Money lending in Singapore and legality

 

The Interest Rates of Money Lenders in Singapore, as well as the Late Repayment Rates

According to the regulations issued by the Ministry of Law, licensed money lenders are only allowed to charge an interest rate of up to 4% per month on their loans. When a borrower is late in repaying a loan, licensed money lenders are only allowed to charge a maximum late interest rate of 4% per month on the outstanding balance.

A considerable number of individuals who need to be authorized to lend money pose as trusted moneylenders and guarantee loans within twenty-four hours. Remember that licensed moneylenders are required to abide by Singapore law, which you should always keep in the back of your mind. Therefore, there are rules that are licensed in money lending in Singapore are required to follow and comply with at all times. These rules are in place to ensure that everyone is treated fairly.

What Else Should You Keep in Mind to Make Certain You Are Working with an Authorized Lender of Money?

Even if a money lender has a license, you still need to be on the lookout for the following, as they could constitute illegal activity:

The use of threatening language or behavior in any form is unacceptable.

Your Sing Pass user ID and password are being requested.

Keeping any and all personal identification documents, including your NRIC

You are being asked to sign a loan contract that either needs to be completed.

lending you money without providing you with a copy of the loan agreement that you signed

Failure to provide an explanation of the terms and conditions

You are free to withhold any portion of the principal amount of your loan for any reason.

What kinds of supplementary paperwork are required in order to move forward with a loan application?

In order to proceed, we require that you provide the following documents:

NRIC or passport is acceptable as proof of identity.

As evidence of residence: Invoices from the bank or other bills

Pay stubs or contributions to the CPF are acceptable forms of income proof.

You also have the option of providing evidence of your income by submitting either your tax returns or a copy of your employment contract.

Location: Singapore

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