24-Hour Moneylenders in Singapore: Ultimate Guide to Applying for Loans

Singapore is one of the best countries in Asia where one can experience an exceptional lifestyle through its diverse culture, rich heritage, and most vibrant and colorful traditions. It is also an excellent avenue to find career opportunities – taxes are low, salaries are competitive, and the government has a sound system for its people. 

Still, being one of the most expensive countries to live in, financial situations may arise from time to time. Fortunately, some 24-hour licensed moneylenders would cater to these needs. Even better, they are available to citizens, permanent residents, and foreigners who have just moved into the country. 

The challenges of moving into Singapore may be pretty overwhelming, but they need not be with the help of licensed moneylenders. Read through our go-to guide to taking a loan from licensed money lender in Singapore.

What is a Licensed Moneylender?

Licensed moneylenders are business entities that provide financial assistance to borrowers with a return of interest. They are an ideal option for borrowers who do not qualify for bank loans and those that prefer a less complicated loan process. 

These entities are regulated by Singapore’s Ministry of Law (MinLaw) to ensure that the interest rates are within a reasonable range and that all other rules are being complied with. To avoid “ah longs” or loan sharks, check that the moneylender is on the updated list of all licensed moneylenders in Singapore. 

Types of Loans Available

Generally, licensed moneylenders offer short-term and unsecured loans to cater to all borrowers. These loan options are designed to help borrowers secure quick cash without the hassles of tedious paperwork and stringent credit history checks. Below are common types of loans you will find with a moneylender.

1. Personal Loans

Personal loans are short-term loans usually pegged to one’s income. It can be used for various purposes, such as home renovations, medical emergencies, or purchasing an engagement ring. 

You can pay these loans for up to twelve months, subject to the moneylender’s terms and conditions. 

2. Foreigner Loans

Foreigner loans have the same features as personal loans. However, this type is particularly offered to eligible foreign workers in Singapore. The funds may be used to pay for rental deposits and other expenses essential in helping them settle in this new environment. 

This type is an ideal option for foreign workers who have a short credit history to show and may not be eligible for bank loans.

3. Bridging Loans

Another short-term financing you can avail yourself of from moneylenders is the bridging loan. This type of loan is often used for transactions where time is of the essence. Typically, it is ideal for individuals who are in between selling their old home and purchasing a new one. 

With licensed moneylenders, repayment terms usually range from one month until the property’s completion date. 

4. Payday Loans

Payday loans are small-amount loans, often equivalent to a one-month salary, and are payable on the following payday in a single installment. With licensed moneylenders, you can choose to pay it either on the next payday or up to a month.  It is sometimes called a cash advance, payday advance, or fast cash loan. 

5. Monthly Loans

Monthly loans work similarly to personal loans and can be used for various purposes. You can pay these loans for up to twelve months, subject to the licensed moneylender’s terms and conditions. 

6. Business Loans

This loan type is best for small businesses that need to purchase equipment, secure inventory, or shore up cash flow to keep operations going. Businesses may also use these funds to consolidate high-interest debts. 

Licensed moneylenders will be able to help your business’s needs even with a less-than-stellar credit history. You may also get up to S$200,000 and pay up to 24 months.  

To sum it up, here are the common loan types and their features:

Loan Type	Loan Amount	Interest Rate (Per Month)	Loan Tenure
Personal Loan	Up to six times of monthly income	1% to 4%	Up to twelve months
Foreigner Loan	Up to six times of monthly income	1% to 4%	Up to twelve months
Bridge Loan	Up to six times of monthly income	1% to 4%	Up to one month or until the property’s completion date
Payday Loan	Up to one-month income	1% to 4%	Next payday or within one month
Monthly Loan	Up to six times of monthly income	1% to 4%	Up to twelve months
Small Business Loan	Up to S$200,000	5% to 15%	Up to twenty-four months

Are There Licensed Moneylenders Open for 24 Hours?

Truthfully, no physical business office is open 24 hours for most licensed moneylenders. Business offices are available only during the daytime and operate within published business hours. However, you may conveniently apply online 24/7 from their business portals. These applications are reviewed and processed on the next business day. 

Are There Legal Moneylenders Open on Weekends?

Yes. Fortunately, many licensed moneylenders operate even during weekends. This availability gives them an edge over banks that operate only during the weekdays.  Most are open even on weekends to cater to its growing demands. 

If you happen to come across one that says they operate or disburse funds 24 hours, you may be dealing with an ah-long or a loan shark. Those who are not eligible for bank loans or are faced with limited options should be careful when searching for a moneylender.

How to Recognize Loan Sharks?

Loan sharks often target vulnerable clients who are desperate for quick cash. But, even with such urgency for cash, it is crucial to know how to recognize loan sharks and avoid doing business with them at all costs. Doing so will prevent future problems such as harassment or getting your money scammed. To protect yourself from Loan Sharks, read more on the 2008 Singapore’s moneylender act.

Here are some tell-tale signs:

1. Advertises through SMS, e-mails, and flyers

Licensed moneylenders are not allowed to advertise through SMS, emails, and flyers. The only legal business channels they should advertise are:

• Their official website
• Business or consumer directories
• The business’s physical address (walls, windows, bulletin boards, etc.)

