Unlicensed Moneylending

Stay away from unlicensed moneylenders!

Unlicensed moneylending (UML) is illegal in Singapore. The legal way to borrow money is through licensed moneylenders and licensed financial institutions such as banks. Members of the public should take note of the following:

Licensed moneylenders are not allowed to make unsolicited calls or send unsolicited messages via social media and online messaging platforms such as Facebook, TikTok, Instagram,Telegram or WhatsApp, to offer loans.
Licensed moneylenders are required to meet the borrower in person at the approved place of business to verify the borrower’s identity and personal information.
Licensed moneylenders are only allowed to approve or grant loans to a person within the approved places of business.
Licensed moneylenders will not ask borrowers to transfer monies on the pretext of paying “GST fees” or “processing fees” before loan disbursement.

Before entering into any loan agreement, be sure to check that the company you are dealing with is a licensed moneylender. You can find the approved list of moneylenders here.

Why avoid unlicensed moneylenders?

Unlicensed moneylenders, also known as 'loansharks' or 'Ah Longs', often target financially vulnerable individuals. Their victims are often people who struggle to obtain legal loans but urgently need money for living expenses or to pay off existing debts.

Unlike the banks, unlicensed moneylenders offer high-interest loans without assessing your ability to repay, often trapping borrowers in cycles of debt.
Unlicensed moneylenders often use harassment tactics and threats of violence to enforce repayment.
Unlicensed moneylenders may add hefty penalties for missed repayments, compounding your debt.
In many cases, the harassment can persist even after borrowers have settled their debts.

SPF Anti-Unlicensed Moneylending

How to spot an unlicensed moneylender

They are not listed on the official list of licensed moneylenders (which can be found here).
They offer loans through unsolicited calls or messages.
They do not verify your identity at their official place of business.
They approve loans remotely without any in-person meeting.
They demand upfront payments before loan disbursement (such as GST, admin fee, processing fee or any other fees).

How to protect yourself and your household members

If you encounter unlicensed moneylending activities and suspicious individuals, report them to the police immediately.
Join the Citizens on Patrol – Participate in neighbourhood community groups that help patrol the area and watch out for each other.
Educate family members and domestic workers about the dangers of unlicensed moneylenders and the consequences of involvement, including having their work pass revoked.
Ignore suspicious loan advertisements. If it sounds too good to be true, it usually is.
Do not reply to scam or unsolicited messages. Instead, block the number and report it as spam.
Keep your personal and financial information safe. Do not share your NRIC, SingPass or bank account details to anyone.
Stay away from unlicensed moneylenders to avoid falling into a vicious cycle of harassment and debt.
Be careful of loan scams, where scammers masquerade as licensed moneylenders. Learn more on loan scams here.

Do not to work with or assist unlicensed moneylenders

Stay away from unlicensed moneylenders and do not work with or assist them in any way.
The Moneylenders Act 2008 states that if a person’s bank account, SIM card, ATM card or Internet Banking token is used to facilitate unlicensed moneylending, the person is presumed to have assisted in the illegal business.
First-time offenders found guilty of carrying on or assisting in unlicensed moneylending face:

- Imprisonment of up to four years

- A fine between $30,000 and $300,000

- Caning of up to six strokes.
First-time offenders found guilty of harassment on behalf of an unlicensed moneylender face:

- Imprisonment of up to five years

- A fine between $5,000 and $50,000

- Caning of up to 12 strokes.
Remember, any involvement with unlicensed moneylenders, no matter how small, can lead to these serious penalties. Protect yourself and your community by staying clear of such activities.

How to get financial help

If you are in financial difficulty, seek help before it’s too late.

Credit Counselling Singapore: 6225-5227 (www.ccs.org.sg)
National Council on Problem Gambling: 1800-6-668-668 (www.ncpg.org.sg)
ComCare: 1800-222-0000 (www.msf.gov.sg/comcare)

How to report suspected unlicensed moneylending or scams

Verify unsolicited invitations to take a loan

Call the anti-scam helpline at 1799.

Report unlicensed moneylending or loan scam

Submit your report online via i-Witness.
Call the Police hotline at 1800-255-0000.
File a Police report at your nearest Neighbourhood Police Centre.
Call ‘999’ if urgent police assistance is needed.

Unlicensed Moneylending

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