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365 Credit Solutions Pte Ltd is a licensed moneylender (License No. 20/2021) listed in the Registry of Moneylenders, under the Ministry of Law in Singapore.

The Ultimate Guide to Licensed Money Lender in Singapore

Couple Applying Loan From A Reliable Money Lender Singapore

Whenever in need of financial assistance, make sure that you only apply from a licensed money lender. This is because loan sharks are rampant, waiting for the vulnerable to deceive victims of their pretentious promotions.

Rest assured, the business of money lending is governed by the Ministry of Law for the purpose of protecting the rights and well-being of borrowers.

More importantly, when you default from payment of loans, they cannot resort to harassment, intimidation, and threat. Avoiding engagements with predators will guarantee your safety above all.

Things to Consider Before Borrowing

Like in many other things, there are a variety of factors to keep in mind before availing your much-awaited loans. We’ve listed them down to help you:

  1. Remember to never borrow to pay off another debt. As much as possible, do not apply for deals to cover up an existing one. If you can afford to pay off your debts reasonably simply by being dedicated and financially responsible, then that’s what you can do. Note that most strategies in paying down debt off new loans do not work for everyone.
  2. Ask yourself if you really need the loan and what is your purpose behind. Before anything else, it is ideal to double-check whether your goal in getting a loan is reasonable. As it is urged, you shouldn’t take a loan in order to live a lifestyle you cannot afford. Better yet, never borrow cash that you cannot repay. Some purchases that seem necessary for your goals might also come with higher-end options that are not justifiable.
  3. Can you afford it? Understand the term of the loan, from its repayment schedule, interest, loan amount, and other fees. Even when borrowing, working out on a budget is necessary. Practice in calculating the amount you will be repaying including all the payments and extra costs. You can easily compare that with what you earn to balance your current and future expenses. Take note that loans should be within a borrower’s means. Avoid overspending and control your cashouts.
  4. Verify if a moneylender is licensed by the Ministry of Law. Singapore law requires licensed moneylenders to explain the terms of your loan in a language clients can easily understand. If one hands you a contract and refuses to explain the terms in the language that you understand, it’s very likely that you are dealing with a loan shark.
    Licensed moneylenders also always have you sign a contract. It must be printed copy and include information on the interest rate, late payment fees, the repayment period, and other necessary details.
  5. Shop around to find the best rates and customized loan plan for you. To find the best deal that suits your financial worries, there is no harm in shopping around to get the ideal rates. This allows you to select from a variety of licensed lenders that meet your demands. Consider all the contributing factors that may affect your account, credit score, as well as your future purchases and transactions.

What Type of Loans Can You Borrow from Licensed Money Lenders?

There are two major types of loans, secured and unsecured ones. As the name implies, unsecured loans have no collateral backing, thus, require no security. Should a borrower defaults on this type of loan, the lender must initiate a lawsuit to collect what is owed?

With this, lenders will issue funds based only on the borrower’s creditworthiness and promise to repay. On the other hand, secured loans are wherein the borrower puts up their assets as collateral for the deal. With this, the lender can use the asset to repay the funds it has advanced the borrower.

Moreover, these are the kinds of loans people can apply from most lenders in Singapore:

Woman Smiling While Using Her Phone

Personal Loan & Foreigner Loan

In Singapore, this deal does not require borrowers to provide any collateral such as a house, car, or other possible assets to avail of deals. It is approved only based on creditworthiness, monthly or annual income, repayment history, employer reputation, etc.

It can be used for multiple purposes, like meeting expenses of a medical emergency, travel, house renovation, as well as debt consolidation, etc which comes with flexible tenure either for the short term or long term.

Features Banks Moneylenders
Loan amount Up to 10x monthly salary Up to 6x monthly salary
Interest rate From nearly 4% p.a. Up to 4% per month
Repayment period Up to 5 years Up to 12 months subject to the terms & conditions of the agreement
Application approval A few days Within 30 minutes
Eligibility Must be 21 years old and have a minimum annual income of $30,000 for citizens and permanent residents and $40,000 for foreigners Must be 18 years old with a minimum annual income of $18,000 for citizens and permanent residents and $24,000 for foreigners
Typical requirements For citizens and PR: NRIC, proof of income, and proof of residence.

