Best Licensed Money Lenders’ Reviews: Reasons & How To Verify


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Table of Contents

Best Licensed Money Lenders’ Reviews: Reasons & How To Verify

When the situation calls for it, you may find yourself needing some extra cash to pay off an emergency medical bill or urgent home expenses. But without sufficient funds on hand, how can you pay for these?

While there are options such as borrowing from family and friends, you can also turn to legal money lenders for a personal loan. The best money lender reviews will even tell you if a lender is worth borrowing from.

However, as a first-time borrower, you might not know where to start or how to check if a money lender is licensed. Don’t fret, we’ll be sharing invaluable tips with you on how to verify licensed money lender reviews before applying for loans.

What are licensed money lenders?

The Moneylender Act denotes a moneylender as a person, be it a principal or agent, who provides the business of moneylending. Under Singapore law, no individuals are allowed to be a moneylender unless they are registered and approved with a licence, or they are “excluded or exempt moneylenders” as detailed under the Moneylenders Act.

Essentially, licensed lenders are people or businesses who are recognised by the Singapore government to provide legal loan services to borrowers. Being a licensed business means that they will have to abide by the rules and regulations (e.g. maximum interest rate, late payment fees) set by the law.

Why check licensed money lender reviews before applying for loans?

Numerous money lenders provide various loans with attractive rates to suit different needs. But when it comes to understanding if a lender is trustable, helpful and professional — the best money lender reviews will ease the search.

It is important that you first research the different kinds of loans available before making a choice. For example, if you need cash to pay for your home renovation’s downpayment, should you take up a fast cash loan or an actual home renovation loan?

Once you have identified the specific loan needed, you can then compare across the different money lenders using these factors:

1. Eligibility

Singaporeans and PRs have different loan eligibility requirements as compared to foreigners.

The minimum age to apply for any personal loan from licensed lenders is 18 years old. Your salary also determines the maximum amount that you can borrow.

Refer to the table below to find out how much you can borrow across licensed lenders at any one point in time, based on your residency status and income level:

Borrower’s annual income Singapore Citizens and Permanent Residents Foreigners residing in Singapore
Less than S$10,000 S$3,000 S$500
At least S$10,000 and less than S$20,000 S$3,000 S$3,000
At least S$20,000 Six times monthly income Six times monthly income

2. Interest rates, fees, and repayment options

Before applying for a loan, determine how much money you need. Sure, different lenders offer attractive borrowing sums of up to six months of your monthly income. However, the more money you borrow, the more interest and fees you have to pay.

Money lenders in Singapore are allowed to charge a maximum interest rate of 4% per month regardless of how much you earn or if your loan is a secured or unsecured one. Late interest rates are also capped at a maximum of 4% per month. Be wary of companies who charge higher interest rates, they might be loan sharks.

Legal lenders also offer flexible loan repayments. Some may require you to pay monthly instalments, while others may offer borrowers bi-weekly or weekly repayments to suit various circumstances and preferences.

Types of advertisement that differentiate licensed lenders from loan sharks

Under the law, legal lenders are only allowed to advertise through these three methods:

  1. Business or consumer directories online, or in print media such as newspapers or magazines.
  2. The legal money lenders’ registered websites.
  3. Advertisements placed within or on the exterior of their physical office premises.

Hence, do not respond to any unsolicited advertisements in the form of SMSes, flyers, and social media messages, or calls. Any form of advertisements not mentioned above is not permitted and are from either licensed lenders who violate state laws, unlicensed lenders, or scammers.

Always consult the list of licensed lenders in Singapore

Check if the licensed lender is listed on the Ministry of Law registry to avoid loan scams and illegal lenders.

Legal lenders are required by law to be listed on the Ministry of Law’s Registry of Moneylenders. The document details the business name, physical address, licence number, contact numbers, and online websites belonging to the business.

There have been recent cases where loan sharks are posing as legal lenders and using their registered business names to trick unsuspecting borrowers.

Remember to always call the listed business number and visit the physical office to verify. All licensed lenders are required to have an office, which you will be required to visit for a mandatory face-to-face verification before loan disbursement.

Most unlicensed lenders work remotely and might approve your loan application without ever meeting in person or doing any proper credit assessment.

Illegal behaviours to watch out for

Legal lenders will not ask you for your SingPass username and/or password. They will not keep your original NRIC or any other personal documents, or ask you to sign an incomplete contract for the loan.

Be cautious when a lender starts to use abusive language or threaten you to pay up. Examples of unacceptable behaviours include excessive SMSes or calls, contacting you during unusual hours, making repeated calls to your home or office, causing distress to your family or colleagues, or loitering around your home or office.

If you experience any of these licensed money lender harassment tactics, report the lender to the police immediately.

Licensed money lender reviews: Where to look for them and what to look out for?

Loan Comparison sites

Loan comparison sites are filled with the best money lender reviews. Check the list of licensed lenders in Singapore and compare the minimum requirements, interest rates, fees, and repayment methods offered by the lenders.

Online Reviews

By closely scrutinising licensed money lender reviews online, you can easily see if a lender is credible and reliable. Preferably on Google Reviews, or on various loan comparison websites or social media where past customers provide reviews about their experience dealing with the licensed lenders.

On the licensed lenders’ official websites

The official website of a money lender will usually state its licence number and physical address which you can cross-check with the Registry of Moneylenders’ list of registered lenders. On the website, you’ll typically also find the best money lender reviews from customers who have borrowed from the lender. Based on their account, you can get a gist of their experiences dealing with the money lender.

What should you do next?

After verifying the money lender’s reviews, enquire about their loans by visiting the money lender’s office or speaking with their agents online or through a phone call. By law, they’re obliged to protect your privacy and keep your information confidential.

Looking for a reliable licensed lender?

Apart from looking at licensed money lenders’ reviews, you’ll have to identify a legal lender that can meet your financial needs best. Goldstar Credit can help you find the right legal loan solution for your needs. With over a decade of experience, we have earned the highest number of positive reviews among money lenders in Hougang and Toa Payoh.

Contact us today with your financial requirements and our loan specialists will get back to you with personalised recommendations. Or if you’re ready to apply for a loan, simply do so on our secure website.


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

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