Your Loan Quantum Depends on Your Income
Licensed moneylenders in Singapore can’t lend you any amount you ask for. The Registry of Moneylenders (Ministry of Law) sets a maximum loan quantum based on your annual income and residency status, and this cap applies to your total outstanding principal across every licensed moneylender you borrow from — not per lender.
Singapore Citizens and Permanent Residents
- Annual income below S$20,000: up to S$3,000 in total unsecured borrowing.
- Annual income of S$20,000 or more: up to 6 times your monthly income.
Foreigners Residing in Singapore
- Annual income below S$10,000: up to S$500.
- Annual income between S$10,000 and below S$20,000: up to S$3,000.
- Annual income of S$20,000 or more: up to 6 times your monthly income.
Secured loans — where you pledge an asset as collateral — are not subject to these quantum caps, though they carry their own risks and requirements.
What Counts Towards the Cap
If you already have an outstanding loan with another licensed moneylender, that balance counts towards your total cap. This is one reason a licensed moneylender will ask about your existing debt obligations — not to catch you out, but because the law requires them to keep your total borrowing within the permitted limit.
How to Estimate Your Own Limit
The quickest way to get a realistic number is to work out your gross monthly income, multiply it by six (if your annual income is S$20,000 or more), and use that as your starting point. From there, use a loan calculator to see how a given amount plays out across different tenures before you commit to anything.
Why the Cap Exists
The quantum cap, together with the 4% per month interest cap and the rule that total borrowing costs cannot exceed the principal, is designed to stop borrowers from taking on debt they can’t reasonably service. It’s a borrower protection, not a lender restriction to work around.
For the full, current rules, refer to the Ministry of Law’s Guide to Borrowing from Licensed Moneylenders.