Permanent Resident and Moneylending in Singapore

Moneylending is a standard financing method used in Singapore and is a top choice by most people. However, for a permanent resident like you, the process may be a bit complicated in some ways.

It’s mainly because Singapore imposes strict regulations concerning moneylending. These laws and regulations ensure that borrowers like you have equal rights, so exploitation may not occur from unethical moneylenders. 

Do you find it intriguing and want further information about moneylending for permanent residents? If that’s the case, you’re in the perfect place. 

This article will grant you a thorough explanation regarding moneylending in Singapore. Moreover, you’ll learn about some details and the moneylending process applicable to permanent residents in the country.

What is a Permanent Resident in Singapore?

Singapore is famous for its multi-ethnicity and rich yet diverse culture and heritage. These unique aspects often attract people from all over the world to visit the country. It’s also among the main reasons foreigners have compelling feelings about staying in Singapore for extended periods.

Such is the case you can relate to Singapore’s permanent residents (PR) community. You’re among the foreigners with legal rights to live and work in the country long-term. 

You can enjoy many of the same legal rights and benefits as Singapore Citizens, such as:

Permanent Resident Employment Opportunities:

PRs can work in any job without presenting an employment pass or work visa. PRs also have permission to start their businesses in the country.


PRs in the country also attend public schools and institutions for higher education. Moreover, you pay lower education-related fees than international students for public education.


A permanent resident is eligible for government healthcare subsidies and can enrol for MediShield Life. It’s the country’s national healthcare system. MediShield Life provides PR access to the most affordable healthcare and comprehensive hospitalisation coverage.

Permanent Resident Public Housing:

PRs in Singapore have the freedom to choose their living spaces. You can either buy or have the authorisation to rent public housing too. 

The public housing available for you as a PR is the Housing and Development Board (HDB) which will acquire lower rates compared to individuals who are non-permanent residents. 

Permanent Resident Central Provident Fund (CPF) Contributions:

Individuals who’ve succeeded in becoming Permanent Residents must contribute to the country’s savings scheme. CPF is mandatory and meant to assist you in saving up for your healthcare, retirement, and housing needs. 

CPF contributions are under three specific accounts Special Account (SA), Ordinary Account (OA), and Medisave Account (MA). 

Flexibilities on Immigration:

Permanent Residents in Singapore acquire better flexibility regarding immigration policies. You can travel in and out of the country without a visa. You may apply to become Singapore Citizen after at least two years, with clean records and a commitment to living and working in Singapore for a long time. 

Permanent Resident Social Security:

Singapore proffers different social security benefits to its community. Permanent Residents in the country can access these benefits, particularly Silver Support Scheme and Workfare Income Supplement.

It’s an excellent support system for those who earn lower-income and elderly citizens. 

Business and Investment Opportunities

In Singapore, Permanent Residents have equal opportunities to establish start-up businesses and make investments, particularly with stocks and properties. 

Government schemes are accessible to you as well, like the Productivity and Innovation Credit (PIC) scheme. The PIC scheme provides tax incentives for companies that invest in product innovations and improvements.

Permanent Resident Tax Benefits

Tax benefits are available for you as a PR in Singapore. You may expect lower property and personal income tax rates.

Permanent Resident Access to Loans

Permanent Residents like you in the country have access to loan products and services from banks, financial institutions, and licensed moneylenders.

These loan products vary extensively and can be helpful for you needing extra funds for business ventures, covering unanticipated expenses, purchasing properties, vehicles, or repairs.

Among the three, moneylending mostly fits a permanent resident’s financial needs. Here’s what a permanent resident has to know about moneylending in Singapore. 

What is Moneylending in Singapore?

Moneylending in Singapore is a reliable financing practice where individuals can borrow money for many purposes. Licensed moneylenders proffer such financial assistance to their borrowers. 

A Permanent Resident like you in the country can obtain such privileges but should be cautious about debt cycles or falling victim to ah longs or loan sharks. Furthermore, what must you do as a PR to gain loan approval from a licensed moneylender?

The Ministry of Law strictly regulates moneylending in the country. The Moneylenders Act and Rules protect licensed moneylenders and borrowers. 

