Understanding Licensed Moneylenders in Singapore: What Borrowers Should Know | Trillion Credit Solutions

Published by Admin at October 10, 2025

Introduction

In Singapore, many people turn to loans to handle urgent financial needs, whether it’s paying bills, medical expenses, or unexpected emergencies. While borrowing can be a useful tool, it’s important to know where you’re getting the loan from. Not all lenders are the same, and choosing the wrong one can lead to serious financial problems.

This is where licensed moneylenders in Singapore play a crucial role. Borrowing from a licensed lender ensures you are protected under Singapore law, with transparent rules and safeguards for borrowers.

What Is a Licensed Moneylender?

A licensed moneylender is a private company registered and regulated by the Registry of Moneylenders under the Ministry of Law (MinLaw).
They are authorised to provide personal loans to individuals and businesses.
They must follow strict rules on interest rates, fees, and fair lending practices.
Their names are published on the official list of licensed moneylenders available on MinLaw’s website.
💡 Always check this list before borrowing. If a company is not listed, they are operating illegally.

Why Borrow from a Licensed Moneylender?

Choosing a licensed lender protects you in several ways:

Transparent interest rates: capped at 4% per month.
Regulated fees: late repayment fees and admin charges are capped by law.
Fair treatment: harassment and abusive practices are strictly prohibited.
Legal protection: agreements must be clear and in writing.

Licensed vs Unlicensed (Illegal) Moneylenders

Unfortunately, many unlicensed moneylenders—also known as loan sharks—still operate in Singapore. Here’s how they differ:

Licensed Moneylender	Unlicensed Moneylender (Loan Shark)
Listed on MinLaw website	Not listed, often secretive or evasive
Transparent contracts & receipts	Verbal promises, no written contract
Interest capped at 4% per month	Exorbitant, unlimited interest
Regulated debt collection practices	Harassment, threats, or illegal methods

👉 If you encounter suspicious offers, report them to the police immediately.

What to Consider Before Borrowing

Before applying for a loan, ask yourself:

Do I really need to borrow, or can I cut expenses instead?
Can I commit to the monthly repayments comfortably?
Have I compared different licensed moneylenders to find fair terms?
A loan should solve your problem—not create a bigger one. Responsible borrowing means knowing your limits.

How to Borrow Safely

Verify the lender’s license on MinLaw’s website.
Read the contract carefully before signing.
Borrow only what you need and can afford to repay.
Keep receipts of all payments for your records.

Conclusion

Licensed moneylenders in Singapore provide a safe and regulated option for individuals who need urgent financial help. By understanding your rights and responsibilities, you can make informed decisions, avoid loan sharks, and borrow with confidence.
As a licensed moneylender ourselves, we place clients at the center of what we do—offering transparent, fair, and responsible loan solutions to help you move forward without unnecessary stress.