CashMax Credit Pte Ltd is a licensed moneylender (License No. 72/2024 ) registered and regulated by the Ministry of Law.

Guide to Licensed Moneylender in Singapore from How Much Can I Borrow? To Documents Needed for Loan Application

Need cash quickly for something essential, but your bank can’t approve a loan fast enough? We get it- life sometimes throws us curveballs that require money urgently. Don’t worry! Getting a personal loan from a legal money lender in Singapore could be the swift solution you need. Unlike traditional bank loans, licensed lenders can get cash in your hands as fast as 24 hours!

This guide will walk you through everything you need to know about licensed moneylender loans in a simple, easy-to-understand way. We’ll tackle all your potential questions and concerns, from how much you can borrow to the documents required, the step-by-step application process, and the pros and cons to consider.

Can foreigners also get a loan in Singapore? The answer is yes- licensed moneylenders lend to foreigners holding valid work passes. We’ll share requirements like minimum income levels. We’ll also explain how technology is making it easier to get a loan in Singapore. You can now use SingPass and MyInfo for seamless document submission to loan providers. Licensed moneylenders provide fast financing solutions, including emergency cash loans for medical bills, home renovations, or auto repairs.

So what are you waiting for? Let’s start and see if borrowing from a licensed moneylender could be your fast financing solution in Singapore.

Key Factors to Consider Before Obtaining a Licensed Moneylender Loan in Singapore

As the costs of living and property prices continue rising in Singapore, many residents are turning to licensed moneylenders to help make ends meet. However, while licensed lenders can provide accessible financing options for everything from renovation loans to medical bills, it’s essential to consider some critical factors before committing to a loan.

Interest Rates and Fees

One of the most important considerations is the interest rate and any additional fees charged on the loan. Licensed lenders frequently levy higher interest rates than banks, so shop around and compare quotes from multiple providers. Also, find out if there are any processing fees, late payment penalties or other charges associated with the loan.

Taking the time to weigh these elements carefully will help ensure you make the best borrowing decision for your needs and budget.

Loan Tenure and Installments

While shorter loan durations usually mean paying higher monthly instalments, longer loans extend your repayment period. Consider whether larger instalments over a shorter tenure or smaller payments for more months better fit your financial situation. Avoid overextending your ability to repay the loan within the timeframe.

Rollover Policies

If you’re concerned about failing to repay on schedule, understand the lender’s rollover policy for extending the loan’s tenure. Excessive rollovers can result in skyrocketing interest costs over time, so have a plan to avoid them.

Lender Reputation

Like any major financial decision, it pays to research a licensed moneylender’s reputation and reviews from past borrowers. Ensure they are licensed and operate professionally. This gives peace of mind that they will handle your loan ethically and transparently.

Your Financial Health

Read online reviews of the licensed moneylender before applying. Check any feedback on customer service, transparency, and repayment issues. Being informed will help you make a wise choice.

Compare Options

Lastly, compare options from a few lenders before deciding. Look beyond the first offer you come across. Making side-by-side comparisons can uncover the most suitable loan for your needs.


How Much Can I Borrow from a Licensed Moneylender?

We know the number one question on your mind is likely, “How much cash can I actually get?” Do not worry; we can provide clarity.

Licensed moneylenders in Singapore typically offer personal loan sums ranging from $500 to $500,000. However, the maximum approvable amount depends on several factors:

Income Level

The required income level varies depending on the type of loan required, but for most loans, it is up to 6 times your monthly salary.

Existing Debts

If you already have substantial outstanding loans or large credit card balances, lenders may be more cautious about extending additional credit. High existing debts indicate you are already heavily committed to making repayments.

Credit History

Timely repayment of past debts indicates you are a responsible borrower, improving loan eligibility. However, if your credit history reflects late repayments, defaults, or bad debts, it raises red flags as you appear to be at higher risk.

Monthly Expenses

Lenders will want to understand your typical monthly expenses like rent, utilities, insurance, transport, food, school fees, etc. This gives them an indication of your financial commitments and spending habits.

Regulatory Caps

The Ministry of Law regulates the licensed moneylending industry in Singapore to prevent reckless borrowing and over-lending. There are statutory caps on the maximum loan quantum a licensed moneylender can extend to different borrower segments based on income levels.

What Documents Do I Need to Apply for a Licensed Money Lender Loan?

You must submit certain documents to apply for a personal loan from licensed moneylenders in Singapore. Standard documents required are:

Identification Documents

These serve to verify your identity and residency/employment status. Singapore citizens and PRs should provide NRIC details. For foreigners, submit a valid employment pass like an EP, S pass, work permit, or dependent’s pass issued by MOM.

Income Documents

Employees should provide the last three months’ payslips showing their name, income, CPF contributions, and employment period. Self-employed individuals can submit recent tax returns, profit/loss statements, or income declarations. CPF’s contribution history also serves as evidence of income consistency.

Bank Statements

Licensed moneylenders will request bank statements for the past six months for all accounts you hold. This provides insight into your savings, spending patterns, financial commitments, and liabilities.

Home Address Proof

For Singaporean citizens/PRs, provide a recent utility bill (within the last three months) showing your name and address. Other acceptable proofs include phone, internet, cable TV bills, or bank statements with addresses.

