Top Licensed Money Lenders in Singapore 2019

Updated on May 10, 2019

“I need a loan to pay my bills.”

Financial needs seem to pop up when you least expect them. Everyone needs extra cash at one point or another.

And you’ll feel bad drying up your emergency funds when you thought you could have saved enough for your vacation, car, or home.

Singaporeans are not new to loans. In fact, we have been using it for decades. Not only to bridge a temporary financial gap but also to grow our assets.

A readily available loan can be a lifeline during business and personal emergencies from entrepreneurs to domestic helpers.

It’s true that loans are powerful tools. It helps you have more stable finances and comfortable life. Also, it can help you reach your dreams. You can use loans for your car repairs, house renovations, medical emergencies, long-awaited vacation abroad, and even for an engagement ring.

But there is more to loans than the extra cash it brings. In addition, it can build your credit score. And to maximise all these benefits, you need to make sure that you borrow only from the best licensed money lenders in Singapore.

5 Best Licensed Money Lenders in Singapore

What is the best online personal loan company?

When it comes to cash loans, you can’t afford to make mistakes. You need to choose the best licensed money lender.

Your financial decisions right now can impact your future and even your family’s. But with more than 150 licensed money lenders in Singapore (not including the ah longs pretending to be one), it is tough to find the most reliable one.

When you are desperate to bridge a financial gap, you need to be careful to protect yourself from devious loan sharks.

Here are the best licensed money lenders you can trust.

CASH MART PTE LTD

Cash Mart offers four types of loans to serve Singaporeans’ various needs.

From going on a vacation to buying an engagement ring, you can get a personal loan for any purpose. Entrepreneurs can acquire a business loan to replenish their inventories. Are you employed and need a cash advance to pay for emergency bills? Then, you can apply for a payday loan.

Cash Mart also offers foreigner loans to expats who need extra cash to send home.

It is scary when your cash flow becomes inadequate. Whether you are an employee or a small business owner, finding a money lender willing to help immediately is definitely a relief.

In just 30 minutes, you can get your loan with the most flexible repayment terms. Enquire now.

HUA YANG CREDIT PTE LTD

Looking for the best car loan?

Established in 1984, Hua Yang Group’s automotive solutions have been helping car buyers and owners for decades.

Hua Yang Group offers to buy and sell new and pre-owned cars, vehicle valuation, hire purchase, and repair services. Its first-class service has earned its reputable image as one of the best automotive companies.

Their subsidiary, Hua Yang Credit, has been awarded the prestigious ISO9001: 2000 certification. Its car loans have competitive interest rates compared to most banks in Singapore.

PRIME MOTOR & LEASING PTE LTD

Prime Motor & Leasing Pte Ltd is a Cheng Yong Group of Companies subsidiary. Since its establishment, it has grown to be one of the leading companies specialising in car financing, insurance coverage, retailing, and exporting motor vehicles.

Now, Prime Motor & Leasing takes pride in its hire purchase financing, in-house workshop services, competitive insurance premium, and transparent car prices.

If you need a trustworthy money lender offering affordable car loans, Prime Motor & Leasing is right.

KIM ENG FINANCE (SINGAPORE) PTE LTD

Kim Eng Finance is famous for helping borrowers who want to acquire passive income through the stock trade. A solid team of financial specialists helps to provide suggestions and risk management tips based on the client’s goals. On the other hand, borrowers can also use their loans for their personal needs. And expect your personal information to be kept confidential just as mandated in the Singapore Moneylenders Act.

Getting a loan from a licensed money lender such as Kim Eng Finance will also assure that you can build your credit score. Furthermore, if you pay your loans diligently, this will be reported to the credit bureau and will help you get better loan offers in the future.

ETHOZ PROTECT PTE LTD

If you are an entrepreneur who needs to hire, purchase, and auto lease, ETHOZ is your best bet.

Incorporated in 1981, ETHOZ became a market leader in vehicle leasing and a full-fledged Automotive Solutions provider. In 2000, it strategically diversified into capital financing options for its customers, commercial vehicle financing, and equipment leasing businesses.

ETHOZ has flexible solutions tailor-made for business needs and requirements. As a result, business owners can choose more suitable loan options according to their business model and improve their business cash flow.

