
FREQUENTLY ASKED QUESTIONS
1. What should I consider before taking up a loan?
-
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.
-
You are legally obliged to fulfill any loan contract you enter into with a licensed moneylender.
-
Consider whether you are able to abide by the contractual terms, bearing in mind your income and financial obligations. Borrow only what you need and are able to repay. Be mindful that if you are unable to meet the contractual terms, the late payment fees and interest payment will be a financial strain not just on yourself but also on your family.
-
The law requires moneylenders to explain the terms of a loan to you in a language you understand and to provide you with a copy of the loan contract. Make sure you fully understand the terms of the contract, in particular, the repayment schedule, the interest rate charged and the fees applicable.
-
Consider carefully before agreeing to any contractual term which allows a moneylender to lodge a caveat on the sale proceeds of your real estate property upon default of the loan repayment. When a caveat is lodged against your property, you will not be able to sell it without first repaying the moneylender in full. If the repayment is taken from the net proceeds from the sale of the property, it can wipe out all or a substantial portion of the proceeds.
-
You should shop around different moneylenders for the most favorable terms. You should not rush into and commit yourself to a loan until you are satisfied with the terms and conditions.
3. What are the interest rates moneylenders can charge?
2. How much can I borrow?
4. What are the fees that moneylenders can charge?
-
a fee not exceeding $60 for each month of late repayment;
-
a fee not exceeding 10% of the principal of the loan when a loan is granted; and
-
legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.
5. How do I know whether a moneylender is licensed or not?
-
Use abusive language, or behave in a threatening manner towards you.
-
Ask for your SingPass user ID and/or password.
-
Retain your NRIC card or any other personal ID documents (e.g. driver’s licence, passport, work permit, employment pass or ATM card).
-
Ask you to sign on a blank or incomplete Note of Contract for the loan.
-
Grant you a loan without giving you a copy of the Note of contract for the loan and/or without properly explaining to you all the terms and conditions.
-
Grant you a loan without exercising due diligence (e.g. approving a loan over the phone, SMS or email before even receiving your loan application form and supporting documents, such as the income tax assessment and payslips).
-
Withhold any part of your principal loan amount for any reason.
6. How can I tell whether an advertisement is from a licensed moneylender or an unlicensed moneylender?
7. Can I rely on the content of an advertisement to take up a loan from a moneylender?
8. In the event that I am standing as a surety for a loan, what should I look out for?
-
You understand your responsibilities as a surety;
-
You receive a copy of the Note of Contract at the time that the loan is granted to the borrower;
-
The moneylender has explained the terms in the Note of Contract in a language that you understand; and
-
The moneylender does not keep your NRIC card or any other personal ID documents (e.g. driver’s licence, passport).
-
The moneylender does not acquire any information that contains passwords to your user accounts (e.g. Singpass account, Internet banking account, email account).
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.
-
Pay the loan instalments on time to avoid incurring late payment fees and late interest.
-
Make sure the moneylender issues to you a receipt every time you make any repayment towards your loan, and check it for correctness (e.g. name, amount, date).
-
Make sure you receive a statement of account for all your loan(s) at least once every January and July, and check it for correctness (e.g. name, amount, date); and
-
You should retain all statement of accounts and receipts of payments, as documentation and evidence of payments.
10. How do I lodge a complaint against a moneylender against unfair practices and/or contract?
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?
-
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
-
Adullam Life Counselling
Address: 151 Chin Swee Road Manhattan House #08-04 Singapore 169876
Tel no.: 6659 7844 / 9423 8832
Email: admin@adullam.org.sg
-
Arise2Care Community Services
Address: No. 5 Harper Road #02-01A Singapore 369673
Tel no.: 6909 0628
Email: admin@arise2care.sg
-
Blessed Grace Social Services
Address: 18 Arumugam Road, #05-01 Antioch@Macpherson Singapore 409962
Tel no.: 8428 6377
Email: billy.lee@blessedgrace.org
-
Credit Counselling Singapore*
Address: 51 Cuppage Road #07-06, Singapore 229469
Tel no.: 6225 5227 / 6338 2663
Email: enquiry@ccs.org.sg
-
One Hope Centre
Address: 8 New Industrial Road #04-04B LHK 3 Building Singapore 536200
Tel no.: 6547 1011
Email: help@onehopecentre.org
-
Silver Lining Community Services
Address: (East) 11 Playfair Road Singapore, (West) Jurong Spring CC, 8 Jurong West St 52 Singapore 649296
Tel no.: 6749 0400
FAQs on Borrowing from Licensed Moneylenders
1. What should I consider before taking up a loan?
-
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.
