What licensed lenders can and cannot do

All moneylenders operating in Singapore must be licensed by the Ministry of Law and listed on the Registry of Moneylenders. That licence comes with specific rules on what they can charge, how they must behave, and what they are not allowed to do. Being licensed means they’re regulated and accountable — knowing the rules helps you spot when a lender isn’t following them.

• Explain the terms clearly. Under the Moneylenders Act, the lender must explain all terms and conditions of the loan to you in a language you understand — including the interest rate, repayment schedule, fees, and any penalties. They must also give you a copy of the Note of Contract (the formal loan agreement) before disbursing any funds. Do not sign anything you haven’t read and understood. If they skip this step, that’s a violation.
• Conduct proper checks. A licensed moneylender cannot approve and disburse a loan based on a phone call, SMS, or email alone — they must receive your application and supporting documents first. All licensed moneylenders must operate from a registered physical address. If a lender has no office or refuses to meet in person before disbursing, treat that as a serious red flag.
• Disburse the correct amount. The only permitted upfront deduction is an administrative fee of up to 10% of the loan principal. Beyond that, the full loan amount must be handed to you. If a lender withholds any portion beyond this — citing additional processing charges or other reasons — that is not permitted.

These are not guidelines — they are legal limits under the Moneylenders Act. No licensed lender can exceed them.

For example, if you borrow $5,000, the total of every fee and interest payment you make across the entire loan cannot exceed $5,000.

Under no circumstances can a licensed lender:

• Use abusive language or behave in a threatening manner toward you
• Ask for your SingPass user ID or password
• Retain your NRIC, passport, work permit, employment pass, or ATM card
• Ask you to sign a blank or incomplete Note of Contract
• Withhold any part of your loan amount beyond the permitted 10% admin fee
• Grant a loan without receiving your application and supporting documents first

If any of these happen, you are dealing with a lender operating outside the law — even if they are licensed.

Licensed lenders can only advertise through three channels:

• Business or consumer directories (print or online)
• Their own website
• Signage at or within their registered business premises

That’s it. SMS, WhatsApp, flyers, cold calls, emails, and social media are all prohibited advertising channels.

If you receive an unsolicited loan offer through any of these channels, do not respond. It is either an unlicensed lender, or a licensed lender violating the rules — neither of which you want to borrow from. Report it to the Registry of Moneylenders at 1800-2255-529 or via OneMinLaw.

If a lender’s behaviour doesn’t line up with what’s described here, you have options.

• For rule violations or unfair practices: Lodge a report with the Registry of Moneylenders at go.gov.sg/rompefir or call 1800-2255-529. The Registry investigates all complaints and will not disclose your identity to the lender without your consent.
• For harassment during debt collection: Lodge a police report in addition to informing the Registry.
• For unfair contract terms: You can bring the matter to the Small Claims Tribunal or the Court under the Consumer Protection (Fair Trading) Act. Courts also have the power to set aside loan transactions that are exorbitant or substantially unfair.

You can verify any licensed moneylender on the Ministry of Law’s registry before you borrow.