Other Loan Facilities in Singapore

SINGAPURA FINANCE LTD

Singapura Finance Ltd focuses on financial products that are more valuable to business owners and individuals who want to invest in shares listed on the Singapore Exchange. They make sure to assist their customers in making informed decisions on their investments. Singapura Finance can finance part of your shares. You simply have to meet the minimum income criteria for approval.

Moreover, Singapura Finance Ltd engages its customers’ needs with more personal financial products such as Junior Savers, Adult Savers, Gold Savers, Fixed Deposits, and Safe Box Deposits. As a result, customers can save their money as it grows interested over time.

HONG LEONG FINANCE

Hong Leong Finance is a reputable company supporting the SME community for 50 years with customised financing solutions. In addition, it empowers entrepreneurs with its Business Current Account and became the only finance company to offer chequing account services.

Moreover, Hong Leong Finance gave attention to other business needs. Also, it introduced Medical & Dental Equipment Loan, Medical Property Loan, Loan Insurance Scheme, Internationalisation Finance Scheme, Commercial & Industrial Property Loan, Property Development Loan and equipment loans to its customers in Singapore.

SINGBUSINESSLOAN

Any business will always have inevitable expenses before it can serve its customers. As it grows, it needs more money to finance its operations, staff, office expansion and advertising. SingBusinessLoan provides the funding that an SME needs.

When a business applies for funding, SingBusinessLoan looks at various factors to find strengths in the company’s finances. Plus, it gives your business a better chance of getting approved. This financing company works with businesses from various industries. For example, it includes retail sales, professional services, and landscaping. Therefore, it lends to multiple types of companies in Singapore regardless of their industry.

What are private money lenders?

Licensed private money lenders are financial institutions offering cash loan services as mandated by the Ministry of Law.

Singapore’s government has been firmly regulating the money lending industry for years to protect the city-state against loan sharks. Simply, a reputable money lender should be registered with the Registrar of Moneylenders to assure fair business practices.

Years ago, Singapore was plagued with pretentious loan sharks. They prey on victims desperate for cash and those unfamiliar with how cash lending works. When the victims fail to pay, Ah Longs will splash red paint on their doors, lock their homes, and even threaten their families. It is a traumatic experience for the victims who made the wrong decision to get a loan from illegal money lenders.

What borrowers thought was the answer to their financial dilemma turned into their worst nightmare.

Fortunately, licensed money lenders offer loan products as instructed by the Moneylenders Act.

Registered private money lenders need to ensure that every borrower understands the terms and conditions of the loan. As a borrower, you need to get a loan that you can easily pay. After all, a loan is a tool to help you get back on track, not to throw yourself into a financial sinkhole.

How to differentiate the licensed and illegal private money lenders?

You must only trust a licensed private money lender that complies with the Moneylenders Act.

If you are not sure if a moneylender is legit or illegal, you should keep an eye on these hints:

List of Licensed Private Moneylenders

A registered money lender should be included in the official list of licensed money lenders. There are currently over 150 licensed moneylenders in Singapore verified by the Ministry of Law. The list gets updated quarterly, including the addresses, contact numbers, and websites.

The MinLaw (Ministry of Law) and the Registry of Moneylenders have worked together to regulate all moneylenders and weed out ah longs. Therefore, if a money lender is not on the list, consider it a major red flag.

SingPass User ID and Password

Your SingPass is personal and private. Your responsibility is to keep your SingPass details from opportunists such as loan sharks.

According to the Moneylenders Act and MinLaw guidelines, a licensed private lender in Singapore must not ask for your SingPass via email, text or call.

Due Diligence

Whether you are desperate for a quick loan, you should be mindful of the money lender does not exercise due diligence.

Here’s why:

If you are a lender and a stranger wants to borrow cash, you would like to know the person more. You would want to know the real name, address, and person’s source of income. At the end of the day, you want to make sure that you will get your money back. Without this information, it would be hard to get assurance.

So a licensed money lender in Singapore would definitely want to process your loan and verify your information. Add to that, MinLaw requires licensed money lenders to take into consideration the borrower’s ability to repay the requested loan.

A private money lender should verify your information and review your credit history. This way, you will get a loan you can repay with ease. Licensed money lenders are prohibited from approving loans if the borrower cannot obviously repay and will just end up defaulting.

If the lender does not ask for any document or the process is too quick with just one ID. Then, it is too good to be true.

Upfront Fees

Licensed money lenders in Singapore never ask for upfront processing fees. Instead, they will process your loan first and finalise a transparent agreement before your loan gets disbursed.

