24-hour Money Lender Guide: Legal Personal Loans From Licensed Moneylenders In Singapore

With COVID-19, unexpected financial situations occur more frequently. You might need cash immediately for a medical bill, for a car repair, to fix your cash flow or if your savings is not enough. When these financial issues occur, you need immediate financial relief. 

However, there are two main issues we commonly face when getting a fast loan in Singapore.

The first is the fear of loan scams. You must have heard all about loan scams on social media or from the news. So many people have fallen prey to loan scams. In certain cases, some have lost at least $10,000!

The second problem is the licensed moneylenders’ or bank’s operating hours. Most banks are closed on weekday nights and Sundays. Sadly, that is when most of us are free to drop by for a loan. How can you borrow money fast then?

There is a solution for you!

If you need money quickly, a 24-hour money lender can be the answer to your prayers. There are reliable licensed moneylenders who are open on Sundays or outside office hours that can lend you financial help.

In our article, we will share reliable 24-hour money lenders who have many years of experience and at least 95% positive Google Reviews. We will also share how you can protect yourself by differentiating between licensed and unlicensed moneylenders in Singapore.

What Does A Licensed Money Lender Do?

A licensed money lender is a private financial institution that provides loans to individuals and businesses. The money lender charges a fee for their services, which is typically a percentage of the loan amount. You’ll also have to repay the loan in instalments that feature interest. In a way, a licensed money lender operates like a private bank.

Singapore money lenders are regulated by MinLaw, and they must follow strict guidelines to operate.

One of the main advantages of using a licensed moneylender is their competitive sums. They can also tailor loans to meet the specific needs of their borrowers.

For example, a moneylender can provide a fast cash loan to help you in an emergency – even if you have bad credit. This proved to be helpful to borrowers who were rejected by banks. Alternatively, they can offer a long-term loan for a significant purchase such as an HDB downpayment, a wedding or a home renovation.


Where Can I Find 24-Hour Money Lenders In Singapore?

If you’re looking for a 24-hour money lender in Singapore, you might be out of luck. That’s because there are no 24-hour money lenders in Singapore.

Here’s what you can do instead: Apply on the licensed money lender’s website, even outside business hours. These online application forms are available 24/7, whenever you need to borrow money fast.

You just need a few minutes to fill in the necessary information, especially if that lender has integrated MyInfo on their website. The largest benefit of incorporating MyInfo into our application form is that it saves potential borrowers a lot of time. Borrowers no longer need to fill in piles of paperwork. The loan application can be done via MyInfo swiftly in just 5 minutes. 

Once you’ve submitted your loan application online, most licensed moneylenders like Horison Credit will give you an automatic pre-approval message within minutes after the system evaluates your application.

A friendly loan officer will contact you first thing in the morning (or on the next business day) to invite you for a face-to-face verification. That means you can get your loan within a day, even if the money lender isn’t technically open 24 hours.


How To Differentiate A Licensed Money Lender & An Unlicensed Money Lender?

When you need cash, it can be tempting to turn to any source that will loan you the money you need. However, it is essential to differentiate between licensed and unlicensed moneylenders.

1. Rates and Charges

Loan sharks money at extremely high interest rates with no regard for the borrower’s ability to repay the debt. They also ask for:

  • Pre-approval fee: If an Ah Long is posing as a 24-hour money lender in Singapore, they might ask for a sum of money for late-night approval. For example, they’ll claim meeting you at 2 am for a fast cash loan requires an advance.
  • Fluctuating interest or installments: A loan shark may change their interest and insta;lments without giving you a (good) reason. Therefore, you can easily wake up with doubled installments from one day to the other.

Licensed money lenders, on the other hand, are subject to regulations by the government. They typically charge higher interest rates than banks, but they must follow strict guidelines in how they conduct business. For example, they are only allowed to charge a maximum late fee of $60.

We’ll discuss these in the section below.

2. Loan Contract

Licensed money lenders in Singapore have reliable contracts that specify the loan terms, including the repayment schedule and penalties for late payments. In contrast, loan sharks rely on word of mouth or ask you for your signature on blank documents. Most of the time, loan sharks will approve your loan over the phone.

While it may be tempting to get a fast cash loan without signing any contract, the aftermath is not worth it.

However, remember that the contract is there for a reason. It doesn’t just outline your obligations; it outlines your rights and protects you against outrageous demands.

3. Face-to-Face Due Diligence

Licensed money lenders in Singapore are required to check people’s paperwork at their office before loan approval.

This requirement is a good thing.

It is not scary to meet up with a licensed moneylender. They are running a legitimate business. Meeting them face-to-face gives borrowers a chance to ask any question about the loan, and for the money lender to explain the terms and conditions clearly. This face-to-face verification protects both the borrower and the licensed moneylender from defaulting on the loan. In addition, checking the documents also helps prevent fraud.

Conversely, loan sharks are notorious for their predatory lending practices.

They often target desperate borrowers who need fast cash, approving loans over the phone or asking to meet in shady places. This allows them to charge extremely high interest rates and fees, which can trap borrowers in a cycle of debt.

4. Advertising Channels

Licensed moneylenders in Singapore can’t use all the advertising channels available because they’re not like any other business. Lending money involves a great deal of responsibility, and the government believes people shouldn’t be encouraged to borrow money unless they really need it.

