Frequently Asked Questions

Search the lender’s exact business name on the Ministry of Law’s Registry of Moneylenders. Confirm the registered address and licence number match what the lender has told you, if anything doesn’t line up, don’t proceed.

Yes, when the lender is genuinely registered with the Ministry of Law, since your rates, fees and contract terms are all protected by law. We go into more detail in is borrowing from a licensed moneylender safe.

Be careful if someone offers a loan through WhatsApp, SMS, Telegram, social media or an unofficial website. A licensed moneylender should not ask for upfront payment before loan disbursement.

Red flags include requests for Singpass details, OTPs, bank transfers, “processing fees”, “unlocking fees”, or signing a blank contract. Always verify the lender on the Ministry of Law’s Registry of Moneylenders before applying.

See our full breakdown of loan scam red flags if you want to check something specific.

Yes, money lending is legal in Singapore when carried out by a lender licensed under the Moneylenders Act 2008 and regulated by the Ministry of Law. Lending without a licence is illegal and is what’s commonly referred to as loan sharking.

Yes. For licensed moneylender loans in Singapore, borrowers must complete identity verification and contract signing before the loan is granted.

At BST Credit, approved borrowers visit our licensed office to review the loan amount, repayment schedule, interest and fees before signing.

BST Credit collects personal data only for loan enquiries, application review, verification, compliance and service-related purposes.

We handle personal data in accordance with our Privacy Policy and take reasonable steps to protect it from unauthorised access, use or disclosure. You should never share your Singpass password, OTP, banking password or login details with anyone.

Licensed moneylenders in Singapore cannot charge more than 4% interest per month. Interest must be calculated on the reducing loan balance, not the original full loan amount after principal repayments have been made.

Licensed moneylenders in Singapore must follow legal limits on interest, late fees and other charges.

• Late interest is capped at 4% per month and applies only to the overdue amount.
• Late fees cannot exceed S$60 per month.
• Administrative fees are capped at 10% of the approved loan principal.
• Total permitted charges must not exceed the loan principal.

No upfront fee should be paid before your loan is approved and disbursed.

Be careful if anyone asks you to transfer money first for “processing”, “unlocking”, “insurance” or “admin” before you receive the loan. Licensed moneylenders are not allowed to ask for payment before loan disbursement.

Interest is charged on your reducing monthly balance, not the original loan amount. As you repay, interest is calculated only on what’s still outstanding, capped at 4% a month under the Moneylenders Act.

The amount you can borrow depends on your income, residency status, existing commitments and repayment ability. For unsecured loans, Singapore’s licensed moneylender borrowing limits are:

• Singapore Citizens and PRs earning less than S$10,000 a year: up to S$3,000
• Foreigners earning less than S$10,000 a year: up to S$500
• Borrowers earning S$10,000 to below S$20,000 a year: up to S$3,000
• Borrowers earning at least S$20,000 a year: up to 6 times monthly income

These are legal maximum limits, not guaranteed approval amounts. BST Credit will review your documents and repayment ability before offering a suitable loan amount.

Same day approval is possible once your documents are ready and your identity is verified in person, which is a legal requirement for every licensed moneylender. How quickly you’re prepared, not the loan type itself, is usually what determines the speed.

Eligible foreigners working in Singapore may apply, subject to income, residency status, valid pass documents and repayment ability.

Common documents may include a valid work pass, proof of income, proof of address and other supporting documents requested during application review.

In Singapore, credit history is usually assessed through credit reports and repayment records. There is no single universal “bad credit score” that applies to every lender.

For licensed moneylender loans, your current income, existing commitments, documents and repayment ability may also be reviewed before a loan amount is offered.

You can improve your credit history by repaying bills and loans on time, reducing overdue balances, avoiding repeated loan applications and checking your credit report for errors.

If you have existing debt, borrow only what you can afford to repay. A new loan should not be used to cover repayments unless the total repayment plan is clear and manageable.

MLCB stands for Moneylenders Credit Bureau. It records loan information submitted by licensed moneylenders in Singapore.

When you apply for a loan, a licensed moneylender may review your MLCB record, existing loan commitments, income, documents and repayment ability before offering a loan amount.

MLCB is different from the Credit Bureau Singapore records commonly used by banks and credit card providers.

Start by checking that the lender is on the Ministry of Law’s official Registry of Moneylenders.

From there, compare how clearly each one explains its rates and fees, and how they treat you before you’ve even signed anything. Our guide to choosing a licensed moneylender covers what to look for in more detail.

You can start your application online, then a licensed officer will call to confirm your details before you visit an office in person to verify your identity and sign your contract, a step required by law for every licensed moneylender. See what you’ll need to apply for a personal loan for the full document checklist.

You can borrow from a bank or from a licensed moneylender, both are legal, regulated options.

Banks generally offer lower rates but require a stronger credit history and higher minimum income.

Licensed moneylenders like BST Credit have more flexible eligibility and can approve you faster, within the interest caps set by the Ministry of Law.

Banks and licensed moneylenders serve different borrowing needs.

Banks usually have stricter credit checks, longer approval processes and lower annual interest rates.

Licensed moneylenders are regulated by the Ministry of Law and may review smaller or urgent loan needs faster, but they must follow legal caps on loan amounts, interest and fees. Borrowers should compare total repayment amount, fees, tenure and affordability before deciding.

A secured loan is backed by collateral, such as an asset.

An unsecured loan does not require collateral and is assessed based on factors such as income, documents, existing commitments and repayment ability.

In Singapore, unsecured loans from licensed moneylenders are subject to legal borrowing limits based on income and residency status. BST Credit will explain the loan type, amount and repayment terms before you sign.

Contact your lender as early as possible if you cannot repay on time. Licensed moneylenders must provide a clear repayment schedule, and late fees and late interest are subject to legal limits.

Do not ignore notices or borrow from unlicensed lenders to repay an existing loan. Keep records of your payment discussions and ask about possible repayment arrangements.

Speak to your lender directly first. If that doesn’t resolve things, Credit Counselling Singapore offers free, confidential guidance for anyone dealing with debt difficulties. Read more in our guide to credit counselling and debt management.

You’re entitled to a written contract that clearly sets out your interest rate, fees and repayment schedule before you sign, and no licensed moneylender can charge beyond the legal caps. Our full guide to borrower rights in Singapore covers this in more depth.

You can report suspected loan sharks or unlicensed lending to the Ministry of Law’s Registry of Moneylenders, or to the police if you’re facing harassment. Our guide to lodging a complaint against a moneylender explains how the process works.