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How to Find a Reliable Moneylender for a Personal Loan

If you are in need to borrow money, don’t rely on loan sharks. For one, loan sharks are often illegal lenders who abuse the system by pretending to be an authorized moneylender. They often target people who can’t borrow from legal sources. At first, they might seem friendly but borrowing from them is never a good idea if you have other options.

With a reliable moneylender list, you can make sure to apply for a personal loan of your choice. Here’s how to check whether a lender is legitimate:

Know Where to Start

A simple way is to vet a company thoroughly – and if you haven’t vetted already, start by doing so online. A simple search query should generate a reliable moneylender list to get you started. 

Look for their online footprint, any associated reviews, or signs of negative news stories. Then it’s reasonable to follow up with the lender search by name to check if the lender is trustworthy.

Make Sure the Money Lender Is Approved To Operate In Singapore

With hundreds of licensed moneylenders listed in the Singaporean Law Ministry’s records, make sure to skip the lenders who are not registered in these records. These laws are created to protect both borrowers and moneylenders. It also lays out the parameters as to how money lenders must collect, use, or disclose the information and data of the borrowers. 

The amount of personal loans that you can borrow from a moneylender depends on various factors. For example, for secured loans, you can borrow any limit of the loan amount. 

Next, for unsecured loans, you would need to be a PR or a Singaporean citizen and fall under an income bracket of $20,000. In this case, you can borrow up to $3000. But if you are earning more than $20,000 annually, you can borrow more.

Again, if you are a foreigner in Singapore, you can accept a loan of up to $1500 if your income is less than $10,000 each year and $3000 if your income is less than $20,000 or at least $10,000.

What Are The Interest Rates That You Could Be Charged?

Singapore law lays down the interest rate cap that money lenders can charge to 4% per month. As a borrower, you are entitled to this 4% regardless of your income. For a detailed breakdown of interest and other charges, you can check the guide from the law ministry. The details are listed under the Moneylenders Act.

Don’t Get Into Advertising Scams

Many loan sharks or illegal moneylenders may trap you with scams. Most of them run through advertisements. That means you need to be extra careful when choosing a moneylender.

On the other hand, permitted moneylenders advertise only through:

  • Business directories
  • Legitimate websites owned by a licensed moneylender
  • Physical office space in a brick or mortar premise

Please do not respond to any SMS, emails, or flyers offering you a loan, as they are likely to be illegitimate businesses. As said earlier, check the Registry of moneylenders if you are in doubt, and go through the moneylender list.

Signed Contracts from Legitimate Money Lenders

Authorized moneylenders always provide you with a signed contract and a legal document to know and understand the agreement you have entered. Also, they will give you receipts every time you make any repayment of the loan. 

Your receipt would contain your name, amount, and the date and prove that the loan has been paid. It authorizes that you are safe in the future if any conflicting claims arise. This documentation also serves as a receipt for all transactions made between both parties.

Finding the best lender for a personal loan can be tricky. But, with all these points in mind, you can find a trustworthy moneylender in Singapore. Also, know about the steps to remember while selecting your first credit card.


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