How to Borrow Money Legally in Singapore?

How to Borrow Money Legally in Singapore?

Identify a Licensed Moneylender

• Check the Registry of Licensed Moneylenders on MinLaw's website.
• List of Licensed Money Lenders

• They cannot advertise on social media, WhatsApp, or in public spaces. Approved advertisements include only the moneylender's website, business premises, or MinLaw's listing.

Rules for Borrowing

• Eligibility for MDWs:
• You must be at least 21 years old.
• You must have a valid work permit.
• Your total loan amount is capped based on your income:
• Up to $500: If your annual income is below $10,000.
• Up to $3,000: If your annual income is between $10,000 and $20,000.

• Loan Fees:
• Moneylenders can charge an upfront fee of not more than 10% of the loan amount.
• The monthly interest rate is capped at 4%.
• Late repayment penalties cannot exceed $60 per month.

Risks of Unlicensed Moneylenders (Ah Longs)

• Avoid giving personal details to unknown lenders.

• Report illegal moneylending activities to the police at 999 or the X-Ah Long hotline at 1800-924-5664.

Alternatives to Borrowing

• Savings: Create a savings plan to manage emergencies without borrowing.

• Employer Advance: Some employers may provide small cash advances. Discuss this option carefully.

Important Reminder

• Borrow Only What You Need: Only borrow what you absolutely need and can afford to repay.

• Understand the Terms: Make sure you understand the interest rate, fees, and repayment schedule before signing any loan agreement.

• Don't Be Pressured: Don't feel pressured to take out a loan you don't need or understand.

Important Contacts