Yes, Singapore does have laws governing moneylenders. The Ministry of Law in Singapore is responsible for ensuring that licensed moneylenders follow the Moneylenders Act and Rules. In Singapore, moneylenders are legally required to obtain a license from the Registrar of Moneylenders, who establishes maximum interest rates and fees for various services.

Obtaining a license requires meeting requirements like having an office in Singapore and following the Ministry of Law’s rules and regulations. Licensed moneylenders must adhere to a strict code of ethics when dealing with borrowers.

Moneylenders Regulations Singapore

Singaporean moneylender applicant must meet certain criteria and provide the necessary documents and information. 
The applicant must be Singapore-registered sole proprietorship, partnership, or company. 
The applicant must have Singapore-based moneylending office. 
The office must also be in commercial or industrial area, not a residential one. 
Minimum paid-up capital: sole proprietorship or partnership must have $100,000, and company must have $250,000. 
Good financial management: The applicant must not have history of bankruptcy or fraud. 
Fit and proper person: moneylending license applicant must have no criminal record or regulatory disciplinary action.

Moneylenders frequently operate in Singapore, and if their application is approved, they will be given a license that is valid for two years. Due to the country’s high population density, many citizens need credit, and many also have high levels of disposable income, making them desirable borrowers.

licensed moneylender singapore

Does the Law Regulate Money Lenders?

Compared to other Southeast Asian nations, Singapore has a high GDP per capita. Singapore’s moneylenders with a license must abide by the law and register with the Prime Minister’s Office’s Ministry of Law (PMO).

The ministry notifies borrowers of their rights and obligations prior to entering into loan agreements with such institutions, in addition, to set maximum interest rates for licensed moneylenders. In Singapore, the Ministry of Law regulates the interest rates charged by authorized money lenders and ensures that borrowers know their rights and obligations before signing any loan agreements.

To safeguard consumers from predatory lenders, the Ministry reviews and updates all laws governing money lending practices in Singapore every year.

To ensure that borrowers have easy access to loans when needed, the Ministry of Law regulates the licensure and registration requirements for moneylenders in Singapore. This allows them to operate with greater convenience and transparency during client transactions.


You should be aware of your responsibilities and rights as a borrower when dealing with authorized money lenders. Also known as “loan sharks,” illegal money lending is strongly opposed by the Singaporean government.

Illegal moneylenders work outside the legal system and frequently use dishonest means of debt collection. The government has implemented stringent measures to crack down on loan sharks. Anyone engaged in illegal money-lending activities will be severely penalised, including fines and incarceration.