Before you apply
Your borrowing limit is fixed by law and depends on your income and residency status, not on how much a lender is willing to offer you.
| Annual income | Singapore Citizens and PRs | Foreigners residing in Singapore |
|---|---|---|
| Less than S$10,000 | Up to S$3,000 | Up to S$500 |
| S$10,000 to below S$20,000 | Up to S$3,000 | Up to S$3,000 |
| S$20,000 and above | Up to 6 times monthly income | Up to 6 times monthly income |
This limit applies across every licensed moneylender you borrow from, not separately to each one. It is a ceiling, not a target, and the amount you are eventually offered may be lower once your income and existing commitments are taken into account.
- You have the right to know this limit before you apply.
- You have the right to be offered a loan that reflects your actual repayment ability, not just the legal maximum.
Only licensed moneylenders are bound by these limits. If you are unsure whether a lender is genuine, see our guide to spotting loan scam warning signs.
While your application is being assessed
A licensed moneylender must assess whether you can afford the loan before approving it, and must never ask for payment upfront.
- You have the right to a proper affordability assessment, not an automatic approval.
- You have the right to refuse any request for a fee, deposit or payment before your loan is disbursed.
- You have the right to identity verification in person, at the lender’s approved place of business. A loan cannot be granted on the basis of an online or phone application alone.
For eligibility criteria and documents required, see our Help and Support page.
When you sign the contract
Your loan contract must be fully completed before you sign it, and interest and fees are capped by law. The combined total of interest, late interest, the administrative fee and late fees can never exceed the original loan principal, regardless of how long the loan runs.
The contract must be explained to you in person and signed at the lender’s approved place of business, not entirely online or through a courier. This applies even if you started your application online, since it is the final step where the lender must confirm your identity and walk through the terms with you face to face.
| Cost | Maximum | How it applies |
|---|---|---|
| Interest | 4% per month | Calculated on the outstanding principal |
| Late interest | 4% per month | Charged only on the overdue amount |
| Administrative fee | 10% of the principal | Charged once, when the loan is granted |
| Late fee | S$60 per month | For each month a repayment is late |
- You have the right to a completed contract, with every figure filled in, before you sign.
- You have the right to have the terms explained in person, in a language you understand, and to a copy of the signed contract for your own records.
- You must never sign a blank or incomplete Note of Contract, and you must never be asked to sign remotely without meeting the lender face to face.
After you receive the loan
Once your loan is disbursed, you are entitled to confirmation of what you received and a record of every payment you make.
- You have the right to receive the correct principal, after only the permitted administrative fee is deducted.
- You have the right to a receipt every time you make a repayment.
- You have the right to a statement of account at least once every January and July.
- You are responsible for keeping your contract, receipts and statements, as these are your evidence if a dispute arises.
During repayment
Your lender’s conduct during repayment is regulated just as strictly as the loan terms themselves.
- You have the right to be free from harassment, threats or intimidation of any kind.
- You have the right to keep your NRIC, passport, work pass and ATM card. A lender must never hold on to them.
- You have the right to be charged late interest only on the overdue amount, not the full outstanding loan.
- You have the right to raise repayment difficulties with your lender directly and in writing.
Want to plan your instalments before you commit? Try our personal loan calculator.
If something goes wrong
If a lender does not honour these rights, you have a clear route to raise it, with the contract and records you have kept along the way.
- You have the right to lodge a report with the Registry of Moneylenders, with your contract, receipts and any messages as evidence.
- You have the right to make a police report if harassment, threats or violence are involved.
- The Registry does not restructure private loan contracts, but you may negotiate directly with your lender or seek help from an appropriate intermediary.
You can lodge a report with the Registry of Moneylenders or call the Registry on 1800-2255-529. For the latest guidance, refer to the Registry’s current borrower FAQ.