For foreigners: Passport, work permit, proof of residence, income, and employment letter

In general, banks have higher requirements for you to qualify.

Man With Pen and Phone Calculator

Payday Loan

Payday loans are short-term loans that can help you cover immediate cash needs until you get your next paycheck. These are typically due within a month—or close to your next payday. It functions differently than personal and other typical deals. Depending on where you live, you can get a payday loan through a physical branch with a payday lender.

Moreover, accessing a payday loan is convenient as borrowers only need to meet a few basic requirements, which include a stable source of income. As long as the income is consistent, you are almost guaranteed to find a willing lender.

As the name indicates, in a Payday Loan, you can borrow up to one month’s worth of your salary to help with your short-term financial issues and repay it back on your next paycheck.

Features Moneylenders
Loan amount Up to 1 month of your salary
Interest rate Up to 4% per month
Repayment period Within a month or on the next payday
Application approval Within 30 minutes
Eligibility Must be 18 years old with a minimum annual income of $18,000 for citizens and permanent residents and $24,000 for foreigners
Typical requirements For citizens and PR: NRIC, proof of income, and proof of residence.

For foreigners: Passport, work permit, proof of residence, income, and employment letter

Clock and Calendar with Woman on phone

Monthly loan

Similar to payday loans, this type of deal is on a term-basis. If you want to find a way to pay for your home improvements, vacations or even pay back your car loans, this can still be the right service for you. Monthly loans are likely to offer you stability when you have a tight budget.

Features Moneylenders
Loan amount Up to 6x monthly salary
Interest rate Up to 4% per month
Repayment period Up to 12 months subject to the terms and conditions of the agreement
Application approval Within 30 minutes
Eligibility Must be 18 years old with a minimum annual income of $18,000 for citizens and permanent residents and $24,000 for foreigners
Typical requirements For citizens and PR: NRIC, proof of income, and proof of residence.

For foreigners: Passport, work permit, proof of residence, income, and employment letter

Business Meeting

Business Loan

Given, as the name suggests, this type of package is something you can avail of in meeting urgent needs for your growing business or ventures. These are welcome for start-ups and small businesses are corporate entities.

If their commercial activities indicate their earning and growth potential, banks will quickly rally behind them. On the other hand, CEOs and sole proprietors with bad credit can always seek help from a licensed lender, who can then offer them up to $200,000 payable within a year.

Features Banks Moneylenders
Loan amount Up to $500,000 Up to $200,000
Interest rate From nearly 12% p.a. Up to 15% per month
Repayment period Up to 5 years Up to 2 years subject to the terms & conditions of the agreement
Application approval A few days Within 30 minutes
Eligibility
  • The company must be registered in Singapore
  • 30% of shareholders have to be Singaporean PRs or citizens
  • Business must be operational for at least 2-3 years
  • No more than 10 employees or annual turnover not exceeding S$1 million
  • The company must be registered in Singapore
  • Operational for at least 1 year
  • Has a minimum turnover of $60,000
Typical requirements NRIC of all business partners, ACRA, income tax notice, financial statement, utility bills, tenancy agreement, etc.

Banks may require a guarantor.

Model House on Hand

Bridging Loan

Bridging loans are specially designed for Singaporeans who want to purchase a new property, like a house or flat, but need to borrow additional capital to fund the purchase. These loans can help you bridge a financial or working capital gap when upgrading or moving home.

Features Banks Moneylenders
Loan amount 15-20% of the purchase price of your new home Up to 6x monthly salary
Interest rate 5-6% p.a. Up to 4% per month
Repayment period Up to 6 months Until your house completion date
Application approval A few days Within 30 minutes
Eligibility N/A
  • At least 18 years old
  • Exercised the option to purchase OTP
  • No minimum salary required
Typical requirements NRIC, copy of the OTP, proof of residence, and income

What Is A Licensed Moneylender?