Illegal lenders ask for processing fees first before they release loans. Unfortunately, the scammer usually disappears once the victim pays the fee, pocketing the money away.

Complete Loan Contract

As a borrower, it is essential to review your loan contract before signing. No matter how tedious it seems, you have to take the time to understand the loan agreement.

The loan contract must contain the principal loan amount, the interest rate, other fees, and repayment terms. Be cautious when asked to sign an incomplete contract.

Retaining Personal Documents

Licensed private money lenders never retain personal documents such as your NRIC card, driver’s license, passport, employment pass, work permit, or ATM card. Unfortunately, this also means you cannot use these as collateral for cash loans.

How do licensed private money lenders work?

Licensed moneylenders never solicit loan applications through ads.

Under the advertising rules, licensed moneylenders can only advertise through:

• (a) business directories (in print or online media);
• (b) websites belonging to the moneylender itself; and
• (c) advertisements placed within or on the exterior of the moneylender’s physical office.

Flyers, emails, SMS, and other advertisements aside from the ones mentioned above are either from illegal money lenders. Or it came from licensed moneylenders operating in violation of the rules.

You can visit the money lender’s office or sign up through its secure website if you want to get a loan.

Nowadays, licensed private lenders have websites to help borrowers understand how their loan products work. Borrowers can learn more about the loan anytime. Their website is always there to represent the lending company.

Imagine going to the lending office and ending up with a rejected application. If you already know your chance of getting approved, you could save your time and effort.

Money lenders’ websites usually have a secured application form that the lender can approve before you visit the office. So even before you visit the lender’s office, you will immediately know your chance of approval.

Once you have signed up on the website, you just have to wait for a call from a loan adviser to verify the information you have given them. From here, you can ask some questions to help you understand the loan process.

Government Regulation

As mandated by law, they will also pull out your credit history to evaluate your creditworthiness. Likewise, the licensed money lender will report your credit information and repayment details to the credit bureau.

If you get pre-approved, you can visit the licensed lender’s office. Expect a reputable money lender to discuss the loan product, term options, charges, and interest rates. Once you understand everything, you will be asked to sign a transparent loan contract and receive your loan.

You should have your own copy of the loan contract and repay your loan on time to build your credit score. Also, you can expect an SMS reminder on your due date so you will not forget to pay and get charged with a late payment fee.

How much is the interest rate of private money lenders?

The maximum rate of interest a licensed private money lender can charge is 4%. There is an interest rate cap regardless of your income and type of loan.

Private money lenders charging an interest rate higher than 4% are illegal money lenders who want to take advantage of the borrowers’ cash needs.

How much can you borrow from licensed money lenders in Singapore?

MinLaw and the Registry of Moneylenders have guidelines for how much you can borrow from licensed money lenders in Singapore. The secured loans have their loanable amount based on the pledge’s market value. Meanwhile, the unsecured loanable amount takes note of your annual income.

Credit: https://rom.mlaw.gov.sg/

The total maximum amount is determined and must be applied at any time across all moneylenders in Singapore. The guidelines are as follows:

• If you are a Singaporean or a Permanent Resident earning less than $20,000 a year, you can borrow up to $3,000.
• Or, if you are a foreigner residing in Singapore with an annual income of less than $10,000, you can borrow up to $1,500.
• Lastly, if you are a foreigner residing in Singapore with an annual income of no more than $20,000, you can borrow up to $ 3.000.
• Whether you are a Singaporean, a Permanent Resident or a foreigner earning $20,000 or more a year, you can borrow up to 6 times your monthly income.

Take note that these loanable amounts are applicable across licensed money lenders.

What are the fees licensed private money lenders can charge?

Licensed money lenders have an upfront deduction of a loan processing fee. The maximum processing fee is no more than 10% of your principal loan amount. There are no other fees that will be deducted from your principal loan.

Additionally, the late payment penalty should not exceed $60 each month. In case you have defaulted, you will also shoulder all the legal costs ordered by the court.

The maximum rate of late interest is 4% per month. The charge for each month is only for late loan repayment. The moneylender cannot charge the late interest on the outstanding loan amount but is not yet due to be repaid.

Be mindful that established licensed moneylenders always encourage their borrowers to pay their loans on time to build a healthy credit score and avoid late interest and penalties.

Can a foreigner apply for personal loan in Singapore?

Foreigners can borrow money in Singapore.

