Moneylending and Credit in Singapore
Reviewed by the Commoner Law Editorial Team. Sourced from Singapore Acts of Parliament, subsidiary legislation, and official government guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
Singapore regulates moneylending to protect borrowers from predatory practices:
- Licensed moneylenders: All moneylenders (other than banks and finance companies) must be licensed by the Ministry of Law. Check the list of licensed moneylenders on the MinLaw website.
- Interest rate cap: Maximum 4% per month for all loans from licensed moneylenders (regardless of income).
- Late interest cap: Maximum 4% per month on overdue amounts.
- Fee cap: Administrative fees capped at 10% of the loan principal.
- Aggregate cap: Total interest, fees, and late charges combined cannot exceed 100% of the loan principal. If you borrow $1,000, you can never owe more than $2,000 in total.
- Loan limit: Borrowers earning less than $20,000/year can borrow a maximum of $3,000 from each moneylender.
When does it apply?
- You are borrowing from a licensed moneylender in Singapore.
- You suspect you have borrowed from an unlicensed lender (loan shark / "ah long").
What to Do If You Are Being Harassed by Unlicensed Moneylenders or Loan Sharks in Singapore
- Always verify the lender is licensed — check MinLaw's list before borrowing.
- Read the loan contract carefully — the lender must explain all terms before you sign.
- If you have difficulty repaying, negotiate a repayment plan directly with the lender or seek help from Credit Counselling Singapore (CCS).
- If harassed by unlicensed moneylenders (loan sharks), report to the police immediately — call 1800-255-0000 (police hotline).
What should you NOT do?
- Don't borrow from unlicensed moneylenders — it is an offence for them to lend, and you will not be protected.
- Don't hand over your Singpass, NRIC, or ATM card — legitimate lenders never ask for these.
- Don't ignore debt — this leads to snowballing late charges. Seek help from CCS early.
Common Questions
What is the maximum interest a licensed moneylender can charge in Singapore?
Licensed moneylenders in Singapore can charge a maximum of 4% per month on both loan interest and late-payment interest, regardless of your income. Administrative fees are capped at 10% of the loan principal. Total interest, fees, and late charges combined cannot exceed 100% of the loan principal — so a S$1,000 loan can never result in more than S$2,000 owed.
How do I know if a Singapore moneylender is licensed?
All moneylenders (other than banks and finance companies) must be licensed by the Ministry of Law. Check MinLaw's list of licensed moneylenders before borrowing. Borrowers earning less than S$20,000 a year can borrow a maximum of S$3,000 from each licensed moneylender.
What should I do if a loan shark is harassing me in Singapore?
Report unlicensed moneylenders or loan sharks to the police immediately — call the 1800-255-0000 hotline. Never hand over your Singpass, NRIC, or ATM card — legitimate lenders never ask for these. If you are struggling to repay a legitimate debt, negotiate with the lender or seek help from Credit Counselling Singapore.
When does it apply — moneylending and credit?
You are borrowing from a licensed moneylender in Singapore.You suspect you have borrowed from an unlicensed lender (loan shark / "ah long").
What should I do if I am being harassed or threatened by an unlicensed moneylender or loan shark in Singapore?
Always verify the lender is licensed — check MinLaw's list before borrowing.Read the loan contract carefully — the lender must explain all terms before you sign.If you have difficulty repaying, negotiate a repayment plan directly with the lender or seek help from Credit Counselling Singapore (CCS).If harassed by unlicensed moneylenders (loan sharks), report to the police immediately — call 1800-255-0000 (police hotline).
What should you NOT do — moneylending and credit?
Don't borrow from unlicensed moneylenders — it is an offence for them to lend, and you will not be protected.Don't hand over your Singpass, NRIC, or ATM card — legitimate lenders never ask for these.Don't ignore debt — this leads to snowballing late charges. Seek help from CCS early.