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1. Apply online with Lendela to find the best licensed moneylender in Singapore
2. Receive offers from multiple lenders
3. Compare offers and select online
4. Sign the agreement and get the money
We believe that all people deserve the best possible loan they can get – as well as a fast, seamless and online based application journey. We simplify the loan application process through digital technology that creates superior value and empowers consumers, whilst at the same time delivering the right customer to the right lender.
We are partnering with multiple licensed money lenders in Singapore to ensure that you get the best possible terms when you apply for a loan with us. However, before doing so, there are a few important things to know about the money lender world. Read our handy guide below to get on top of the subject, so that you can be sure how to find the best licensed money lender in Singapore.
In Singapore, there are 150+ money lenders operating under the verification and approval of Ministry of Law, so called licensed money lenders. Just like regular banks, licensed money lenders in Singapore are entitled to provide credits and loans to the Singaporean population, as well as perform credit checks to ensure their applicants' credit rating and eligibility for a loan. Like banks, licensed money lenders in Singapore provide both secured loans (e.g. car loans and mortgages) and unsecured loans (personal loans, debt consolidation plans etc.)
As part of the lending space in Singapore, all licensed money lenders are obliged to operate under strict regulations set by the Ministry of Law. The regulations cover subjects like loan terms (tenure, interest rate etc.), marketing guidelines, and much more. As a borrower, you are legally obliged to fulfil a loan contract with a licensed money lender. However, it is crucial to ensure you only work with the best money lender in Singapore before signing the loan agreement.
Most licensed money lenders in Singapore possess one or many branches across the island, where applicants are welcome to physically apply for a loan, whereas some lenders also provide an online application option on their websites for their customers.
The main difference between a bank and a money lender in Singapore is the loan terms that they normally offer. While banks in most cases focus on providing higher loan amounts with a longer repayment period (tenure), the best money lender in Singapore is normally offering slightly smaller loans with a shorter tenure.
Having said that, the chance of getting a loan from a bank is normally lower than getting it from a licensed money lender. The reason for this is that the banks are more restrictive in offering unsecured loans and normally require more from the applicant in terms of monthly income, savings and credit rating. This is different from the best moneylenders in Singapore who are mainly focused on your credit score and ability to repay.
In conclusion, it can be said that banks and money lenders are catering for slightly different customers. If you are eligible to get a loan from a bank, these loans will most likely save you money through better loan terms (like lower interest rate), but if you don't meet the banks' requirements, there are several good money lender options for you to get the money that you need.
The money lender arena is full of different actors and unfortunately, there is a fair share of illegal lenders operating in Singapore today. These illegal actors can be anything from online lenders running a nice-looking website with a made-up license number, to straight-up loan sharks operating in the streets. It is needless to say that it is of great importance that you stay away from these type of lenders. But how will you be able to separate an illegal lender from a licensed moneylender in Singapore? You can always verify that a moneylender is licensed by checking Ministry of Law's list of licensed moneylenders here.
In addition, here are some signs that the lender you are engaging with isn't licensed:
If you encounter any of these behaviours or practices, know that you are probably dealing with an unlicensed moneylender in Singapore and avoid falling into their nefarious trap. In addition, you should report the misconduct to the Registry of Moneylenders, along with the lender's name, license (made-up or real) and contact information, so that law can take its course.
As any bank, licensed moneylenders in Singapore are allowed to offer any loan amount if the loan is secured. However, there are some rules for unsecured loans (such as personal loans and renovation loans in Singapore) when it comes to maximum amount that you can borrow from a moneylender:
Singapore citizens and Permanent Residents (PRs):
Foreigners residing in Singapore:
The max. interest rate that licensed moneylenders in Singapore can charge is 4% per month, no matter the applicant's income or if the loan is secured or unsecured. If you fail to repay the loan in time, the max. rate of late interest that can be charge by a moneylender, is also 4% per month, for each month the loan is repaid late. The interest rate is based on the amount that is left to repay from the loan and not the amount that is already repaid. Late interest rate can only be charged on the amount that is repaid late and not the outstanding amount that isn't yet due to be repaid.
There are also restrictions when it comes to loan fees imposed by a licensed moneylender in Singapore:
However, a moneylender has the right to ask the borrower for compensation for legal costs if the moneylender's claim for the recovery of the loan turns out to be successful in court.
IMPORTANT: The total charges on any loan, including interest rate, late interest rate and various fees, can't exceed an amount corresponding to the principal of the loan.
As you can see, the interest rate that a licensed moneylender in Singapore can charge borrowers varies quite a lot. To determine the interest to charge, your credit score comes into play. So, if you qualify for a loan from a specific money lender, the cost of the loan is likely to be lower if your credit score is excellent. Here are some useful tips to ensure you have the best credit score for lower interest rate loans in Singapore:
Luckily, this is the simplest part. You are always encouraged to "shop around" for the best money lender in Singapore, to make sure that you eventually select an offer that is decent and comes with the best possible loan terms. However, the process of comparing all your loan options from moneylenders can be very cumbersome, as it requires multiple application processes. This can also affect your credit score negatively, as multiple credit checks risk to deteriorate your credit rate, which will affect your future chances to get a loan or credit.
This is where Lendela comes in. We help you apply with multiple Singaporean licensed moneylenders at the same time, via just one online application form. After your application has been sent to the lenders, we will notify you as soon as you receive an offer, and eventually help you compare all your options and select the loan offer that suits you the best. We stay with you all the way until your loan is disbursed and our service is completely free of charge.