24-Hour Money Lending Services in Singapore: Do they exist?

By Wally Wong 24-Hour Money Lending Services in Singapore: Do they exist? | Published 24 Feb 2024 6 minutes

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At a glance

You need cash urgently and only have time at night to apply for a loan. But do you know that there are no 24/7 loan services in Singapore? You should avoid these illegal moneylenders if you do come across one. Other signs of unlicensed moneylenders include asking for a deposit before loan approval, no face-to-face contact, and advertisements through SMS. Licensed moneylenders in Singapore must adhere to strict laws set by Singapore authorities. They are not allowed to send SMSes advertising their services. However, you might also encounter problems when dealing with a licensed lender. You can always contact the Registry of Moneylenders to report harassment or wrongdoing. When borrowing money, ensure you have the proper documents, such as your NRIC or passport and financial documentation. This will help to expedite the process.

There may come a time when you urgently need a 24-hour money lending service in Singapore for an immediate cash requirement. Unexpected expenses, such as vehicle fixes or healthcare costs, can arise, surpassing your savings.

Given the hectic pace of life in Singapore, where weekends might be the only time to address personal affairs, you could be on the lookout for a reputable online licensed moneylender or a “licensed moneylender near me” or “moneylender near me” that operates on Sundays or beyond regular business hours to accommodate your financial emergencies.

This discussion explores the existence of 24-hour money lending services in Singapore and how to distinguish between authorised and unauthorised lenders.

Understanding Licensed Moneylenders in Singapore

An authorized moneylender in Singapore is recognised by the Ministry of Law as capable of offering prompt loans to citizens, Permanent Residents, and foreigners holding valid Employment Passes.

These legal lenders present a viable alternative for swift personal loans, featuring expedited and less rigid procedures than traditional banking institutions.

The quest for a 24-hour moneylender in Singapore is common among those needing immediate financial assistance. Let’s delve into whether such services exist.

Do 24-Hour Moneylenders Exist in Singapore?

No, Singapore does not host 24-hour money lending facilities. Encountering one might indicate it is an illegal operation or misrepresenting a lawful lending service.

Nevertheless, licensed lenders provide around-the-clock online loan application platforms, allowing for anytime applications for optimal personal loans. You can check our loan marketplace anytime for the best loan applications to suit your needs. With this, you can find the right lender faster.

Identifying Legitimate vs. Illegitimate Moneylenders

It’s crucial to distinguish between legal and illegal lenders, as the latter often pose as 24-hour loan providers. Legal lenders adhere to Singapore’s stringent regulations, including:

  1. Loan Contract Terms and Conditions: Legal lenders must fully disclose loan terms before contract signing. Unlicensed lenders usually will not have proper documentation and may even just send a message to get a deposit before approving the loan. This is a scam to get you to part with your hard-earned money. Licensed lenders will not charge any fees before loan approval. 
  2. Interest and Late Payment Charges: The  Ministry of Law regulates that lenders can only charge interest rates up to 4% monthly, with similar caps for late payments.
  3. Advertising Restrictions: Legal lenders can only advertise through specified channels, such as their websites or advertisements inside and outside their office. They are not allowed to send messages advertising their services. These are scam messages.
  4. Loan Amount Limits: Based on income, specific borrowing limits are enforced by the Ministry of Law. Any lender that offers more than the set limit is usually an unlicensed moneylender. See the table below
Annual Income Singaporeans & PR’s Foreigners
Less than S$10,000 S$3,000 S$500
S$10,000 - S$20,000 S$3,000 S$3,000
S$20,000 and above 6 times of monthly income 6 times of monthly income

5.   Prohibition of Harassment: Legal lenders cannot intimidate or threaten for repayment. In the case of a loan default, they will still require a Writ of Seizure and Sale to seize your assets. Only illegal moneylenders resort to harassment and vandalism (which is an offense in Singapore) to get their money back.

Avoiding Online Loan Scams

With the rise of technology, discerning between legitimate online lenders and scams is critical. Look for red flags such as no in-person verification, upfront fees, and suspiciously high interest rates. Ensure the lender has a physical address and adheres to regulated advertising methods.

Here are key things to look out for 

  1. Remote Application and Loan Disbursement: With the increasing digital presence of licensed moneylenders in Singapore, online loan applications have become common. However, this convenience also allows unlicensed moneylenders to engage in fraud.
    Licensed moneylenders conduct face-to-face verifications before disbursing loans, ensuring transparency and security. In contrast, unlicensed lenders may approve applications via email, SMS, or phone without formal contracts or in-person meetings. Caution is essential to avoid falling victim to such scams. Always verify the lender’s legitimacy by checking for a proper business address and following established application procedures. If a lender doesn’t require physical visits for contract signing, consider it a red flag and cease contact immediately.
  2. Fees and Interest Rates: Unlicensed moneylenders or loan sharks often demand upfront fees, processing fees, or administrative charges before processing loans. Some may even insist on a payment before disbursing the loan amount. 

    On the other hand, licensed moneylenders adhere to a different protocol. They never require pre-transfer of funds and only charge a 10% administrative fee after loan approval, deducted from the principal loan amount. Furthermore, loan sharks or unlicensed lenders tend to impose excessively high-interest rates, aiming to profit quickly through exorbitant charges. In contrast, licensed moneylenders in Singapore are regulated by the Ministry of Law and can charge a maximum of 4% per month for nominal and late repayment interest. Always scrutinise the interest rates being imposed to ensure fair lending practices.