Expats may think that it is impossible to find a private money lender that will let them borrow cash. It is not surprising since banks rarely grant personal loans to foreigners. Fortunately, licensed money lenders accept applications and offer low interest personal loans to expats who are legally working in Singapore.

Also known as Foreigner Loans, this type of loan caters to foreigners’ special needs and circumstances. For example, you can use this loan for visa issues, house rentals, medical services, and whatever your family needs back home.

To qualify for a foreigner loan, expats must be currently working in Singapore with proper work permits. It may be an S Pass, E Pass, Entrepreneur Pass or any miscellaneous valid work pass or permit.

The work permit holders may also be required to present their valid passport, letter of employment, latest 3-month original payslip, and proof of billing indicating the residential address.

Applying for a foreigner loan is also simpler than you’d expect.

Step 1: Compare your options

More than a handful of money lenders offer a foreigner loan. But they all have different loan amounts, interest rates, eligibility requirements, and needed documents. So it is best for you to use the loan calculators available on the private money lenders’ website.

Step 2: Sign up

Luckily, many licensed money lenders now have online loan applications. While MinLaw requires loan processes to be completed personally, getting pre-approved is a helpful option.

You can sign up on a secure money lender website. First, you need to fill in your name, e-mail address, mobile number, annual income, outstanding loans and home status. From this information, the loan executives will be able to know if you are eligible for a loan or not.

Step 3: Receive a call

You will receive a call if you are eligible to get a loan. It is sometimes called approval in principle or pre-approval.

Step 4: Drop by the licensed money lender’s office

Bring the necessary documents to verify your information. A loan executive will discuss the loan terms and the applicable charges with you. It is essential to ask for any clarification and ensure that you understand everything. It may be as short as 30 minutes.

Step 5: Sign the loan contract

Sign the loan contract after reading through it. This contract is legal and binding. You have to ensure that you have understood everything. After signing, they will immediately disburse your cash.

Make sure to make your repayments on time to keep your credit score high and build a positive relationship with your licensed private money lender.

Where to find private licensed money lenders?

Before: 

A few years ago, you could find money lenders by asking around and searching around the streets. You can also ask your friends and relatives about their suggested lenders. But this would mean that you have to open up about your financial needs.

Then, you have to visit the office personally to inquire. Then, decide if you really want to get a loan then and there. If you don’t have the required documents, you will need to return home. You have to spend too much time and effort going back and forth.

Today:

Fortunately, technology has brought you closer to your much-needed money lender.

You can simply search them on Google.

Private money lenders now have websites where borrowers can learn more about their loan products and start their loan inquiries.

But you need to be mindful when searching for the best licensed money lender.

Needless to say, some unscrupulous people pretend to be legitimate money lenders.

Always remember to check if the money lender is on the list of licensed money lenders in Singapore. Once you have confirmed this, you still need to ensure the security of the website.

Look for the green padlock icon beside the website’s URL. It means the website uses encryption to keep your data safe.

Add to that, take some time and look closely at the domain. Some fraudsters make fake websites similar to legitimate ones. The fake website will have weird characters or out of place numbers in its domain to look similar to the real website. For example, let’s say the real URL is www.amazon.com. Instead, the fake website may have a URL such as www.amaz0n.com.

Once you find a legitimate money lender online, you may check its loan options, flexible repayment terms, interest rates, loanable amount, and application process. You can compare and find the best licensed money lender in Singapore.

What to do after getting a loan from a private money lender?

Here’s the deal:

You have a legal obligation to fulfil any loan contract with a private money lender.

Once your loan application gets approved, make sure that the licensed money lender can disburse the right amount of principal loan. The money lender can deduct a processing fee of no more than 10% of the principal loan. Higher than this is a violation of the Moneylenders Act.

Pay the right loan instalments on time to avoid late payment penalties. And make sure that the money lender issues a receipt every time you make any repayment. Check if the receipt has the right name, amount and date. Keep your receipts as documentation and evidence of payments.

What are the information licensed money lenders see in your credit report?

Licensed money lenders report the borrowers’ information to the Moneylenders Credit Bureau from the moment they apply. It includes the following information:

• Your name and Identity (ID) Number or Unique Entity Number (UEN)
• Your latest income information includes your last 3 months’ income amount, the type of income document you have submitted, the annual income amount, and your average income amount.
• The type of loan you applied for or got approved.
• Your loan’s total payable amount and reserve sum
• The payment status includes the details of your active loan and the repayment status of each loan
• Status of guarantor or surety of any loans

How to get a bad credit loan from licensed money lenders?

