If you are thinking about a loan, the biggest decision is not how much to borrow. It is who you borrow from.
Singapore regulates moneylending closely, and the rules a licensed moneylender must follow are specific and enforceable. Unlicensed lenders follow none of them. The gap between the two is not a matter of service quality or interest rate. It is the difference between a capped, documented, legally accountable loan and one where nothing you were promised has to be honoured.
The good news is that verifying a lender takes about five minutes and costs nothing. This article walks through exactly how to do it, what a legitimate operation looks like, the warning signs that should stop you, and the questions worth asking before you sign anything.
Why this matters more than the interest rate
Licensed moneylenders in Singapore are regulated by the Registry of Moneylenders, which sits under the Ministry of Law. Not the Monetary Authority of Singapore, which regulates banks and financial institutions. The distinction matters when you are checking credentials, because a lender claiming to be MAS-regulated is either confused or misleading you.
Licensing brings hard limits. As of August 2026, a licensed moneylender may charge no more than 4% per month in interest, calculated on the balance you still owe rather than the amount you originally borrowed. Late fees are capped at S$60 for each month of late repayment. The administrative fee cannot exceed 10% of the principal. And interest, late interest, late fees, and the administrative fee combined can never exceed the principal you borrowed, no matter how long the loan runs.
An unlicensed lender is bound by none of that. There is no ceiling on what they can charge, no requirement to explain terms, no obligation to give you paperwork, and no realistic recourse if the arrangement turns against you.
How to verify a moneylender’s licence in four steps
This is the single most reliable check available, and it takes minutes.
- Get the exact business name and licence number. A licensed moneylender displays these on their website and at their business premises. Ask directly if you cannot find them.
- Open the Ministry of Law’s list of licensed moneylenders. It is published by the Registry of Moneylenders and is the definitive record.
- Match three things, not one. The business name, the licence number, and the registered address should all correspond to the same entry. Scammers frequently borrow a real licensed lender’s name or number while operating from somewhere else entirely.
- Check the contact details against the listing. If the phone number or address you were given does not appear on the Registry’s entry, treat that as unresolved until the lender explains it.
One detail catches people out. Licence numbers are reissued on renewal, so the number a lender displayed last year may not be the number on the current list. If the number does not match, ask before assuming the worst, but do ask.
What a legitimate moneylender looks like
A licence number you can check. Displayed openly on the website, on contact materials, and at the premises. Not supplied reluctantly on request.
An entry on the official Registry list. Every licensed moneylender appears. No exceptions, no pending statuses.
A real business address. Licensed moneylenders operate from approved premises where you can review terms and ask questions.
Charges disclosed upfront. Interest rate, administrative fee, and any late charges should be explained before you commit, not revealed at signing.
Proper identity verification. A licensed lender will verify who you are as part of assessing your application. They may examine your NRIC. They may not keep it, and they may not ask for your Singpass login credentials.
A written contract. You should receive a copy of the Note of Contract setting out the terms, explained in a language you understand.
An assessment, not an approval. Every legitimate lender assesses your income, your existing loans, and your ability to repay. Approval follows that assessment. It is never guaranteed in advance.
Red flags that signal a scam
Unsolicited contact. A licensed moneylender in Singapore may not send you unsolicited SMS, WhatsApp messages, emails, or cold calls offering a loan. Advertising is restricted to a narrow set of permitted channels, and direct messaging is not one of them. An unexpected loan offer on your phone is one of the clearest signals available.
Guaranteed approval. No licensed lender can promise approval before assessing you. Any version of “everyone approved” or “no credit check needed” is a fabrication.
Upfront fees before disbursement. Requests to pay a “processing fee” or “insurance deposit” before any money reaches you should stop the conversation. This is the mechanism behind a large share of loan scams: the fee is collected, and the loan never arrives.
No verifiable address. Contact conducted entirely through messaging apps, with no premises you could visit, is not how a licensed operation works.
Licence details that do not match. A missing licence number, a vague answer about licensing, or a number that does not correspond to the Registry’s records.
Pressure to sign quickly. Urgency is a sales tactic, and on a regulated product it is a warning. You are entitled to read the terms and think about them.
Requests for your NRIC, ATM card or banking credentials as security. Retaining a borrower’s identity documents is prohibited, and no legitimate lender needs your banking logins.
Licensed and unlicensed, side by side
| Licensed moneylender | Unlicensed lender | |
|---|---|---|
| Regulator | Registry of Moneylenders, Ministry of Law | None |
| Interest | Capped at 4% per month (as of August 2026) | No limit |
| Late fee | Maximum S$60 per month of late repayment | No limit |
| Administrative fee | Maximum 10% of principal, charged once | Any amount, often demanded before disbursement |
| Total charges | Cannot exceed the principal borrowed | No limit |
| Contract | Note of Contract, explained in a language you understand | Often nothing in writing |
| Your NRIC | Verified, then returned to you | Frequently retained as leverage |
| If something goes wrong | Registry of Moneylenders, and the courts | No practical recourse |
Questions worth asking before you borrow
A legitimate lender will answer all of these without hesitation.
Is interest charged on my original loan amount or my remaining balance? On the remaining balance. As you repay principal each month, the interest charged the following month falls with it. A lender charging interest on the original sum throughout the term is not following the rules.
What is the total I will repay, including all fees? Ask for one figure covering interest and the administrative fee together, not a monthly rate on its own.
Will the administrative fee be deducted from what I receive? This determines how much cash actually reaches you on the day, which is often less than the amount you borrowed.
What happens if I miss a repayment? The answer should be specific: a late fee capped at S$60 per month, and late interest charged only on the amount that is overdue, not on the whole outstanding balance.
Where can I check that you are licensed? The Registry of Moneylenders’ published list. A lender who cannot point you to it, or who discourages you from checking, has told you something important.
If you think you are dealing with an unlicensed lender
Stop the transaction. Do not send money, do not hand over documents, and do not sign anything.
Report it. Unlicensed moneylending can be reported to the police, and the Registry of Moneylenders maintains a hotline for questions about licensed moneylending. Both numbers are published on the Ministry of Law’s website.
If you have already handed over identity documents or banking details, treat it as urgent and act on the same day.
Before you commit to any loan
It is also worth checking whether you need a loan at all. Government agencies and community organisations in Singapore run financial assistance schemes for specific situations, and those are worth exploring before borrowing commercially. A loan you do not need is expensive at any interest rate.
If a loan is the right move, the sequence is simple. Verify the licence against the Registry’s list. Get every charge in writing. Read the Note of Contract properly, including the parts you would rather skip. Then decide.
Five minutes of checking is a reasonable price for knowing exactly who you are dealing with.
RM CREDIT PTE. LTD. is a licensed moneylender (Licence No. 145/2025) regulated by the Registry of Moneylenders, Ministry of Law. You can verify any moneylender’s licence on MinLaw’s list of licensed moneylenders before you apply. Borrow only what you need and are confident you can repay on time, as late fees and late interest add up quickly.
