There are times in our lives when we are short of money. You might search online and look for a 24-hour money lender in Singapore. And, you’ve met a website saying it’s a 24-hour money lender providing a quick cash loan.
Whether it’s for medical bills, car repair or to fulfil your money needs, getting a fast cash loan is ideal. But, you might be asking if there are 24-hour money lender Singapore. In this article, we will discuss what you need to know about a 24-hour money lender.
Before we uncover more about 24 hours money lenders Singapore, let us know more about licensed money lenders and urgent cash loans.
What a Licensed Money lender in Singapore Can Offer?
In Singapore, the Registry of Money Lenders – Ministry of Law regulates and approves the list of licensed money lenders. Each month they provide a list of licensed money lenders. But, what can they offer?
The licensed money lender in Singapore provides various types of loans. These loans include personal loans and business loans to Singaporeans, PRs, and foreigners. They are known to be the providers of urgent cash loans. Unlike banks, they can approve loans within the day and they have less stringent requirements.
How does an Urgent Cash Loan Work?
An urgent cash loan or an instant loan is a type of loan in Singapore that works like a personal loan. Granting of loans happened after an approved application.
In the later part of this article, you will know that it is a must to go to the office of the licensed money lender to collect loan money. A way of verifying when dealing with a private money lender.
Also, since this works like a personal loan, you may use your instant cash loan by any means that you want. You have the freedom to use it for any of your financial needs.
Applying for this type of loan is much easier since it is an unsecured loan. There is no need to provide collateral such as your house, car, jewellery, or valuable property.
Urgent cash loan has a processing time. Wherein some money lenders can get your loan approved within minutes. Notable in solving your financial emergencies.
Urgent loans can help you pay for the following:
- Medical bills
- Car Repairs
- Monthly Bills
- Debt Consolidation
- Home Repairs
- Other Urgent Needs for Money
In your search for an instant loan, you might be looking for a 24 hours money lender in Singapore. So, you have to read the next lines to uncover the truth behind a 24-hour licensed money lender.
Is there a Licensed 24 Hours Money Lenders in Singapore?
The truth is there are no 24-hour licensed money lenders in Singapore. When you need to borrow money after office hours, what you can do is use their website. It is working 24/7 to cater to your personal loan needs. But, what if you met a 24-hour money lender saying that they can provide you with the money? The sad thing is that you’re meeting an illegal money lender.
Registry of Moneylenders-Ministry of Law said that you need to meet the licensed money lender at their registered business address to get the money. If the money lender promised to send the money to your bank account within the day, it means it’s an illegal lender.
If you want to apply for a personal loan, you may also use the EasyFind loan matching platform. It helps you find an ideal licensed money lender. This platform is also available 24/7 which is so easy to use. EasyFind can help you find the right match for a legal money lender in a matter of minutes.
Is there any Licensed Money Lender Open on Sunday?
Aside from 24 hours money lenders Singapore, you may be asking if there are any licensed money lenders open on Sunday. Instead of finding a lender that opens on Sunday, you may take advantage of using an online application form. You don’t have to line up anymore to file your application. You will need to come to their office to collect your loan money.
Another easy option that you can also do is to use the loan matching platform of EasyFind. No need to go over 150 licensed money lenders in Singapore. Within a few clicks in a matter of minutes, we can help you find the right match.
How to Know if You are dealing with a Legal Money Lender?
When you can verify a money lender’s name from the list provided by the Ministry of Law, that means that it is a legal one. You may also check the list of licensed money lenders.
Money lenders are not allowed to solicit loans via text messages, social media messaging platforms, or even phone calls. In the case that you have met this kind of money lender, you must go away since this is a type of illegal lender.
Also, to know if it is a licensed money lender is through the way they advertise. They are only allowed to advertise on the following:
- Business Directories on online media or print
- On their indicated website address within the list of licensed money lenders
- Advertisements placed within their office premises either within the exterior or inside their offices
If you have found a 24 hours money lender in Singapore that advertises beyond the above-stated way, they are likely unlicensed.
Prohibited Practices for a Licensed Money Lender
Prohibited Practices for a Licensed Money Lender
In addition, if you have found a licensed money lender make sure to consider checking the prohibited practices that they may do:
- Use of threatening or abusive language
- Persistent to get your SingPass ID or password
- Not returning your NRIC card, personal IDs, and documents like your ATM cards
- Asking you to sign a blank or an incomplete Note of Contract
- Granting you the loan without a full explanation of the terms and conditions
- Not providing you with a copy of your loan contract
- Not following the loan process e.g. will just approve your application via text message by not looking into your loan application
- Withhold any part of your loan money without providing a clear explanation
If you have experience with either one of the mentioned above, please report them. You may also read our Important Notes to Borrowers before applying for a loan.
A licensed money lender is only allowed to charge up to a maximum of 4% for the monthly interest rate and also the same rate for late interest. You must also be familiar that there is a limit on the loan that you can borrow.
| Annual Income | Singaporeans/PR | Foreigners Residing in Singapore |
|---|---|---|
| Less than $10,000 | $3,000 | $500 |
| At least $10,000 and less than $20,000 | $3,000 | $3,000 |
| At least $20,000 | 6x monthly income | 6x monthly income |
To further discover more differences between licensed moneylenders and illegal lenders, check our article here.
