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Moneylending has become an important industry in Singapore. It has helped millions of people across generations with their financial needs. Despite the rise of this industry, illegal moneylenders have begun to show up. 

They have started to attract people into borrowing from them. With this, Singaporeans must be vigilant in choosing which moneylenders to trust. They must only borrow from legitimate moneylenders, so they are protected by the country’s Ministry of law. This article guides readers in identifying which money lenders to trust. It explains what moneylenders are in Singapore and who are the money lenders to trust.

What is a Licensed Money Lender?

The term money lenders refer to groups or individuals that loan money in exchange for a certain amount of fee. In Singapore, money lending is a way for people to manage their finances. At times of financial emergencies, they go to money lenders for a certain amount of loan. The agreement between the creditor and the borrower is governed by the country’s Ministry of Laws.

In order to ensure that both the borrower and the creditor are protected, the government has put in place certain regulations. These laws make sure that the borrower pays off the loan he or she made. Also, these laws make sure that the creditor does not ask for unreasonably high interest rates for a loan. These lenders should not exploit the desperate conditions of borrowers.

One mechanism placed by the government is through regulating money lenders. They do this through granting licenses. This means that Singaporeans must only make a loan from licensed moneylenders. Making loans from unlicensed moneylenders means that the government might not be able to help borrowers in case of any problems. It is better for the people to go to licensed moneylenders in order to make sure that the transaction or agreement.

The license of lenders is important in ensuring that borrowers are applying for a loan only to legitimate offices. Borrowers who are in need of a loan immediately are susceptible to abuse and harassment. Thus, it is essential that loan-related applications be only made with offices and businesses with necessary licenses. Through this way, we can make sure that the rights of the borrowers are observed, followed, and protected. 

List of Licensed Money Lenders in Singapore

The Singapore government, through the Ministry of Law, has ensured that Pte Ltd and other financial institutions follow certain rules before they lend a loan to Singaporeans. The government granted licenses to these moneylenders in Singapore. You can find the list of licensed moneylenders here for more information.

Included in the MinLaw list are the details of these licensed moneylenders, including their business address, landline number, and website so borrowers can easily identify their official line of communication. These Pte Ltd companies are the only ones allowed by the government of Singapore to loan money to people in need. Be sure to search for the latest copy of this list to make sure that the list is accurate.

As of January 2020, there are more than 150 licensed moneylender Pte Ltd companies in Singapore. You can choose which of these you prefer. Also, you must learn how to compare which of these licensed moneylenders best fit you and your needs. These Pte ltd lenders are not the same. You have to be intelligent in choosing which of them is the best for you.

Always check the registry of moneylenders before applying for a loan. Some money lenders in Singapore can claim that they are legitimate but only rely on the list provided by the government to make sure that you are borrowing from a licensed Pte Ltd.

How Licensed Moneylenders can help you

Men stressed with credit card debt and monthly loan

Licensed Moneylenders in Singapore have helped thousands of people in need. At times of great need, they could provide the financial remedy to Singaporeans without high interest rates.  In cases of a medical emergency or any financial difficulties, these licensed moneylenders can approve a loan fast. They are equipped to respond to the immediate needs of their clients.

Also, during a financial crisis, these licensed moneylenders can give quick cash for people who need capital to run their business or for those who need money to pay an existing loan. During situations like the COVID-19 pandemic, licensed moneylenders can offer help for families who most need assistance. With unemployment cases and emergency medical bills, the role of moneylenders is more important than ever.

Another positive impact of borrowing a loan from a licensed moneylender is that they offer flexible repayment options. This means that clients can negotiate how to pay the loan or debt they acquired. Borrowers can arrange for a reasonable loan tenure as well as low interest rates of their loan. They can talk to financial institutions granting them loans in order to make sure that they are getting the best possible deal.

A lot of Singaporeans choose to go to a licensed moneylender instead of applying for a personal loan in a bank. A bank would often require a lot of documents. In some cases, a bank can even have higher interest rates compared to a licensed moneylender. With all these, moneylending is a thriving and successful industry in the country.

There is no doubt that licensed money lenders in the country have made the lives of thousands of Singaporeans better. They contribute to making the economy of the stable through aiding families during an economic crisis. Also, as a borrower, you are protected by the laws and rules of the government on money lending. Hence, you have certain rights as a borrower.

How to Spot Unauthorised Moneylenders

Unlicensed or unauthorised moneylenders are also called Ah Long. They work outside the rules and regulations of the government. In many cases, they would take advantage of the difficult situation of the people through making the loan interest rates so high. Also, they would harass and pressure loanees into paying off the money they borrowed.

Unlicensed moneylenders know that loaners are in a desperate situation. That is why they would exploit the situation by creating contracts and agreements unfair to the borrowers. With this, it is crucial that people spot unlicensed or unauthorised moneylenders. Here are ways on how to spot a loan scam.

