Financial crises can occur at any time in Singapore. Whether you face medical costs, a sudden need for home repairs, or even a temporary money gap, obtaining quick access to lending is crucial. This is where a licensed moneylender in Singapore comes in. If you are considering borrowing, you must know how money lending in Singapore operates and how to decide on a money lender who fits your needs.
What is a Licensed Money Lender in Singapore?
A licensed money lender in Singapore will operate under the Ministry of Law’s regulations. Unlike unlicensed lenders, reputable financial institutions operate transparently and grant loans on fair terms. Borrowers can get loans quickly without getting caught up in outlaws or high-interest scams.
Why Choose a Licensed Money Lender?
Choosing a licensed money lender in Singapore offers numerous benefits:
- Legally Protected: Licensed lenders fall under Singapore’s Moneylenders Act and are fairly obligated to borrowers.
- Transparent Loan Terms: No hidden charges or unclear terms and conditions. You get transparent details on interest rates and repayment terms.
- Fast Approvals: Get loan approval in hours and have access to cash quickly.
- Flexible Loan Options: Get a Personal Loan, Payday Loan, or Business Loan customized to meet your requirements.
- Confidential: Your financial data remains private and secure.
Process Of Choosing The Best Personal Loan Money Lenders
Finding the right personal lender for you is a time-consuming task. There are several things to find out when choosing a moneylender.
These things consist of the following:
- Identify the kind of loan you need from a licensed money lending company.
- Research the loans before you get a loan from a licensed money lender.
- Gather all the required documents before visiting a licensed money lender office.
- Verify with the local law firm if you transact with a licensed moneylender.
Let’s take a closer look at each of these:
Determine The Type Of Loan You Require From A Licensed Money Lender
Before borrowing from a Licensed Money Lender, you must know the type of loan you need. If you require a small loan, just like a personal loan, there are quite a few consumer loan types available from licensed money lenders. Personal loans are helpful because you can use them towards anything, such as paying off debt, paying for emergencies, or a big ticket item.
Borrowers must compare different lenders’ interest rates, charges, and terms before taking out a consumer loan. Knowing their budget is also important, as personal loans usually have minimum refund deadlines.
Many types of loans are available from licensed money lenders for a higher loan, such as a business loan. Business loans can be used for expanding, purchasing equipment, or hiring new employees.
Making a business plan and having enough collateral to get approved for a business loan is also imperative.
Conduct Research On The Loan You Intend To Obtain From A Licensed Money Lender
Before borrowing from a licensed money lender, you should learn about the loan you plan on getting from a licensed money lender. This allows you to know the terms and conditions of the loan and the possibility of reimbursement.
Check Credit Score
All borrowers must undergo credit checks by licensed money lenders. Always query the Moneylender Credit Bureau website or Credit Bureau Singapore and obtain a copy of your credit report.
The report will show whether the money lender properly conducted a credit search. A licensed money lender in Singapore will decline to lend you money if your credit rating is poor. If your credit score is good, you can get the loan immediately.
Check Eligibility
Verify your eligibility for the type of loan you are taking. Remember that your annual income determines the maximum loan amount you can borrow in Singapore.
Based on your income and citizenship, the table below shows how much money you can borrow from Singapore’s authorized lenders.
| Yearly Income | Singaporeans And Permanent Residents | Foreigners Residing In Singapore |
| Under $10,000 | $3,000 | $500 |
| At least $10,000 but no more than $20,000 | $3,000 | $3,000 |
| A minimum of $20,000 | Six times the monthly income | Six times the monthly income |
Organize All Required Documents Before Visiting A Licensed Money Lenders Office
Preparing all relevant documents before contacting a licensed money lender office is crucial to saving time and getting your cash much earlier. If you are missing any necessary documents, the money lender cannot process your loan application. These documents include the following:
- NRIC
- Rent agreement, employment letter, work permit, and bank statements (for foreigners)
- Income and employment documentation
- Past CPF statements and current credit score
- Proof of residency
A licensed money lender approves unsecured loans, such as consumer loans, based on annual income instead of credit history. Income can be a good indicator of how much an individual will be able to repay the loan. Lenders usually need to see payslips as proof of income for employed people.
The payslips will indicate the individual’s monthly income so that the lender will have a basis to establish how much the individual can repay monthly. On the other hand you could have to show evidence of your income financial statements or tax returns. This is due to self-employed individuals having more odd income, which complicates figuring out how much they can repay each month.
Check With The Local Law Office To See If You’re Dealing With A Licensed Money Lender
The Money Lenders Act in Singapore sets out the rules licensed money lenders must follow to safeguard Singaporean borrowers. This encompasses capping the amount of interest they are allowed to charge. Licensed money lenders are not permitted to charge beyond the following under the Money Lenders Act:
- Charge a monthly interest rate greater than 4% on the loan outstanding balance.
- Charge a late payment fee higher than 4% of the total loan amount.
- Do not charge any extra fees unless permitted by law.
- A penalty of no more than $60 per month of late refund.
- On a loan that has been approved, a fee no higher than 10% of the loan
- The court will award legal costs for a money lender’s successful debt recovery claim.
You can complain against a licensed lender to the Registry of Moneylenders if you think they have failed to comply with any of the above laws. The Registry will review the complaint and, if appropriate, apply the appropriate action.
Why Choose Golden Credit?
At Golden Credit (S) Pte Ltd, we know financial challenges and offer solutions that benefit your needs. As a well-established licensed money lender in Singapore, we provide:
- Fast and hassle-free loan approvals
- Competitive interest rates with no hidden fees
- Flexible repayment plans
- Confidential and secure transactions
No matter your financial situation, Golden Credit can help. Contact us today to learn about your loan options and obtain your desired financing.
Final Thoughts
Find a licensed money lender to guarantee transparency and reliability. Avoid unlawful lenders to prevent scams and overpayments.
Need urgent cash? Golden Credit is your reliable money lender in Singapore. Get a loan today and get the cash you need!
