Can’t Afford Your Moneylender Repayment? What Should You Do First?

If you cannot make this month’s repayment to a licensed moneylender, contact the lender before the due date, ask for a statement of account, and check the payment dates in your Note of Contract. What a licensed moneylender may charge you is capped by law, and those caps do not change because you have fallen behind.

What should I do first if I can’t afford my moneylender repayment this month?

Contact the licensed moneylender before the due date and tell them what you are able to pay. Ask for a statement of account so you know the exact outstanding balance. Do not take a new loan to cover the old one. Interest and fees charged by licensed moneylenders in Singapore are capped by law, as of September 2026, so the amount owed cannot grow without limit.

A workable order:

1. Contact the lender before the due date. The conversation is easier before a payment is missed than after.
2. Ask for a statement of account. You cannot negotiate a figure you do not know.
3. Work out what you can realistically pay after rent, food, utilities and transport.
4. Get any revised arrangement in writing.
5. Stop taking new loans. A second lender is where most repayment problems become unmanageable.

What counts as “late” — does being one day late trigger late interest and the late fee?

Singapore’s moneylending rules do not set a general statutory grace period. Under the Moneylenders Rules, a licensed moneylender may charge late interest only on an amount that has already fallen due and remains unpaid. Once a payment is overdue, late interest of up to 4% per month may apply to it, and a late fee of up to S$60 for each month of late repayment may apply, as of September 2026. Your Note of Contract sets the payment dates.

How do I get a statement showing exactly how much I still owe right now?

Licensed moneylenders in Singapore must give you a copy of the Note of Contract, issue a receipt for every repayment, and provide a statement of account at least once every January and July, as of September 2026. If you do not know your balance, ask for a statement in writing before discussing any change to your payments.

How much can a licensed moneylender legally charge me in late fees and late interest?

As of September 2026, a licensed moneylender in Singapore may charge interest of at most 4% per month, late interest of at most 4% per month, a late fee of at most S$60 for each month of late repayment, and an administrative fee of at most 10% of the principal when the loan is granted. Court-ordered legal costs may be imposed where recovery through the courts succeeds. Nothing else may be charged.

Overall ceiling: total interest + late interest + administrative fee + late fees can never exceed the principal amount of the loan.

These limits come from the Moneylenders Act and the Moneylenders Rules, and are published by the Registry of Moneylenders, Ministry of Law.

Is late interest charged on my whole outstanding loan, or only on the instalment I missed?

Late interest may be charged only on the amount that has fallen due and remains unpaid. A licensed moneylender in Singapore cannot charge late interest on the part of your loan that is not yet due. Miss one instalment on a twelve-month loan and late interest applies to that instalment, not to the full outstanding balance.

Is there a limit to how much my debt can grow if I keep missing payments?

Yes. The total of interest, late interest, the administrative fee and late fees charged by a licensed moneylender can never exceed the principal amount of the loan, as of September 2026. On a S$3,000 loan, those charges cannot exceed S$3,000 in total, however long the loan runs. Court-ordered legal costs sit outside that ceiling.

Can I negotiate or restructure my repayment plan with a licensed moneylender in Singapore?

You can ask. A licensed moneylender is not required to agree, and any revised arrangement is subject to the lender’s assessment of your income, existing loans and repayment ability. Contact the lender early, explain what changed, and say what you can pay, with your statement of account and proof of current income in hand. Nothing obliges a lender to waive charges already incurred — what is worth asking about is the shape of the remaining repayments.

If I extend my loan tenure to lower my monthly instalment, do I pay more in total?

Usually yes. A longer tenure lowers the monthly instalment but leaves principal outstanding for longer, and interest is charged on the principal outstanding each month. The illustration below uses a S$3,000 loan at the 4% monthly cap, reducing balance, equal monthly instalments, no late payments.

Doubling the tenure cuts the instalment by about S$253 a month and adds about S$402 in interest. This is an illustration; your figures depend on your contract, loan amount, quoted rate and any administrative fee. If the shorter tenure is why you are missing payments, the longer one may still be the better choice — make it knowing the cost.

