By MoneyBees
Work out the instalment, interest, fees and EIR of a licensed moneylender loan, check it against the 4% a month and 10% fee caps, and see your borrowing limit and the cooling-off rule.
4% a month, whatever your income and whether the loan is secured or not. Late interest is also capped at 4% a month, and only on the amount you paid late, not on the balance that is not yet due.
Only three: a loan approval fee of up to 10% of the principal when the loan is granted, a late fee of up to S$60 for each month you repay late, and legal costs a court orders. No other fees are allowed.
Yes. Interest, late interest, the approval fee and late fees together cannot exceed the amount you borrowed. On a S$10,000 loan, the most you can be charged on top of the principal is S$10,000.
For unsecured loans, citizens and PRs earning under S$20,000 a year can owe up to S$3,000 across all moneylenders. Foreigners earning under S$10,000 can owe S$500, and S$3,000 from S$10,000 to under S$20,000. From S$20,000 a year the limit is 6 times your monthly income. Secured loans have no cap.
For unsecured loans other than business loans paid out on or after 15 Sep 2026, you can cancel within 3 business days. You repay what you received plus at most S$50 of the fee (loans of S$5,000 and below) or 3.5% of the principal (above S$5,000). No interest is charged.
Monthly interest compounds, so 4% a month is 60.1% a year, not 48%. The approval fee is taken off the money you receive, which raises the true cost further on a short loan.
Search the Registry of Moneylenders' list of licensed moneylenders on rom.mlaw.gov.sg. Licensed moneylenders may only advertise in directories, on their own websites and at their premises, so a loan offer by SMS or flyer is a warning sign.
No. A moneylender must not keep your NRIC or other ID, ask for your Singpass password, or hold back any part of your loan. Report this to the Registry on 1800-2255-529.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).