If your door has been splashed with paint, if you are receiving calls through the night, or if someone has posted your photograph in a WhatsApp group demanding payment, read the reporting section first.
Call the Police at 999 in an emergency, or the X-Ah Long hotline at 1800-924-5664 to report unlicensed moneylending and harassment.
Everything below explains what the law says about your position, what harassers count on you believing, and the steps that actually end the situation. It is written for the person receiving the calls, not for a general audience.
What Singapore law says about an unlicensed loan
Lending money in Singapore without a licence is a criminal offence under the Moneylenders Act 2008. It is not a grey area and it is not lightly punished.
For a first offence of unlicensed moneylending:
- Imprisonment of up to 4 years
- A fine of not less than S$30,000 and not more than S$300,000
- Caning of not more than 6 strokes
For second and subsequent offences:
- Imprisonment of up to 7 years
- A fine in the same range
- Caning of not more than 12 strokes
For harassment carried out on behalf of an unlicensed moneylender:
- Imprisonment of up to 5 years
- A fine of S$5,000 to S$50,000
- 3 to 6 strokes of the cane
The people making those calls are exposed to that. You are the witness, not the target of the offence they have committed.
The four things harassers rely on you believing
“You will get into trouble if you report.” Borrowing from an unlicensed lender is not what the enforcement effort targets. The Police and the Registry of Moneylenders want the lenders and the runners. The public is expressly encouraged to call and report.
“Your family will be told.” Threatening to expose you to employers, family or neighbours is a standard pressure technique and it is part of the harassment offence, not separate from it.
“The debt keeps growing so there is no point stopping.” Unlicensed lenders escalate figures arbitrarily precisely because there is no cap and no contract that will survive scrutiny. Paying more does not stabilise the amount. It confirms that pressure works.
“You cannot go to the Police because you took the money.” This is the belief that keeps people in the situation for months. It is also the one that costs the most.
What to do, in order
- Prioritise physical safety. If there is damage to property, anyone at your door, or any threat to a person, call 999. Do not attempt to reason with anyone at your home.
- Report the unlicensed moneylending. Call the X-Ah Long hotline on 1800-924-5664, or make a police report. You may also report online through the Police e-services.
- Preserve evidence before you block anyone. Screenshot every message with the number and timestamp visible. Photograph any property damage. Note dates and times of calls. Keep transfer records showing what you paid and to whom. Evidence is what converts a report into a case.
- Stop paying, on advice. Do not make further payments once you have reported, other than as directed by the authorities. Continued payment sustains the enforcement pressure and rarely reduces the demand.
- Never hand over your bank account, ATM card, SingPass or NRIC. This is the single most damaging thing a borrower does under pressure. Allowing your account to be used to receive or move funds can expose you to serious offences in your own name, including money laundering. Syndicates recruit borrowers into this role deliberately. Do not agree to it, even to “clear the debt”.
- Warn your household. Tell family members not to engage with anyone who calls or comes to the home, and to report rather than respond.
- Deal with the underlying money problem separately. Reporting stops the harassment. It does not pay next month’s rent. That is the next section.
How people end up here, and how to not go back
Almost nobody approaches an unlicensed lender first. They approach one after a bank declines them, after a licensed lender’s cap turns out to be lower than the amount they needed, or after an unsolicited SMS arrived at the exact moment they were desperate.
That last one is worth committing to memory, because it is the clearest signal available to you.
Licensed moneylenders in Singapore are not permitted to advertise by SMS, flyers, email or social media. They may only advertise in business directories, on their own websites, and at their business premises. If you received an unsolicited loan offer by text or through a messaging app or social platform, it was not from a licensed lender. There is no exception to this rule.
Other things a licensed moneylender is not allowed to do:
- Retain your NRIC card or any other personal identification document
- Ask for your SingPass user ID or password
- Ask you to sign a blank or incomplete contract
- Grant a loan without explaining the terms and giving you a copy of the contract
- Withhold any part of the principal, for example by deducting fees so you receive less than the agreed loan amount
- Use abusive language or threatening behaviour
Any one of these is a red flag serious enough to walk away from.
