Key Takeaways
- Licensed money lenders in Singapore are not regulated by MAS — they are licensed and regulated by the Registry of Moneylenders under the Ministry of Law.
- “MAS money lender” and “MAS licensed money lenders” are misleading terms; borrowers should use the official Registry of Moneylenders list to verify a lender.
- The Moneylenders Act sets important borrower protections, including limits on interest, late fees, administrative fees and total borrowing costs.
- MLCB is different from both MAS and the Registry — it maintains credit information about loans and repayments involving licensed money lenders.
- Always verify a lender before borrowing, especially if you receive unsolicited loan offers or are asked for Singpass details, upfront payments or other sensitive information.
If you search for “MAS money lender” in Singapore, you might assume you’re looking for a lender regulated by the Monetary Authority of Singapore.
But here’s the catch: MAS does not license money lenders.
Licensed money lenders in Singapore are regulated by the Registry of Moneylenders under the Ministry of Law, while MAS oversees financial institutions such as banks and finance companies.
That distinction matters. Knowing who actually regulates a lender can help you find the right place to verify a business before handing over your personal information or applying for a loan.
Are Money Lenders Licensed by MAS in Singapore?
No. Licensed money lenders in Singapore are not licensed by MAS.
The confusion is understandable. Both MAS and the Ministry of Law oversee important aspects of Singapore’s financial landscape, but their responsibilities differ.
MAS regulates financial institutions and activities within its regulatory framework, including banks and finance companies.
The Registry of Moneylenders, under the Ministry of Law, is responsible for licensing and regulating licensed moneylending businesses.
So, if you see terms such as “MAS money lender” or “MAS licensed money lenders” while searching online, don’t take the wording as proof that a business is licensed by MAS. These are common search terms, but they are not the correct regulatory descriptions. If you are interested in finding out more, here are some facts about licensed money lenders that may surprise you.
The Registry is the place to turn to when you need to verify whether a money lender is licensed.
So What Is the Registry of Moneylenders?
The Registry of Moneylenders Singapore, under the Ministry of Law, is responsible for licensing and regulating licensed money lenders in Singapore.
Its responsibilities include:
- Licensing eligible moneylending businesses
- Maintaining the official list of licensed money lenders
- Administering the regulatory framework for moneylending
- Handling information about possible breaches involving licensed money lenders
One of the Registry’s most useful resources for borrowers is its official list of licensed moneylenders. This allows you to check whether a business is actually licensed before moving forward with a loan application.
But don’t stop at a name alone. Scammers can impersonate legitimate businesses, so the details of the lender you are dealing with should also match the information provided by the Registry. With advances in technology and AI, scammers have raised their game. They have been producing fake websites and emails that now look almost identical to the real thing, with victims falling prey and losing $252,000 in 3 weeks.
What Is the Moneylenders Act in Singapore?
The Moneylenders Act Singapore provides the legal framework for licensing and regulating moneylending businesses.
It also includes provisions relating to borrower information and credit bureau arrangements.
For borrowers, the Moneylenders Act is particularly important because it sets rules covering areas such as interest rates, fees, loan agreements and lender conduct.
Interest Rates and Fee Limits
A licensed money lender cannot simply set unlimited interest rates or fees. Key limits include:
- Interest: up to 4% per month
- Late interest: up to 4% per month on the overdue amount
- Late fee: up to S$60 per month
- Administrative fee: up to 10% of the loan principal
- Overall cap: total interest, late interest, administrative fees and late fees cannot exceed the original principal amount
Interest is calculated on the remaining principal, while late interest applies only to overdue amounts.
Understanding these limits can make it easier to spot terms that don’t look right and ensure that you are not being charged wrongly.
Loan Contract and Borrower Requirements
Interest rates aren’t the only thing borrowers should look at. The loan agreement matters too.
Licensed money lenders must explain the loan terms in a language the borrower understands and provide a copy of the loan contract.
The agreement should clearly set out important details such as the interest rate, fees and repayment schedule, so you know what you are agreeing to before signing.
A professional licensed money lender will also conduct the required checks when assessing an application. When a loan is disbursed, the borrower should receive the correct principal amount, subject to permitted deductions.
If something in the agreement is unclear, don’t be afraid to ask questions before signing.
Advertising and Loan Solicitation Rules
This is another area where borrowers should keep their guard up.
Licensed money lenders can advertise through permitted channels, including their own websites, business or consumer directories, and advertisements at their approved business premises.
If you see any loan offers through social media, SMS, WhatsApp, Telegram or email, they are a scam. Unsolicited loan advertisements can be a major warning sign of illegal lenders in Singapore.
Licensed money lenders must also conduct face-to-face verification at their approved place of business rather than completing the entire loan process remotely.
So if someone promises instant approval without proper checks and insists that everything can be completed online, take a step back.
Related read: 4 Things You Need to Know About No Credit Check Loans in Singapore
What Is the Moneylenders Credit Bureau? Are They the Same As MAS?
The Moneylenders Credit Bureau (MLCB) is separate from both MAS and the Registry of Moneylenders.
It maintains credit information relating to loans and repayments involving licensed money lenders. This information can include details such as existing loans, outstanding balances and repayment history.
Licensed money lenders can use the MLCB report to assess loan applications and make responsible lending decisions.
- MAS → regulates financial institutions such as banks and finance companies
- Registry of Moneylenders → licenses and regulates licensed money lenders
- MLCB → maintains credit information relating to loans and repayments with licensed money lenders
Knowing the difference is useful because each serves a completely different purpose.
How to Verify a Licensed Money Lender in Singapore
Found a lender online? Don’t apply until you’ve checked that it’s legitimate.
Start by searching the official Registry of Moneylenders list and make sure the lender’s business name and details match the official listing.
Be cautious of lenders using terms such as “MAS licensed money lender”, as money lenders are regulated by the Registry of Moneylenders, not MAS. You should also avoid lenders that request your Singpass password, ask for unusual upfront payments or offer to complete the entire loan process remotely.
Taking a few minutes to verify a licensed money lender in Singapore can help you avoid scams and costly mistakes.
Borrow Safely and Conveniently With UK Credit
The key takeaway is simple: MAS does not license Singapore’s licensed money lenders. The Registry of Moneylenders under the Ministry of Law is responsible for licensing and regulating them.
If you’re considering applying for a loan, verify the lender’s status with the official Registry, review the interest and fee limits, and make sure you understand the repayment terms before signing.
UK Credit is a licensed money lender in Singapore that operates in accordance with applicable regulations. To discuss available loan options and repayment terms, you can speak with UK Credit before deciding whether borrowing is right for you.
