By The Ledger desk · Last verified 28 September 2026
Licensed moneylenders in Singapore can charge interest of at most 4 per cent a month, whatever your income and whether or not the loan is secured. Late interest is capped at 4 per cent a month on the overdue amount only. The fees are capped too: at most 10 per cent of the loan as an admin fee, and S$60 for each month you’re late. Most importantly, total charges can never exceed the amount you borrowed. Anyone charging more is not a licensed lender.
Quick facts
- Interest: at most 4% a month, on the reducing balance.
- Late interest: at most 4% a month, on the overdue amount only.
- Admin fee: at most 10% of the loan, charged once.
- Late fee: at most S$60 a month.
- Total charges can’t exceed the amount borrowed.
- You must be verified face to face at the lender’s office.
What can a licensed moneylender charge?
| Charge | Legal maximum |
|---|---|
| Interest | 4% a month |
| Late interest | 4% a month, on the overdue amount only |
| Admin fee | 10% of the loan, once |
| Late fee | S$60 for each month of late payment |
| Legal costs | Only what a court orders |
| All charges together | No more than the amount borrowed |
Interest is charged on the reducing balance: repay S$4,000 of a S$10,000 loan and next month’s interest is on S$6,000. Lenders can charge less than the caps, so compare the full cost across several.
How much can I borrow?
For unsecured loans, citizens and PRs earning under S$20,000 a year can borrow at most S$3,000 in total from all licensed moneylenders. Those earning more can borrow up to six times their monthly income. Foreigners face stricter limits. Secured loans have no fixed cap.
What must a licensed lender do?
- Be on the Ministry of Law’s Registry of Moneylenders list.
- Verify your identity face to face at its registered office; fully online loans aren’t allowed.
- Explain the contract in a language you understand and give you a copy.
- Issue a receipt for every repayment, and statements every January and July.
- Advertise only through permitted channels, such as directories and its own website.
What are the red flags?
- Unsolicited SMS, WhatsApp messages or flyers offering loans.
- Requests for your Singpass login.
- Keeping your NRIC or ATM card.
- Blank or incomplete contracts.
- “Instant approval” without any documents.
The WahLiao Verdict
At up to 4 per cent a month, a licensed moneylender is a last resort, not a first call; check whether your bank will lend first. If you do borrow, check the lender on the Registry, read every figure in the contract, and walk away from anyone who asks for your Singpass.
Questions people ask
Is 4% a month the same as 4% a year?
No. Four per cent a month is far more; over a year, it’s roughly 48 per cent before any compounding.
Can a lender get the loan done fully online?
No. Face-to-face verification at the registered office is required.
How do I check a lender is licensed?
Look it up on the Ministry of Law’s list of licensed moneylenders.
What if a lender breaks the rules?
Report it to the Registry of Moneylenders. If you’re being harassed, call the police.
Sources: MoneySmart on moneylender interest rates, choosing a lender and loan limits; SingSaver on the Moneylenders Act and what lenders cannot do. The Ledger explains; it does not advise.
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