How can I check if I am dealing with a licensed moneylender?

Never transact with loan sharks and unlicensed moneylenders as they can give you more problems than solutions. Once you make a transaction with them, they can harass you and your family if you are unable to make any form of repayment. Loan sharks tend to exploit the desperation of some people who were not granted a loan from licensed moneylenders and other financial institutions. Do not rush, and always exercise due diligence when making a loan. You should take note of the following before you make a transaction with a moneylender:

  •  Verify the license of the moneylender

There are ways to tell whether you are transacting with a licensed moneylender or not. The easiest way to tell whether the moneylender is licensed or not is to verify the moneylender’s license.  You can visit the official website of the Ministry of Law in Singapore to check if the moneylender is registered or not.

  •  Practice and behavior of the moneylender

Other than verifying the license of the moneylender, observe the practices of the moneylender and check whether these practices conform to the law or not. Here are indications you are dealing with a LOAN SHARK, UNLICENSED MONEYLENDER, or AN ERRANT MONEYLENDER:

  • Charges you with an interest rate or late interest rate higher than 4% per month
  • Charges you with fees other than what is allowed by law
  •  Threatens you or uses any abusive languages to make you pay
  •  Contacts you through emails, SMS, or other kinds of advertisements not allowed by law
  •  Asks for your SingPass user ID and/or password
  •  Grants your loan without considering your income, ability to pay, credit history, and among others
  • Retains any personal ID documents
  • Asks or forces you to sign a contract that is blank or incomplete
  •  Does not fully explain or does not explain in a language you understand the terms and conditions of the contract
  •  Does not give you a copy of the contract
  • Asks you to pay a fee before granting the principal amount of your loan
  • The company is not found on the Registry of Moneylenders in Singapore
  • Approves your loan without you giving any form of documentation
  • Approves your loan through emails, SMS, or phone calls
  • Retains any form of an asset from you even though the loan is an unsecured one
  • Retains in whole or in part the amount of your principal loan

If you are looking to avail for a loan, choose a reliable and legitimate moneylender. Visit this website,, if you are looking for a trusted moneylender. The moneylender can offer different kinds of loans that may suit your needs. You do not need to look any further!

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