A licensed moneylender is a financial group that offers lending services legally and in Singapore, it is one that abides by the rules of the Ministry of Law.

Moneylenders are institutions that enable individuals and businesses to accomplish things they wouldn’t be able to do without financial support that needs to be repaid— or a loan. Its repayment will include the payment of any interest or fees which may occur in increments, as in a monthly mortgage payment.

How To Verify If A Moneylender Is Licensed?

Do not borrow from unlicensed moneylenders. You can easily verify that a moneylender is licensed by checking the list of licensed moneylenders. Click here to access the list of licensed moneylenders.

Notwithstanding that the moneylenders are licensed, be mindful if they:

  • Use abusive language, or behave in a threatening manner towards you.
  • Ask for your SingPass user ID and/or password.
  • Retain your NRIC card or any other personal ID documents (e.g. driver’s license, passport, work permit, employment pass or ATM card).
  • Ask you to sign on a blank or incomplete Note of Contract for the loan.
  • Grant you a loan without giving you a copy of the Note of contract for the loan and/or without properly explaining to you all the terms and conditions.
  • Grant you a loan without exercising due diligence (e.g. approving a loan over the phone, SMS or email before even receiving your loan application form and supporting documents, such as the income tax assessment and payslips).
  • Withhold any part of your principal loan amount for any reason.

Such practices are not acceptable. If you encounter them, you should report the moneylender to the Registry of Moneylenders, with information such as the moneylender’s business name, license and contact numbers.

To find out more about unlicensed moneylenders, you may click on this link: Unlicensed Moneylending.

How can I tell whether an advertisement is from a licensed moneylender or an unlicensed moneylender?

Under the advertising rules, licensed moneylenders are permitted to advertise only through these three channels:

  • Business or consumer directories (in print or online media);
  • Websites belonging to the moneylender; and
  • Advertisements placed within or on the exterior of the moneylender’s business premises.

Thus, all other channels are prohibited. In this regard, the advertising rules can help you differentiate between licensed and unlicensed moneylenders. If you receive flyers, SMSes, emails or other forms of advertisements which are not permitted under the rules, these would be from either licensed moneylenders operating in violation of the rules, or unlicensed moneylenders.

Hence, you are urged not to respond to such advertisements. Instead, you should report the advertisements to the Registry at 1800-2255-529 or via the Ministry of Law website. Errant licensed moneylenders will be investigated by the Registry and unlicensed moneylenders will be investigated by the Police.

Assurance You Will Get When You Borrow from Legal Lenders:

  1. Reasonable rates. Given that all licensed moneylenders abide by the rules of the Ministry of Law, it is guaranteed institutions cannot charge your loans with rates over what the guidelines set.
  2. Fast approval. Unlike banks, with most lenders, you can quickly get what you have applied for. More often than not, you can easily have your loan approved after thirty minutes.
  3. Safe and transparent. As it is reminded that these legal lenders in Singapore, they only do their business according to the law and regulation set by the Ministry of Law. This ensures all transactions are secured and transparent with written terms.
  4. Flexible requirement. Unlike other institutions, one can be conveniently offered service with enough information from your personal documents for the application.

How the Laws Protect Your Rights When You Borrow from Licensed Lenders?

  1. Advertising restrictions:
    Licensed moneylenders can only advertise on their business website or just outside their office, as well as in business directories. On the other hand, they cannot send you SMSes about their services or advertise in newspapers/social media platforms. They are also prohibited in making false or misleading statements just to get you to borrow. It’s assured lenders cannot invite you to take a loan or grant you with it without applying for it as well.
  2. Requirements when granting a loan:
    Before granting you a loan, moneylenders must,

