In these times, it is challenging to function without enough funds in your pocket. The inflation rate is still high, and the price tags on daily necessities are not letting up anytime soon. As much as it’s excellent to keep within one’s budget, sometimes, everyone needs a backup plan via moneylenders in Singapore.
Singapore’s moneylenders are popular in the country. It’s because these businesses rule the moneylending industry. Any individual in Singapore who requires a personal loan and other types of loans may seek these lending companies.
But what other information do you need to know about these moneylenders? They’re among the top loan providers in Singapore, and there’s a reason why. Find out here the details and how much you can borrow from them.
Top Loan Providers in Singapore
Singapore has been known globally for its strong and impressive economic status. Thus, it is only natural that the country has the top loan supplier which communities can rely on for financial assistance.
Three categories in the financing industry are recognised as the top loan providers in Singapore, banks, financial institutions, and licensed moneylenders.
The banking industry in Singapore is massively successful. However, the pride of Singapore’s banking sector is due to three major bank players that have become the pillars of Singapore’s economy through their financial fortitude and worldwide influence.
Financial institutions in Singapore are different businesses with the authority to lend money to borrowers. The companies in this sector are branched out throughout Singapore and add further economic growth.
The moneylending industry in Singapore earns a spot among the top loan providers in the country because of many factors. For one, the loan procedure isn’t too lengthy. As a result, borrowers can have the funds they require within the day of their application.
People distressed with money concerns must act quickly to have funds for their essential demands. So, for a fast, easy-to-acquire loan, communities in Singapore often choose licensed moneylenders in Singapore.
What are Moneylenders in Singapore?
A moneylender’s duty is tied solely to Singapore’s moneylending industry operations. These can be groups or individuals with a moneylending business in Singapore and abide by the Moneylenders Act.
As a moneylender, they will lend money to those in genuine need. They are also entitled to demand the borrower to pay for specific interest rates, fees, or charges.
One of the many concerns of a moneylender is when the borrower does not, cannot, or has no interest in repaying the debt they took. A moneylender’s business is risky. It’s usually because the loans they grant are personal loans or unsecured loans.
Borrowers easily attain an unsecured or personal loan as there’s a lack of demand on collateral from licensed moneylenders. On the other hand, moneylenders can also proffer secured loans, depending on their client’s requirements and capacity.
In addition, moneylenders are under the protection and regulation of the Ministry of Law’s Moneylenders Act.
Licensed Moneylenders in Singapore
According to the Ministry of Law, three classifications are recognised as eligible moneylenders people can borrow from in Singapore. And these are the excluded moneylenders, exempt moneylenders, and licensed moneylenders.
Licensed moneylenders are the most preferred choice among the three classifications mentioned above. These groups or individuals passed various tests and fulfilled all requirements to earn their licenses.
Borrowing from Licensed Moneylenders in Singapore
Due to it being a lucrative business, the market of licensed moneylenders in Singapore is notably competitive. As a result, borrowers could become overwhelmed with their options or where to go.
Borrowing from these moneylenders in Singapore is quite beneficial. For one thing, they don’t only grant personal loans. The financial products are various to meet your monetary demands.
Types of Loans from Moneylenders in Singapore
Here are the types of loans you can apply for from licensed moneylenders in the country:
1. Business Loans
These loans are essential for small and medium enterprises and entrepreneurs in Singapore. It’ll help business owners in the country to pursue company growth. In addition, the funds can assist in expanding or managing cash flow.
Unsecured business loans are accessible from a moneylender in Singapore. The interest rate would range between 1% to 4% monthly. Applicants should have a Singapore-registered business to apply for a business loan and provide financial statements, proof of identity, and business plans.
2. Personal Loans
A popular unsecured loan in Singapore. A personal loan is a main favourite loan product in the country as it’s flexible for loan purposes. Borrowers who encounter unexpected cash emergencies, cover medical expenses, or consolidate their debt may apply for this loan.
Personal loans in Singapore have higher interest rates as they are risky unsecured debts. The interest rates are from 1% to 4% per month.
To provide a suitable solution in serving the communities in Singapore, the Ministry of Singapore made it a point to initiate and offer the Registry of Moneylenders to all concerned individuals. Applicants eligible for a personal loan are Singaporean Citizens, Permanent Residents, and foreigners with valid work permits or employment passes.
Personal loan requirements are proof of identification, income, and employment.
3. Payday Loans
Payday loans are recognised as Singapore’s short-term loans. It’s an excellent option to cover immediate monetary needs. But it must be paid on the next salary.
Licensed moneylenders grant payday loans to Singapore Citizens, Permanent Residents, and foreigners with work permits and employment passes. The maximum interest rate for a payday loan is 4% per month.