Moneylending Regulations in Singapore

Moneylending in Singapore is direct. A borrower seeks a licensed moneylender. The registered lender proffers their financial assistance to the borrowers and allows loan access like personal loans to the borrower needs.

Permanent Residents in the country have favourable access to licensed moneylenders as well. It’s among the privileges you can experience as a PR. Moreover, you’re well protected by the moneylending regulations imposed by the Ministry of Law to legal moneylenders, such as:

  • Borrowers have to satisfy eligibility and requirements
  • Explaining the terms and conditions associated with the loan agreement to their borrowers
  • 4% maximum interest rate per month
  • 10% one-time payment of administrative fee from the principal loan
  • Missed payments have penalties such as 4% monthly for each late or missed payment and a late fee not exceeding $60

The laws and regulations primarily focused on loan cost capping, which diminishes the excessive loan and overborrowing circumstances in moneylending. You may choose different types of loans that would suit your financial requirements. What are these loans?

Types of Loans for PRs

Licensed moneylenders in Singapore are the main and only legal business operators associated with moneylending. A person interested in obtaining a loan request has to search for these moneylending financial institutions. Here are the types of loans accessible for PRs like you offered by registered moneylenders:

  • Personal Loans are unsecured loans that may be utilised for different monetary purposes like purchasing goods or services, paying bills, travelling, etc. A personal loan is the ideal type of loan for different needs.
  • Business Loans are ideal for PRs who are SMEs in Singapore interested in starting or expanding their businesses.
  • Education Loans are perfect for PRs who require additional monetary help for their children’s education, accommodation expenses, tuition fees, and other related expenses.
  • Medical Loans are best for PRs who require extra funds to cover medically-related expenses like medical procedures, surgeries, and treatments. A medical loan is especially an excellent help when their insurance does not cover medical costs.
  • Renovation Loans are a fantastic loan choice for remodelling or renovating your home or space. 
  • Payday Loans are short-term loans specifically designed to assist PRs in covering unexpected expenses or bridging the financial gap before their next paycheck. It’s a perfect loan only for short-term periods. 

These loans are subject to the maximum 4% interest rate imposed by the Ministry of Law and other charges. You must also comply with paying the monthly interest rates and fees to ensure a problem-free loan transaction. 

In addition, you should visit the Ministry of Law’s website and search for the best-accredited lenders in the country from the Registry of Moneylenders. Why should a Permanent Resident like you gain access to the Registry?

Registry of Moneylenders

Some lenders may claim to offer lower interest rates or fees. However, it’s important to note that other lenders claim to provide moneylending services legally. 

Yet, it’s a scam as those entities or ah longs operate outside the government’s moneylending laws. Thus, they are illegal, and activities are unlawful as well.

To avoid becoming a victim of illegal moneylenders or ah longs, you must visit the Ministry of Law site and search for the Registry of Moneylenders. 

The Registry is a compilation list of all accredited and licenced moneylenders in the country. The details accessible from the list are the business name, address, contact number, site, and licence number. 

After getting the crucial information, you can connect with these financial institutions to get a loan. But, proper steps should be in order and followed accordingly.

You must satisfy specific eligibility criteria and requirements before being awarded a loan. 

Permanent Resident Moneylending Eligibility Criteria

Although Permanent Residents have access to loan products from a licensed moneylender, you must be eligible first and foremost. For a PR to successfully apply for a loan, you must meet the following requirements:

  • Age: PR borrowers should be twenty-one years old
  • Income: Applicants must have a steady source of income, such as from employment or business, with a minimum income of S$20,000 per annum. Proof of income is a reliable basis that the applicants can repay the loan. Borrowers need to provide their recent payslips or bank statements.
  • Employment proof: PR applicants must have a validated employment pass or S Pass issued by the Ministry of Manpower
  • Proof of identity: To fulfil the proof of identity eligibility, a PR must provide their passport or NRIC
  • Proof of residency: PRs can provide their most recent utility bill as proof of residency and other supporting documents such as tenancy agreements or bank statements.
  • Credit score: Singapore utilises the credit score system to assess the borrower’s creditworthiness. A PR must have a good credit score to amplify their opportunities of getting their loans approved. 