2. Claims / Offers to lend any amount

While it is true that legal moneylenders are less stringent in terms of credit checks and document requirements, they are still bound by rules on the amount they are allowed to lend. Be cautious of moneylenders that offer significant amounts even without requiring any income document.

Note that licensed moneylenders are only allowed to grant up to a certain amount based on a borrower’s income. Below is a quick summary of how much you can legally borrow:

Annual Income	Maximum Loanable Amount
	For Singapore Citizens and Permanent Residents	For Foreigners
Below S$10,000	S$3,000	S$500
Below S$20,000	S$3,000
S$20,000 and above	Up to six times of monthly income

Moreover, licensed moneylenders will still review your financial information and will grant a loan based on this review. 

3. Charges exorbitantly high interest

Because loan sharks allow lending considerably high amounts, it follows that they will also charge high-interest rates. This method allows them to earn huge profits, however, in an illegal way. Keep in mind that the Ministry of Law only allows moneylenders to charge interest rates and fees within the prescribed limits.

4. Imposes processing fees and hidden charges

Moneylenders who impose payments and fees even before a loan is approved are clearly loan sharks. Be wary of lenders asking you to deposit a certain amount claiming that this process is necessary to check your bank account. They may also claim that these processes will accelerate your loan’s approval. 

These are clear signs that these moneylenders are operating illegally. Licensed moneylenders will never ask you to pay an amount separately or deduct more than 10% from the principal amount. Moneylenders that exceed the legally permitted amount may be engaging in misconduct and should be reported.

5. Drafts unreliable contracts or issues no contract at all

Loan sharks will issue questionable contracts that are incomplete or contain illegal provisions. They could also not give you a copy or prepare no contract at all and just have you sign on a blank paper. Here are some signs that show that your contract is illegal:

• Incomplete terms and conditions
• No exact interest rates and repayment schedules
• No provisions on late payments or loan defaults
• No specific rights and obligations for both parties

6. Approves and disburses funds remotely

Nowadays, the internet provides the opportunity for unlicensed moneylenders to scam victims. Illegal moneylenders will also approve loan applications without a face-to-face visit from the borrower and disburse funds digitally. Thus, this could mean that the moneylender has no physical office and is operating illegally.

7. Conducts illegal practices

Other illegal practices to look out for include:

• Keeping your ID as collateral
• Asking for your Singpass password
• Not explaining the contract in depth
• Refusing to give you a copy of the contract signed by both parties
• Deducting interests in advance
• Non-issuance of receipts on payments

8. Uses threat and harassment in collecting debts

Loan sharks are also known for their unconventional and inhumane way of collecting debts. These dangerous practices include:

• Verbal and physical abuse
• Use of pressure tactics such as forcible entry to borrower’s home
• Harassments (could be you, your family, or other contacts)
• Vandalizing your property

Licensed Moneylenders Do’s and Don’ts

Moneylenders are the go-to solution of borrowers who need urgent cash. However, loan sharks are also lurking everywhere, online and offline, to attract potential victims. Take a look at the do’s and don’ts of licensed moneylenders and learn how to spot quickly a legal one from one who is not.  

Category	Do’s	Don’ts
Promotions / Advertisements	3 legal channels: Business website Consumer directory Office premises	Illegal channels such as: SMS/Phone Calls/Email Flyers/Newspaper ads Radio/TV commercials
Loan Amount	Up to 6x your monthly salary	No limit
Verification of Borrower’s Identity	Face-to-face appointment before loan approval	Approval over the phone or through SMS or email only
Disbursement	Cash, after face-to-face visit of borrower	Disburses funds remotely
Interests	Capped at 4% per month	More than 4%, often rises to extreme amounts
Documentation	Verifies documents on site and returns such after info is confirmed  Never asks for passwords	Holds on to important documents such as IDs and other personal documents Requires your Singpass password
Loan Contract	Complete details and thoroughly explained	No contract or incomplete details Requires the signing of blank contract
Other Fees	3 fees allowed: Late repayment fee not exceeding S$60 Administrative fee not exceeding 10% of the principal loan amount Legal fees	Charging other than the permitted fees
Debt collection	Fair debt collection practices	Uses harassment, threats, or forceful collection of debts

How to Verify the Legitimacy of the Licensed Moneylenders?

Verifying the legitimacy of a moneylender in Singapore is actually easy. You can quickly look it up on the Ministry of Law’s list of licensed moneylenders. This list is frequently updated to protect borrowers from being victims of loan sharks. Do not deal with any moneylender whose name is not included in the said list.

How to Report Loan Sharks?