  3. Physical Addresses: Licensed moneylenders must have a physical office address where borrowers can visit to verify and review loan contracts and terms. Consequently, the absence of a physical address indicates that a lender may operate as a loan shark. For additional verification, individuals can refer to the Ministry of Law website to access a list of licensed moneylenders in Singapore and their official addresses.
  4. Advertising Methods: Receiving unsolicited SMS messages regarding loans often indicates unlicensed moneylenders or loan sharks trying to attract borrowers. As businesses embrace digital platforms, they may advertise via SMS, WhatsApp, flyers, and emails to entice potential borrowers. 

    However, it’s important to note that such advertising tactics violate the advertising rules governing licensed moneylenders. When encountering such solicitations, blocking and reporting the sender immediately is advisable.

    Licensed moneylenders are subject to strict regulations and can have their licenses revoked for illegal advertising practices. Therefore, engaging with licensed moneylenders is prudent, as they comply with the Moneylenders Act in Singapore. For more information on loan sharks in Singapore, read this article, and to learn about the latest regulations for licensed moneylenders, visit this page.

List of Reputable Licensed Moneylenders

The information below includes some of the most reputable licensed moneylenders in Singapore. It has been updated on Saturday, February 24, 2024 and is subject to change.

Moneylender Max. Loan Amount (Singaporeans) Max. Loan Amount (Foreigners) Monthly Interest Rate
1 Fullerton Credit 6 times monthly income 6 times monthly income 1-4%
1st Credit SG 6 times monthly income 6 times monthly income 1-4%
365 Credit Solutions 6 times monthly income 6 times monthly income 1-4%
Orange Credit 6 times monthly income 6 times monthly income 1-4%
Quick Credit 6 times monthly income 6 times monthly income 1-4%
Raffles Credit 6 times monthly income 6 times monthly income 1-4%
A1 Credit 6 times monthly income 6 times monthly income 1-4%
Abm Creditz Singapore 6 times monthly income 6 times monthly income 1-4%
Bugis Credit Up to $50,000 Up to $30,000 1-4%
Capital Funds Investments 6 times monthly income 6 times monthly income 1-4%
*Today’s Licensed Moneylender Overview - 09 April 2024

FAQs on Borrowing from Licensed Moneylenders

Covering interest rates, permissible charges, and the essentials of dealing with licensed lenders, including what to do in case of grievances or harassment, this section aims to clarify common queries regarding borrowing from licensed moneylenders, ensuring you’re well-informed and protected against potential scams or illegal practices.

  1. How much interest can lenders charge?

Licensed moneylenders in Singapore can charge a maximum interest rate of 4% per month. This rate applies uniformly, regardless of your income level or whether your loan is secured or unsecured. To illustrate, if you borrow S$10,000 and have repaid S$4,000, interest is only calculated on the remaining S$6,000.

Late interest fees are also capped at 4% per month and are calculated solely on the overdue amount. For instance, if your loan is S$10,000 and you’re late on the first repayment of S$2,000, the late repayment fee applies only to the S$2,000, as the remaining repayment is not yet due.

Licensed moneylenders are further restricted in imposing charges and expenses, which include:

  • Fees do not exceed S$60 for each month of late repayment.
  • Fees do not exceed 10% of the principal loan amount.
  • Legal costs ordered by the court for a successful claim in loan recovery.

The cumulative charges, comprising interest, late interest, upfront administration, and late fees, cannot surpass the loan’s principal amount. For instance, if you borrow S$10,000, these charges must not exceed S$10,000.

  1. What else should you know when dealing with a licensed lender? 

Even when dealing with a licensed moneylender, remain vigilant for practices that may violate the law. Be cautious if you encounter any of the following:

  • Use of abusive language or threats
  • Requests for your SingPass user ID and/or password
  • Retention of your NRIC or personal ID documents
  • Requests for you to sign a blank or incomplete loan contract
  • Granting you a loan without providing a copy of the loan contract
  • Failure to explain the terms and conditions
  • Withholding any portion of your principal loan amount without justification
  1. What can I do if I have a complaint? 

If you wish to file a complaint against a moneylender, report them to the Registry of Moneylenders. Provide the moneylender’s business name, license information, and contact number. You can reach the Registry at 1800-2255-529 or through their website. Your details will remain confidential, and the Singapore moneylender will not receive them without your consent. Additionally, you might be required to participate in an interview with Ministry of Law officers to supply relevant information and documents concerning your loan transactions or dealings with moneylenders to facilitate the investigation of your complaint.

  1. What can you do if the licensed lender threatens or harasses you?

Any form of harassment or threatening behavior constitutes unfair practice and falls under the jurisdiction of the Registry of Moneylenders. You can also file a police report, as law enforcement treats such behaviors seriously.

  1. What supporting documents do you need for a loan?

To proceed with a loan application, you’ll need to provide the following documents:

  • Proof of identity: NRIC or passport
  • Proof of residence: Bank statements or utility bills
  • Proof of income: CPF contributions, payslips, income tax statements, or employment contracts
  1. What must a lender inform you before approving your loan?

Before approving a loan, a licensed moneylender must provide you with written information about the loan’s terms, including:

  • Nominal interest rate
  • Late interest charges
  • Other allowable fees
  • Installment details
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Considerations

All licensed moneylenders in Singapore must furnish you with a written cautionary statement before granting any loan. You should also know where to lodge a formal complaint if necessary. It’s important to stay informed about the latest rules governing licensed moneylenders to protect your rights as a borrower.

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