1. You received unsolicited offers coming from messaging platforms. In Singapore, a licensed lender is only allowed to advertise in three channels, namely in print or online media, websites owned by the creditor, ads within or on the exterior of its business premise.

2. The loan offer is incomplete. According to the Moneylenders Act, all lenders must provide the complete terms of a loan they give. The terms must include the final cost of the principal loan plus the interest to be included in a legal contract.

3. The creditor does not have a physical address or contact details. Loan scammers do not want you to know their address so that it would be impossible for you to track them or file a complaint against them. When a creditor does not give you its physical address, phone number, or email address, there is a high chance that it is not a legitimate office.

4. The creditor requires you to give an up-front payment, or they are asking for “high processing fees.” A creditor asking for a fee prior to the approval of the loan application is likely a scam. A licensed moneylender is only allowed to charge 10% of the loan amount as a processing fee. Also, the late payment fee should only be limited to $60.

5. The creditor asks for a gift card as a form of payment. Similar to cash, gift cards are impossible to trace. Hence, it is a favourite currency among scammers. If a creditor asks you to pay through a gift card, try finding another money lender who can give you a loan.

6. The website of the money lender is not secure. One way to check this is to find the padlock icon found in the left side behind the URL. If you feel that the website is not secure, do not hesitate to end your transaction with the creditor and stop using their website. Do not risk giving your personal details to questionable people.

Trust your instinct when it comes to identifying loan scammers. If you feel that you are transactioning with suspicious characters, try to investigate the legitimacy of these moneylenders. You can always ask for assistance and support from the Singapore government to ensure that you are not transacting with loan scammers.

How to Report Unlawful Money Lenders

You can also always refer to the Ministry of Law’s Registry to check if the Pte Ltd giving you loan is a licensed money lender or not. If such Pte Ltd is operating without a license, report it to the Singapore government. Any business, office, or money lender in Singapore dealing with loan applications and other loan-related concerns must acquire a license. Failure to do so means they must be reported to the government.

If you think that you are dealing with an illegal or unlicensed money lender, do not hesitate to contact the Singapore government. The Ministry of Law of Singapore has placed certain rules to protect borrowers. Also, if you have acquired a loan from a moneylender who is not on the list or registry, contact MinLaw immediately so they can help you find the best remedy to your situation.

Meanwhile, if an unlicensed lender continues to harass or pressure you for a loan application or on paying a loan, call the police immediately. A licensed money lender in Singapore should not use threats or other forms of harassments. As a customer, you should never feel unsecured when dealing with a licensed money lender.

A loan is an essential aspect of the Singaporean economy. It is an industry that ensured the survival of hundreds if not thousands of families. With this, people must protect the integrity of moneylending. They must ensure that only licensed financial institutions operate.


The job of a licensed money lender is extremely significant in the economy of Singapore. It empowers citizens, financially and economically. At times of economic crises or personal emergency situations, a licensed money lender is available to offer a helping hand.

Despite the importance and significance of a licensed money lender in the Singaporean society, there has been a rise of illegal or unauthorised lenders in the country. Getting a loan from these businesses is dangerous because they exploit the desperate situation of loanees. Oftentimes, they charge unreasonable fees and extremely high interest rates. As a result, people who loan from them suffer financially.

Given the rise of unlicensed moneylenders, it is important that Singaporeans become vigilant in identifying a licensed money lender. Citizens can check government resources, including the registry or list of licensed money lenders. Also, the MinLaw is equipped to accept complaints. They respond to requests of individuals having problems with their loan.

The government has created offices whose job is to ensure that people are protected from their loan activities. You may check the FAQs of the Ministry of Law to learn more about the practice of lending money in the country. You can read here information related to getting a loan from a licensed money lender.

Aside from checking the registry from the government, you can also pay close attention to the way a licensed moneylender functions. If it exhibits questionable or suspicious traits, do not hesitate to research its background. In the worst-case scenario, contact the authorities so that they can help you with your loan-related problems.

While there are a lot of Pte Ltd lenders in the market, remember that they do not have the same quality of service. Raffles Credit Pte Ltd is a licensed money lender with excellent customer service. They have been on the market for several years and has granted loans to hundreds of clients over the years. You can ask your loan-related questions to our customer service so you can clarify things you don’t understand about loan applications.

Moreover, Raffles Credit has a 4.9/5 Google Review Rating, which indicates extremely high customer service satisfaction. It is also listed as one of the Top 10 Licensed moneylenders in Singapore by Loan Advisor.

The loan application process can be made online. If in case you encounter a problem with your loan and other concerns, you can always contact the company’s customer service team so they can assist and guide you.