Signing the Note of Contract isn’t the end of a licensed moneylender’s obligations to you; in many ways, it’s the start. As of October 2026, a licensed moneylender in Singapore must pay you the correct principal, deducting nothing beyond an administrative fee of up to 10%. For most unsecured loans, you then have three business days to cancel at a reduced cost. After that, the lender must issue a receipt for every repayment, send you a free statement of account every half-year, and never keep your NRIC or other identity documents.
Your rights at a glance
Your rights run from the day the money is paid out to your final repayment. The table below sets out what a licensed moneylender must do at each stage, and what you should check on your side.
| When | What the lender must do | What to check |
|---|---|---|
| Before the money is paid out | Give you a signed copy of the Note of Contract, with its terms explained in a language you understand | You have your own copy, and you understood it before signing |
| When the money is paid out | Pay the full principal, less an administrative fee of no more than 10% | The amount received matches the contract |
| Within three business days of payout | Let you cancel an unsecured loan (other than a business loan) at a reduced cost | Decide within the window if you want to cancel |
| Throughout the loan | Do not keep your NRIC or other identity documents, and never ask for your SingPass details | Nothing of yours is being held |
| Every repayment | Issue a receipt immediately for cash payments | Your name, the amount and the date are correct |
| By 21 January and 21 July | Send a free statement of account for the half-year just ended | Your name, the amounts and the dates are correct |
Current as of October 2026. Sources: Moneylenders Act 2008, sections 33 and 34; Registry of Moneylenders — FAQs on Borrowing from Licensed Moneylenders (page updated 30 September 2026). The cooling-off period applies to unsecured loans other than business loans paid out on or after 15 September 2026.
You should receive the full principal, less one fee
The amount that reaches you must match the principal in your Note of Contract, minus an administrative fee of no more than 10%. That fee is the only deduction a licensed moneylender may make upfront, and the Registry of Moneylenders is explicit that no part of the principal may be withheld for any other reason.
Check this on the day the money arrives. On a S$5,000 loan, the most that can be deducted is S$500, so at least S$4,500 should reach you. If S$4,300 arrives instead, S$200 has been withheld, whatever it’s called, and that isn’t permitted. Raise it straight away and keep a record of what you received.
You should also have your own copy of the Note of Contract, signed by the lender and handed to you before or when the loan is paid out. If you didn’t receive one, ask for it. Our note on disclosure requirements explains what the contract must tell you.
You can cancel within three business days
For unsecured loans other than business loans paid out on or after 15 September 2026, you have a cooling-off period of three business days to cancel at a reduced cost. The day the loan is paid out doesn’t count, and neither do Saturdays, Sundays or Singapore public holidays. Loans paid out before 15 September 2026 aren’t covered.
If you cancel, you repay the principal you actually received, plus part of the loan approval fee that was deducted upfront. The lender can keep at most S$50 of that fee on a loan of S$5,000 or less, or 3.5% of the principal on a larger loan, and never more than the fee you paid. No interest is charged, and the lender can’t charge you anything else.
In practice, a S$5,000 loan with a 10% fee pays out S$4,500, so cancelling costs you at most S$4,550. An S$8,000 loan with the same fee pays out S$7,200, and the most you’d repay is S$7,480, since 3.5% of S$8,000 is S$280.
A licensed moneylender must allow a valid cancellation; refusing is a breach you can report to the Registry. Once the three business days pass, the loan continues on its original terms.
Your identity documents stay with you
A licensed moneylender may check your identity documents, but it may not keep them. That covers your NRIC, passport, driving licence, work permit, employment pass and ATM card, and the rule applies for the whole life of the loan, not just at signing. Nor may a lender ask for your SingPass user ID or password.
Holding on to your NRIC “until the loan is repaid” isn’t allowed, whatever reason is given. If it happens, report it to the Registry of Moneylenders.
A receipt for every repayment
Every time you make a repayment, a licensed moneylender must give you a receipt. If you pay in cash, the receipt must be issued immediately, in English, showing the lender’s business name, address and phone number, the amount paid and the date. Receipts for other payment methods must be provided within a time limit set under the Moneylenders Rules.
Check each one when you get it; a wrong figure is far easier to fix on the day it’s issued.
A free statement of account every half-year
On top of receipts, a licensed moneylender must send you a statement of account for every half-year ending 30 June and 31 December, no later than 21 days after each date. In practice, that means a statement by 21 July and another by 21 January. Each one must be free of charge and in English.
Statements go by prepaid post to the Singapore address you’ve specified, or by email, unless you’ve agreed another method in writing. A loan granted in March should produce its first statement by 21 July; if one doesn’t arrive, ask for it.
You can also apply in writing for an extra statement covering a period you choose, or a copy of any document relating to your loan, for a processing fee of S$10. The lender must supply it within 21 days.
