8 Things Licensed Moneylenders Consider Before Approving Your Loan

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The cost of living in Singapore is more than its neighboring countries, which is why you may feel the need to take a loan to pay for your daily living costs. But depending on the complexity of your financial situation, getting a loan can either be a tedious or quick process.

When you consider getting a loan for the first time, you might not be aware of all the aspects that a loan provider inquires about your situation before approving it. Therefore, ensure that you are finding the ideal lender for your requirements who offers affordable interest rates.

While Singapore strictly regulates moneylenders in the country, you might still end up borrowing from an illegal lender if you do not do your due diligence. So, check the company’s registration on the Ministry of Law website before signing any papers for a loan.

Suppose you need a loan to get out of a tight situation. It would be best if you prepared beforehand to ensure it is approved as quickly as possible. Once you have covered the following aspects, head over to a licensed money lender Singapore.

Documentation Availability

Before looking into anything else, you need to ensure you have the complete documentation that is required by most, if not all, licensed moneylenders in Singapore.

The documents you should have available with you when you are looking to apply for a loan are:

  • Identity card/NRIC

  • Residence proof (can be a utility bill, tenancy agreement, etc.)

  • Employment proof (Payslip, letter of appointment, etc.)

Whether you are a local or foreigner applying for a loan, you might also need extra documentation like a work permit or visa, passport, proof of income, and so on.

Your Income and Employment

Loan providers want to ensure that they receive their money back along with interest. To ensure that this will happen, they need to confirm your employment status. No person would want to give money to an individual who cannot pay it back. Thus, you need to ensure that your income and employment history details are ready to be shown to the lender.

Depending on your income and years of employment, a lender can offer different amounts to you for loan purposes. They may also be willing to negotiate a flexible payment plan that gives you more freedom while sticking to a specific schedule.

Credit Score

Every licensed moneylender, Singapore is sure to look at your credit score when considering your application for a loan. Having a sound credit score means you have paid back EMIs or loans taken out in the past.

If you are taking a loan for the first time and have never even had a credit card to your name before, your clean slate can also prompt a lender to provide a loan for you. Ensure that you are aware of your credit score, and if it is too low, you should be ready to explain why that is so.

Financial History

While not all moneylenders in Singapore will look intricately into your past finances, some will require it, especially if you have requested a large loan. Past finances would also include the financial details of any dependent family you have.

If you have an unobjectionable financial history, there is nothing to worry about. However, if you declared bankruptcybefore or anything similar, it is better to be upfront about it with your lender during the initial stages of your loan approval.

Down Payment Details

While your loan is in the process of getting approved, your lender might want to sit down with you and determine the appropriate down payment you should make towards your loan.

Down payments can differ depending on your financial situation and other aspects, and you can negotiate this with your lender depending on how urgently you need the loan. Ensure that the down payment is mentioned on the final loan document you will be signing as well.

Any Collateral You Have

You do not necessarily need to have collateral for your loan. In Singapore, depending on what kind of loan you are applying for, the requirements for collateral can vary. However, if you request a high amount or a mortgage, you might need collateral to back your loan up.

For collateral to be included in your loan approval documents, you need to have thorough documentation stating your ownership of it.


Whether you have liquidated assets or other types of assets, they can be crucial in helping you get your loan approved. If your lender seems hesitant about providing a loan to you, it is ideal to be upfront about your asset details.

Assets can also be used as collateral, depending on the kind of loan you are asking for. Not all assets can be considered collateral, and you will have to ask around in your area to find out.

Loan Term

Singapore’s licensed moneylender will have a contract that mentions when they expect the total loan sum, including the interest back. They might offer several options for paying your loan off that can include regular installments or periodic payments (every quarter, year, etc.).

You can also check out the Credit Association of Singapore’s website if you have any questions about how moneylenders operate in the country. Be aware that you will be only eligible for a limited loan based on your income and other factors.

When you know what to prepare before you head out to get a loan from a lender in Singapore, your loan could be approved within days.

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