Lending rules: Singapore
What the published rules require for unsecured consumer loans in Singapore, in the order a loan is made, and how TS LMS handles each step.
Last reviewed 22 October 2026 · Email me when these rules change
Lender type covered Licensed moneylender (company licensed under the Moneylenders Act 2008 by the Registry of Moneylenders, Ministry of Law)
- 01
What licence do you need to lend in Singapore?
Moneylender's licence from the Registry of Moneylenders
What the rules require
Moneylending requires a licence under the Moneylenders Act 2008, issued by the Registrar of Moneylenders at the Ministry of Law; a licence is valid for 12 months. The Registry has temporarily suspended the grant of new moneylending licences. Licensees need the Registrar's prior approval before appointing a new director and for other key appointments such as managers and substantial shareholders.
Effective: being checked against the official text · Rules as of 30 September 2026 · Source: Information for Licensed Moneylenders
How TS LMS handles it
Products, credit rules and limits are set up for each lender and country. Changes to credit policy and to products need a second person's approval, and every change is kept in the audit log.
- 02
Is there an interest rate cap in Singapore?
Interest cap 4% per month; late interest 4% per month
What the rules require
Licensed moneylenders may charge interest of at most 4% per month, and late interest of at most 4% per month for each month a loan is repaid late. Entering into a loan contract that breaches the regulatory caps on interest and fees is an offence.
Effective 1 October 2015 · Rules as of 30 September 2026 · Source: FAQs on Borrowing From Licensed Moneylenders · New Moneylending Regulations to Better Protect Borrowers to Come Into Force on 30 Nov 2018
How TS LMS handles it
Each product can carry an annual rate ceiling and always carries a ceiling on the total cost of credit; a quote above either is refused.
- 03
How are loan fees regulated in Singapore?
10% upfront fee, S$60 late fee, total cost ≤ principal
What the rules require
Permitted fees are a fee of up to 10% of the principal when the loan is granted and a late fee of up to S$60 for each month of late repayment. Total interest, late interest and permitted fees cannot exceed an amount equal to the principal. Licensees must state in writing how permitted fees will be computed and the order in which payments are allocated (Registrar's Directions No. 1 of 2026, effective 1 April 2026).
Effective 1 October 2015 · Rules as of 30 September 2026 · Source: FAQs on Borrowing From Licensed Moneylenders · Registrar's Directions No. 1 of 2026
How TS LMS handles it
Every charge on a product counts towards the rate check, each product carries a ceiling on the total cost of credit, and staff cannot set a charge above the product's.
- 04
What affordability checks are required in Singapore?
Income-based aggregate caps and income assessment
What the rules require
Unsecured borrowing from all licensed moneylenders combined is capped by annual income: S$3,000 for Singapore Citizens and PRs earning under S$20,000; for foreigners residing in Singapore, S$500 under S$10,000 and S$3,000 from S$10,000 to under S$20,000; and six times monthly income at S$20,000 or more. The Registrar directs that licensees should not grant short-term loans that they know or have reason to believe the borrower cannot repay, and should assess the borrower's income.
Effective 30 November 2018 · Rules as of 30 September 2026 · Source: FAQs on Borrowing From Licensed Moneylenders · Registrar's Directions No. 1 of 2026
How TS LMS handles it
Income and the debt-to-income ratio are assessed and kept with the credit decision; a limit above the suggested amount needs a written reason.
- 05
Can loan contracts be signed electronically in Singapore?
Terms explained, Note of Contract; e-signatures permitted
What the rules require
How TS LMS handles it
Where loans are signed electronically, the agreement is stored unchanged and signed only after approval, and the signature record keeps who signed, when, the agreement's fingerprint and the device. Money is released by a second staff member who is not the approver, and not if the payout account differs from the one approved.
- 06
What identity checks and anti-money laundering duties apply in Singapore?
Moneylenders' AML/CFT Rules supervised by the Registry
What the rules require
How TS LMS handles it
ID document and face checks, and sanctions and PEP screening, are built in. A sanctions match blocks approval and release until compliance clears it with a second officer's confirmation, and a PEP match needs a written enhanced due-diligence note before staff approval.
- 07
What are the data protection and credit bureau rules in Singapore?
PDPA 2012 and mandatory Moneylenders Credit Bureau report
What the rules require
How TS LMS handles it
Personal data is kept for set periods by type and then removed, and a borrower's request to access their data can be answered from the system. Contacting a borrower's emergency contact requires the borrower's recorded consent.
- 08
How is debt collection regulated in Singapore?
Collection hours and conduct (Registry handbook)
What the rules require
How TS LMS handles it
Calls and messages are limited to set hours, and calls to a set number a day. Contact with third parties can be switched off entirely, or allowed only as an exception with the borrower's consent and, where set, compliance approval, using a script that never mentions the debt. Every contact is logged.
This page summarises published rules for general information; it is not legal advice. Rules change: check the current text with the authority before acting.