It’s crucial to note that these eligibility criteria are the general requirements asked from a PR. It may also vary depending on the licensed moneylender and their loan specialisation. Additional eligibility requirements might be asked.

So, PRs must communicate with the legal lender you’re working with to obtain the specifics of the eligibility criteria. 

Permanent Resident Application Process for Moneylending

The application process a PR needs to accomplish is simple yet has to be done meticulously. It ensures that the loan applicant’s efforts won’t go to waste.

For one, a PR must select a reliable and credible licensed moneylender. The only way to attain this task is by filtering the registered lenders via the Registry of Moneylenders from the Ministry of Law’s website.

Gathering the documents is imperative, along with satisfying the required eligibility criteria. Every document should be accurate and up-to-date, as a minor error could delay the loan process. Or ultimately cause issues that’ll halt the procedure altogether.

Applications can be filled out and submitted online or in person. PRs who are primarily busy prefer the online application process. Nevertheless, applying in person is best, especially if the borrower wants to acquire well-rounded financial assistance and loan guidance from a licensed moneylender in Singapore. 

Waiting for the loan approval takes a while. But it wouldn’t be traditionally extensive, like applying for a loan from a bank. It can take several days, yet licensed moneylenders can approve the loan within the same day if the PR borrower has submitted a proper application form and documents.

Signing the loan agreement is mainly done after the loan has been approved. The contract shall outline the specific loan terms and conditions, including the interest rate, fees, repayment schedules, and penalties. The agreements should be signed in person to better communicate with the licensed moneylender if the borrower has important queries to discuss. 

Loan disbursement happens after the loan agreement is signed and a copy is given to the PR. The PR shall receive the disbursement in cash or via bank transfer to the bank account in the application form. 

How to Guarantee a Rejection-Free PR Loan Application

A loan application rejected is probably the biggest worry any person would have to deal with, and yes, even PRs like you could experience such an ordeal. The good thing is there are ways you can do to avoid these circumstances. 

To guarantee the chances of loan approval and ensure a rejection-free application, here’s what you have to do:

  • Maintain your good credit score by paying your bills and existing loans on time. No matter what happens, never, ever commit late payments. Late payments would cause extra fees, amplifying the overall loan costs.
  • Love your job not only because you’re gaining good pay but because a stable source of income and employment is essential when getting a loan. Regardless of how small or big your wage is, making sure you take care of your profession does grant you benefits to gain.
  • Always borrow within your means because you can pay it on time and won’t struggle to afford it. Consider your monthly income and expenses to guarantee funds to pay the loan dues.
  • Be accurate and truthful as possible, particularly when filling out the application form. Minor errors can quickly derail the overall process and sometimes cause loan rejection.

Sometimes, the loan may be rejected. It’s a possibility that many borrowers like you could face. Nevertheless, there are steps a PR can take to resolve the issue.

Permanent Resident Loan Tips to Apply

It’s crucial to ask for feedback after the loan undergoes rejection. Ask the licensed moneylender you’ve worked with for their input regarding your loan application and why it was denied. Use this situation to understand the process better and improve your application for future loans. 

Search for other registered lenders in Singapore. Some registered moneylenders may have specific preferences, and others may be able to understand your needs and help you better.

Improve your credit score every chance you get. Pay your dues on time by opting for automatic repayments via your bank or discussing it with the financial institution you have an existing debt.

Last and certainly never least, seek financial counselling. Financial counsellors will assist you in assessing the root cause of your monetary issues. These professionals can proffer financial management skills to help you break free from bad money habits to qualify for future loans.

Final Thoughts

As a PR, the privileges are noteworthy and beyond excellent. That’s a fact. But, about obtaining a loan, everyone must comply with the Ministry of Laws’ regulations. 

Understanding the steps and eligibility criteria and meeting all requirements sincerely can lead to obtaining the loan. So, when needing financial assistance, only search for a licensed moneylender and fulfil the PR requirements wholly and diligently for a trouble-free loan experience in Singapore. 

Don’t let financial challenges hold you back. As a permanent resident in Singapore, apply for a loan with Accredit Money Lender today. We understand your needs. Take control of your finances now when you click here!

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