    • Explain the terms of your loan in a language that you can understand;
    • Give you a signed copy of contract which include the terms in writing;
    • Give you a separate cautionary statement in writing;
    • Issue you a receipt for every repayment made towards the loan; and
    • Provide the borrower with a statement of accounts once every half in July or January.
  3. Caps on loan costs:
    Licensed moneylenders should not structure your loan such that you are likely to incur overdue fees or administrative charges many times because you are unable to repay the loan or instalments on time. Should you encounter any lender, breaking these regulations, you can lodge a complaint with the Registry of Moneylenders.
  4. Caps on the loan amount:
    The maximum amount you can borrow from all legal or licensed moneylenders combined for unsecured loans is:
Borrower’s Annual Income Singapore Citizens and PRs Foreigners residing in Singapore
Less than $10,000 $3,000 $500
At least $10,000 and less than $20,000 $3,000 $3,000
At least $20,000 Six times monthly income Six times monthly income
  1. Debt collection:
    Licensed moneylenders can take steps to recover their debts from you. They may engage debt collectors to help them. However, violent threatening or harassing behaviour is not allowed. This includes: stalking you or your family members; sending unenclosed notices of demand to your workplace, openly displaying notices of demand outside of your residence and/or calling you repeatedly at unreasonable hours, as well as disturbing you around affecting your neighbours.

How to apply for a loan?

  1. Eligibility

Depending on the type of loan you are applying for, the eligibility varies. However, at a glance, both Singaporeans or Permanent Residents and Foreigners can avail of loans in Singapore.

Criteria
Singaporeans & PRs
Banks Licensed Moneylenders
Age 21 — 65 years old Above 18 years old
Annual Income Minimum of S$30,000 Minimum of S$18,000
Foreigners Banks Licensed Moneylenders
Age 21—65 years old Above 21 years old
Annual Income Minimum of S$40,000 — S$60,000 depending on bank Minimum of S$24,000
  1. Requirements

Similar to the eligibility criteria, requirements vary depending on the loan you are getting. Every lender will have its own set of criteria to evaluate in order to determine whether you qualify for a loan and what terms it will offer if you do. It will generally come down to factors such as your credit score, the amount of money you’re seeking, how much you are already borrowing, the length of the loan, and any assets you have to offer as collateral.

These, on the other hand, are the typical documents you have to prepare nonetheless:

For Singaporeans and PRs

  • NRIC
  • Proof of income
  • Proof of Residence / Tenancy Agreement

For Foreigners

  • Passport
  • Work Permit
  • Proof of Residence
  • Proof of Income
  • Employment Letter

Steps of Application Process

  1. Call or apply online.
    Fill up forms to set an appointment with your desired licensed moneylender.
  2. Visit the licensed money lending office.
    Meet with staff or lending offers to help you plan your tailored loan.
  3. Sign your loan contract.
    Upon discussion over terms and conditions, sign the agreement.
  4. Get your cash instantly!
    Receive your loan shortly after.

If You Accidentally Borrowed from Loan Sharks, Here Are A Few Steps You Must Keep in Mind:

  • Keep calm.
  • Don’t make any or additional payment.
  • Contact the Police at ‘999’ or the X-Ah Long hotline over at 1800-924-5664.
  • You can easily check the list of legal lenders in Singapore that are under the Ministry of Law online to avoid potential problems in the future.

While you experience financial difficulties, understand that there could be a ton of strategies to consider just to get through it. In situations like this, it’s best to consider getting help from a moneylender, specifically the licensed ones to guarantee a smooth transaction, and more importantly, your safety.

You can check deals and packages from 365 Credit Solutions, the best licensed money lender in Singapore! It offers same-day loan approval with low-interest rates. Call or apply online then visit their offices to sign a loan contract and receive your loan.

About 365 Credit Solutions

365 Credit Solutions Pte Ltd is an established licensed moneylender since 2010 (formerly known as FLS Credit and Fu Lu Shou Credit), accredited by the Registry of Moneylenders in Singapore. We specialize in providing personal, payday, bridging, foreigner, business loans to Singaporeans & Foreigners working in Singapore.

 

Our mission is to help make taking a loan a simpler, more understandable process, and to educate our customers about their loan options in the event of an urgent need.

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