10 Ways To Recognize a Licensed Money Lender in Singapore

When life throws you a curveball—whether your utility bills or school fees—you need money. And no matter how much you try, there never seems to be enough.

We sympathize with you, and we understand that it can be hard to differentiate between legal, licensed money lenders and illegal, unlicensed, loan shark money lenders. Here’s where we at SKM Credit come in. We’re here to guide you on how to go about getting your loans no matter how small or large. We are licensed money lender in Singapore located in heart of Toa Payoh. Here are some advice to know if you are borrowing from a legal, Ministry of Law Singapore approved, money lenders.

What is a licensed money lender?

Licensed money lenders are money lenders that are approved and governed by Singapore’s Ministry of Law (MinLaw) and the Registry of Moneylenders (ROM). 

They offer a multitude of loans to Singaporeans and foreigners alike. They are also much more flexible with approvals and repayment options compared to banks, so borrowers receive financial aid fast.

They also have to comply with behavioural standards set by Singapore’s Ministry of Law, unlike unlicensed money lenders.

How can you recognise a licensed money lender in Singapore?

#1 They are listed on the registry of licensed money lenders

You can find a full list of licensed money lenders here on SG Top Choice, or the Ministry of Law’s page. The money lenders listed are fully authorized money lenders in Singapore. They have been approved by both the Ministry of Law and the Registry of Moneylenders and thus, are bound by law to engage in ethical, legal practices.

This list changes occasionally so do check on it before you make any money lending decisions.

#2 The company has a physical address

All borrowers must visit the licensed money lender office for verification. This is where you prevent your identification and discuss risks. If the company does not have a physical office or requests a meeting in unknown places/ other private property like Macdonald’s, you are most likely dealing with an illegal, unlicensed money lender (aka a loan shark).

#3 They advertise through proper channels

As stated by the Ministry of Law, licensed money lenders in Singapore are only permitted to advertise through:

• Business or consumer directories
• Websites belonging to the licensed money lender
• Advertisements placed within or on the exterior of the licensed money lender’s business premises

If you are already in the process of borrowing from a money lending firm, here are some extra tips you should look out for

#4 Licensed money lenders provide copies of important documents for you

#5 Licensed money lenders will return, not retain, your NRIC card or any of your ID documents

#6 Licensed money lenders disclose all details and answer all questions

#7 Licensed money lenders confirm your ability to repay the loan

#8 Licensed money lenders do not ask for your SingPass ID and/or Password

#9 Licensed money lenders follow standard interest rates and fees imposed by the Registry of Moneylenders

#10 Licensed money lenders explain risks and loan limitations