Best Licensed Money Lenders Singapore Guide 2023:
All You Need to Know

woman reading about the best licensed money lender in Singapore guide on phone
woman reading about the best licensed money lender in Singapore guide on phone

Table of Contents

Table of Contents

working office table in a money lender office

In need of urgent cash to settle an unexpected expense? Sometimes, no matter how much we have saved, there may be instances where we need a little extra help.

There are so many good options for Singaporeans out there to choose from – financial institutes such as banks and licensed money lenders – but never loan sharks . This guide will tell you everything there is to know about licensed money lenders in Singapore.

What you’ll learn

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What are licensed money lenders? What types of loans can you get from them?

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Compare between money lenders and banks (e.g. rates, repayment plans)

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How to differentiate between licensed money lenders and loan sharks

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Pros and Cons of borrowing from a licensed money lender in Singapore

And so much more! Are you ready? Scroll on to learn more!

What do I need to consider before taking up a loan with a legal money lender in Singapore?

First thing first, ask yourself if you need the loan. For example, why do you want to take up a loan to buy a brand new computer? Not enough savings? Can you wait a little longer and save up without having to take a loan?

However, in the event of unforeseen circumstances, such as, if you or a family member got into an accident and you need to settle an urgent medical bill, taking up a loan could be necessary.

Next, ask yourself if you can afford to take up a loan. You have to fully understand the terms of the loan – from interest rates to repayment schedules, processing fees, and late fees should you not be able to pay off your loans on time.

Work out your monthly budget and ensure you’ll have enough to pay off these loans on top of your necessities.

Remember, never borrow to pay off another debt. You’ll incur more debt, along with additional charges that may never seem to end if you can’t pay them on time.

This could potentially lead to a negative impact on your credit score. You’ll then have a more challenging time getting your loans approved in the future if your credit score isn’t good.

Before applying for any loan, do thorough research on the different money lenders with low interest rates to suit your needs. Some offer attractive interest rates with flexible repayment plans.

Goldstar Credit is a licensed money lender offering attractive interest rates and loan terms.

What are licensed money lenders, and is it safe to borrow from them?

borrower computing using calculator

Yes, borrowing from licensed money lenders is 100% safe. A licensed money lender is a legal financial institution authorised to lend money.

To be licensed in Singapore, all money lenders must be registered under the Ministry of Law – here’s the list of Licensed Moneylenders in Singapore. This list is updated regularly to ensure that borrowers get the most current information.

This means that these reliable money lenders would have to abide by all the rules and regulations set by the government of Singapore. This includes the maximum amount one can borrow depending on their income, the minimum age requirement, maximum interest rates, and additional fees, which are detailed below.

What type of loans can I borrow from authorised money lenders in Singapore?

There are two types of loans that you can borrow from licensed money lenders: secured and unsecured .

A secured loan means your loan is backed by collateral (e.g. house, car, jewellery). Failure to repay your loans could result in your collateral being repossessed to settle the debt you owe the money lenders.

Unsecured loans are generally loans that are not backed by any collaterals.

These are the loans offered by GoldStar Credit below and their respective loan terms:

Types of Loan Loan Amount Interest Rates Repayment Term

Up to six times your monthly salary; $300 - $50,000

1-4% per month

Flexible repayment
of up to 12 months


$10,000 - $300,000



Up to one month’s salary

Until the next payday (up to 31 days)


Up to $50,000 or six times your monthly salary

Flexible repayment
of up to 12 months


Up to six times your monthly salary; $300 - $50,000

Bridging Loan

Up to six times your monthly salary

Debt Consolidation


Loan Amount

Interest Rates

Repayment Term

Up to six times your monthly salary; $300 – $50,000

1-4% per month

Flexible repayment of up to 12 months

$10,000 – $300,000

1-4% per month


Up to one month’s salary

1-4% per month

Until the next payday (up to 31 days)

Up to $50,000 or six times your monthly salary

1-4% per month

Flexible repayment of up to 12 months

Up to six times your monthly salary; $300 – $50,000

1-4% per month

Flexible repayment of up to 12 months

Up to six times your monthly salary; $300 – $50,000

1-4% per month

Flexible repayment of up to 12 months

Up to six times your monthly salary; $300 – $50,000

1-4% per month

Flexible repayment of up to 12 months

Up to six times your monthly

1-4% per month

Flexible repayment of up to 12 months


Looking for a loan from a reliable legal money lender?

Pros and Cons of borrowing from private money lenders in Singapore

There are many advantages and disadvantages to borrowing from a licensed money lender. Below are some examples to help you make an informed choice when borrowing from a legal money lender in Singapore.