Before borrowing from anyone, check the lender against the Ministry of Law’s public list of licensed moneylenders. Our guides on how to identify a legal money lender and questions to ask a licensed moneylender in Singapore set out exactly what to verify, and our lender verification and scam awareness quiz is a fast way to test whether you would spot the difference under pressure.
What a legal loan is actually capped at
One reason unlicensed lenders keep finding borrowers is that people do not know what the legal ceiling looks like, so they cannot tell when they are being overcharged.
Every licensed moneylender in Singapore operates under the same statutory caps:
| Charge | Legal maximum |
| Interest | 4 per cent per month |
| Late interest | 4 per cent per month, on the amount repaid late |
| Late fee | S$60 per month |
| Upfront administrative fee | 10 per cent of the principal, charged when the loan is granted |
| Total of all charges on a loan | Cannot exceed the principal of the loan |
There are also borrowing limits for unsecured loans. Singapore Citizens and Permanent Residents with an annual income below S$20,000 may borrow up to S$3,000 in aggregate from all licensed moneylenders combined. Those earning S$20,000 or more may borrow up to six times monthly income, again in aggregate across all licensed moneylenders. Different tiers apply to foreigners residing in Singapore.
If a lender quotes you anything above those caps, or tells you the caps do not apply to your situation, you are not dealing with a licensed lender. For the full framework see our comprehensive guide to Singapore’s Moneylenders Act and what to know before borrowing from Singapore licensed money lenders.
If the real problem is that you cannot afford your debts
Harassment is the emergency. Debt is usually the cause. Once the immediate situation is reported, deal with the underlying position rather than waiting for it to resurface.
- Credit Counselling Singapore provides assistance to individuals with unsecured debt and can work with participating creditors on a repayment programme.
- A bank Debt Consolidation Plan may apply if your total unsecured debt exceeds 12 times your monthly income and you meet the income and residency criteria.
- A licensed moneylender loan is a regulated option with capped charges when you need a defined sum with a fixed repayment schedule and do not meet bank criteria.
- Our own guides on smart ways to manage personal debt in Singapore and two methods to quickly pay off your outstanding debt set out practical repayment approaches.
FAQ
How do I report a loan shark in Singapore?
Call the Police at 999 in an emergency, or the X-Ah Long hotline at 1800-924-5664 to report unlicensed moneylending and harassment. You may also make a police report in person or through the Police online reporting channels.
Will I be charged for borrowing from an unlicensed moneylender?
Enforcement is directed at unlicensed lenders and those who harass on their behalf. Members of the public are encouraged to report. Seek independent legal advice about your own position if you are concerned.
Do I still have to repay a loan from an unlicensed moneylender?
Loan contracts made by unlicensed moneylenders are not enforceable in the way a licensed lender’s contract is. Do not rely on a general article for your specific position. Report first, then seek legal advice.
What is the penalty for unlicensed moneylending in Singapore?
For a first offence, imprisonment of up to 4 years, a fine of between S$30,000 and S$300,000, and caning of up to 6 strokes. Harassment on behalf of an unlicensed moneylender carries up to 5 years’ imprisonment, a fine of S$5,000 to S$50,000, and 3 to 6 strokes of the cane.
Can a licensed moneylender text me a loan offer?
No. Licensed moneylenders may only advertise through business directories, their own websites, and their business premises. An unsolicited SMS, WhatsApp message, email or social media offer is not from a licensed lender.
What if they threaten to tell my employer or family?
That is part of the harassment offence. Preserve the messages as evidence and report. Do not pay to prevent disclosure, because payment confirms that the threat works.
They asked for my ATM card to “settle the loan”. Should I?
No. Never hand over your bank account, ATM card, SingPass credentials or NRIC. Allowing your account to be used can expose you to serious criminal liability in your own name.