What actually happens if I miss or default on a licensed moneylender loan?

Late interest and a late fee may be charged within the legal caps, and the lender may take reasonable steps to recover the debt — contacting you and, if it remains unpaid, taking legal action. Your repayment information is submitted to the Moneylenders Credit Bureau (MLCB), which licensed moneylenders check when assessing new applications.

MLCB is not Credit Bureau Singapore. MLCB holds repayment information for licensed moneylender loans; CBS is the bureau for bank credit. Repayment history forms part of a creditworthiness assessment, so missed payments may affect a future application. The rules set no fixed sequence — what happens, and how fast, depends on the lender and the size of the debt.

I’m on a work pass — can defaulting affect my pass or involve my employer?

The Ministry of Manpower’s published enforcement material on moneylending addresses borrowing from unlicensed moneylenders, which carries work pass consequences. There is no published MOM rule stating that default on a licensed moneylender loan, by itself, cancels a work pass — which is not a guarantee that debt problems carry no employment consequences. A licensed moneylender may contact a borrower at their workplace as part of reasonable recovery steps.

Can a licensed moneylender take legal action, garnish my salary, or make me bankrupt?

A licensed moneylender in Singapore may take legal action to recover an unpaid debt, and where recovery through the courts succeeds, court-ordered legal costs may be added. Beyond those costs, nothing may be charged above the capped interest and fees. A bankruptcy application may be filed against a person unable to repay a debt of at least S$15,000, as of September 2026, subject to the statutory requirements. That is the level at which an application may be filed — a court process, not an automatic outcome.

Should I take another loan to cover the one I can’t pay?

Borrowing again to cover a repayment you cannot afford usually increases what you owe rather than solving the shortfall. There is also a legal limit: unsecured borrowing caps apply across all licensed moneylenders combined, not per lender, and are checked through MLCB when you apply.

Secured loans have no prescribed borrowing cap.

Can I stop myself from taking any more moneylender loans while I clear this one?

Yes. The MLCB self-exclusion scheme blocks you from taking new unsecured loans from licensed moneylenders. Singapore Citizens and PRs choose a minimum of one or two years; for foreigners the minimum is two years, as of September 2026. Qualifying debt-consolidation loans are the exception. The exclusion continues after the minimum period until you withdraw from the scheme.

Who can I turn to for help if I genuinely can’t pay?

Several organisations in Singapore provide debt counselling and support, including for licensed moneylender debt. Some services carry a fee, so ask each organisation directly. You can also call the Registry of Moneylenders on 1800-2255-529.

Credit Counselling Singapore runs a Moneylender Debt Management Programme and may assist borrowers with licensed moneylender debt where there is also qualifying bank or credit card debt, subject to its assessment. Where CCS submits a debt management proposal to creditors, a non-refundable fee of S$50 to S$250 applies, as of September 2026.

How do I tell a licensed moneylender from a loan shark when I’m being chased for payment?

Check the name against the Ministry of Law’s list of licensed moneylenders. A licensed moneylender must not retain your NRIC or other identity document, and will never ask for your SingPass ID or password. Licensed moneylenders may advertise through three channels only: business or consumer directories in print or online, their own websites, and advertisements on or within the exterior of their approved business premises.

An unsolicited SMS or flyer offering a loan is therefore not a permitted advertisement. It points to either a licensed moneylender breaching the advertising rules or an unlicensed lender. Do not reply, and do not send documents.

Approaching a borrower at home or at their workplace is not in itself an offence. Vandalism, violence, threatening words and threatening behaviour are not permitted and should be reported to the Police. For unlicensed moneylending or harassment, call the X-Ah Long hotline on 1800-924-5664. To report a licensed moneylender, contact the Registry of Moneylenders on 1800-2255-529 and keep your records as evidence.

Borrowing responsibly. A loan is a cost, not a solution to a shortfall in income. Borrow only what you can repay from what you actually earn, read the Note of Contract before signing, and check any lender’s licence first. If your repayments are already unaffordable, more credit will not fix that.