-
You are legally obliged to fulfill any loan contract you enter into with a licensed moneylender.
-
Consider whether you are able to abide by the contractual terms, bearing in mind your income and financial obligations. Borrow only what you need and are able to repay. Be mindful that if you are unable to meet the contractual terms, the late payment fees and interest payment will be a financial strain not just on yourself but also on your family.
-
The law requires moneylenders to explain the terms of a loan to you in a language you understand and to provide you with a copy of the loan contract. Make sure you fully understand the terms of the contract, in particular, the repayment schedule, the interest rate charged and the fees applicable.
-
Consider carefully before agreeing to any contractual term which allows a moneylender to lodge a caveat on the sale proceeds of your real estate property upon default of the loan repayment. When a caveat is lodged against your property, you will not be able to sell it without first repaying the moneylender in full. If the repayment is taken from the net proceeds from the sale of the property, it can wipe out all or a substantial portion of the proceeds.
-
You should shop around different moneylenders for the most favorable terms. You should not rush into and commit yourself to a loan until you are satisfied with the terms and conditions.
3. What are the interest rates moneylenders can charge?
2. How much can I borrow?
4. What are the fees that moneylenders can charge?
-
a fee not exceeding $60 for each month of late repayment;
-
a fee not exceeding 10% of the principal of the loan when a loan is granted; and
-
legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.
5. How do I know whether a moneylender is licensed or not?
-
Use abusive language, or behave in a threatening manner towards you.
-
Ask for your SingPass user ID and/or password.
-
Retain your NRIC card or any other personal ID documents (e.g. driver’s licence, passport, work permit, employment pass or ATM card).
-
Ask you to sign on a blank or incomplete Note of Contract for the loan.
-
Grant you a loan without giving you a copy of the Note of contract for the loan and/or without properly explaining to you all the terms and conditions.
-
Grant you a loan without exercising due diligence (e.g. approving a loan over the phone, SMS or email before even receiving your loan application form and supporting documents, such as the income tax assessment and payslips).
-
Withhold any part of your principal loan amount for any reason.
6. How can I tell whether an advertisement is from a licensed moneylender or an unlicensed moneylender?
7. Can I rely on the content of an advertisement to take up a loan from a moneylender?
8. In the event that I am standing as a surety for a loan, what should I look out for?
-
You understand your responsibilities as a surety;
-
You receive a copy of the Note of Contract at the time that the loan is granted to the borrower;
-
The moneylender has explained the terms in the Note of Contract in a language that you understand; and
-
The moneylender does not keep your NRIC card or any other personal ID documents (e.g. driver’s licence, passport).
-
The moneylender does not acquire any information that contains passwords to your user accounts (e.g. Singpass account, Internet banking account, email account).
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.
-
Pay the loan instalments on time to avoid incurring late payment fees and late interest.
-
Make sure the moneylender issues to you a receipt every time you make any repayment towards your loan, and check it for correctness (e.g. name, amount, date).
-
Make sure you receive a statement of account for all your loan(s) at least once every January and July, and check it for correctness (e.g. name, amount, date); and
-
You should retain all statement of accounts and receipts of payments, as documentation and evidence of payments.
10. How do I lodge a complaint against a moneylender against unfair practices and/or contract?
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?
-
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
-
Adullam Life Counselling
Address: 151 Chin Swee Road Manhattan House #08-04 Singapore 169876
Tel no.: 6659 7844 / 9423 8832
Email: admin@adullam.org.sg
-
Arise2Care Community Services
Address: No. 5 Harper Road #02-01A Singapore 369673
Tel no.: 6909 0628
Email: admin@arise2care.sg
-
Blessed Grace Social Services
Address: 18 Arumugam Road, #05-01 Antioch@Macpherson Singapore 409962
Tel no.: 8428 6377
Email: billy.lee@blessedgrace.org
-
Credit Counselling Singapore*
Address: 51 Cuppage Road #07-06, Singapore 229469
Tel no.: 6225 5227 / 6338 2663
Email: enquiry@ccs.org.sg
-
One Hope Centre
Address: 8 New Industrial Road #04-04B LHK 3 Building Singapore 536200
Tel no.: 6547 1011
Email: help@onehopecentre.org
-
Silver Lining Community Services
Address: (East) 11 Playfair Road Singapore, (West) Jurong Spring CC, 8 Jurong West St 52 Singapore 649296
Tel no.: 6749 0400