Loan sharks continue to be a problem in Singapore as some continue to fall into the trap despite clear warnings. If you suddenly find yourself or know someone who is in this difficult position, you can report loan sharks to authorities. You may request assistance and report the loan shark’s details and their activities by:

• Lodging a complaint through a live chat or submitting an inquiry at  Ministry of Law’s website
• Contacting the Registry at telephone number: 1800-2255-529
• Calling the police hotline on 1800-255-000 or 999 for urgent cases
• Calling the National Crime Prevention Council’s “X Ah-Long” hotline at 1800-924-5664

Tips to Keep Your Borrowing Journey Safe and Convenient

Borrowing from a licensed moneylender is the next best alternative when you need urgent cash. Aside from the fast loan approval and quick disbursement of funds, it is also a good way to build one’s credit score. However, to keep this borrowing journey safe and smooth, here are a few useful tips to remember: 

1. Always verify the moneylender’s legitimacy.

Whether you are a first-time borrower or not, verifying whether a lender is legal or not is a crucial step you should not skip. You can verify a moneylender’s legitimacy by checking if the lender is included in the Ministry of Law’s list of licensed moneylenders. The list also includes moneylenders who are currently suspended.

If you are a foreigner, you should also know that borrowing from an unlicensed moneylender may bar you from future employment. This consequence may come on top of all the other unpleasant practices you may experience from a loan shark.

2. Shop for more options.

There is a wide pool of licensed moneylenders in Singapore and they may vary in terms of interest rates and repayment terms. Choose one that can provide you with the most suitable loan for your current needs. You should also consider the lender’s terms and conditions, as well as the fees.   

Multiple hard inquiries, however, could affect your credit score. It would be wise to narrow your search through a loan comparison site or service to find the best fit.

3. online reviews on Google.

Reviews from previous clients can help you determine a moneylender’s trustworthiness. You can check Google reviews in terms of transparency, excellent customer service, customized loan package, fast approval, and more. With this, you can adequately decide on your prospect.

4. Check eligibility requirements and prepare necessary documents upon visit.

Often, licensed moneylenders will require a few documents. Make sure that you have them ready before proceeding for an application.

5. Proof of Identification

For SC sand PRs: NRIC

For Foreigners:  passport, work pass, other legal working passes, letter of offer

6. Proof of Income: 

For employed: recent payslips, income tax statements, CPF statements

For Self-employed: bank statements, commission statements, IRAS notice of assessment

7. Proof of Address: Utility bills, tenancy agreement

8. Make sure you read all the terms and conditions before you sign the contract.

Before signing your contract, make sure that you have read and understand everything that is written on it. If anything is unclear, ask questions so that the loan officer can explain further. 

Make sure that you have read all the legalities licensed moneylenders are allowed  in terms of the borrowing limit, interest, and other fees. These items should also not be taken lightly as these have a direct impact on your finances. 

9. Keep a copy of all documents between you and the moneylender.

For future reference and for safety purposes, you should keep a copy of your loan documents such as:

• Loan contract
• Payment receipts
• Statement of loan account

Loan Application Process from Licensed Moneylenders

Having prepared all the required documents, you can now proceed with your loan application. Here are the quick steps:

1. Apply online through the moneylender’s website or visit their physical office.
2. For online applications, wait for a loan officer’s call.
3. Once you have a schedule, go to the office for a short interview and document verification.
4. The loan application will be approved in as fast as 30 minutes.
5. Review the contract before signing.
6. Wait for the disbursement of funds. You may have it in cash or wired to your bank account.

FAQs From Loan Borrowers

1. Which bank gives out a loan in 24 hours?

Aside from cash advance from your credit card, banks do not usually give a loan in 24 hours. Alternatively, there are many licensed moneylenders that can accommodate you for a quick loan process. 

2. How can I borrow cash immediately?

To save time and find the best loans for you, use a loan comparison site. Once you find the right match, you may choose to apply online or visit their office. Many licensed moneylenders approve loan applications in as fast as 30 minutes and offer quick disbursal of funds too. 

3. What are the benefits of borrowing from a licensed moneylender in Singapore?

Borrowing from a licensed moneylender has several benefits especially for foreigners who do have adequate credit history. Here are a few other benefits:

• Hassle-free loan application. Licensed moneylenders have a less tedious documentation process.
• Quick disbursal of funds. Legal moneylenders process and review loan applications quickly and you may get funds within the day after reaching their office.
• Competitive and fair rate packages. They offer attractive and affordable rates that are within the prescribed limits. 
• Safe and Trustworthy. Licensed moneylenders are bound by rules and regulations from the government.

4. What to do after a loan from a licensed moneylender is granted?

After a loan is granted, make sure that the moneylender delivers the correct amount and proper fees. You should pay your monthly repayments on time to avoid late payment fees. Always keep a copy of your transaction receipts for your reference.

5. What should I do if I accidentally borrowed from a loan shark?

You should immediately stop all your payments if you accidentally fell victim to ah longs or loan sharks. Otherwise, you will continue to pay huge amounts and get charged higher fees. Report them to proper authorities to protect you from assaults and harassment. 

Final Word

As a foreigner, your financial resources may be quite limited in Singapore. But, getting pinched by cash need not be a worry through the help of many licensed moneylenders. Still, be diligent and transact only with licensed moneylenders to avoid getting your hard-earned money scammed.

• Always check the legitimacy of a moneylender before transacting with one.
• Alert authorities if you encounter a loan shark on your journey to finding a moneylender to help others fall victim to them.
• Foreigners who do not qualify from taking a loan from banks and other credit facilities can always turn to legit moneylenders.

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