Are there any legitimate personal loans for bad credit?

A bad credit score will prevent you from getting a loan from banks. But this does not mean the end of the world for you.

A personal loan from a licensed money lender is just what you need. Here’s what you can do:

Submit the documents needed for personal loan

You can get approved if you can comply with the requirements. If you miss a required document, they will not process your loan application. The prolonged process may lead to rejection.

Some documents you have to prepare are your NRIC, latest payslip and proof of billing. In addition, if you are self-employed, it is best if you also prepare your bank statements, latest ACRA business profile, and Income Tax Notice of Assessment.

Apply for a minimum amount

A bad credit score may get you a personal loan, but not a large personal loan unless you start improving your score.

To get approved and rebuild your score, you can apply for a small amount of loan from a licensed money lender and pay it diligently. If you keep a good relationship with a money lender, you can eventually increase your loan amount. Never miss a payment and strive to settle each one in full.

Duly accomplished application form

Licensed money lenders must process every loan application they get with utmost diligence. It is to make sure that borrowers get the amount they can repay easily.

You need to complete the application form when you apply for a loan. All of the information should match the documents you have provided to ensure a quicker loan process. This way, the lender will also be able to evaluate your repayment ability, the best loan amount and the repayment term you can meet.

Apply for a flexible repayment term

A licensed money lender has flexible repayment schemes that you can easily meet. For example, you can pay weekly, every two weeks or monthly. Choose the term that can fit your salary.

Also, it is best if you use a loan repayment calculator. You will see which term you can use to settle the loan without sacrificing your basic needs.

Private money lenders for small businesses

Small business owners need a loan to keep their businesses running and eventually grow. Regardless of business size, wasted time means wasted money. Therefore, if an immediate cash need occurs, you will need fast cash loans.

You may have a million-dollar idea and a solid business plan, but you may not thrive long in a competitive industry if your funding is not enough.

Banks usually have a long list of requirements and take longer to process your loan. You may even wait for weeks but end up getting rejected. Then, of course, you can look for venture capitalists and angel investors. But if you do not wish to relinquish equity to investors, you can always get funding from a licensed money lender.

Luckily, licensed money lenders have now become “fintech” online lending firms. It means the loan process is faster and more flexible for you and your business.

To apply for Cash Mart’s business loan, prepare your valid IDs, the company’s bank account statements for the last six months, the company’s financial statement for the latest financial year, and your Income Tax Notice of Assessment.

How Do You Borrow Money From the Best Licensed Money Lender?

Cash Mart Private Limited (CMPL) is a licensed money lender providing high-class services for five decades.

As a reputable lending company in Singapore, Cash Mart has created loans for various needs of every Singaporean and expat alike. Thanks to its innovative digital solutions, the loan application is faster and readily accessible across the city-state.

You can get a loan in just three steps:

Step 1: Get a Quote

Visit Cash Mart’s website and use the loan calculator. It will help you see how much interest you have to pay based on the loan amount and your chosen repayment term.

Here at Cash Mart, we take pride in our transparency. You can even see the possible repayment dates in the actual loan calculator. So you can easily foresee if the repayment term suits your need and payment ability.

Click “Apply Now” after choosing the loan amount and the best repayment term. Then, fill-up the form to start your loan application process.

Step 2: Get Pre-approval

After submitting your loan application, our professional loan executives will verify your eligibility and documents. You will receive a call if your application gets a pre-approval. Bring your required documents to our office at 277 Balestier Road. Our friendly loan executives will walk you through the process.

Step 3: Get Cash

After getting the official approval, the loan executives will discuss the loan contract, including the repayment term and loan charges. Feel free to ask for any clarification before signing the loan contract and getting your cash. Do not forget your personal copy of the loan contract and keep it for documentation.

Final Thoughts

Responsible borrowing does not start with your first payment. It actually begins when you choose a private money lender in Singapore.

When we experience a financial dilemma, we are tempted to grab the first loan offer we get.

The truth is, many could have been saved from loan sharks if only they had taken the time to compare the licensed money lenders, their products and the loan process.

A loan is handy for many of us, whether for personal emergencies, business needs or additional convenience. Choose a licensed money lender with the most flexible loan offers, high-class customer services, and a fast loan process to maximise the benefits of loans.

After all, better loans mean a better life.