FAQs for Borrowers

With effect from 1 October 2015, the maximum interest rate moneylenders can charge is 4% per month. This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured one. An upfront administrative fee of not more than ten per cent (10%) of loan principal is applicable.

For secured loans, you can obtain a loan of any amount. For unsecured loans, please refer to the table below for the total maximum amount that you may borrow at any time across all licensed moneylenders in Singapore:

Borrower’s Annual Income Singapore Citizens and Permanent Residents Foreigners Residing in Singapore
Less than S$10,000 S$3,000 S$1,500
At least $10,000 and less than S$20,000 S$3,000 S$3,000
At least S$20,000 6 x Monthly Income 6 x Monthly Income
Source: Ministry of Law
You will be informed by email, phone call to arrange an appointment once your loan application is approved. You will be required to go down to lender’s office to endorse on the agreement and receive your cash on the spot.
You may arrange this with your lender and let them know when is a convenient time for you and some of them will try their best to cater to your timing.
Some lenders will lend you money based on your ability to pay them. Some time your bad credit history will not affect their decision to finance you. This is also determined on a case by case basis, but usually they will do their best to customise a loan plan to suit your needs and within your ability.
Absolutely can, there is no obligation you must take up any approved loan if you changed your mind.
Some lenders will not disclose the reason, and lender reserves the rights not to disclose any information in any regard.
Yes, they may grant you another loan as long as you meet their eligibility criteria at time of application and subjecting to The Moneylenders Act.
In most cases, payment are made through GIRO by default. But some lenders may prefer you to opt for bank transfer or alternatively pay by Cash at their office.
No, there will not be any additional fee. In fact, you may get an interest rebate from some lender for full early repayment. So earlier full repayment is made more interest you will save on.

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2018-12-10T17:16:09+08:00July 14th, 2014|Categories: FAQs, Licensed Money Lender, Personal Finance, Personal Loan|Tags: |