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Quick approval times (in less than 30 minutes if you have all the requested documents)


Flexible loan repayments to suit your needs


Fast and easy application


Having bad credit is not a concern – banks may be reluctant to approve your loans if you have bad credit, but a good licensed money lender won’t penalise you for that.


Offer you a debt consolidation loan to restructure debts



High interest rates (up to 4% per month)


Loans with licensed money lenders usually have a shorter repayment period, up to 12 months


The amount you can borrow depends on your annual income


Penalties for late or missed payments


Possibility of ruining your credit score if you don’t make timely payments


Tendency to get out of control when borrowing

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Differences between Banks and Licensed Money Lenders in Singapore

In Singapore, you can turn to financial institutions such as licensed money lenders and banks to help tide you through rainy days. Below are the key differences between licensed money lenders and banks.

licensed money lenders

Licensed money lenders


18 years and above


21 years and above

Minimum age requirements

1-4% per month


3.5-11% per annum

Interest Rates

Reducing Interest Rate


Flat Interest Rate

Flat or reducing interest rates?

Short repayment period of up to 12 months, for a typically smaller loan amount


Longer repayment period of up to five years, for a bigger loan amount

Repayment period

Less than 30 minutes – Borrowers with bad credit scores are welcome to apply.


3-5 working days – Banks conduct more stringent risk assessments and borrowers with good credit scores are preferred.

Application Approval Time

Need a short-term loan with a less stringent application process?

Singapore Licensed Money Lenders Versus Loan Sharks: Know The Difference

Legal money lenders are an option you can turn to for instant loans, however there are cases where loan sharks are masquerading as licensed money lenders.

Below are some of the things you need to look out for to avoid money lender scams.

licensed money lenders

Licensed money lenders


Loan Sharks

Loan Amount

Maximum loan amount based on your annual salary (see: Eligibility Requirements section below)

Usually any amount you wish to borrow

Loan Fees and Interest rates

  • Maximum interest rate: 4% per month.

  • Up-front service fees of no higher than 10% of the loan value
  • Include extra charges that aren’t known to you.

  • Exorbitant interest rates

  • Not bound by Singapore law, so can charge as high as they please.

Loan Repayment

  • Late payment fees should not exceed $60 per month

  • Late interest does not exceed 4% a month of the late amount due.

Loan Contract

Will always have a clear contract detailing the loan amount, tenure, monthly repayment, interest, etc

No contract, or incomplete contract.

Advertisement Methods

  • Business or consumer directories (in print or online media)

  • Money lender’s official website

  • Advertisements placed within or on the exterior of the money lender’s business premises.
  • SMS, Whatsapp, Telegram, and various social media channels

  • Flyers

  • Emails

  • Unsolicited calls

Mode of Operation

Have a registered business premise (a physical office)

Unlikely to have a business address and would prefer to conduct their business entirely online or in a public space


How can I verify if a money lender in Singapore is licensed?

a borrower computing his debt

A good licensed money lender is also required to abide by the money lenders’ code of conduct, so they can’t use abusive language or threaten and harass you.


Taking up a loan with a licensed money lender in Singapore is legally binding – your loan officer must provide a complete contract detailing the terms and conditions of the loan and will require you to sign it. The contract will include details like loan amount, loan tenure, processing fees, and the licensed moneylender late payment fees should you not be able to make timely payments. Unlicensed money lenders will usually not have a loan contract, or make you sign an incomplete one.


If you choose to submit your loan application online via the official licensed moneylender’s website, the loan officer will call you to schedule an appointment. You must come down to the licensed money lender’s office for a face-to-face verification, and this is a necessary step that should not be skipped. Licensed moneylenders would not approve your loan or disburse funds to you unless you’re physically present. (Note: No loan approval via SMS, phone, or email is permitted by law.)

Keen to find out more about Goldstar Credit and how we safeguard your interest?

How am I protected by Singapore law when I borrow from licensed money lenders?

When you borrow from licensed money lenders, you are protected by the Moneylenders Act.

The Moneylenders Act details:


How licensed money lenders can advertise


The maximum amount a money lender can charge you in total


The maximum amount you can borrow from all legal and licensed money lenders
(see: Eligibility Requirements below)


How violent threatening or harassing behaviour is not allowed during debt collection

If you come across any money lender doing something out of the norm, like increasing interest rates after you’ve signed the contract or harassing you for payment, make your complaints against the money lender with the registry at 1800-2255-529 or via their website.

Any legal money lenders guilty of an offence may be fined not exceeding $20,000 or jailed for up to 6 months, or both.

