Licensed vs Unlicensed: The Core Difference
Every licensed moneylender in Singapore is listed on the Registry of Moneylenders maintained by the Ministry of Law. Unlicensed moneylenders — commonly known as loan sharks — operate outside this system entirely, which means none of the legal protections around interest caps, fees, or collection practices apply to their “loans.”
Warning Signs of a Loan Shark
- Unsolicited contact — an SMS, WhatsApp message, or call offering a loan you never applied for, often with no credit check required.
- No proper documentation — a legitimate licensed moneylender must provide a written contract, in a language you understand, before disbursing any funds.
- Requests to hand over your NRIC, bank card, or SingPass details as “collateral” — this is illegal and licensed moneylenders never ask for this.
- Vague or missing terms — no clear statement of interest rate, fees, or total repayment amount.
- Threats or harassment — licensed moneylenders must follow strict, regulated collection practices; loan sharks often resort to intimidation, harassment of family members, or property damage.
- No fixed business address — licensed moneylenders operate from a registered, approved place of business where you sign your loan contract in person.
How to Verify a Moneylender Is Licensed
Check the moneylender’s name against the official Registry of Moneylenders at rom.mlaw.gov.sg before engaging with any lender, especially one that contacted you first. A licensed moneylender will never object to you verifying their licence.
If You’ve Been Approached by a Loan Shark
Do not respond, and do not provide any personal or financial information. If you are experiencing harassment or believe you’re dealing with an unlicensed moneylender, lodge a report with the Singapore Police Force. See our full loan scam alert guide for detailed steps on staying safe and reporting suspicious activity.