For this reason, licensed moneylenders can only advertise in:

  • Business directories
  • Consumer directories
  • Their websites
  • Their office building (e.g., walls, doors, etc.)

On the other hand, loan sharks often use aggressive marketing tactics, such as flyers and word-of-mouth, to attract customers. If you have ever received an SMS with something that goes, “Easy fast applic@tion process 2.22%”, it is 100% a loan shark.

These people will stop at nothing to get your attention. And once they have your attention, they will do everything they can to pressure you into taking out a loan. Resisting a fast cash loan can be especially difficult if you’re already in a tight financial situation.

5. Maximum Loan Amount

If your budget is strained by several other debts or if your credit rating is low, a licensed moneylender may lend you less money.

It’s a way of ensuring you can fit the loan’s installments within your budget comfortably.

By contrast, loan sharks don’t care about your ability to repay the loan.

They’re only interested in making money, so they’ll lend you as much as you’re willing to borrow – even if it’s more than you can afford. That has terrible consequences:

If you can’t repay a dangerous loan shark, you’re in a world of hurt.

First, they’ll come after you with all the force of the law. They’ll threaten to sue you, double your installments, and ruin your reputation. Then, they’ll start making veiled threats about what they’ll do to you if you don’t pay up. And if you still can’t repay the loan, they’ll take matters into their own hands. They might physically hurt you or destroy your property.

In short, it’s not a situation you want to find yourself in.

For these reasons, it’s always best to work with a licensed moneylender. Not only will you be protected from unfair practices, but you will also have the peace of mind of knowing that your lender is reputable and trustworthy.


How Much Can I Borrow For Personal Loans?

The maximum loan amount you can borrow in Singapore is $250,000. However, you have to follow some other restrictions depending on your income and citizenship:

Singapore citizens and Permanent Residents:

  • Annual income below $20,000: Maximum $3,000
  • Over $20,000: Maximum six times your monthly income


  • Annual income below $10,000: Maximum $500
  • Between $10,001 and $20,000: Maximum $3,000
  • Over $20,000: Maximum six times your monthly salary

Another benefit of loaning from licensed moneylenders is that they are able to customize a unique loan plan just for you. With top-notch customer service, the staff will serve you with all their heart. They will truly hear you out, try to understand your situation and get you through it. If you need a longer loan tenure, or a larger loan amount, they will try their best to help you.


What Are The Fees That Licensed Money Lenders Can Charge?

It is important to know your rights before borrowing from a licensed moneylender. The Moneylenders Act limits the following figures:

  • Interest rate: 4% per month from the outstanding balance, not the entire sum. For example, your first interest will be $400 if you borrow $10,000. But when you have just $1000 to go, the interest will be $40.
  • Late penalty fee: $60
  • Late interest rate: 4% from the missed installment, not the entire loan figure. So, if you miss a $200 installment from your $10,000 loan, the late interest rate will be $8.
  • Admin fee: 10% from the initial sum. So, if you get a $10,000 loan approved, the licensed moneylender can legally wire just $9,000 to your account.

The Ministry of Law caps these payments at 100% of the total loan amount. So if you borrow $10,000 from a licensed moneylender, the maximum you can be charged in fees is $10,000.

By contrast, loan sharks often charge sky-high interest rates and fees. There is no limit to the amount of interest they can ask for, so it’s not uncommon for loan-sharking victims to end up owing several times the original loan amount.


What Are Credit Scores?

If you’re like most people, you probably have a vague idea of what a credit score is, but you’re not quite sure how it’s calculated or why it’s so crucial.

In short, a credit score is a four-digit number that lenders use to assess your creditworthiness.

  • A high score means you’re a low-risk borrower, leading to lower interest rates and more favourable terms. Low-risk borrowers are less likely to default on their loans.
  • A low score, on the other hand, could signal that you’re a higher-risk borrower, which could make it harder to get approved for loans or result in higher interest rates.

So, what goes into your credit score?

Several factors are considered, including your payment history, credit utilization, length of credit history, and more. The weighting of these factors can vary depending on the scoring model used, so it’s essential to understand which one is used by your money lender.

Ultimately, though, your goal should be to maintain a healthy credit score so that you can access the best possible terms when borrowing money.


What Should I Do If A Licensed Money Lender Is Harassing Me?

If you find yourself harassed by a licensed money lender in Singapore, the best course of action is report them to the Registry of Moneylenders or the police.

When a licensed money lender harasses you, you can consider calling the Registry at  1800-2255-529  or via their website.

All of your details and information will be kept confidential. If further investigation of your complaint is required, officers from the Ministry of Law may contact you and ask you for an interview. Should the licensed money lender have transgressed the laws, appropriate actions will be taken. Do not hesitate to contact the police if you’re in immediate danger!


How Do You Apply For A Loan With A Reliable Licensed Moneylender Like Horison Credit?

Horison Credit is one of the few licensed moneylenders that have a convenient loan application form online. All it takes to apply for a loan is 5 minutes!

First, in order to apply for a loan, click on this link.

Next, our friendly loan officers will review your application and contact you as soon as we can. We will then schedule a meeting at our shop, at your convenience. Our shop is located strategically near Chinatown MRT. Chinatown MRT is accessible via the North East Line (purple) and the Downtown (blue) line.

We have received countless good reviews from our valued customers over the years. Horison Credit strives to remain updated on the latest technology to offer faster and better loan services to all! If you have any questions on loans, feel free to contact us as well!


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