When it comes to a personal loan or money lending services, illegal moneylenders, commonly referred to as loan sharks is a topic that cannot be ignored. Unfortunately, due to their unscrupulous principles, they taint the image of the genuine and legal money lenders in Singapore.

The existence of loan sharks in the lending industry should not be a hindrance to your taking a loan. You only need to be cautious before settling on the person or institution you intend to borrow with. Below is a guide on how to find the correct legal money lender in Singapore:


It is a requirement that all moneylenders in Singapore be registered by the Ministry of Law. This should be evidenced by the License that should be displayed on the company’s premises.

If there is any doubt about the registration, you can verify this from the list of registered moneylenders in Singapore from the Ministry of Law’s website. If their name is missing in this list, definitely they are operating illegally.

Physical Address

The law requires that all moneylenders have a physical address where a customer can visit and be served. Any lender operating without a physical address is deemed to be operating illegally and should be avoided.

Contract Document

The law requires that all borrowers sign a contract document that binds them with the lender. The contract document should have clear terms of the loan. For instance, it should state the loan amount, interest rate, processing fee if any, penalties in the event of default, and loan tenure.

If you come across a lender offering blank papers for signing as the contract document, or one that doesn’t offer any contract for signing, then you should avoid engaging them as that’s a good indication they are not operating legally.


Under Singapore law, legal moneylenders are only allowed to advertise through

  • Business or consumer directories
  • The website belonging to the moneylender
  • Advert placed within or on the exterior of the moneylender’s business premises

Any other advert other than the one mentioned above should raise alarm. You’ll find illegal moneylenders advertising through texts, and other telemarketing services.

Clear Loan Procedures

A legal moneylender will always take time in guiding the applicant through the whole loan application process. They will never rush the customer through the process. On the contrary, illegal money lenders will rush you through the whole process and avoid much paperwork. They will even skip the step of meeting you in person. They will convince you to complete the whole process online.

Singapore regulations require the borrower to meet the lender in person. During this appointment, you are expected to sign a contract letter and other relevant paperwork that is legal and binding.

If you are looking for a legal money lender in Singapore, look no further as Avis Credit has got you covered. Follow this link and have all your financial needs looked into.

author avatar