Licensed moneylenders in Singapore- interest rates and more!

Now are the times of moneylenders. Many of us prefer borrowing from the licensed moneylenders in Singapore instead of joining the queue of bank loans. Bank loans involve seemingly endless procedures and paperwork. To ensure that moneylenders do not ransack the pity borrowers by way of underhand interest rates, the ministry of law is here to keep a watch.

Licensed moneylenders in Singapore

With effect from 1 October 2015, the maximum interest rate moneylenders can charge is 4% per month. This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured one.” This statement published by the ministry of law clarifies the moneylender’s interest rates.

Earlier, the moneylender interest rates were as high as 13% for secured loans and 20% for unsecured loans. This was applicable to the borrowers with income below $ 30,000. Those who earned $30,000 and above had to agree upon the interest rates set by the moneylenders. The new rule has brought about uniformity in moneylenders interest rates. This has put a red light on the sky-high prices.

Moreover, if the borrower is unable to repay the loan, a maximum of 4% can be charged by the moneylender. This interest rate is applicable on the amount that is paid late and not the total outstanding amount. Licensed moneylenders, Singapore have to abide by the rules and regulations laid down for carrying out the lending process. This guarantees transparency and holds moneylenders accountable in case of unfair practices.


So, are you ready to get in touch with a moneylender for financial help?
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