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How do money lenders in Singapore work?

by in Uncategorized January 1, 2023

Introduction

Moneylenders in Singapore are licensed by the Ministry of Law (MinLaw). These licensed moneylenders have to abide by the rules and regulations that MinLaw has set out. 

The Ministry of Law has put a cap on how much money they can lend out at any one time, and there are also limits on how much interest they can charge borrowers. 

This is done so that borrowers don’t get into debt problems because they cannot afford to pay back their loan amounts when due.

Money lending is a type of service.

Money lending is a service provided by loan providers or legal money lenders in Singapore. Legal money lenders are licensed lenders regulated by the Ministry of Law, while non-licensed moneylenders may be unlicensed and illegal.

Legal moneylenders can only lend up to 4 times a borrower’s monthly income, and they must ensure that their borrowers meet certain criteria. 

For example, you must be employed for at least 6 months before applying for a loan with them (and if you have been unemployed for more than 6 months but less than 2 years, then your first application will require two guarantors).

Money lenders are licensed lenders that are regulated by the Ministry of Law (MinLaw).

Money lenders in Singapore are licensed by the Ministry of Law (MinLaw) and regulated by the Moneylenders Act.

You will find that there are several licensed moneylenders in Singapore, but not all of them can be trusted.

There are some things to look out for when you want to choose an honest money lender:

-Check their license. You can do this by contacting MinLaw or checking the Moneylenders Directory available on their website.

-Get to know the lender as much as possible. Ask for references, check out complaints against them, and read reviews online.

These licensed moneylenders can only lend up to 4 times a borrower’s monthly income.

The maximum amount of the loan is 4 times the borrower’s monthly income.

For example, if your monthly income is $2,000, you can borrow up to $8,000.

This is to ensure that you can pay back the loan without difficulty and also protects you from debt problems in the future.

Licensed moneylenders have to abide by these rules and regulations formulated by the Ministry of Law;

Licensed moneylenders have to abide by these rules and regulations formulated by the Ministry of Law:

  • Interest rates charged by licensed moneylenders cannot exceed 4% per month.
  • Late fees cannot exceed $60 per month for each late instalment.

Interest rates charged by licensed moneylenders cannot exceed 4% per month.

The interest rate charged by licensed moneylenders cannot exceed 4% per month, equivalent to 48% per year.

It may be useful to note that monthly interest rates are calculated daily, while yearly interest rates are calculated weekly.

The maximum interest rate licensed moneylenders charge cannot exceed 4% per month. 

Late fees cannot exceed $60 per month for each late instalmentLicensed moneylenders licensed by the Ministry of Home Affairs (MHA) must be registered with the Moneylenders’ Registry. 

Licensed moneylenders are also required to display their license number on all advertisements, brochures, and other published materials.

Conclusion

Based on the information you have just read, you can now understand how moneylenders in Singapore work and why they are necessary. 

Money lending is a type of service provided by loan providers or legal money lenders in Singapore. 

These licensed moneylenders can only lend up to 4 times a borrower’s monthly income. Interest rates charged by licensed moneylenders cannot exceed 4% per month. 

Any legal fees and expenses incurred will also be passed on to the borrower and other administrative costs, such as stamp duty charges. Unlicensed money lenders cannot legally charge interest, agent fees or late payment fees.

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