If you're looking for a personal loan in Singapore, you might be wondering how much you can borrow from a licensed money lender. Licensed money lenders offer personal loans to both Singaporeans and foreigners, and they can lend you money to cover things like medical bills, home renovations, and unexpected expenses. In this blog post, we'll explore how much money you can borrow from licensed money lenders in Singapore.
The amount of money that you can borrow from a licensed money lender in Singapore will depend on a few factors.
Firstly, it will depend on your income. Typically, the higher your income, the more money you'll be able to borrow. This is because the lender will be more confident in your ability to repay the loan if you have a stable income.
Secondly, the amount of money you can borrow will depend on your credit score. A good credit score means that you're a responsible borrower who pays your debts on time, and this makes you less risky to the lender. If you have a high credit score, you'll be able to borrow more money than someone with a low credit score.
Thirdly, the lender will take into consideration your existing debt. If you already have other loans or credit card debt, the lender may be hesitant to lend you a large amount of money. This is because your existing debt will affect your ability to repay the new loan.
Lastly, the type of loan you're applying for will also affect how much money you can borrow. For example, if you're applying for a payday loan, you'll likely be able to borrow a smaller amount of money compared to a personal loan.
In general, licensed money lenders in Singapore can offer personal loans ranging from $500 to $50,000. However, the maximum amount you can borrow will depend on your income, credit score, existing debt, and the lender's policies.
What You Need to Know About Moneylenders in Singapore Rules
Moneylenders can be a go-to option for many people who need quick cash. However, it is essential that you understand the rules that govern moneylenders in Singapore before taking a loan from them. Knowing these rules will help you make informed decisions and avoid falling into financial trouble.
Moneylenders are allowed to charge an interest rate of up to 4% per month for personal loans in Singapore. If the borrower makes late repayments or fails to pay on time, an additional fee of up to 4% per month on the late amount can be charged. However, it is essential to note that the total amount of interest and fees charged cannot exceed the amount of the loan itself.
There is a cap on how much money a moneylender can loan in Singapore. For Singapore citizens and permanent residents, the moneylender is allowed to lend up to 6 times the borrower's monthly income If your annual income is $20,000 and above.
Late payment fees are another aspect that borrowers should consider when taking a loan from moneylenders. If you fail to pay your loan on time or make a late payment, you will be charged a fee of up to $60. It's essential to take note of this and ensure that you have enough funds to make timely payments. This will help you avoid incurring additional fees and interest charges.
Moneylenders in Singapore are required to be transparent in their dealings and can only charge fees that are permitted by the Ministry of Law. Before signing any loan agreement, ensure that you read all the terms and conditions and understand the fees you will be charged. Do not agree to pay any hidden fees or charges as this may lead to financial problems in the future.
Moneylenders in Singapore are required to be licensed by the Ministry of Law. If you're considering taking a loan from a moneylender, ensure that they possess a valid license. This will help you avoid dealing with unscrupulous lenders, and you can rest assured that your financial information is protected.
How to Identify Licensed Money Lenders in Singapore?
1. Check for the Registry of Moneylenders:
The first thing to do when searching for a licensed money lender is to ensure they are registered with Singapore's Registry of Moneylenders. You can visit their website
2. Physical Address Verification:
Licensed money lenders have a physical office where their loan operations are carried out. So, to confirm if a money lender is licensed, you'll need to visit their office and verify your loan transactions face-to-face. Unlicensed money lenders use SMS, WhatsApp, or other online channels to offer loans, so meeting them in person is near impossible. Do not proceed with a lender who refuses to meet you at a physical address.
3. Reviews and Testimonials:
Customers' reviews and testimonials can give you a fair idea of a licensed money lender's authenticity. Always read reviews of the money lender you want to borrow from closest to the time you intend to borrow. This way, you can have the latest opinions about the lender's loan offers. Scammers might be more eager to give positive reviews than actual customers, so read reviews from multiple sources for balanced opinions.
4. No Fee before Loan Processing:
Licensed money lenders will never ask you to pay a fee before processing your loan. Scammers may insist on such fees, even before discussing the loan's terms and conditions. That's a red flag to watch out for. Do note that licensed money lenders can only charge 4% interest per month. Ensure that the interest rates and fees being charged by your moneylender are fair and within the regulatory limits.
In conclusion, if you're looking to borrow money from a licensed money lender in Singapore, the amount you can borrow will depend on your income, credit score, existing debt, and the type of loan you're applying for. While licensed money lenders can offer personal loans ranging from $500 to $50,000, the maximum amount you'll be able to borrow will depend on your individual circumstances. It's important to carefully consider your financial situation and only take out a loan that you can comfortably repay. Finally, ensure that you only borrow from licensed moneylenders, and read all terms and conditions before signing any loan agreement.