The moneylender in Singapore is the person or company that carries out the business of lending funds to borrowers as an alternative to borrowing from a bank. A licensed money lender in Singapore must abide by the regulations set by the Ministry of Law, which includes caps on interest rates and late fees. These measures protect borrowers from incurring debt that exceeds their incomes.

Licensed money lenders in Singapore must also provide a comprehensive loan agreement that includes all fees. If a licensed money lender in Singapore does not present this document to you, the terms of the loan are likely unfair or illegal. In addition, a legitimate licensed money lender in Singapore will not request any advance payment or require that you deposit any collateral before disbursement of the loan.

Exploring the Role of Moneylenders in Singapore: What You Should Know

Avoid illegitimate money lenders that advertise their services through flyers or SMS. Such unlicensed moneylenders may not have the required licenses to operate in Singapore and are likely to impose high-interest rates or other illegal fees. Instead, look up a licensed money lender’s licence number and trade name in ROM’s list of registered moneylenders.

Licensed money lenders in Singapore are required to conduct credit checks before giving out loans to borrowers. If a licensed money lender does not check your credit history, it is likely that the money lender is operating illegally and should be reported to the authorities. It is also advisable to compare the loan packages offered by various licensed money lenders before making your final decision.