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How to Verify If a Moneylender in Singapore Is Legitimate
26.August 2025 | Monetium Credit
Borrowing money can be a great financial solution for when you need cash fast and, in Singapore, this practice is quite common. The National Government regulates the act of money borrowing, but not all moneylenders on the market choose to partake in the national regulations.” As the demand for liquidity will exceed the supply, there will be an illegal industry that forms around it”, says SMU Associate Professor of Finance Mandy Tham. In this context, making sure you’re borrowing from legit sources becomes more and more difficult.
It is crucial that you know how to protect yourself and your belongings and families against the illegal, violent and aggressive acts of the loan sharks, which is why in this article, we are going to guide you on how to identify a legal, licensed moneylender.
Why Verifying a Moneylender’s Status and Legitimacy Should Be the First Step
Unlicensed moneylenders are not registered by the National Government and do not operate within the limits imposed by the government. This leaves you as a customer uncovered in case of financial fraud and can expose you to illegal and unethical business practices, such as:
- Astronomical rates that make it close to impossible for one to ever repay the loan
- Threats, harassment and aggressive behaviour and language
- You run the risk of falling victim to identity theft
- You might get trapped in a debt cycle that your kids might inherit
Step 1: Check the Official Registry of Licensed Moneylenders
Checking if a moneylender is licensed is a very easy procedure. All you have to do is visit the Ministry of Law webpage and check the List of Licensed Moneylenders, and look for the provider you’re considering.
In order to eliminate any risk of misinformation, the list contains the following information on the businesses:
- Company name
- License number
- Office address
- Contact number
- Website link
This list is updated constantly and, if the business you’re looking for is not here, then that means they’re not legally allowed to offer money loans in Singapore. This is all you need to know in order to determine their legitimacy. It doesn’t matter how convincing their webpage may look, it is all fake if they’re not present on this list.
Step 2: Know What Sets Licensed Moneylenders Apart
Borrowing from a legal moneylender in Singapore comes with a set of benefits and insurances for you, as a borrower. A licensed loan company will operate under the Moneylenders Act and the Moneylenders Rules 2009. According to the law, there are certain things they are required to do and forbidden from doing:
- They CANNOT charge over 4% per month
- They CANNOT impose a late payment fee of more than $60 per month
- They CANNOT charge an administrative fee of more than 10% of the principal
- They CANNOT use violent or aggressive language or behaviour
- They CANNOT confiscate your personal documents
- They CANNOT ask you to sign a blank document
- They CANNOT approve a legal loan over SMS or SM media communication
- They CANNOT refuse to explain the loan terms
Step 3: Visit the Physical Office for Loan Approval
A legal moneylender in Singapore is required by law to establish face-to-face contact with the borrower before offering a legal loan. A business offering a 100% online loan is an illegal one. It should be noted that licensed moneylenders can offer online services, such as loan application, but they will require your presence in their physical office in order to sign the loan, if the application is approved, therefore even though they offer the option to apply online, they respect the law by having the borrower come into the office for the signing process.
Here at Monetium Credit we offer an online application process in order to meet today’s borrowers’ need for fast and remote application, but we will never distribute the money without a face-to-face encounter. This process allows you, as the borrower, to address any questions you might have regarding the contract, it ensures a legitimate borrowing experience and it allows us to verify your identity.
Step 4: Examine the Loan Contract Carefully
There are certain elements that every contract must contain and the absence of any of them should be considered a red flag. The eligibility criteria imposed by various moneylenders may differ from provider to provider, but when it comes to what must appear on the loan contract, there is unanimity over certain elements, including but not limited to:
- A breakdown of the loan amount, so that you know before signing how much you owe
- Interest rate and calculation method: this is public in order to ensure transparency
- Repayment schedule: so that you know right from the start when your payments are due
- Administrative fees: no legal moneylender in Singapore will ask for this before the loan is distributed
- Total repayment amount: there are no hidden or extra fees that can unpleasantly surprise the borrower
As before, there are things to look for at this stage as well, in order to identify a scammer. If the contract contains vague or ambiguous terms that the moneylender refuses to explain, if they promise you a “zero interest” without additional conditions or if they pressure you in any way to sign the contract before reading it, then you’re most likely dealing with a scammer and you should chase any operations with them and announce the police.
Step 5: Always be Aware of Illegal Tactics
Being informed and up to date with the trends used by scammers can pay off, especially as the scamming industry keeps developing at a quick pace. Here are some warning signs that should make one raise an eyebrow:
- Cold messaging (out of the blue, unannounced, unexpected) via social media platforms such as WhatsApp, Facebook or via SMS. Any legal moneylender in Singapore is forbidden by law to initiate contact via SMS and social media platforms so, if you’re getting a credit promise via these communication channels, they’re most definitely scams.