These duties have teeth. Under the Moneylenders Act, a lender that fails to provide statements or receipts as required isn’t entitled to enforce payment of the interest, late interest and fees on the loan. Keep every receipt and statement; if a dispute arises, they’re your proof of payment.
Repayment terms can be changed by agreement
Your repayment schedule isn’t necessarily fixed for the life of the loan. Borrowers and licensed moneylenders can mutually agree to restructure repayments, whether that means paying instalments earlier to reduce interest or extending the loan tenure to lower each instalment and avoid late fees. The key word is mutual: you aren’t automatically entitled to a change, so it has to be agreed with your lender.
Repaying early can save you money, because interest is calculated on the outstanding principal rather than the original amount. There’s no general right to settle early, though. If your lender does agree, it still can’t add a charge outside the permitted fees. Under the Moneylenders Act, such a charge can’t be recovered from you, and demanding one without reasonable excuse is an offence.
If repayments are becoming hard to manage, speak to your lender early. The Registry of Moneylenders can’t negotiate for you, since restructuring is a private contractual matter, but you can negotiate directly or through a lawyer or social service agency. MinLaw encourages lenders to refer borrowers in difficulty to such an agency, and Credit Counselling Singapore is one that can help.
How to complain if a lender breaks the rules
If a licensed moneylender withholds part of your loan, keeps your identity documents, overcharges you, refuses a valid cancellation or breaks any of the rules above, you can lodge a report with the Registry of Moneylenders or call it on 1800-2255-529. The Registry won’t disclose your details to the moneylender without your consent.
Include the documents that support your complaint; the Registry’s officers may contact you for more or arrange an interview. If a moneylender has engaged in an unfair practice towards you, you can also consider pursuing the matter in court under the Consumer Protection (Fair Trading) Act, and the court has the power to set aside loan transactions that are exorbitant or substantially unfair.
Debt collection has limits too. A licensed moneylender may take reasonable steps to recover what it’s owed, such as asking for repayment or taking legal action, and approaching you at home or at work doesn’t necessarily break the law. Vandalism, violence and threats do. If you’re harassed while a debt is being collected, lodge a police report as well as informing the Registry; for an unlicensed lender, call the X-Ah-Long hotline at 1800-924-5664. Our guide to protection from moneylender harassment has more.
Guarantors have rights too
If you’ve agreed to stand as a surety, or guarantor, for someone else’s loan, the same core protections apply to you. You should receive a copy of the Note of Contract when the loan is granted and have its terms explained in a language you understand. A licensed moneylender may not keep your NRIC or other identity documents, or collect passwords to your SingPass, internet banking or email accounts.
Your side of the agreement
These protections come with an obligation of your own: a loan contract with a licensed moneylender is legally binding, so borrow only what you can repay on schedule. Paying on time also keeps late charges off your account; our guide to what a licensed moneylender can charge sets them out.
If you want to stop taking new unsecured loans altogether, the Moneylenders Credit Bureau runs a voluntary self-exclusion scheme, lasting a minimum of one or two years for Citizens and PRs, and two years for foreigners. And you can confirm any lender’s licence at any time on the Ministry of Law’s list of licensed moneylenders in Singapore.
Frequently asked questions
How much of my loan should I receive from a licensed moneylender? The full principal in your Note of Contract, less an administrative fee of no more than 10%, as of October 2026. That fee is the only permitted upfront deduction, so on a S$5,000 loan, at least S$4,500 should reach you. No other part of the principal may be withheld.
Can I cancel a licensed moneylender loan after it’s paid out? Yes, for unsecured loans other than business loans paid out on or after 15 September 2026. You have three business days to cancel. You repay the principal you received plus part of the loan approval fee: at most S$50 on loans of S$5,000 or less, or 3.5% of larger loans. No interest is charged.
Can a licensed moneylender keep my NRIC until I’ve repaid the loan? No. A licensed moneylender in Singapore may not retain your NRIC or any other personal identity document, such as your passport, driving licence, work permit, employment pass or ATM card, at any stage of the loan. It also may not ask for your SingPass user ID or password.
How often should a licensed moneylender send me a statement of account? Every half-year. A licensed moneylender must send a free statement for each half-year ending 30 June and 31 December, within 21 days, so by 21 July and 21 January. You should also receive a receipt for every repayment. Keep both as evidence of what you’ve paid.
Can I repay a licensed moneylender loan early? Only if your lender agrees. Borrowers and licensed moneylenders can mutually agree to restructure repayments, including repaying earlier to reduce interest, which is charged on the outstanding principal. There’s no automatic right to settle early, but a lender can’t add any charge outside the permitted fees.
Will a moneylender find out if I complain to the Registry? The Registry of Moneylenders states that it will not disclose your details to the moneylender without your consent. You can lodge a report online or call 1800-2255-529, and the Registry’s officers may contact you for more information or to arrange an interview.
