branch or Apply Online

If you’re nearby, you can visit the lender’s branch and inquire about their loans. However, in light of recent events, many lenders have significantly stepped up their online loan application process.

2. Submit The Necessary Documents

Your licensed moneylender most likely has a dependable documents uploading portal. You can conveniently take photos or scan your documents and upload them to the portal. If you have an internet connection, you can always submit your documents wherever you are.

3. Pay Attention To Terms and Conditions Briefing

The licensed moneylenders must ask you to present yourself for a short interview and comprehensive terms and conditions briefing. Make sure to ask questions that pop in your head. Never sign the briefing waiver and loan contract if the representative failed to answer your questions.

4. Wait for Your Loan’s Release Within The Day

All licensed moneylenders can only release their loans within their branches. And you will receive the cash within an hour!

Borrow Only From Licensed Moneylenders

Ah longs continue to get a steady stream of borrowers because they blindside the population’s majority with deals and loan amounts, which are too good to be true.

The best way to take on a loan is to review your existing credit performance. If you’ve performed poorly, have an unstable income, and continue to pay for the debt, don’t take on additional financial commitments. Most especially, don’t sign up for unlicensed moneylenders.

Licensed Moneylenders, such as 1 Fullerton Credit, can lend you a loan even without a high credit score. With more than a decade of experience providing high-quality financing services, you can always count on 1 Fullerton Credit to provide you with high-quality financial products suitable for all your needs. Apply for a loan with us today!

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