Existing Debts

Provide the latest statements for loans, credit cards, overdraft facilities, outstanding utility bills, or financing for assets like motor vehicles. Ideally, provide updated statements from the past three months. If unavailable, write and sign a summary listing all your current debts and repayment amounts.

Repayment Proof

In addition to declaring current debts, licensed moneylenders may request evidence demonstrating you service these existing obligations on time. This could include recent bank statements showing your monthly repayments for loans/credit cards, letters from lenders confirming you are not in arrears, a certificate of repayment for past loans, or screenshots of timely instalment payments made via apps.


Licensed moneylenders may request contact details of 1-2 Singaporean family members or friends who can vouch for your character and confirm they know you. Having reputable references willing to stake their name for you indicates you are trusted within the community. It gives lenders more confidence in your credibility.

Step-by-Step Process of Getting a Loan from Licensed Money Lenders

Securing a personal loan from a licensed moneylender in Singapore is straightforward when you know the steps:

Research Lenders

Several directories and listings online compile and compare licensed moneylenders in Singapore. Review their profiles and offerings to create a shortlist of reputable and competitive lenders.

Get Quotes

Once you have shortlisted a few licensed moneylenders based on your research, contact them with details of your loan requirements. Provide your requested loan amount, preferred tenure, purpose of borrowing, income documents, and existing debts.

Submit Application

Be sure to fully complete the entire loan application form with accurate, up-to-date information. Double-check that all fields are filled in and the details provided are correct before submission.

Cooperate on Verification

After submitting your loan application, licensed moneylenders will conduct verification to authenticate the details furnished. You may get requests to provide original documents for review, additional clarification on income or debts, proof of certain payments made, and more.

Attend a Face-to-Face Interview

Once approved, meet the lender at their office or home to sign the original paperwork. The in-person interview is the lender’s final check. Cooperate fully and conduct yourself professionally to finalise the loan approval process.

Understand and sign the Contract

The licensed moneylender will provide the loan contract during the face-to-face interview for your review and signature. Read the contract meticulously before signing. Seek clarification on applicable interest calculations, timelines for repayment, grace periods, if any, and repercussions for late payment.

Get Your Money

Once you have signed the loan contract with the licensed moneylender, the approved loan amount will be swiftly disbursed into your designated bank account, typically within 24 hours.

Pros and Cons of Borrowing from Licensed Money Lenders

While licensed moneylender loans allow quick access to cash, consider their pros and cons before borrowing:


Fast and Easy Approval

Unlike banks, licensed lenders have more straightforward eligibility criteria, focusing more on urgent cash needs than credit history. With fewer documents, they can process loans swiftly, often disbursing funds within 24 hours of application when you require money urgently.

Flexible Loan Tenure

Typically, lenders allow you to choose a repayment tenure ranging from 6 to 24 months. This provides flexibility to opt for instalment amounts that suit your cash flow.

Low Minimum Loan Amounts

Most lenders are willing to approve loans for a few hundred dollars, some even as low as $500. This caters to urgent small cash needs. With licensed lenders, you can get approved for these smaller loans quickly. The quick access to a few hundred dollars can be invaluable when facing pressing needs and expenses.


High-Interest Rates

Licensed lenders usually charge interest rates ranging from 10% to 40% per annum. This is significantly higher than the usual personal bank loan rates of 6% to 15%. However, do compare interest rates across multiple licensed lenders before applying.

Limited Loan Amounts

In Singapore, licensed lenders can only approve a maximum personal loan amount of $3,000 for those earning up to $20,000 per annum, as per borrowing limits set by the Ministry of Law. For higher-income individuals, the maximum accounts may go up to 6 months of income. But even those earning $4,000+ monthly, the limit is typically capped at $3,000.

Harsh Late Payment Penalties

Licensed moneylenders can impose late payment fees if you miss paying your monthly loan instalment by the due date. Some lenders may also charge a flat late fee of $50-$100, irrespective of the instalment amount. Non-payment continuing beyond a certain number of days can also attract additional penalties.

Affects Future Loan Payments

Last, you must report your loan details and repayment track record to Singapore’s credit bureaus – CBS, DP Credit Bureau, etc. This can negatively impact your overall credit score, and future loans or credit card applications with banks may get rejected as you are now deemed higher risk.

Borrow Safely with CashMax Credit

In summary, licensed moneylender loans can offer fast access to urgently needed cash in Singapore but require careful evaluation, too. You can make an informed borrowing decision by first understanding key considerations like your realistic repayment ability, doing market research to compare lenders’ rates, reading contrasts diligently, and weighing pros and cons.

Opt for an established, legal money lender in Singapore like CashMax Credit for a smooth loan experience. With convenient options to get a loan via SingPass/MyInfo or get quick approval for emergency expenses like medical bills or home renovations, licensed lenders fill a need.

Do your due diligence to find the best Singapore loan provider suited to your financial situation and borrowing requirements. This helps ensure you borrow a regulated, reputable agency with reasonable terms.

The key is being a responsible borrower – only take a loan amount you genuinely need and can comfortably repay on time. While licensed lenders provide ready access to funds, borrow wisely within your means.

With prudent consideration, licensed moneylender loans can be a viable financing avenue when urgently requiring cash in Singapore. We hope this guide supports you in making a careful, informed borrowing choice.

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