365 Credit Solutions Pte Ltd is a licensed moneylender (License No. 17/2024) listed in the Registry of Moneylenders, under the Ministry of Law in Singapore.​

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How Much is the Interest Rate Being Imposed by Licensed Moneylenders?

Interest Rate Singapore

Thousands of Singaporeans have chosen to trust licensed moneylenders at times of their financial need. Given the fast and easy service offered by these legitimate and legal moneylenders in Singapore, it is no doubt that more and more people are considering borrowing money from these businesses. But before filing a loan application, you have to know first how much interest rate these financial institutions charge. By doing so, you get to set your expectations on how much you have to pay when settling your credit.

How Much Interest Rate Can a Legal Moneylender Charge?

One thing you have to know about moneylenders in Singapore is that they are under the rules and regulations of the Ministry of Law. Only businesses that abide by the rules set by the government are allowed to operate. The list of legitimate moneylenders in the country can be found here. To ensure that a borrower is not charged with exorbitant interest rates, the government limits how much these moneylenders can charge.

To date, legal moneylenders are only allowed to charge up to 4% of the principal loan amount per month. This limit is applicable to all types of loans including personal loans, fast cash, foreigner loan, secured loans, etc. regardless of the annual income or monthly income of the borrower. This means that if you borrow SGD 1,000 and you are supposed to pay after a month, your interest charge will be a maximum of SGD 40.

Remember that this is only the percentage cap. Some lenders offer interests as low as 1% or 2% of the principal loan amount. In order to get the lowest or cheapest loan deal, you have to choose the Singapore lender with the least interest rate charge.

What Fees Do You Need to Know Before You Borrow?

Take note that as a borrower, you are not only paying for the interest of your loan. You also have to pay for other fees and charges. Each licensed moneylender has its own rates and payment charges. Despite this, the Singapore government has set a limit on how much these businesses can ask a borrower.

1. Interest Rate

As mentioned above, the interest of all types of loans, regardless of the borrower’s annual income or monthly income as well as whether the loan is secured or unsecured, is at 4% max. If you are borrowing money, the interest will be the bulk of the fee you have to pay to the loan company.

2. Late Payment

If you fail to repay your loan on time, the lender can charge you a maximum rate of late interest of 4% per month for each month the loan is repaid late. This means that the longer you settle your debt, the higher the late payment fee you have to pay.

For example, if you borrowed SGD 1,000 and you are supposed to pay $1,040 a month after you got the loan, you will be charged with at most SGD 1,081.6 if you fail to pay back on time. If you fail to repay that again, your next charge will be at SGD 1,124.86. But of course, this computation will depend on the loan agreement you had with the moneylender.

3. Early Repayment

When it comes to early repayment, a licensed moneylender would usually neither charge the borrower nor give incentives. Still, borrowers are advised to settle their monthly charges early or on time to avoid paying more. For many, paying an additional 4% is costly.

4. Processing Fee

Also called a service fee, the processing fee should not exceed 10% of the principal of the loan amount. Remember that you will only have to pay this once the loan is granted. In recent years, moneylenders in the country have become innovative in the fees they charge. Hence, make sure to negotiate with the loan officers of your chosen credit company to know if it’s possible to waive certain fees and charges.

How Can I Identify a Licensed Money Lender?

As mentioned above, the quickest way to identify legal moneylenders in the country is of they are included in the list of the Ministry of law. Aside from this official list, know that there are other tell-tale signs to know if the businesses you are dealing with is legitimate or not.

One way to identify legal moneylenders is to pay attention to how they advertise. According to existing rules and regulations, they are only allowed to use three channels such as: 1.) through business or consumer directors whether on print or online media; 2.) websites owned by the credit company; and 3.) advertisements placed within or outside the business premises of the credit company. This means that if you receive flyers, emails, SMSes, and other advertisements from a company, it is likely that it is an illegal one.

What Are Some Prohibited Practices for Licensed Moneylenders?

Aside from charging exorbitant fees, Singapore moneylenders are also prohibited from doing the following towards their clients. If in case you experience any of these, report to the authorities immediately. You can send your complaints here.

  • Use force and intimidation, especially at times of late repayment
  • Keep the borrowers’ NRIC card and other personal documents and identification cards
  • Ask borrowers to sign a blank or incomplete loan contract
  • Grant loan without giving a copy of the Note of Contract
  • Grant loan without properly explaining all the terms and conditions to the borrowers

What Are the Requirements to Borrow Cash From Licensed Moneylenders?

If you wish to get a loan from a legitimate loan company in Singapore, here are some of the requirements you might need to submit. Note that each loan company has its own process. Some might ask you more requirements to submit while others would not.

  • Accomplished loan application form
  • Utility bills
  • Payslips
  • Income tax statements

Note that foreigners may have to submit other documents than Singapore citizens and permanent residents. if you are a foreigner living in Singapore, here are what you may need to provide.

  • Passport
  • Valid employment pass
  • Bank statements
  • Copy of tenancy agreement of the borrower


Licensed credit companies continue to be popular. If you are one of the many Singaporeans thinking of borrowing from these businesses in the near future, it is important that you understand the loan terms offered by these institutions. Read and research more about interest rates, available loan amounts, credit regulations, and many more. As a future borrower, it should be clear to you how much you are being charged for the loan you are about to make.

To know more about the relevant laws and regulations that money lending companies must follow, you can check this out. MinLaw Singapore has compiled a list of rules that borrowers should know. Also, you can read blogs and posts online to know more information about taking a loan in Singapore.

If you are looking for a loan company that can offer you a quick and easy service, you can check out the loan offerings of 365 Credit Solutions. We have various types of loans available, including the best personal loans, payday loans, personal loan for foreigners, business loans, and bridging loans. For reasonable interest rates for borrowers, you can contact us here, and we will provide you the necessary information.

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