Frequently asked questions

Will missing a payment to a licensed moneylender show up on my credit report?

Licensed moneylenders in Singapore submit loan and repayment information to the Moneylenders Credit Bureau (MLCB) and must obtain a credit report before granting a loan. MLCB is separate from Credit Bureau Singapore, which covers bank lending. Repayment history forms part of a creditworthiness assessment, so missed payments may affect future applications to licensed moneylenders.

Can a licensed moneylender contact my office or tell my family about my debt?

A licensed moneylender in Singapore may take reasonable steps to recover a debt, and approaching a borrower at their residence or place of employment is not, in itself, an offence. Vandalism, violence, threatening words and threatening behaviour are not permitted. Report harassment or criminal conduct to the Police, and to the Registry of Moneylenders on 1800-2255-529.

Can I settle my loan early or pay a lump sum to close it?

Interest is calculated on the principal outstanding each month, so an early payment that reduces the principal reduces the interest charged afterwards, as of September 2026. For ordinary personal loans, the permitted charges do not include an early-redemption fee. How a lump sum is allocated across overdue amounts, interest and principal follows your contract and statement of account.

What if I owe money to three or four different licensed moneylenders at once?

The unsecured borrowing cap applies across all licensed moneylenders combined, not per lender, and is checked through MLCB when you apply. As of September 2026, Singapore Citizens and PRs earning below S$20,000 a year may borrow at most S$3,000 in total. If you are already at the cap, speak to a debt counselling organisation rather than applying again.

Can a bank Debt Consolidation Plan clear a licensed moneylender loan?

A bank Debt Consolidation Plan is an industry refinancing programme for qualifying unsecured debts held with participating banks and financial institutions. It is not a mechanism for repaying licensed moneylender loans. That debt is handled separately — through a debt consolidation loan from a licensed moneylender, or Credit Counselling Singapore’s Moneylender Debt Management Programme where the borrower qualifies.

How do I report a licensed moneylender to the Registry of Moneylenders?

Report a licensed moneylender to the Registry of Moneylenders, Ministry of Law, through the reporting channel on the Registry’s website or by calling 1800-2255-529, as of September 2026. Keep receipts, messages, contracts and statements as evidence. For unlicensed moneylending or harassment, call the police X-Ah Long hotline on 1800-924-5664 instead.

Is Credit Counselling Singapore free?

Not entirely. Credit Counselling Singapore provides debt counselling and runs debt management programmes, and where it submits a debt management proposal to creditors, a non-refundable fee of S$50 to S$250 applies, as of September 2026. Ask CCS directly what applies to your case, on 6225 5227 or 6338 6586.

Verify any moneylender’s licence

Check the name against the Ministry of Law’s list of licensed moneylenders before you deal with anyone. SGP CREDIT SINGAPORE PTE. LTD. appears on that list under Licence No. 10/2026 (Registry list as of 1 May 2026).

Speak to us about your repayment

If you have a loan with us and this month’s repayment is a problem, contact us before the due date and tell us what you can pay. We will review your situation and let you know what options may be available. Any revised arrangement is subject to our assessment of your income, existing loans and repayment ability.

SGP CREDIT SINGAPORE PTE. LTD. Licence No. 10/2026 133 Jurong Gateway Road, #01-295, Singapore 600133 Tel: 6466 1157

Licensed by the Registrar of Moneylenders, Ministry of Law. We are a licensed moneylender, not a bank.

Sources

• Registry of Moneylenders, Ministry of Law — FAQs on Borrowing From Licensed Moneylenders
• Registry of Moneylenders — List of Licensed Moneylenders in Singapore
• Singapore Statutes Online — Moneylenders Act 2008 and Moneylenders Rules
• MoneySense — Managing debt: What can you do?
• Credit Counselling Singapore — ccs.org.sg
• Moneylenders Credit Bureau — mlcb.com.sg

Tahsin Islam

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