These are only a few financial options for a moneylender in Singapore. The Registry of Moneylenders regulates all registered lenders.
Registry of Moneylenders
It is a registry dedicated solely to Singapore’s licensed moneylenders. It is accessible online through MinLaw’s website. Upon opening the page, borrowers shall see an important note that discusses troubles encountered with unlicensed moneylenders in the country.
The note provided intends to enhance the government’s efforts in educating and warning the public about unlicensed moneylenders’ modus operandi and where to send reports when needed.
Below the critical note is the link to the PDF file with the list of licensed moneylenders in Singapore. The list comprises the licensed moneylenders’ business names, addresses, license numbers, landline numbers, and official business URLs.
For any moneylender in the country who’ve gotten their license suspended, their information is also disclosed at the bottom of the list.
In addition, the Ministry of Law persuades a clear warning and awareness effort regarding unlicensed moneylenders and how to report events.
Unlicensed Moneylenders Activities
Common signs of unlicensed moneylending activities in the country are;
- Intentionally luring borrowers via text messaging or messaging apps. The Moneylenders Act does not support such actions.
- Requesting for upfront fees to encourage a faster loan process or activation. All licensed moneylenders in Singapore are prohibited from asking for upfront payments from any borrower. If this ever happened, file a complaint to the Singapore Police Force through its hotline at 1800-255-000 or via www.police.gov.sg/iwitness
- Cold calls from supposed moneylenders are another form of illegal and unlicensed moneylending modus operandi. These calls have to be avoided or ignored. If a contact has been initiated, do not hesitate to reach ‘999’ for urgent Police assistance or at X-Ah Long hotline at 1800-924-5664.
- All of their transactions are done online, which is disallowed. All transactions connected to borrowing from a moneylender in Singapore must be processed and completed at the approved business locations.
- Unlicensed moneylenders are untraceable from the list provided by the Registry of Moneylenders. Thus, when the moneylender gives their name or business, it refers to the Registry immediately. If the details do not match the moneylender’s claim, report it to the authorities.
How Much Can You Borrow from Licensed Moneylenders in Singapore
Borrowers can apply for a secured loan from a moneylender in Singapore. The maximum loanable amount is nearly unlimited, depending on the collateral the borrower has provided.
For unsecured loans like personal loans, there’s a specific amount accessible to borrowers, and they will rely on their earned annual income.
For instance, Singapore Citizens and Permanent Residents with an annual income of less than $10,000 can loan as much as $3,000. On the other hand, foreign work pass holders may acquire $500.
Singapore Citizens, Permanent Residents, and foreign work pass holders with at least $10,000 and not exceeding $20,000 are all allowed to get the maximum amount of $3,000.
Every SRs, PRs, and foreigner residing in the country with at least $20,000 annual income is more than qualified to loan a maximum amount that’s six times their monthly income.
Moneylenders in Singapore Loan Caps
The Ministry of Law focused on the problems of overborrowing, illegal moneylending activities, and excess numbers of loan defaulters by imposing caps on loan costs.
The current loan caps licensed moneylenders can charge their borrowers are the following;
- 10% of the loan principal can only be charged one-time as an administrative fee.
- Regarding the interest rate, the maximum allowable charge is 4% monthly. Licensed moneylenders cannot appeal or decide to demand a higher rate. As the Moneylenders Act instructs, 4% is the designated interest rate for borrowing from a moneylender in Singapore.
- Since late payments can inevitably occur during repayment, the Moneylenders Act demanded a cap for late interest fees not higher than 4% per month. Furthermore, the Moneylenders Act officially enforced a $60 late fee charge to supplement the late interest fees loan cap.
Understanding Your Responsibilities as A Borrower in Singapore
For someone in genuine need of money, it is more than crucial to understand the amount you can borrow from moneylenders in Singapore. The information will help me and other borrowers consider the number of loans we’ll take and the computations attached, like interest and fees.
Borrowing any amount of loan is a big responsibility. The commitment to repay the debt entirely is beneficial for one’s credit history and score. What’s more, failure to pay the debt from licensed moneylenders could result in a lawsuit.
It is also essential to know that only some people or groups are posing as moneylenders in Singapore with licenses. Unlicensed moneylenders are always on the prowl to get new victims.
They are harsh in their ways and language. They have no respect for boundaries so long as they can keep attacking their targets and get the money they want.
Despite the efforts of the Singapore Police Force and Ministry of Law, there’s no better way to battle illegal activities than submitting a complaint when one experiences it first-hand.
As a responsible individual belonging to Singapore’s community, you must share all government warning signs.