Protect Yourself Against Illegal Moneylenders and Loan Scams

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Important Notes to Borrowers in Singapore!

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Recently, it was observed that there are rising numbers of reported scammers and illegal moneylenders pretending as licensed lenders to mislead or trick victims to fall for their loan schemes. Stay away from these illegal lenders and scammers. Please take time to read this important notice.

Please AVOID Taking A Loan From The Following:

Illegal lenders also known as ‘ahlong’ or ‘loan shark’ – they provide high interest and have no licence.
Loan scammers – they will not lend you money.

Please DO NOT Believe The Following Tactics From Illegal Lenders Or Loan Scammers:

Asking you to transfer money before taking a loan.
They may ask you to pay for ‘GST fees’, ‘processing fees’, or any fees before you can take your loan or disbursement of the loan.
Refusing to meet-up at their office and promise that they will transfer you the money.
Sending you SMS or WhatsApp messages saying that they are licensed moneylenders.
They may send you loan offers and pretending that they are from a certain financial company such as ‘Easy Credit’ (Some of the borrowers experienced getting loan offers from this company, take note that there is no licensed moneylender existing with this name.) You may verify the legal moneylenders’ name and information below.
They create fake websites and social media accounts pretending as legal lenders. Also, please be aware that they may use a similar name for their website address (URL). These websites will ask for your personal information such as NRIC number, address, and contact number which they will use for illegal activities.
They advertise in search engines such as Google pretending to be a licensed moneylender.

REMEMBER: A legal money lender will never ask you any money before taking a loan and they will ask you to come to their office to grant your loan.

Before visiting a licensed moneylender’s office, you may verify their registered address by using the table below. The information found on the table below comes from the complete list of licensed moneylenders provided by the Registry of Moneylenders – Ministry of Law. Also, they are not allowed to advertise on search engines such as Google and social media.

An EASY WAY To Prove If They Are Legal/Licensed Lender Is To Visit Their Approved Office Address from the List of Licensed Moneylenders.

If you noticed or experienced illegal activities from unlicensed lenders or scammers, please report it to the Police hotline at 1800-255-000 or you may submit it online at www.police.gov.sg/iwitness. You may also report it at X-Ah Long hotline at 1800-924-5664.

Read This: To learn more about The Difference Between Licensed Moneylenders vs. Loan Sharks

Important Considerations When Taking a Loan from a Licensed Moneylender

Prior to taking a loan from a licensed moneylender, below are the key considerations:

Determine the interest rates offered by the licensed moneylender before taking out a personal loan, a business loan, or other types of loans.
In order to select an ideal lender, you may start by comparing the rates and guidelines. Choose a lender that offer affordable interest rates and reasonable repayment schedules.
Ensure that your chosen lender meets your financial situation.

Before signing the loan contract from a licensed moneylender, make sure that:

You have check for hidden fees, clauses or other details that you need to know.
Always ask for clarification, if there is anything unclear in the Note of Contact.
The licensed moneylender has explained the contract in the language that you understand.
You have completely understand the details in the contract.
You have the ability to meet the repayment schedules.
The draft given to you by the moneylender should be written in a language that you can understand.
If you need assistance, you may consult a lawyer who can explain the details to you. Remember that blindly signing any contract may put you in deep trouble eventually.
If there are doubtful items stipulated in the contract, you can always walk away and look for a better lender. After all, it is ultimately your choice to take out a loan from a particular lender or look for another one that meets your concerns.

You may also read this: Frequently Asked Questions (FAQs) on Borrowing from Licensed Moneylenders