Remember, before you apply for a loan in Singapore,, always check out licensed money lenders’ reviews to find the best online money lenders that work for you.

What happens if I default on my loan repayment to a licensed money lender in Singapore?

a female borrower computing her bills

Suppose you’re unable to make a timely loan repayment and thinking of defaulting, DON’T. This will negatively affect your credit score, resulting in a harder time getting loan approval in the future.

As the loan contract you’ve signed with a licensed money lender is legally binding, they can take you to court and sue you. If you’ve taken a secured loan with a money lender, you might lose your collateral to make up for the debts you owe.

What if I am unable to pay money lenders in Singapore?

Are you running short on cash to pay off your loans this month? Don’t worry. Your licensed money lender strives to provide the utmost professional service, including offering services to help you in times like these.

How to settle licensed money lender debts:

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Reach out to your money lender and negotiate for an extension plan or refinancing plan for your debts

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Get help from Social Service agencies like Credit Counselling Singapore, if you have loans with both licensed money lenders and banks. For borrowers who have debts only to licensed money lenders, click here for a list of agencies you can seek help from.

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Apply for Debt Repayment Scheme (Note: If you are under the DRS scheme, you will not be able to take up another loan. Money lenders will reject your future loan applications.)

Aiyah, I accidentally borrowed from Loan Sharks; what should I do?

stress borrower checking his debt

Keep calm; it’s not the end of the world if you realise you’ve accidentally borrowed money from a loan shark. Pay it off in full when you can.

However, if you encounter problems like a sudden increase in rates that makes it impossible for you to pay off or harassment, don’t make any additional payment as you are under no legal obligation to repay the debt if a money lender isn’t licensed under the Ministry of Law. Unlicensed money lenders have no legal right to recover the debt.

Being threatened by a money lender? Contact the police or the X-Ah Long hotline at 1800-924-5664.

How to apply for a loan from the best licensed money lenders in Singapore?

Below are the eligibility requirements to borrow from a licensed money lender in Singapore:



Minimum Age Requirements

18 years and above

18 years and above

Annual Income of Borrowers

Less than $10,000



At least $10,000, less than $20,000



At least $20,000

6 times your monthly salary

6 times your monthly salary

Documents Required

Identification Documents


Work pass (S-Pass, E-Pass, work permit or any proof of employment)


Other Documents

Access to your SingPass for CPF statement verification and Notice of Assessment

Proof of address in Singapore (Tenancy agreement, previous month’s handphone bills or other proof of residence)


Payslips from the last three months

Payslips from the last three months

Application Process:



Apply online or walk in to apply

For New Customers:
The process will take approximately 20-30 minutes, depending on your requirements.

For returning customers:
The process will take approximately 5-10 minutes if there are no changes in information or requirements.

For both new and returning customers:
You will need to either fill up a loan application form online or walk in to apply.


Face-to-face verification at the legal money lender’s registered office.

If you have applied online, once you’ve received a call from the money lender’s loan officer to schedule an appointment regarding your loan, make your way down to the money lender’s office with all the documents you used to apply for the loan (i.e. NRIC/passport, proof of address, payslips etc.)

During your time in the office, the loan officers will be enquiring about your requirements and needs, and explain to you the loan procedures and all chargeable fees. They will be conducting a thorough check and interview before your loan can be approved.


Keep your documents organised in a file and bring them to the money lender’s office.

always stay away from loan sharks


Signing the loan contract

You’re almost there! Once your loan is approved, now comes the important part – signing the loan contract.

Your loan officer will explain the terms and conditions of the loan to you in a language that you can understand. Make sure to ask questions if there is anything you’re unsure about. Loan officers are very experienced and knowledgeable and are always open to answering your queries. Double-check the loan amount, the tenure, monthly repayments, and when you should make the payments.

Once everything is clear, you can sign the loan contract.

Why and where to review before applying from them


Get your fast cash loan instantly!

Once the contracts have been fully explained and signed, your money lender will disburse your loan immediately in cash or via PayNow.

Remember to pay off your loans on time, and perhaps you’ll get to enjoy lower interest rates when applying for future loans.

Personal loans can help tide you through financial difficulties; however, getting a loan from a licensed money lender is so easy and accessible that you might risk running into recurring debt if you keep on borrowing money to settle your loans.

So, plan your finances wisely before applying for a loan!

We hope that this guide has given you a better understanding of how licensed money lenders work in Singapore.

Need a loan from a reliable licensed money lender in Singapore?

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We charge competitive interest rates and fees, which is why so many of our customers keep returning to us.

As a Goldstar customer, you get to enjoy:
Loan interest rates of 1-4% a month*
A maximum of 5-10% in processing fees*