A Beginner’s Guide to Understanding How Moneylenders Work in Singapore

Money lending is a massive industry in Singapore, and it can be challenging to understand how it works if you’re not familiar with the process. This article will provide a beginner’s guide to understanding moneylenders in Singapore. 

Whether you’re thinking of borrowing money from a moneylender or are just curious about how this industry works, this moneylender guide is for you.

What is a Moneylender?

A moneylender is a business person that lends people money. They are also known as payday lenders and offer a variety of loans, such as personal loans, payday loans, and car title loans. The Registry of Moneylenders, part of the Singapore Ministry of Law, is responsible for registering and regulating licensed moneylenders in Singapore.

How do Moneylenders Work?

Moneylenders work by lending money to individuals and charging them interest (or fees) for doing so. They do this through a variety of different types of loans. Some of them are explained below:

a) Personal Loans

A personal loan is a type of unsecured loan. It means that the borrower does not have to put up any collateral (e.g., their house or car) to get the loan. It can be a good option for people who don’t want to risk losing any property if they can’t repay the loan. Moneylenders typically charge a higher interest rate for personal loans than banks do, but it’s still usually less than what you might pay on a credit card.

b) Payday Loans

Payday loans are unsecured ones. The borrower gives the moneylender a post-dated check for cash plus interest. On that date, they can either pay back the loan in full or renew it for another period (usually 14 days). If they can’t renew the loan, the lender will cash their check and keep the funds.

c) Car Title Loans

Car title loans are secured where you use your vehicle as collateral. The moneylender will hold the title to your vehicle until you’ve repaid the loan in full. You can usually borrow a more significant amount of money with a car title loan than you can with a personal loan. 

d) Business Loans

Business loans are a type of loan that moneylenders offer to small businesses. They can be used for many things. It can be expanding the business, buying new equipment, or hiring more employees. 

Steps Involved in Getting a Loan from Moneylenders

Getting a loan from moneylenders is relatively straightforward. This moneylender guide will explain it below:

a) Apply for the Loan

The first step is to apply for a loan. You can do this online through a moneylender’s website or by visiting their office. You’ll have to provide some personal information and information about the loan you want to get started.

b) Submit the Required Documents

Once your application has been submitted, the moneylender will need to verify your information. Some essential documents include:

– Identification: This can be your NRIC, driver’s license, or passport.

– Proof of Income: This could be a recent payslip from your employer, a bank statement showing regular deposits into the account, or tax returns.

– Credit Report: A credit report is not always required, but it can help the moneylender determine your creditworthiness.

c) Get Approval (or Rejection)

After they’ve received all the necessary documentation, the moneylender will review your application and either approve or reject it, depending on various factors.

d) Signing the Agreement

If your application is approved, the moneylender will send you a loan agreement to sign. The document reports the terms and conditions of the loan, including the interest rate, repayment schedule (i.e., how often you’ll be expected to make payments), and any fees that might apply.

Once you’ve signed the agreement and returned it to the moneylender, they’ll deposit the funds to your account.


It is essential to understand how moneylenders work in Singapore. The Ministry of Law regulates moneylenders, so you can rest assured that they will follow all the government’s rules and regulations.