How do I qualify for a cash loan in Singapore?

In terms of qualifying for a cash loan in Singapore, all the following requirements have to be fulfilled:

• Must be a Singapore Citizen or Permanent Resident of Singapore.

Some notes to take note prior to getting a loan

• Republic of Singapore’s government ruling on the interest rate is capped at 4% per month.

What is the loan amount that I can receive?

• For Singapore Citizen’s & Permanent Residents of Singapore, you can loan:

What are the documents I need to prepare to get a loan?

• For Singapore Citizen’s & Permanent Residents of Singapore:

1. What should I consider before taking up a loan?

You should keep these key points in mind: ​

• Before approaching a moneylender, consider other alternatives, such as the various financial assistance schemes offered by various Government agencies. You may contact the agencies to find out more about their schemes.
  

3. What are the interest rates moneylenders can charge?

With effect from 1 October 2015, the maximum interest rate moneylenders can charge is 4% per month. This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured one. If a borrower fails to repay the loan on time, the maximum rate of late interest a moneylender can charge is 4% per month for each month the loan is repaid late. The computation of interest charged on the loan must be based on the amount of principal remaining after deducting from the original principal the total payments made by or on behalf of the borrower which are appropriated to the principal. [To illustrate, if X takes a loan of $10,000, and X has repaid $4,000, only the remaining $6,000 can be taken into account for the computation of interest.] The late interest can only be charged on an amount that is repaid late. The moneylender cannot charge on amounts that are outstanding but not yet due to be repaid. [To illustrate, if X takes a loan of $10,000, and fails to pay for the first installment of $2,000, the moneylender may charge the late interest on $2,000 but not on the remaining $8,000 as it is not due yet.]

2. How much can I borrow?

For secured loans, you can obtain a loan of any amount. For unsecured loans, please refer to the table below for the total maximum amount that you may borrow at any time across all moneylenders in Singapore:

4. What are the fees that moneylenders can charge?

With effect from 1 October 2015, all moneylenders are only permitted to impose the following charges and expenses:

• a fee not exceeding $60 for each month of late repayment;

5. How do I know whether a moneylender is licensed or not?

Do not borrow from unlicensed moneylenders. Verify that a moneylender is licensed by checking the list of licensed moneylenders. “ Click here to access the list of licensed moneylenders.” Notwithstanding that the moneylenders are licensed, be mindful if they:

• Use abusive language, or behave in a threatening manner towards you.

6. How can I tell whether an advertisement is from a licensed moneylender or an unlicensed moneylender?

Under the advertising rules, which took effect on 1 November 2011, licensed moneylenders are permitted to advertise only through these three channels: (a) business or consumer directories (in print or online media); (b) websites belonging to the moneylender; and (c) advertisements placed within or on the exterior of the moneylender’s business premises. All other channels are prohibited. In this regard, the advertising rules can help you differentiate between licensed and unlicensed moneylenders. If you receive flyers, SMSes, emails or other forms of advertisements which are not permitted under the rules, these would be from either licensed moneylenders operating in violation of the rules, or unlicensed moneylenders. Hence, you are advised not to respond to such advertisements. Instead, you should report the advertisements to the Registry at 1800-2255-529 or via our website. Errant licensed moneylenders will be investigated by the Registry and unlicensed moneylenders will be investigated by the Police.

7. Can I rely on the content of an advertisement to take up a loan from a moneylender?

You are advised to seek clarifications on specific terms of the loan contract before signing up with a licensed moneylender, and not to rely solely on the content of advertisements from the moneylender.

8. In the event that I am standing as a surety for a loan, what should I look out for?

You should ensure that:

• You understand your responsibilities as a surety;

9. What should I do after being granted a loan?

• Make sure the moneylender delivers to you the correct principal amount of the loan. The moneylender is only permitted an upfront deduction of a loan approval fee of up to 10% of the principal amount.

10. How do I lodge a complaint against a moneylender against unfair practices and/or contract?

You can contact the Registry at telephone number: 1800-2255-529. Rest assured that the Registry will not disclose your details to the moneylender without your consent. To facilitate the Registry to investigate your complaint, you may need to attend an interview with our officers and provide us with all relevant information and documents related to your loan transactions and circumstances of your dealings with the moneylender. The Registry views complaints against moneylenders seriously and will investigate them thoroughly. Errant moneylenders will be taken to task. If a moneylender has engaged in an unfair practice towards you, you can pursue the matter through the Small Claims Tribunal or the Court under the Consumer Protection (Fair Trading) Act. The Court also has the power to set aside loan transactions that are exorbitant or substantially unfair.

11. I am facing financial difficulties and unable to repay the licensed moneylenders. Can the Registry of Moneylenders help to negotiate with the licensed moneylenders?

The Registry of Moneylenders is not in a position to assist you in negotiating with his moneylenders with regard to his loans, as this is a matter of private contract between the moneylender and the borrower. You may wish to approach any of the following social service agencies which help consumers recover from serious debt problems by providing general credit management information, credit counselling and where applicable, assistance in negotiating a debt repayment plan with creditors:

• Association of Muslim Professionals (AMP)
  Address: 1 Pasir Ris Drive 4 #05-11 Singapore 519457
  Tel no.: 6416 3960
  E-mail: corporate@amp.org.sg