How to Avoid Ending Up with an Unlicensed Money Lender?
When you need an urgent loan, it is vital to find a safer option and get a loan only from a licensed money lender. Here are some tips on how to avoid ending up with an unlicensed money lender.
Apply for an Online Loan Using a Licensed Moneylender Form
We can observe that licensed lenders are now providing an online application form on their website.
However, the sad thing that you will notice right now is that illegal money lenders are mimicking licensed lenders. Some are using the logo of the licensed money lender and even their name.
One thing that you can do to avoid ending up on a fake website is to verify the website address on a list provided by the Registry of Money Lenders. Also, when you are searching for a licensed money lender on search engines make sure not to trust those money lenders that you click on ads. As mentioned above, a licensed money lender is also prohibited from advertising using paid ads such as Google Ads.
Face to Face Verification is Essential
The key also to making sure that you are not going to end up with an unlicensed money lender is through following a proper loan disbursement process. You need to go down to the office of a licensed money lender before granting the loan.
They need to verify your identity and also they need to explain to you the terms of the Note of Contract. Also, they will need to provide you with a copy of that contract.
If you face a money lender saying that there is no need for face-to-face verification, you still have time to stay away. Never apply for a loan from a loan shark.
Follows the Regulation on Interest Rates and Fees
Loan sharks or unlicensed money lenders offering 24-hour loans may ask for upfront fees or admin fees for your loan to process. They may also ask for another fee before your loan disbursement.
However, with a legal money lender In Singapore, will ask for the following:
- When granting a loan, a fee not exceeding 10% of the principal loan.
- For each month of late repayment, you must only pay a fee not exceeding $60.
- In addition, fees may include legal costs asked by the court for each successful claim by a licensed money lender.
- When it comes to interest rates, the maximum they can charge must not exceed 4% per month. That’s also the same rate that applies each month you have a late repayment.
If you have met a lender offering higher interest rates and fees – you are surely facing an illegal money lender.
Find a Money Lender with a Registered Business Address
Since face-to-face verification is an essential part of granting a loan, make sure that you will come to the office of a licensed money lender. This office address must be the same address indicated in the list of licensed money lenders. The list provided by the Registry of Money Lenders – Ministry of Law.
Avoid those money lenders offering loans with no business address. Also, those lenders saying that they send the money to your account. You will end up in big trouble if you accept their offer.
Believe Only in the Legal Advertising Channels of a Licensed Money Lender
As mentioned earlier, licensed money lenders are only allowed to advertise on 3 channels. These channels include business directories, their website, and within their business premises. If you have seen advertisements beyond these, don’t believe in them.
For example, if someone sends you an SMS, a message on WhatsApp, an email, or flyers, you need to stay away from it. These are the recently known ways in which illegal money lenders lure borrowers in Singapore.
If a money lender is advertising beyond the standard advertising means, you have to report these illegal lenders.
To avoid ending up in huge trouble, you need to stay away from illegal money lenders and never fall into their trap. Borrow money only from a licensed money lender in Singapore. These money lenders are strictly regulated under the law. Also, they operate according to the Moneylender’s Act.
How to Find a Reliable Licensed Money Lender?
Looking for a reliable licensed money lender is better than finding a 24-hour money lender in Singapore. After all, you don’t want to end up getting in huge trouble.
Here are some tips on how to find a reliable licensed money lender in Singapore:
Engage only with a licensed money lender with an outstanding reputation
One of the main considerations when looking for a licensed money lender is to make sure they have a licence. Licensed money lenders are strictly regulated by the Ministry of Law. Engage only with lenders recognised by the law.
Another thing that you must consider, they need to have a clean record. You may read the reviews online – either it’s positive or negative. Also, you may check the number of years they are operating. The longer they exist in this industry, the better.
Offers Low-Interest Rates of Not More Than 4% and no hidden fees.
Find a money lender that follows the standard regulation in interest rates. Interest rates must not be more than 4% monthly interest rate. The lower you find, the better since it directly affects your total monthly repayment.
Also, make sure that this money lender has transparently explained the fees that it needs to collect.
Offers Flexibility in Loan Repayments
You’re meeting an ideal legal lender in Singapore if it can provide you a custom repayment schedule that meets your financial capability. Also, it must give negotiable and reasonable terms.
It’s not bad to take a loan, but it must not give you a burden in the long term. An ideal money lender can help you get out of your financial struggles.
However, in finding a licensed money lender, you may find out that they doing prohibited practices. You must know how to file a complaint against them.
How to File Complaints against Prohibited Practices
If you meet a licensed money lender going through the following prohibited practices, you may file a complaint against them. You may file a complaint if the licensed moneylender is doing the following:
- Exhibits unfair moneylending practices
- Providing false information
- Money-collecting practices against the law
- Providing a short-term loan which is less than a month
- Asking you to sign a blank document or an incomplete contract
- Violating the rules and regulations set by the Registry of Moneylender -Ministry of Law
Based on Singapore’s Moneylending Act, you have the right to know the right information about the contract. You must fully understand the terms in the language that you know.
You may report these lenders at Singapore’s Registry of Moneylenders at 1800-2255-529 or via their website.