- Zero documentation required: if they claim to offer loans without any sort of documentation required (including personal information, not limited to credit score), then you’re dealing with a scammer.
- Upfront fees: a licensed loan company will not ask for any money before disbursing the loan, not even for the administrative fee.
- Impossible claims: these can take the form of “0 interest rate” or “urgent loans in 1 minute”. Anything that sounds impossible is, most likely impossible. It is important to mention here that a legal moneylender in Singapore can offer urgent loans in as little as a few hours, which is understandable and plausible and NOT a scam.
- No physical office: if they refuse to provide their physical location to you, or if they refuse to meet you altogether, then that’s because they are scammers who try to stay under the radar.
Step 6: Look for Online Reviews and Website Legitimacy
No matter how much money business owners invest in marketing costs and publicity stunts, they will never be able to control the word of mouth, which is why looking for online reviews and getting personal recommendations can come in handy when trying to establish one’s legitimacy.
You can check the reviews on Google or social media platforms, but you can also search for them on their website. Keep in mind to look for awards or prizes that the business takes pride in winning.
If you don’t know what to look for on their websites, here are some aspects you can take into account:
- A secure website (the URL should start with https://)
- The information should be complete and straightforward
- You can verify their contact information
- Transparent FAQ to address any questions one might have
Step 7: Report Any Suspicious Activity
We sincerely hope that you never have to announce the police that you’ve fallen victim to a loan shark, but it is important to remember that, even if you haven’t, you should call the police and inform them about this illegal activity you’ve uncovered, in order to keep other, maybe less informed citizens, away from the scams of the Ah Longs.
Here’s what to do:
- Call 999 immediately. If you’ve been scammed, the more you wait, the smaller the chances of retrieving your money, but even if you managed to get away in time, more time for the scammer means they can get away with it
- You can submit a report to the Ministry of Law by contacting 1800-2255-529
- You can also file a formal complaint with the Consumers Association of Singapore
What to Ask a Moneylender in Order to Determine Their Legitimacy
If this 7-step guide appears too complicated or time-consuming for you, then here you can find a list of some of the questions you can ask a moneylender of choice either via phone call or face-to-face meeting:
- Are you licensed on the Ministry of Law’s list of legal moneylenders in Singapore? A licensed one will have no problem proving their legitimacy, while a scammer might try to avoid the subject.
- Can I see a sample loan agreement? Observing their availability to assist you and offer you the information you require will help you identify their real interest.
- What fees will I be charged in total? A legal moneylender in Singapore will ensure transparency in all of their practices, including the fees they charge.
- What happens if I miss a payment? Legitimate operators will offer you information regarding their flexibility, the amount of late payment fees (which, in the case of licensed moneylenders should not go over $60 per month) and will be able to answer any of your concerns with professionalism and transparency
Not only the answers, but the way in which they are offered (if they are) should tell you whether or not the lender is a legitimate one or a scammer.
Why Choosing the Right Moneylender – and Not Just a Legal One, is Important
Just as stated before, making sure your moneylender is licensed should be the starting point. If you have any doubts regarding a provider’s legitimacy, or if you have any suspicions about their activity, then you should not go forward with them.
However, once you filter the scammers from the legit ones, you’re now left with the task of choosing the right operator for your loan and this too can be a tedious task.
Here at Monetium Credit, we’ve made it an objective to go above and beyond regular customer service and compliance and offer impeccable services that leave our customers pleased with their legitimate borrowing experience:
- We are transparent in all of our loans, eligibility criteria, rates and terms
- Our attitude towards the people entering our office will always be friendly and respectful
- We value your time, which is why we strive to offer quick procedures for our customers and we prioritise loan disbursement
- All of our loans have been created as a response to a certain need, which is why we’re confident we can aid you in times of need
Conclusion
Loans are powerful resources and the high demand for providers in this market made room for illegal and potentially dangerous business practitioners to enter an otherwise regulated market. The Ministry of Law together with the Police provides the citizens with multiple sources of information to educate them on the dangers of scammers, on how to avoid them and how to borrow responsibly. Here at Monetium Credit we’ve also taken it upon ourselves to provide our audience with educational materials. If you want to learn more about scammers, you can consult our article on the rise of scams in Singapore here or, if you’re interested in finding more about licensed moneylenders, you can read more about that here.
Moreover, if you have any questions about anything relating to our services as a legal moneylender in Singapore or about the industry of moneylending, you can contact us here or visit us at 10 Jalan Besar Sim Lim Tower.
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